What could the Paris terror attacks mean for the tourism industry

The city of Paris is one of the most visited places in the world, with official tourism figures for 2014 recording that there were over 22 million hotel check-ins during 2014. The French capital boasts world-renowned attractions such as the Louvre museum, the Notre Dame cathedral and the iconic Eiffel Tower. Dubbed “The City of Light”, Paris has always welcomed tourists who themselves play a vital role in the French economy. MasterCard for instance ranked it third in its list of global visitor expenditure per city, with an estimated amount of $17.02 billion spent last year.

However, the horrific acts that were perpetrated last Friday by terrorists have again affected the Parisians, only 10 months after the similarly despicable Charlie Hebdo shootings in January. The police are still conducting operations around the city and have advised the locals to stay at home wherever possible. President Hollande quickly declared a state of emergency, which gives authorities the right to set curfews and close public spaces amongst others, and is keen to gain the necessary support from parliament to extend these measures beyond the 12-day limit.

Whilst these measures are completely understandable given the seriousness of the situation, it begs the question about what impact this may have upon the tourism industry and the people who rely on it to make a living. EasyJet reported that travel to and from France had decreased over the last few days, with a higher percentage of people missing their flights. Restaurants are likely to suffer a dip, hotels have experienced cancellations and French travel companies have seen their shares drop as more tourists cancel their planned trips.

It had previously been reported merely hours before the attacks that the French economy was looking promising after a 4-year slumber. Now it seems probable that it will suffer another blow, with tourism said to have dropped by 25% in January following the Charlie Hebdo attacks. December and the festive season is a crucial time of the year for the industry too, so the sight of closed Christmas markets alongside the cancellation of major musical concerts will be a huge worry for local businesses. The World Travel & Tourism Council estimate that tourism alone accounts for 9% of France’s GDP and 10% of their employment, highlighting its overall importance to the French.

Economists have stated that previous terror attacks had an initial impact upon the economy, but this was only temporary as locals and foreigners usually returned to their normal spending after a period of a few weeks. Philippe Waechter told the New York Times that people may at first seem shy but soon after “people will go through a period of normalisation”.

The economists’ predictions may not, however, be applicable to this case as their examples include London in 2005, Madrid in 2004 and 9/11 which are only single events. This is the second attack in the space of 12 months and could have been the third after a plot to attack a train from Amsterdam to Paris was foiled in August. Therefore, it may take longer for locals and especially tourists to revert back to normal ways as the multiple attacks may cause uncertainty to linger, especially as police operations continue.

Several attractions have since opened including the Louvre, Eiffel Tower and Disneyland Paris so businesses are still operating. The question, however, is will the city still be attractive after two devastating separate events, or will the events of last Friday prove to be too much of a threat to tourists?

deVere France would like to take this opportunity to express its sincere condolences for all those who were affected, in some way or another, by the Paris attacks last Friday.