Is France Doomed?
In the contemporary world marked by globalism, tourism has been one of the key drivers of the economy for some countries (large and small). Malta, Liechtenstein, St. Kitts & Nevis, Cape Verde, and Grenada are some of the small countries that pull millions of people every year with their natural and artificial attractions summing up to billions of euros in revenue. The likes of France, Germany, Italy, Portugal, Spain, and Sweden are also among larger nations with vibrant tourism sectors.
However, the COVID-19 pandemic has been a major threat to world economies and the vacationer’s dream in varying degrees. It has not only affected governmental fiscal policies, but human behaviors have also morphed into something quite interesting. People are dying in hundreds, health sectors are unimaginably overwhelmed, economies have partially locked down, and border control measures are being strictly enforced. It is the end of the familiar world, and we have all seem to accept the new normal. Nevertheless, does it herald the doom of countries like France, which are tourist havens?
Surely, there is fear, but the production of multiple vaccines has reignited hope for travelers. However, that raises further questions. For example, would a COVID-19 vaccine passport be moral considering the fact that there is unequal access to vaccination especially in inequitable societies? While vaccines save lives, many believe that a vaccine passport would infringe on individual freedom. People can still travel to wherever they want but under unique circumstances.
What it Means for France
In 2020, France was mostly abandoned as the coronavirus pandemic caused major lockdowns that grounded air traffic. This significantly reduced international and local travels for both business and leisure, incurring economic losses of more than 60 billion euros. In fact, the tourism sector in France was down by 41 %, leading to a 61 billion euros deficit, according to Jean-Baptiste Lemoyne, French Secretary of State for Tourism.
For perspective, the country welcomed more than 90 million visitors. The tourism sector makes up 8 % of the GDP and employs around two million people in direct and indirect jobs like catering and hospitality businesses. From January to July 2020, there was a 66 % dip in visits, and tourism revenue reduced by 50 %, according to AA. Meanwhile, European tourists who contributed 6 9% of France’s tourism revenue in 2019 rose to 81 % in 2020 despite the pandemic and the shortfall in international tourism. This number shows that it is not all gloomy for the French tourism sector.
AA also reports on regions mostly hit economically by the reduced international travel. Ile de France, which includes Paris recorded a shortfall of 23.1 billion euros. The Auvergne region is next with a deficit of 7.2 billion euros, while Provence-Alpes-Cote d’Azur recorded 6.7 billion euros. The Occitanie region has a 4.5 billion euros deficit to its name. While Nouvelle Aquitaine and Corsica register 4.1 billion and 800 million euros drop respectively.
For Lemoyne, the government’s 16 billion euros injected into the tourism industry along with supportive measures would suffice to help cushion the impact of the pandemic. It will take a while before international tourism improves drastically, but intra-continental travel is very much visible, and the government is throwing its weight behind it. Lemoyne thinks that European tourists do not need to cancel their holiday plans to France, especially ski vacations and other tourist facilities that are expected to open soon.
Threats to International Travels
National policies and the general posture of people certainly have a say in the acceleration of international travels to France. As of the time of writing this piece, France has vaccinated a little above 20 million people. Government rule says only those who are 55-years-old; those over 50 years old with comorbidity; those of any age with one of the specific high-risk conditions; and frontline workers in specific high-risk professions can only be vaccinated.
But calls for anti-vaccination have been loud across the nation as conspiracy theorists attempt to dissuade people. Many of the reasons these theorists give are merely emotional and not science-based, and this has seen a little lag in nationwide vaccination contrary to the aspiration of the government.
Looking closely, it is not just about online conspiracies. The vaccine skepticism is borne from a blend of deep mistrust in the government, a complicated passion for personal liberty, and a historical antecedent. It will be recalled that in 2009, the French government under Nicolas Sarkozy was mired in a vaccine scandal. Doses were bought against the “swine flu” virus to vaccinate the entire population. Despite costing more than 60 million euros, only a few hundred swine flu deaths were recorded. Several people refused the jab as they saw it as a waste of money. Today, many who are scheduled to take their jabs are reluctant to do so.
But how does this affect you? If you are planning to visit when restrictions on international travel are lifted, you can’t afford to be vaccinated, like lots of French men and women who don’t want to be vaccinated. Yes, it is a matter of personal liberty. Still, safety ought to come first, especially in the case where a highly infectious like COVID-19 is a public health problem and a headache for even the most organized systems in the world. So, not taking the vaccine might threaten your entry into France.
Impacts of Lockdown on France and Tourism
Thanks to the coronavirus, the Eiffel Tower and Louvre Museum, and other popular tourist attractions in France are now a shadow of themselves. With increasing fear of the disease and the enforcement of restrictions, these spots are deserted. Attendance and visits have significantly dropped and might remain so in the foreseeable future.
As at the time of writing this post, French president Emmanuel Macron ordered the nation into its 3rd national lockdown. That means schools would close for weeks while the government tries to push back a 3rd wave of the virus infection.
This decision won’t just affect the tourism sector; economic growth for the year might be slow. And for now, the scope of the economic impact is unknown. Still, the authorities have forecasted moderate growth in 2021. Thousands of businesses would shut down, but hopefully, the proposed European Union’s economic stimulus package would be implemented on time to mitigate existing and further risks.
How Does it All Affect Sub-sectors Like Hotel/hospitality
With persistent lockdowns imposed and restrictions on international travel, it won’t be a surprise that the occupancy rates in hotels in a place like Paris would dip. According to Hospitality ON, the occupancy rate of upscale hotels in Paris increased by 6.18 % over the time between January 1 to February 12, 2020, when compared with the same period in 2012.
Over the 43-day period, the occupancy rate was an average of 69.51 % compared to 63.06 % in 2019. But the last days of the period reveal a decline. Since February 6, 2020, a dip in activity was observed with a staggering deficit of -13.02 points of occupancy (63.87 %) on February 12. Tourist exchange slowed down considerably.
Final Thoughts
Authorities expect that the tourism industry will rebound soon as international and domestic tourists yield a whopping revenue of 111 billion euros. Popular for its art and cultural attractions that are not just limited to the legendary Eiffel Tower and Louvre Museum, the spectacular French Riviera in the south, wine and gastronomic destinations in the east, and the Alps in the southeast, France is where millions of foreign and local European and foreign tourists want to visit. So is the country doomed in light of the pandemic? Far from it.