Paris’ bid to host the 2024 Olympic Games is seen on the Arc de Triomphe in Paris on February 9, 2016. (Photo by LIONEL BONAVENTURE)
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HHosting the 2024 Summer Olympics in Paris is just not doing the French airline’s bottom line any good. Air France said on Monday that it expects a lack of as much as 180 million euros ($193 million) in the present financial quarter as tourists avoid Paris through the Olympic Games, which is able to happen from July 26 to August 11, 2024.
Fearing crowds and astronomical prices, tourists are usually not flocking to the capital Paris to attend the Olympic Games. “International markets are clearly avoiding Paris,” the airline said in a opinion“Travel between the city and other destinations is also below the usual June-August average, as French residents appear to be postponing their holidays until after the Olympics or considering alternative travel plans.”
As a result, Air France-KLM expects “a negative impact on future unit revenues in the range of 160 to 180 million euros for the period June to August 2024.” The airline expects travel to France to return to normal after the Olympic Games. “Encouraging demand is forecast for the end of August and the month of September.”
By comparison, Air France-KLM reported revenue of over $9.3 billion within the third quarter of 2023, driven by strong demand over the summer.
Air France’s statement is consistent with data from the Paris Tourism Office, which recently forecast a 14.8% drop in foreign arrivals in July 2024 in comparison with the identical month in 2023.
The same trend can also be observed within the hotel industry. One month before the beginning of the Summer Olympics, the occupancy rate of Paris hotels reached its peak at 77.8% on Saturday 27 July, the evening of the 14 gold medal competitions. CoStar’s latest Forward STAR data. Opening night is close behind, with occupancy currently at 77.7% on Friday, July 26. The lowest occupancy for this summer’s Olympic season is 59.8% on Sunday, August 11, the ultimate night of competition.
But all the Olympic period is below the common occupancy rate of 81.4% in July 2023, as reported INSEEthe official statistics office of France.
Despite all this, the 2024 Summer Olympics are expected to be a net gain for Paris, with a projected 8.9 billion euros (9.6 billion US dollars) economic impact for the town, in keeping with an independent study by the Centre for Law and Economics of Sport (CDES), which oversees the Paris Games for the International Olympic Committee (IOC) and the organisers of the Paris Olympic Games.
Between 2.3 and three.1 million ticketed visitors are expected in Paris through the Olympics, about two-thirds of whom can be French. According to the Paris Tourism Office, domestic and foreign tourists are expected to spend $2.8 billion.
Next comes corporate and personal funding. While the majority of the $7.5 billion available for the Paris Games comes from media rights, sponsorships and tickets, there has also been significant private investment in long-term infrastructure projects, including a $1.7 billion contribution from the IOC.
In addition, $3.2 billion in public money can be allocated to projects that meet the long-term needs of local communities, with 80 percent of that going to Saint-Denis, one in all the poorest suburbs of Paris. Saint-Denis is home to the Stade de France, France’s national soccer and rugby stadium, and likewise the Olympic Village, which can be converted into 2,800 housing units and two recent schools after the Summer Games.
Tourism experts expect travelers to return to Paris once the Olympics are over. “The lower demand we are seeing in the early summer months can be seen as a temporary adjustment,” says Christina Choueifaty, senior account manager at STR, an organization that gives hotel analytics and benchmarking data. “In the long term, the Olympics will further cement the city’s position as a major tourist destination and may attract even more demand in the future.”
