Zermatt is famed as a ski resort and as a general tourist destination. Until the mid-19th century, it was predominantly an agricultural community — its name, as well as that of the Matterhorn itself, derive from the alpine meadows or matten in the valley. In the Geran language, the town is "Zur Matte", or "in the meadow", hence the name. It was "discovered" mid-century by British mountaineers, most notably Edward Whymper, whose conquest of the Matterhorn made the village famous worldwide. Zermatt is a closed village, which means that non-Swiss nationals are not permitted to buy property within the area. Traditionally May heralds the beginning of the construction season, and this contributes towards May being possibly the worst time to visit, as, during this month only, large trucks are permitted to trundle through the town, turning all of the roads into rivers of mud.

There are several distinct "suburbs" within Zermatt , and the largest of these organise summer street parties, where the local shops, restaurants and bars contribute towards large communal events. Notable parties include the Steinmatte (held in late August), and the Winkelmatten (held in September). Winkelmatten itself was once a separate small hamlet, but as Zermatt has grown it has become incorporated within the greater conurbation. This area is rather hopefully marketed as the " Beverley Hills " of Zermatt, and a number of large (for Zermatt ) residences have sprung up here recently. As Zermatt attracts visitors nearly all year round, the tourist office works hard to make sure that events are scheduled all summer, and examples of this include celebrations for Swiss national day in August, and a music festival held in September.