Published By: Admin

Paris's Quiet Streets: The Economic Slowdown Exposed by Olympic Disruptions

Security measures have been stricter than ever in Paris now, which is unpleasant for several tourists and is one of the prime reasons

The 33rd Olympics begin today in Paris, but it's unfortunate to see the host suspended. Popular sectors of Paris, like the Marais district and the 17th-century square Place des Vosges, are seeing a steady dip in crowds. The bustling crowds that keep Paris's economy alive during the summers are now practically busting it. Most businessmen blame the Olympics. Listed below are the most probable factors that have led to this relative calmness in the tourism industry and business ventures during what should have been the most profitable time otherwise. 

Picture Courtesy -- Paris Secret 

Tourism declines with security measures 

Security measures have been stricter than ever in Paris now, which is unpleasant for several tourists and is one of the prime reasons. Many visitors have reported that rigid security measures for the Olympic Games have transformed parts of the city into a maze. With constant police patrolling, various checkpoints, and metal barriers fencing the town, the natural, free ground suffers significantly. Popular areas like the Marais district now require visitors to obtain a special QR code for the digital pass, leaving them in a dilemma. 

Political Turmoil and Transportation Disruptions 

Paris is currently in political turmoil, which President Emmanuel Macron's snap election has heightened. The Tracardero celebration that took place near the Eiffel Tower has dramatically raised restrictions, confusing the inhabitants and tourists alike. Furthermore, right before the opening of the Paris Olympics, organised arson attacks against France's high-speed TGV rail network sabotaged the city's transportation. 

Several lines were affected, including the Atlantic, northern, and eastern ones, and delays and cancellations resulted. Normal rail traffic is expected to return by Monday, July 29. On road transport, Gare du Nord, one of the leading centres for transport, has seen long queues for taxis increase, with wait times going up to two hours. This has resulted in excessive taxi fares, whereby journeys from the station to various parts of the city are costing up to 200 euros ($217), compared with the usual 50-70 euros. 

Analysts have observed a steady fall in the number of unusual tourists by 13%. However, Olympic-related visitors increased overall by 8%. In their view, the usual tourism might see a hike once these disruptions come to an end.

Picture Courtesy -- Xataka on 

Economic impact on local businesses

Many shops, restaurants, and cafes are experiencing a significant drop in customer traffic. Jean-Pierre Salson, a menswear shop in the Marais district, reports a 30% decline in business compared to last year, with American customers down by about 40%. Restaurants like Feria are also feeling the pinch.

Guillaume Faller, who manages the restaurant, notes that the business is much quieter than usual for this time of year. With many Parisians leaving the city for their summer vacations and tourists either deterred by high costs or facing difficulties navigating the city, local businesses are struggling to maintain their usual summer revenue levels.  

Accommodation and airline industries

Paris's accommodation and airline industries face significant issues. Hotel occupancy is around 70%, down from 90% last year, with average nightly rates soaring to 700 euros. Airlines also struggle, with increased capacity leading to empty seats. Air France-KLM forecasts a 150–170 million euro revenue drop, while Delta Airlines expects a $100 million loss due to high fares and travel challenges. 

Paris faces early challenges during the Olympics, but there's optimism for a rebound. Local businesses and tourism stakeholders anticipate improvement as the games progress. With security and transport issues expected to ease, Paris is expected to bloom back from the current summer gloom.