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ANALYSIS: How will the loss of British tourists affect France’s economy this summer?

A strict ban on non-essential travel from the UK has put paid to French tourism bosses' hopes of welcoming British tourists back to l'Hexagone in the weeks to come.

ANALYSIS: How will the loss of British tourists affect France's economy this summer?
Photo: Raymonf Roig/AFP

Since May 31st, only essential travel from the UK to France has been allowed over fears of the newly-renamed Delta variant of Covid first discovered in India.

At present there is no end-date to these restrictions and everything depends on the health situation in the UK.

It’s news that the French tourism industry – which contributes 9.7 percent of the country’s GDP – could well do without. 

As director of the Office de Tourisme Provence Occitane said a couple of weeks before the travel ban was imposed: “We love British tourists in France and Provence. We are waiting for them with impatience.”

So how much of a hit will this be to the French economy?

It’s often quoted that almost 10 percent of France’s GDP derives from tourism, but while this is true international tourism accounts for just 30 percent of that figure – the rest is taken care of by French people going on holiday in their own country with the traditional month-long August break a big economic driver.

According to tourism body Atout France, around 13 million Britons visited France in 2019. They spent an average of 6.5 days in France, and spent €6 billion.

Looking back to the pre-pandemic year of 2019, EU countries accounted for 69 percent of all international arrivals in France, with the United Kingdom (which was then still counted as part of the EU) Germany and the Benelux countries making up 46 percent of those.

France is Britons’ second-favourite destination, after Spain, and the top destination for short skiing breaks.

Figures for 2020 are not yet available, but forecasts unsurprisingly expect a large fall because of Covid-19, although travel between the UK and France was open over the summer with restrictions in place.

Going back a couple of years, between 2017 and 2018, British tourists were responsible for almost 2 million stays in Paris alone.

Statistica reported that British tourists spent €5.77 billion in France in 2017 – up from €4.72 billion the previous year – representing a sizeable chunk of the €62 billion in receipts from international tourism. 

ALSO READ: Reader question: Can I travel to France if I am fully vaccinated?

What about tourists from other countries?

Although the British market is clearly important, French tourism is not entirely reliant on British visitors.

France is the world’s most popular tourist destination – welcoming more than 90 million visitors in 2019 alone.

But an estimated 60 to 70 percent of its tourism revenue is generated by domestic tourism, meaning it is rather less dependent on vast holiday crowds from abroad flocking to its beaches in search of sun, sea and pastis.

In 2015, French tourists spent €7.2 billion on package holidays in France, and that’s not counting the many French people who have a second home in the country or by the sea where they spend holiday periods and spend their money in resort bars, restaurants and shops. 

Change in direction

Prior to the pandemic, France was already courting a different tourist demographic.

ALSO READ: IN NUMBERS: How important are American tourists to France?

US and Chinese tourists with money to burn were the ones increasingly booking up Paris’s high-end hotels and packing out the capital’s designer stores.

Though numbers were small compared to EU visitors – 10 percent of all tourists in 2019 came from the Americas and 6.8 percent from Asia – the amounts they were spending made them valuable.

France will be especially keen to get them back as early as possible and is pushing to allow fully-vaccinated tourists from non-EU countries from June, if the health situation permits.

ALSO READ: Reader question: Can I use my American vaccination certificate to enter France? 

But they will have to work harder to attract them, with other nations’ tourist bosses increasingly setting their sights on quality over quantity in a post-Covid world

What does the tourist industry think of the UK travel ban?

Those involved in the French tourism industry are very aware that losing British visitors for a second year will hurt, and have already called for government help.

“It’s reasonable in terms of saving the French summer but will be very punishing for regions that depend on British holidaymakers,” Ge Kusters, owner of Le Paradis campsite in the Dordogne area and president of the regional campsite union, told Reuters.

“More financial support will have to follow.”

There is no denying the pandemic hit on the tourism industry has been brutal. 

According to the country’s national statistics agency, Insee, hotel stays dropped 65 percent in the Paris region alone in 2020. The Grand Est region suffered the second-biggest drop of 51 percent – also the national average.

Luxury hotels bore the brunt of the downturn because the number of international visitors dropped off a cliff.

In the second half of 2020, the decrease in the number of overnight stays reached 60 percent in four and five-star hotels, compared to an average of 45 percent in other categories.

And while overseas visitors to France fell 56.6 percent in 2020, that figure was offset slightly by just an 8.1 percent dip in French folk heading on holiday, which helped cushion the blow.

Many, however, chose to stay with family and friends or in second homes, rather than hotels, or B&Bs.

Member comments

  1. Missed like a broken leg. No unruly rugrats running wild in the shops and no adults acting like children.

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TRAVEL NEWS

German train strike wave to end following new labour agreement

Germany's Deutsche Bahn rail operator and the GDL train drivers' union have reached a deal in a wage dispute that has caused months of crippling strikes in the country, the union said.

German train strike wave to end following new labour agreement

“The German Train Drivers’ Union (GDL) and Deutsche Bahn have reached a wage agreement,” GDL said in a statement.

Further details will be announced in a press conference on Tuesday, the union said. A spokesman for Deutsche Bahn also confirmed that an agreement had been reached.

Train drivers have walked out six times since November, causing disruption for huge numbers of passengers.

The strikes have often lasted for several days and have also caused disruption to freight traffic, with the most recent walkout in mid-March.

In late January, rail traffic was paralysed for five days on the national network in one of the longest strikes in Deutsche Bahn’s history.

READ ALSO: Why are German train drivers launching more strike action?

Europe’s largest economy has faced industrial action for months as workers and management across multiple sectors wrestle over terms amid high inflation and weak business activity.

The strikes have exacerbated an already gloomy economic picture, with the German economy shrinking 0.3 percent across the whole of last year.

What we know about the new offer so far

Through the new agreement, there will be optional reduction of a work week to 36 hours at the start of 2027, 35.5 hours from 2028 and then 35 hours from 2029. For the last three stages, employees must notify their employer themselves if they wish to take advantage of the reduction steps.

However, they can also opt to work the same or more hours – up to 40 hours per week are possible in under the new “optional model”.

“One thing is clear: if you work more, you get more money,” said Deutsche Bahn spokesperson Martin Seiler. Accordingly, employees will receive 2.7 percent more pay for each additional or unchanged working hour.

According to Deutsche Bahn, other parts of the agreement included a pay increase of 420 per month in two stages, a tax and duty-free inflation adjustment bonus of 2,850 and a term of 26 months.

Growing pressure

Last year’s walkouts cost Deutsche Bahn some 200 million, according to estimates by the operator, which overall recorded a net loss for 2023 of 2.35 billion.

Germany has historically been among the countries in Europe where workers went on strike the least.

But since the end of 2022, the country has seen growing labour unrest, while real wages have fallen by four percent since the start of the war in Ukraine.

German airline Lufthansa is also locked in wage disputes with ground staff and cabin crew.

Several strikes have severely disrupted the group’s business in recent weeks and will weigh on first-quarter results, according to the group’s management.

Airport security staff have also staged several walkouts since January.

Some politicians have called for Germany to put in place rules to restrict critical infrastructure like rail transport from industrial action.

But Chancellor Olaf Scholz has rejected the calls, arguing that “the right to strike is written in the constitution… and that is a democratic right for which unions and workers have fought”.

The strikes have piled growing pressure on the coalition government between Scholz’s Social Democrats, the Greens and the pro-business FDP, which has scored dismally in recent opinion polls.

The far-right AfD has been enjoying a boost in popularity amid the unrest with elections in three key former East German states due to take place later this year.

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