While the season is approaching, signals, whether from Ukraine or inflationary pressures, are not all capable of supporting tour operators’ optimism. On the positive side, however, is the recovery in international tourism, which is confirming and approaching 2019 levels, with Paris, in particular, seeing a very strong recovery, according to Atout France’s latest business climate report.
In March 2022, international tourism receipts were €4 billion, just -4% from pre-pandemic levels. Receipts from European clients (Belgium, Switzerland, the Netherlands, and the UK) and the US are also at or above pre-crisis levels, while flows from China and Japan are still very low.
The domestic market remains very well oriented, generating overnight stays in France at almost the same level as in 2019 (-4.8%) for the first quarter. For the summer season, the travel intentions confirm the strong need for relaxation among domestic and European clients who choose France as their preferred destination.
Against this positive outlook, the report nonetheless raises several concerns. First of all, recruitment difficulties, which are present in the operators’ priorities, may affect the offer this summer and the performance of the sector.
Inflation and purchasing power, which are the focus of both customers and those who serve them, can also affect consumer behavior, mobility, and direction choice.
In the medium term, the issue of tourism acceptability, in particular the growth of C2C rentals and its impact on property prices, may also become more acute for the French tourism and hospitality industry.