Paris Olympics 2024 hampering the local businesses

Parisian shops, restaurants, bars, and clubs are experiencing an unprecedented slump in business and footfall partly because of ‘heavy security measures’ that are put in place ahead of the Olympics Games 2024, starting from July 26.

“Despite optimistic forecasts, activity has been down since June, many professionals have seen their revenue fall by 30% compared with previous years,” a group of restaurant, hotel, retail and nightspot unions said in a joint statement, AFP News reported.

Their businesses are being negatively impacted by tourists staying away from the capital, bad weather, inflation, political unrest following President Emmanuel Macron’s call for early elections, and security measures for the Olympics, they claimed.

“The Olympics were supposed to be great for business. Instead, we’re being hit really hard,” Fabrice Pierret said, who runs a restaurant ‘Le Lutetia’ near lle Saint-Louis, where a splendid view of the Seine River, with a glass of red wine and steak frites, has long made it a popular stop for visitors, The New York Times reported.

Big sponsors like Adidas, Coca-Cola, and the French luxury goods company LVMH stand to gain a lot of money. However, sales for small businesses located in the most secure areas of Paris have dropped by up to 70%, while other restricted areas have seen a 30% decline, according to a report by the Confederation of French Commerce.

President Emmanuel Macron declared that the French government would investigate potential compensation for small businesses.

While many anticipate a surge in tourism once the restrictions are lifted, trade associations in Paris have issued a warning that over 1,000 business owners may find it difficult to recover losses sustained during a season that usually generates the majority of their yearly revenue.

To add on, the French commerce group reported that June sales for Parisian stores, eateries, and lodging were already down roughly 11% from the same month last year due to the failure of an expected spike in tourism.

Air France reported that it would lose as much as €180 million from June to August due to “significant Paris avoidance behavior” by tourists who would rather avoid the lines and crowds.

Moreover, the number of expected tourists for the Olympics has decreased from 15 million to 11 million.

According to the Paris tourism office, approximately 1.5 million of the visitors are from outside France. A large number of Parisians are leaving the city to avoid the traffic jams.