French Tourism Sector Faces Cancellations over Unrest

Days of violent protests in the wake of the police killing of a 17-year-old have begun to take a toll on France's tourism sector. JEFF PACHOUD / AFP
Days of violent protests in the wake of the police killing of a 17-year-old have begun to take a toll on France's tourism sector. JEFF PACHOUD / AFP
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French Tourism Sector Faces Cancellations over Unrest

Days of violent protests in the wake of the police killing of a 17-year-old have begun to take a toll on France's tourism sector. JEFF PACHOUD / AFP
Days of violent protests in the wake of the police killing of a 17-year-old have begun to take a toll on France's tourism sector. JEFF PACHOUD / AFP

Days of violent protests across France after the fatal police shooting of a teenager have started to impact the country's tourism sector, with hotels and restaurants facing cancellations while some have also suffered damage in the unrest.

Since the death of 17-year-old Nahel during a traffic stop in a Paris suburb on Tuesday, "our hotel members have suffered a wave of cancellations of reservations in all the territories affected by the damage and clashes," said chef Thierry Marx, president of the main association for hotel and catering industry employers.

Marx said Friday he was receiving daily alerts from industry professionals who have suffered "attacks, looting and destruction of their businesses, including some restaurants and cafes”, AFP reported.

"Our establishments are intrinsically hospitality venues, and sometimes even refuges and places of help in crisis situations. They must not suffer the consequences of anger that they have not aroused and we condemn these actions," he added.

Marx wants the authorities to do "everything" to guarantee the safety of people in the hotel and catering industry in the world's most popular tourist destination.

The French retail federation (FCD) also called for reinforced police security around stores, said managing director Jacques Creyssel.

The riots "gave rise to real scenes of looting", he said, with "more than a hundred medium and large food or non-food stores vandalized, looted or even burned".

These incidents "are extremely serious and have an extremely heavy cost", according to Creyssel, who said he had asked the economy, interior and trade ministers to act.

The Paris Ile-de-France Chamber of Commerce said it was ensuring its teams were mobilized to "provide the necessary support and technical assistance, particularly in terms of continuing operations, insurance compensation, etc..." for traders and managers of affected companies.

Security concerns

The GHR organization for independent hotels and restaurants in France deplored that "foreign (TV networks) are starting to show images of Paris on fire and blood, which does not correspond to reality".

"Will the violence and riots continue and cause a real wave of cancellations? That's the risk," managing director Franck Trouet told AFP.

"Asian tourists, in particular, who are very concerned about security, may not hesitate to postpone or cancel their trip," he warned.

Didier Arino, managing director of the Protourisme firm said: "Tourists who know us well, like the Belgians or the British, who also have problems themselves in their suburbs, will be able to make sense of things".

But in the end, he said "it's as if we were doing a negative publicity campaign worth several tens of millions of euros for destination France".

The confederation of tobacconists was also indignant at the "looting and ransacking of shops, including 91 tobacconists during these last days of clashes".

"If it continues like this, it can significantly complicate the organization of the Olympic Games, especially since a good part of the events will take place in Seine-Saint-Denis," a disadvantaged area in the north of Paris, said Jean-Francois Rial, president of the Paris Tourist Office.



IMF Sees Steady Global Growth

FILED - 24 October 2024, US, Washington: The logo of the International Monetary Fund (IMF) is seen on the facade of the conference building on Pennsylvania Street. Photo: Soeren Stache/dpa
FILED - 24 October 2024, US, Washington: The logo of the International Monetary Fund (IMF) is seen on the facade of the conference building on Pennsylvania Street. Photo: Soeren Stache/dpa
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IMF Sees Steady Global Growth

FILED - 24 October 2024, US, Washington: The logo of the International Monetary Fund (IMF) is seen on the facade of the conference building on Pennsylvania Street. Photo: Soeren Stache/dpa
FILED - 24 October 2024, US, Washington: The logo of the International Monetary Fund (IMF) is seen on the facade of the conference building on Pennsylvania Street. Photo: Soeren Stache/dpa

The International Monetary Fund expects the world economy to grow a little faster and inflation to keep falling this year. But it warned that the outlook is clouded by President-elect Donald Trump’s promises to slash US taxes, impose tariffs on foreign goods, ease regulations on businesses and deport millions of immigrants working illegally in the United States.

The Washington-based lending agency expects the world economy to grow 3.3% this year and next, up from 3.2% in 2024. The growth is steady but unimpressive: From 2000 to 2019, the world economy grew faster – an average of 3.7% a year. The sluggish growth reflects the lingering effects of big global shocks, including the COVID-19 pandemic and Russia's invasion of Ukraine.

The IMF is a 191-nation lending organization that works to promote economic growth and financial stability and to reduce global poverty.

Global inflation, which had surged after the COVID-19 pandemic disrupted global supply chains and caused shortages and higher prices, is forecast to fall from 5.7% in 2024 to 4.2% this year and 3.5% in 2026.

But in a blog post that accompanied the release of the IMF’s latest World Economic Outlook report, the fund’s chief economist, Pierre-Olivier Gourinchas, wrote that the policies Trump has promised to introduce “are likely to push inflation higher in the near term,” The Associated Press reported.

Big tax cuts could overheat the US economy and inflation. Likewise, hefty tariffs on foreign products could at least temporarily push up prices and hurt exporting countries around the world. And mass deportations could cause restaurants, construction companies and other businesses to run short of workers, pushing up their costs and weighing on economic growth.

Gourinchas also wrote that Trump’s plans to slash regulations on business could “boost potential growth in the medium term if they remove red tape and stimulate innovation.’’ But he warned that “excessive deregulation could also weaken financial safeguards and increase financial vulnerabilities, putting the US economy on a dangerous boom-bust path.’’

Trump inherits a strong US economy. The IMF expects US growth to come in at 2.7% this year, a hefty half percentage point upgrade from the 2.2% it had forecast in October.

The American economy — the world's biggest — is proving resilient in the face of high interest rates, engineered by the Federal Reserve to fight inflation. The US is benefiting from a strong job market that gives consumers the confidence and financial wherewithal to keep spending, from strong gains in productivity and from an influx of immigrants that has eased labor shortages.

The US economy’s unexpectedly strong performance stands in sharp contrast to the advanced economies across the Atlantic Ocean. The IMF expects the 20 countries that share the euro currency to collectively grow just 1% this year, up from 0.8% in 2024 but down from the 1.2% it was expecting in October. “Headwinds,” Gourinchas wrote, “include weak momentum, especially in manufacturing, low consumer confidence, and the persistence of a negative energy price shock’’ caused by Russia’s invasion of Ukraine.

The Chinese economy, No. 2 in the world, is forecast to decelerate – from 4.8% last year to 4.6% in 2025 and 4.5% in 2026. A collapse in the Chinese housing market has undermined consumer confidence. If government doesn’t do enough to stimulate the economy with lower interest rates, stepped-up spending or tax cuts, China “is at risk of a debt-deflation stagnation trap,’’ Gourinchas warned, in which falling prices discourage consumers from spending (because they have an incentive to wait to get still better bargains) and make it more expensive for borrowers to repay loans.

The IMF forecasts came out a day after its sister agency, the World Bank, predicted global growth of 2.7% in 2025 and 2026, same as last year and 2023.

The bank, which makes loans and grants to poor countries, warned that the growth wasn’t sufficient to reduce poverty in low-income countries. The IMF’s global growth estimates tend to be higher than the World Bank’s because they give more weight to faster-growing developing countries.