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Published on : Thursday, December 17, 2015
According to the U.N.’s World Tourism Organization report, the November 13th terrorist attacks leaving 130 people dead in Paris significantly hit Europe’s tourism industry, which lost revenues approximated at around $500 billion.
Paris hotels and restaurants influx is down by 30-40 per cent when compared to last year’s figures, as flight bookings in France also went down by 27 per cent following the attacks.
Air France KLM lost a significant amount of 50 million Euros ($55 million) due to fear of traveling in the potentially risky areas and general industry insecurity.
Taking into account the security issues that Europe has lately experienced, stronger tourism investors are currently focusing on safer and financially more stable destinations.
“I suspect that we’re going to see a little bit more of a lingering impact for the travel industry”, is the opinion of Ken Odeluga, market analyst at City Index, speaking for Reuters.
On the other hand, important operators and top financially stable companies might resist this crisis. TUI, Carnival, On The Beach Group, Ryanair and IAG are considered to be among the stronger sector players and able to overcome the difficult foreseeable period.
The dollar drop in the oil price also helps airlines offer market discounts and survive the overwhelming storm created in the travel sector.
By changing their business strategy, world’s largest tour operators have even managed to found ways to increase their earning: TUI switched popular but unsafe destinations such as Egypt and Tunisia with the Canary Islands and Cyprus, while On The Beach Group focuses on Spain, Portugal and the Canaries.
As the current political and security situation regarding the Islamic State will probably keep European states on high alert in the near future also, the travel industry will continue to be affected as well.
Analysts estimate that the total revenue on Europe’s travel and tourism sectors loses will hit over 1 billion Euros.