Over the months the situation has deteriorated. The French hotel industry is in a full-.edged recession. The RevPAR is down by 10.5 % last February. This is the strongest drop since the shock of 911. The scenario of a crisis that is as intense as the one experienced between 1993 and 1995, after the first Gulf War, is increasingly probable. According to forecasts made by MKG Hospitality, the RevPAR for all of 2009 should show a 6 to 9% drop for the economy supply and 10 to 15% for more upscale segments. Whereas the economy segment shows a capacity to resist by continuing to grow their average room rates, the upscale segment is sinking into the red, reviving memories of the darkest hours for France’s hotel industry. Paris reacts brutally. The leverage effect of foreign clientele, which is profitable during auspicious times, acts like a return swing of the pendulum. It makes the RevPAR for the capital dive by nearly 25% across all categories, and up to 35% for the most luxurious properties.