The Cube’s Troubled Past and the Community’s Bold Move

The municipality of Surses, Switzerland, is poised to take a significant step in revitalizing its tourism sector with a planned purchase of the Hotel Cube in Savognin. Closed since January 2022 after a series of failed attempts to relaunch, the hotel has turn into a symbol of the region’s struggles. The community approved a credit of 8.9 million Swiss francs to acquire the property and transform it into a youth hostel, with a vote of 282 to 5.

The hotel, which originally opened in 2005 with 280 beds, faced repeated closures in 2018, 2020 and 2021 before ultimately failing. The current owner, an Austrian entrepreneur, must sell by the end of March to avoid bankruptcy, a scenario the municipality is keen to prevent due to the potential damage to the region’s reputation.

From Declining Overnight Stays to a Youth Hostel Focus

The decision to pursue a youth hostel model reflects a broader shift in tourism strategies. According to Mayor Daniel Wasescha, overnight stays in the Val Surses Savognin Bivio area have decreased by 37% since 2013, falling to 76,000. The municipality hopes the revitalized Cube will attract a younger demographic and boost numbers back to over 100,000 annually.

Local tourism organizations and lift operators support the plan, believing a youth hostel will inject new energy and visibility into the destination. The project anticipates generating 370,000 Swiss francs annually with 30,000 overnight stays, though the municipality acknowledges the first year may not be profitable.

Public Investment in Private Sector: A Growing Trend?

The municipality’s intervention raises questions about the role of public funds in supporting private businesses. While some residents expressed concern about unfair competition with existing hospitality providers, Mayor Wasescha argued that the market had failed to make the hotel viable, justifying public involvement.

This situation mirrors a trend seen in other Alpine regions where municipalities are increasingly stepping in to rescue struggling hotels and infrastructure to maintain tourism appeal. The rationale is often that tourism is vital to the local economy, and preserving it requires proactive measures.

Risks and Rewards: A Calculated Gamble

The 8.9 million franc investment breaks down as 5 million for the property purchase, 3.7 million for renovations, and 200,000 francs as a contingency. The municipality has a built-in exit strategy, allowing them to terminate the agreement with the Swiss Youth Hostel Association after five or ten years if performance targets aren’t met.

Importantly, the Mayor has assured residents that the purchase will not lead to an increase in local taxes.

The Future of Alpine Tourism: Diversification and Youth Appeal

The Hotel Cube case highlights a critical juncture for Alpine tourism. Traditional models reliant on large hotels and established tour operators are facing challenges from changing traveler preferences and economic pressures.

A shift towards more sustainable, experience-based tourism, and catering to younger demographics is becoming increasingly important. Youth hostels, with their focus on affordability and social interaction, are well-positioned to capitalize on this trend. The success of the Cube’s transformation could serve as a blueprint for other struggling Alpine destinations.

FAQ

• What is the total cost of the Hotel Cube project? 8.9 million Swiss francs.
• What will the Hotel Cube be transformed into? A youth hostel managed by the Swiss Youth Hostel Association.
• When is the planned opening date for the youth hostel? By Christmas of this year.
• Will local taxes increase to fund the project? No, the municipality has stated there will be no tax increase.