As the world eagerly anticipates the 2024 Summer Olympics in Paris, a surprising trend is unfolding: a notable decline in tourism. Contrary to expectations of a travel boom, the city of lights is experiencing a downturn in visitors, raising questions about the impact of the games on local and international travel.
Underwhelming Tourist Influx
Despite the excitement surrounding the Olympics, several factors seem to be deterring both international tourists and local residents from flocking to Paris. The phenomenon, observed in previous Olympic host cities like London, Athens, and Atlanta, suggests that the allure of the games may not always translate into increased tourism. John Grant, chief analyst at aviation intelligence firm OAG, notes, "The local market doesn't travel during the Olympics, and regular business travel often halts."
Declining Airline Revenues
Major airlines are feeling the impact of reduced demand. AirFrance-KLM recently revised its third-quarter revenue expectations, forecasting a drop from €170 million to €150 million. The airline highlighted a notable decrease in interest for flights to and from Paris, attributing this to an "avoidance" of the city by international markets. Delta Airlines similarly anticipates significant revenue losses due to diminished travel volume during the Olympic period.
Mixed Expectations for Summer Games
According to Delta's tourism barometer, the Paris tourism board predicted a decrease in international travel by 8% in June and nearly 15% in July, compared to the previous year. Although there was an expected 11% increase in arrivals during the games, primarily from Europe (+24%) and North America (+15%), these gains are projected to be offset by significant drops in visitors from Oceania (-30%) and the Middle East (-42%).
Accommodation Struggles
The accommodation sector in Paris is also grappling with the unexpected downturn. Hotels and Airbnb properties, initially expecting high demand, have seen a substantial decline in bookings. The Paris tourism board reported that hotel occupancy rates were expected to fall by 60% in July, a 10% drop from 2023. As a result, many hotels have been forced to offer discounts to attract visitors. Similarly, Airbnb hosts have slashed prices, with some reducing rates by over 50% to compete for scarce bookings.
For instance, a two-bedroom loft near Notre Dame, initially priced at $1,407 (€1,300.08) per night, was reduced to $683 (€631) at the start of the games—a rate lower than typical autumn prices. Despite this, Airbnb noted an increase in availability, as hosts aimed to capitalize on the expected influx of sports tourists.
The anticipated boom in tourism for Paris during the 2024 Olympics appears to be falling short of expectations. While some visitors are drawn to the city's events and spectacles, high accommodation costs and other deterrents seem to be keeping everyday tourists at bay. As airlines and accommodations adjust their strategies, the true impact of the Olympics on Paris's tourism industry remains uncertain.
Source: Euronews
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