While tourism industry officials had expected the Olympics to be a boon to their pockets, international tourists seem to be avoiding the French capital this summer. Air France and its low-cost carrier Transavia France announced in a statement on July 1 that they expect the Olympics to reduce their revenues this summer. “There is a clear trend to avoid Paris in international markets,” the statement read. This avoidance can be explained by possible traffic congestion, limited access to tourist sites and restrictions regarding security measures. In addition, the risk of attacks, which worries tourists especially from Asia and the United States, also strengthens this hesitation. Locals also seem to be postponing their holidays until after the Olympics or considering alternative travel. According to the Air France-KLM group, the number of trips from Paris to other destinations has also decreased compared to the usual average from June to August. In terms of numbers, the Air France-KLM group’s revenues this summer may be reduced by 160 to 180 million euros.
Property owners who had hoped to rent out their properties for a high price during the Olympics are similarly disappointed. Unfortunately, average rental prices continue to plummet. According to statistics provided to Capital by the Optirental Group, which specializes in the commercialization of furnished rental properties for tourists, the price of rental properties for tourists has actually fallen by 11% in Paris. Why? Because the market is forced to regulate prices due to increased supply, and demand is low. Airbnb also acknowledges this trend: “As expected, the increased supply during the Olympics will regulate prices.” Luxury travel agency Global Travel Moments also reports that its clients are postponing trips to Paris due to safety concerns and high costs exacerbated by the early elections. The economic powerhouse promised by the Olympics seems far away…
