Joe McConnell
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Paris hotels were able to successfully accommodate the Olympics thanks to last-minute bookings, but many French museums, restaurants and shops faced low sales during the two-week must-see event.
Hotels had a slow June and early July, with tourists who might otherwise have visited Paris staying away. But that was made up for during the Games, with occupancy rates hitting 84 percent in the city center, up 10 percentage points from last year, according to industry data.
However, visitors took advantage of discounts offered by hotel owners, who were concerned about the quieter start to the summer as the Olympics, which ran from July 26 to August 11, approached.
“People have canceled reservations and booked others at lower rates,” said Frank Delvau, president of the UMIH hotel union in the capital’s home region of Île-de-France.
Rooms were sold on average at double the normal rates, but this does not match the tripling of prices seen during the London and Beijing Olympics, he added.
Philippe Villin, a financial consultant who owns and operates the Libertel group, which runs five hotels in Paris, said hotels that sold nonrefundable rooms in advance had generated decent revenue during the Games, but that it would not make up for the poor bookings that began in April.
“Sales that last more than two weeks do not make up for a ruined spring and summer,” he said.
Initial studies have found that the Games have nevertheless provided a net economic benefit to the hotel industry during the event and throughout the summer season. Hotels in Paris and the surrounding region have earned €291 million in revenue since June, according to consultancy MKG.
Despite a new drop in post-Olympic bookings in August, also ahead of the Paralympic Games starting on August 28, many are hoping to capitalize on the international publicity for the city and sites such as the Palace of Versailles, where the equestrian events were held.
“Everyone knows Versailles, but the backdrop was undeniably exceptional,” said Jean-Philippe Hubau, director of Les Lumières, a five-star hotel in Versailles that was fully booked during the events, with rooms charging more than €1,000 a night, double the usual rates.
Overall, economists expect the Games to provide a marginal net boost to gross domestic product in the third quarter, while Paris 2024 organizers are confident about the long-term effects.
Some 11.2 million French and foreign tourists descended on the region during the Olympics, up 4 percent from the previous year, according to official figures. That included a sharp return from Chinese tourism, which had not yet recovered from Covid-19. Interim Tourism Minister Olivia Grégoire said last week that the Games could provide an economic boost of up to 9 billion euros over 15 years.
The 2024 Games have created some clear losers in the tourism sector. As in London in 2012, museums have lost ground as visitors have focused on sports. The Louvre, the world’s most visited museum, saw a 22 percent drop in visitor numbers during the Games. From January to July, visitor numbers fell by 4 percent overall.
Restaurants and shops far from the event sites also suffered, as many locals leVscek the capital, Delvau said, while those nearby were able to enjoy a nice day.
Visa, the payments group and sponsor of the Olympics, found that spending by its cardholders at restaurants in Paris increased by 49 percent during the Games.
“We had a crazy surge aVsceker the opening ceremony,” said Carlos Marques, the manager of five Paris bakeries, including one on the central Île de la Cité, which lost 70 percent of its revenue from June to July, when the banks of the Seine were temporarily closed for Olympic preparations.
Some companies have invested in the hope of a long-term boost. Doudou et Compagnie, one of the manufacturers of the Phryge Olympics mascot, has hired 20 more people at its factory in Brittany to produce the toys.
“We will not go down again aVsceker the Games. The factory will remain in France,” said co-founder Alain Joly. His business partners had sold 1.3 million toys so far and new orders were coming in, he added.
For some, however, even in other parts of France that have hosted Olympic events, the prospect of long-term benefits does not make up for the current problems.
In the southern port city of Marseille, where the sailing events were held, Fatiah Hamadouche said her restaurant and 40 other restaurants and shops along a stretch of the Olympic marina had disappointing sales during the event, aVsceker a poor two years marred by construction work in preparation for the Games.
“We’re on the verge of collapse,” Hamadouche said. Many nearby beaches and parking lots were closed during the event, while local businesses had to compete with pop-up food trucks. “We’re looking forward to a boost next year, it has to be now.”
