The exorbitant cost of booking hotel rooms in Davos during the World Economic Forum (WEF) has left Swiss authorities feeling the pinch of financial strain. A recent report from the State Secretariat for Economic Affairs, highlighted by NZZ am Sonntag, reveals that room expenses in Davos during the WEF surpass government-regulated thresholds by a staggering 140% to 408%, depending on the security zones.

In response, the Swiss government is implementing cost-cutting measures, with last year’s CHF116,065 ($136,140) expenditure on overnight stays for the official delegation prompting a mandate for a smaller delegation. Some members will even be staying in Chur, 50 kilometers from Davos, for the first time. To further economize, senior officials will share rooms during the event.

Additionally, efforts to streamline the WEF experience include a reduction in side events, addressing concerns that led to threats of the forum leaving Davos in 2020. Changes in municipal regulations, as noted by WEF Managing Director Alois Zwinggi, have alleviated the issue of unrelated events proliferating alongside the WEF.

Zwinggi acknowledged the challenge of balancing WEF’s presence with the interests of Davos residents, stating, “Last year had its difficulties, but this year, we successfully communicated the long-term consequences if the situation didn’t improve. Thankfully, things are back on track, and our relationship with the hotels is returning to normal.”