UBC July 2024 - High-Price Country

Photo Credit: My esteemed coworker Beni

Welcome back to July's UBC. This month I'm going to be talking about cultural differences between Switzerland and the USA.

Today's topic is Switzerland's cost of living

Typically, high-cost countries are characterized by the following features:

They have a strong economy and a high average income. This includes the cost of housing, food, healthcare, education and other basic needs. Often these countries have stable and strong currencies, which also contributes to higher prices.Taxes on income, goods and services are often higher than in low-cost countries. Due to high income levels, labor costs are also higher, which drives up prices for services and goods.

Typical high-price countries often include wealthy, developed countries. Some examples are:

• Switzerland: Known for its high income levels and high cost of living, especially in cities such as Zurich and Geneva.
• Sweden: Comparatively high cost of living, especially in urban areas.
• Iceland: High prices for goods and services due to its island location and high import costs.
• Luxembourg: A small but very wealthy country with a high cost of living.
• Japan: The cost of living is very high, especially in cities such as Tokyo.
• Australia: High cost of living in large cities such as Sydney and Melbourne.
• Singapore: High cost of housing and consumer goods due to high population density and strong economy.
• United States: Certain regions, such as San Francisco, New York City and other large cities, are known for their high cost of living.

What led to these countries being at the top of this list? They have not always been so successful in the past. 

• These countries invest heavily in education and research, which leads to a highly qualified workforce and innovation.
• Political stability and efficient governance create a favorable environment for economic growth.
• Well-developed infrastructures and high technological standards support economic activity and quality of life.
• A strong social security system and an efficient healthcare system ensure a high quality of life and satisfaction among the population.
• Integration into the global economy and open markets promote trade and investment.

So what does it mean in numbers? Source: Livingcost.org 

Switzerland

USA

Something particularly caught my eye on these charts: the Human Freedom Index. What is it? And why is it higher in Switzerland than in the USA?

The HFI is a comprehensive measure of the degree of personal, civil and economic freedom in various countries around the world. The index is published annually by the Cato Institute in collaboration with the Fraser Institute and other partner organizations. It is based on a variety of indicators and covers different dimensions of freedom, such as freedom of movement, freedom of religion, freedom of assembly, freedom of expression and freedom to enter into relationships of one's own choosing. It also includes rights and freedoms that affect political life and civil society, such as the rule of law, security and protection of persons and property, access to justice and the independence of the media.

Economic freedom means being able to make economic decisions, property rights, freedom of international trade relations, taxation, regulation and the labor market.

The USA ranks below Switzerland in the Human Freedom Index (HFI), mainly due to higher incarceration rates, police violence and surveillance, as well as an expensive and inaccessible healthcare system. Political polarization and social unrest also contribute to a lower rating. Switzerland, on the other hand, benefits from strong protections for personal, civil and economic freedoms.

There we have it. 

I did promise some fun though, so here's a current overview what money can buy you in Switzerland:

Ten Franks (USD 11.25)

5.5 liters or 1.5 gallons of pasteurized milk (about 2.7% fat) at Migros or Coop, the two largest  supermarkets, will be CHF 10.18.

Hungry? In Switzerland you will get a double Big Mac for CHF 10.70. Or a decently sized soft pretzel filled with butter and ham for CHF 9.00.

A Doppio Espresso and a Cinnamon Roll or half a pound of coffee beans at Starbucks (CHF 9.50)

Twenty Franks (USD 22.50)

Public transportation: A single ride from where I live into Zurich City will cost CHF 20.20. That includes four local bus stops and one direct train ride, 22 minutes long. 

Cinema: One ticket at the movies in the city will be CHF 21.90, please. Even If you don't want snacks, you've already exceed your budget.

Got a mobile phone? The cheapest plan I know of includes unlimited phone calls, unlimited texting and 2GB data (all within Switzerland) for CHF 19.80 / month.

Fifty Franks (USD 56.25)

Fondue dinner for one person at a somewhat fancy restaurant called "le Dézaley". Here's what you'll get for CHF 48.00 a green salad, regular cheese fondue with baguette bread and a tiny glass (1.5 dl = 5 ounces) of Mont Sur Rolle, which happens to be their cheapest white wine.

Pizza Dinner, again for one person, at a nicefull service Italian restaurant: Insalata Caprese (tomato, basil, mozzarella) Pizza Prosciutto (ham) and again a tiny glass (1 dl = 3.4 ounces) of Vino Nobile (red wine) adds up to CHF 48.00 as well, oops.

The good news is: Unlike in the U.S. you're not expected to tip generously. If you were happy with your waiter, give them an extra five bucks for a dinner like above. Also sales tax is included in the price. What you see it what you pay.

One Hundred Franks (USD 112.50)

A pair of Nike Air Max adult size will be CHF 89.95 if you order them online, and on the particular website I'm looking at, they don't even charge for shipping, Hooray! 

For CHF 104 you'll get a return ticket using a steep steam cog railroad ride to the Rothorn at 2,350 meters = 7,700 feet. 

This is where you'll start: Brienz in the Bernese Oberland. Lake level is 566 meters = 1,857 feet.

This is the panorama you can expect to see. If you're lucky, they'll throw in some blue sky, too!

Two Hundred Franks

All Swiss households as well as companies have to pay a fee for radio and television. The levy is used to support the SRG, which is the Swiss public TV station, but also licensed local radio and television stations. These stations must provide certain services in order to guarantee a high-quality public service in Switzerland.

Unfortunately CHF 200 will not get you covered for an entire year, but hey, you'll get 218 days for your money ;-) The annual fee is CHF 335.

If you were surprised about the steep price for the train ticket above, you may want to invest in a "1/2-Tax" as we like to call it. With the Half-Fare Card, you travel at half price on the routes of the SBB (Swiss Railway) and most other railroads, as well as on boats and post buses. It's CHF 190 a year, so you even get some change! It'll buy you a small snack and a soda at the train station kiosk. 

If you prefer to drive a car, CHF 200 will currently buy you 107 liters (28.25 gallons) of gas. CO2 taxes were increased in order to hopefully meet environmental goals. 

Kim Wilde is going to perform in Zurich in December. Two seats plus booking fees will be CHF 194. This is moderate, compared to Taylor Swift. Preferred standing room tickets cost CHF 258.50, and I Colin, who is still under 16, did not get a discount. 

One Thousand Franks

Introducing: Epic weekend skiing in Zermatt, Switzerland! Yes, Zermatt, where the Matterhorn is!

You'll leave from my house around 6am on a Friday mid-February to take the bus and three different trains trains, one of which will take you through the Lötschberg tunnel, which is 14.km = 9 miles. The entire trip will take a bit longer than 3.5 hours. 

Zermatt is a car-free resort. You either walk or hail an electric taxi. 

I found an inexpensive chalet accommodation. It's a bed, a bathroom with a shower, a fridge and  a water kettle. That's it.  

It's located less than a ten minutes' walk from Furi, one of the major cable cars that takes you to a fantastic ski area. 

You have a general pass for every train, ski lift, gondola, you name it. It's valid Friday through Sunday, so you'll get to try most of the slopes. 

 panoramic picture to display the Gorner Glacier

Since you stay in a room with no amenities, you have to take care of your catering. 

There are some bakeries and coffee shops for breakfast, mountain restaurants for a quick plate of pasta, Rösti (hashbrowns) with bacon and eggs, warm soups and the like. 

You have some pocket money for snacks in-between.

For Friday and Saturday evening, I planned two different dinners: 

One at Restaurant Julen. He's a former professional skier, as many of the locals are. You'll get a glass of champagne and some nice food, such as tuna carpaccio, Châteaubriand, two generous glasses of Italian Cabernet and a warm chocolate cake with coffee.

The other one is, how shall I put it, more special because of its backstory. The owner got in trouble because he didn't follow protocol during the pandemic. It was quite entertaining ;-)

Anyway, here's your Raclette dinner!

At some point you'll probably appreciate a place for a nightcap, and I have you covered: on your way "home" there are plenty of cozy pubs and bars.

There's a catch, and in case you didn't notice, I'll tell you now: You probably have no ski gear whatsoever. Let's see what another CHF 1,000 will get you in terms of equipment. For that purpose we'll go to a trusted discounter.

OK. 

A pair of Rossignol all mountain skis: 449 (and that's a really good price) plus carbon sticks 99.90, a pair of ski boots, we'll go for inexpensive: 149. A mid-range prized helmet 229 (because you want to protect yourself from devastating brain injuries), a pair of gloves 39.90, the cheapest ski googles 59.90, and we've exceeded our budget already. CHF 1,027 is your total.

Plus we don't even have any appropriate clothing yet! 

Anorak and snow pants 418, thermal underwear (shirt and long johns, a double pack warm socks) 210 makes CHF 628, leaves some cash for a nice and waterproof pair of boots because you probably don't like to walk around the village wearing your ski boots all the time. You're in luck, UGGs are on sale, 235, so we even get to throw in a nice fluffy hoodie (100) and a scarf (35) for your après-ski activities. Another 1,000 gone.

Is après-ski a thing in the U.S.? After the athletic part of skiing, you go to a ski lodge for cocktails and dancing. Either that hut is up in the mountains, and you're still wearing your ski boots and overall, and getting down to the valley station while intoxicated, can be dangerous. Or you go back to your accommodation, take a shower and dress up for a fancy version of après-skiing in the village.

Either way, you have now ski gear and thermal clothes, but no money left for a drink. 

Of course you might skip the UGGs and go out in sneakers, enjoy lots of drinks, but then you'll have wet and cold feet all night long. 

Or you may say who needs Chateaubriand, I hear  there's a McD in Zermatt? Well, yeah, you could do that. But that would be sort of graceless. 

Are you still with me? Or are you in shock? I know. Skiing in Switzerland is crazy expensive. Some people rent their ski equipment either for a day, a weekend or an entire season. This is especially favorable for the kids as they outgrow their gear every year. Many families share a cabin in the mountains and cook at home. There are ways to save money, but it's still a treat. Also you have to book way in advance, having no idea what the weather and snow conditions are going to be like. 

I haven't gone skiing in almost 25 years. I'm not a good skier to begin with. I didn't learn to ski until I was 12, so I could attend school ski camps (which were a great experience, mainly for the non-athletic part, though, see après-ski). 

Hitting the mogul run with thick fog and icy snow is not my idea of fun. I want blue sky and sunshine. However, that's when ski lifts, slopes and restaurants are crowded. 

Also, quite frankly, I don't think it's worth the money. I'd rather have more travel experience for the same amount.

How about you? Do you ski? Would you enjoy this trip? Are you still in shock about the prices? Let me know below.