France is one of the first countries in the world in the number of tourists visiting it Inbound tourism flows increased in 2010, after marked declines in 2008 and 2009. As a result, France remained the leading tourist destination in the world, ahead of the US. European countries remained the top inbound markets, as many Europeans decided to travel closer to home as a result of the economic crisis. However, tourists from far-flung destinations also increased. The weakened euro compared with the US dollar contributed to the fact that Russians and Americans started coming to France again. The number of Indian and Chinese tourists also increased in 2010.
Domestic tourism remains strong
Just like in 2009, many French people decided to take their holidays in France, rather than abroad. France is one of the European countries with the highest level of domestic tourism, together with Spain, and the economic downturn reinforced this trend. Adversities such as swine flu, the volcanic ash cloud and political instability also contributed to a preference for “staycations”.
Tourism expenditure still lags behind
Growth in international tourism receipts lagged behind growth in arrivals, as is usually the case in recovery periods. The same trend was observed for domestic tourism, since French consumers had a recessionary mindset as a result of the economic crisis. Tourists reduced their expenditure by choosing budget options, taking shorter holidays, travelling closer to home or visiting more affordable countries. Average spending per tourist, therefore, continued to decrease in 2010 both for foreign and French tourists, although at a slower pace than in 2009. The only exception came from emerging economies, which showed strong increases in tourism expenditure in France, most notably China, Russia and Brazil.
Travel markets show some growth
Other industry indicators showed some recovery in 2010, and confirmed the resilience of the travel and tourism industry. Indeed, travel accommodation reflected an improved value performance, with occupancy and average room rates also on the rise again after some years of decline. Value sales in transportation also increased in 2010, mainly driven by the dynamism of online sales and air transportation. In addition, car rental showed some recovery after a sharp decline in 2009. Travel retail was the market most negatively impacted by the crisis; value sales continued to decrease in 2010, as a result of long-lasting changes in travellers’ behaviour.
Tourism is forecast to remain dynamic
The travel and tourism industry is expected to remain a vital driver of job creation and growth in France in the years to come. However, the industry is under pressure, and is facing rising competition from fast-growing tourist destinations such as Turkey, Brazil, China and India. Tourism is anticipated to face major challenges in the next decade, from globalisation to environmental issues. To address these issues, the French government launched a new plan, “Stratégie Destination France 2010-2020”, aimed at making tourism more competitive and environmentally-sustainable.
