Published on : Thursday, May 14, 2020
As per latest research, after the Paris hotel sector overcomes the initial period of recovery, the longer term, post-Covid-19 future looks promising.
The Olympic Games in 2024 is expected to provide a much-needed boost to tourism, according to HVS.
There will be a recovery in Paris’s hotel sector, the games are likely to benefit the rebound of tourism, with the €2 billion investment plan to revitalise Disneyland Paris expected to go ahead, albeit with possible delays because of the pandemic.
A phased easing of the strict coronavirus lockdown measures was imposed in Paris on March 17th, with hotels – as well as restaurants, cafés and bars – expected to start opening from June 2nd if conditions are considered favourable at the end of May.
Maria Coll, consulting and valuation analyst at HVS London said that the characteristics of the Paris hotel market from its demand sources to its transport links and supply dynamics will play a significant role in the recovery of the hospitality industry once travel returns.
Paris benefits from a well-balanced mix of business and leisure demand and exceptional transport links giving it a broad seasonality, allowing the city to capture demand at whatever point activity returns.
They are expecting a domestic demand to recover faster largely due to growth in ‘staycations’ which will shift the balance in the short term.
The gap left by international tourism will present a challenge until international visitors can return and traditionally high rates in Paris might give hotels operators some room to manoeuvre, with tactical discounting to boost demand.
Chances are the city may might miss out on leisure travellers on a budget, who might opt for cheaper destinations.
Paris ranked first in the world for its meetings business in 2018, as with most European cities group business and MICE demand is likely to take longer to return but the visitation will be boosted with the staging of popular events in the city such as the Tennis Open, the biennial Air Show, and the haute couture fashion shows once they resume, although this may well be into 2021.