Observers of society over many centuries have commented on the evolution and development of their own cultures. Today, in a world dominated by faceless global communication, it is very much easier to make these cultural observations. The internet makes information freely available with no real barriers (China aside perhaps), seemingly pushing humanity towards varying degrees of homogeneity.

As many cultures will end up acting the same through the inevitable social pressures of democracy, our opportunity to observe others and their micro cultures merely improves. We can travel overseas on short trips using budget airlines or capture the latest news on cable television – nothing is really that far away any more.

TCE has just returned from a family ski trip to the Valais region of Switzerland, having visited the country dozens of times since the 1980s for business and pleasure. It was on this latest trip however that an obvious behavioural shift was observed.

Switzerland has been one of the few developed countries to survive the world’s economic malaise relatively unscathed. Although the country’s reputation was severely dented as a result of the UBS failure, the private banking industry survived broadly intact. As many developed nations were forced to raise taxes in an attempt to cover budget deficits, a large number of the worlds wealthy chose to make fiscally attractive Switzerland home for themselves and their businesses.

The resulting influx of revenue to the professional Swiss service providers as well as the likes of real estate agents, hoteliers, restaurants, taxi companies, etc, came regardless of effort, ability, or quality of service.

Switzerland’s reputation for stability and fiscal prudence meant that during the economic troubles, investors fled away from less attractive currencies into the likes of the Swiss Franc (CHF). In the past three years the CHF strengthened by around 30% (a rough average). Hence the cost of everything denominated in CHF, property, restaurant meals, taxi trips, and of course unit cost of labour, rocketed in foreign currency terms. As a result, what has always been seen as an expensive country with a modest service culture in recent years has moved completely out of sync, and as a result is wholly unattractive to its European neighbours as a place for business or pleasure.

Of course price isn’t everything when the service level and quality of goods is commensurately high. However on the week long Swiss trip it was very obvious to TCE that staff in the hospitality industry at least had become complacent with seemingly little interest in providing anything but a halting service level. Things, it would seem, have simply been too easy for them; with high salaries and easy working conditions and virtually guaranteed employment.

It’s just unfortunate for Swiss businesses that for the majority of people visiting and doing business with the country (oligarchs excepted) both price and quality of service still matter.

Looking at 2011 and beyond TCE is not optimistic regarding the prospects on this aspect of Swiss culture as the Swiss themselves remain blissfully unaware, and show little interest in, how they are perceived from abroad. This isolationism lies at the centre of the problems that lie ahead for the country as a reversal of this micro cultural shift is absolutely necessary. Why should a Swiss hotelier hire locals when he can employ other hard working Europeans for considerably less money? Why should tourists visit the Valais when Austria offers a higher quality family ski trip for much less money? Have goods and services improved by over 30% in the past three years or so? – Swiss businessmen and foreign visitors must be asking themselves such questions.

Looking forward, Switzerland must be affected by deflation. The very wealthy may well not change the way they structure their economic affairs, but Switzerland is no longer an information safe haven, and the private banks fail to offer anything unique. The irony is that having had things easy, the Swiss need to brace themselves for a period of relative austerity with poor prospects for employment. In three to five years the CHF may have weakened enough (essential!), and lessons been learned, for foreigners to look at the country with interest once again.