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France: no revolution this july

In July, the observation remained the same as in the previous months. Room revenue remained weighted down by the ambient moroseness (-7.3%). While the budget segment maintained its results from one year to the next, the 2* category could not say the same. This segment is the great deception for the beginning of this summer, with a significant drop in occupancy (-6.8 pts). Its monthly result (-7.6%) is almost the same as that of the midscale (-7.7%). While it was less penalized than at the beginning of the year, the 4* did not make a turnaround and continues to post a double-digit drop in its RevPAR. The summer season thus had trouble getting off the ground. The business segment, whose clientele are generally present until the long weekend for July 14, suffered. At the same time July vacationers were rare. Foreign clientele were affected by the crisis and, in France suitcases are being packed later and later. The barometer of the economic situation ATOUT France-TNS Sofres posted a drop in planification of nightstays by 7% on behalf of national clientele with respect to 2008. Heart warming for hoteliers: this same barometer forecasts a 4% increase for August with longer stays than usual.

“The relative vigor of national demand will compensate for part of the drop in foreign occupancy”: this is the prognostic announced midsummer by the secretary of state for tourism. Hoteliers, disappointed by July, can only hope that August will succeed in reversing the trend. For this first month of the summer, the weakness of business tourism greatly penalized all France’s cities, Paris in the lead, but also Lyon, Lille and Toulouse... The capital (-7.7%) and the provinces (-5.5%) had relatively equivalent performances. The only difference: the capacity to maintain the average daily rate for most French regions. Among the rare hoteliers truly satisfied with their July are those along the shores of the Mediterranean. July vacationers have in fact headed south. The Languedoc-Roussillon progressed with respect to last year and the Provence-Alpes-French Riviera region offers no disillusionment. Another cause for satisfaction: Canne’s and Paris’s palaces benefited from steady business thanks to the arrival of tourists from the Persian Gulf. But these will leave earlier this year as Ramadan begins sooner …

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