Albert Schwarzenbach: How do you assess the current economic situation in the city and canton of Lucerne?
Adrian Lupart: In the summer it became clear that companies were resilient in the Corona crisis. Only half of the federal Covid-19 loans we spoke to were actually being drawn upon at the time.
Albert Schwarzenbach: But then came the second wave …
Adrian Lupart: Yes, it made an impact. Sales fell again. Difficult times began for the catering industry in particular. In winter the number of guests is smaller than in summer, when tables can be set up outside. The retail trade was also hit hard by the renewed downturn.
Albert Schwarzenbach:Who else suffered?
Adrian Lupart: The tourism. In the city hotels, sales have fallen by 60 to 70 percent since the beginning of the crisis. Suppliers are also affected by this: painters, outfitters and electricians, for example. The hotels in the mountains and in the countryside, for example in Weggis, benefited from domestic tourism. The dependency on international tourism is significantly less than in the city, which has paid off for them.
Albert Schwarzenbach: Is the Lucerne Cantonal Bank also affected by Corona?
Adrian Lupart: The financial sector in general – especially the Luzerner Kantonalbank – has come through this crisis very well so far. But of course not everyone is like that. There are many companies in Lucerne that have problems, even if these are not always existential.
Sales have generally declined, but not at a dramatic rate everywhere. Many companies have been able to build up reserves in recent years and are now drawing on this substance. But we need a quick economic recovery next year, otherwise things will soon look worse.
Albert Schwarzenbach: The majority of the Cantonal Bank belongs to the Canton and therefore has an economic task.
Adrian Lupart: We perceive. Within a few days, we paid out Covid 19 loans of CHF 250 million. The federal government is liable for loans below half a million; for loans above that, 15 percent of the risk is on our books.
In addition, on our own initiative and independently of the federal loans, we have provided an additional CHF 100 million as emergency aid for SMEs. This credit limit was quickly exhausted. We have intensified our contacts with our SME customers.
We also donated CHF 30,000 to aid organizations in Lucerne and made it easier for those affected by the corona pandemic to access crowd support via the funders.ch platform. We have also become even more active in sponsoring. Among other things, we also support this interesting blog.
Albert Schwarzenbach: How significant is the Christmas sale this year?
Adrian Lupart: Very significant. We have to do everything so that people come to town, feel good despite Corona, shop and consume. The protection concepts allow this, but of course you have to stick to it (smiles). The offer in the city of Lucerne is varied: from gastronomy to shops and culture.
Albert Schwarzenbach: But a lot is different. The Christmas markets are missing, as is the candle-drawing and open singing at the Kornmarkt.
Adrian Lupart: There are at least the Christmas lights and a few Christmas occasions. The warm Christmas atmosphere in the city center remains unique.
Albert Schwarzenbach: What are the prospects for the next year?
Adrian Lupart: The vaccine raises hopes. In 2021, the economy should actually recover after the noticeable slump in 2020. After an estimated decrease in the Christmas performance of 4.5 percent this year, our analysts expect growth of 3.5 percent in 2021.
The corona crisis is particularly hard hit by sectors such as gastronomy and retail, where every franc has to be earned hard. Many companies had to go into further debt, these debts have to be paid back.
Albert Schwarzenbach: What does Christmas mean to you?
Adrian Lupart: A lot since childhood. I travel a lot these days with my job and my family. This year we are celebrating Christmas more consciously than before. We value what we have and are grateful when we stay healthy.
I find Christmas presents in town. I love to stroll through the alleys and visit the shops, even with a mask and a distance.
How the City Association promotes downtown business, you read tomorrow in the next blog postt.
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