STSA mandated Oxford Economics to conduct a study on the shipping industry in Switzerland and the effect of the introduction of a tonnage tax. The results show that Switzerland has an important shipping sector and that the introduction of a tonnage tax would have a significant positive effect on employment and contribution to GDP.
Key findings of the study by Oxford Economics:
Ø Current situation (database 2016)Switzerland has the 11th largest operated merchant fleet in the world and 5th in Europe, comparable to that of the UK or Norway.
Ø Its operated merchant fleet comprised 812 vessels, which collectively had a gross tonnage of 42 million tons.
Ø The Swiss shipping industry directly employed 2,000 people in Switzerland
Ø Generated a CHF 2.4 billion contribution to GDP (0.4 percent of total Swiss GDP.)
Growth of Employment in Switzerland:
Ø Without the tonnage tax direct employment is projected to increase from 2’000 to 3’000 by 2027
Ø Based on other European countries’ adoption of a tonnage tax, direct employment is projected to increase from 2’000 to 9’000 by 2027 (equals x 4.5)
Growth in Direct Contribution to GDP:
Ø Without a tonnage tax, direct contribution to GDP could increase from CHF 2.4 to 4.2 billion by 2027
Ø Based on other European countries’ growth after introducing a tonnage tax, direct contribution to GDP could increase from CHF 2.4 to 11.6 billion by 2027 (equals x 5)
These results provide an excellent base to inform decision makers and the public about the shipping sector and the importance of the introduction of a tonnage tax for the continued competitiveness of the sector in Switzerland.