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Tourism atrophies in Europe<br />
Clouds over <strong>the</strong> Mediterranean<br />
Aug 13th 2009 | PARIS AND ROME<br />
From The Economist print edition<br />
The recession clobbers one of Europe’s biggest industries<br />
AFP<br />
Ano<strong>the</strong>r disaster in Pompeii<br />
HOW badly is <strong>the</strong> recession hurting Europe’s tourism industry during <strong>the</strong> all-important summer holidays?<br />
The outlook is grim, judging by <strong>the</strong> trend set earlier in <strong>the</strong> year. After slipping in <strong>the</strong> second half of 2008,<br />
passenger numbers in Italian airports fell by 13.4% in <strong>the</strong> first quarter of this year. Spain recorded a<br />
similar fall between January and June, with airports on Lanzarote (down 19.1%) and Tenerife (down<br />
17.8%), two popular holiday islands, losing more than most. The French Riviera is suffering, too: Nice<br />
airport reported a drop of 8% in passengers during <strong>the</strong> first half of <strong>the</strong> year. Firms have slashed travel<br />
budgets, families are spending less on leisure and Europe’s airports are feeling <strong>the</strong> pain.<br />
For hotels as well, <strong>the</strong> recession is biting in France, Spain and Italy, Europe’s biggest holiday destinations.<br />
During <strong>the</strong> first five months of <strong>the</strong> year, <strong>the</strong> number of overnight stays by foreign visitors in French hotels<br />
fell by 15.5%. The number of foreigners who visited Spain in <strong>the</strong> first six months was 11.4% lower than in<br />
2008. The situation is equally grim in Italy, where overnight stays by foreign guests were 11.5% lower in<br />
<strong>the</strong> first half of <strong>the</strong> year. Bernabo Bocca, chairman of <strong>the</strong> Italian hoteliers’ association, described <strong>the</strong><br />
results as a debacle.<br />
Many jobs are at risk. In 2007, before <strong>the</strong> recession struck, France boasted nearly 200,000 hotels,<br />
pensions, campsites, restaurants, cafés and travel agencies, which employed almost 900,000 people on<br />
average during <strong>the</strong> year and took in some €70 billion ($96 billion). Spain had about 293,000 firms, with<br />
1.4m employees and a turnover of €80 billion. Around 270,000 firms work in tourism in Italy and Mr<br />
Bocca says <strong>the</strong> 15% drop in turnover expected this year will quickly lead to job losses. Rome’s hoteliers’<br />
association fears its members will shed 10,000 jobs this year.<br />
Italy has beaches, mountains and lakes, and claims more artistic treasures than any o<strong>the</strong>r country. But<br />
last year 7.4% fewer people visited <strong>the</strong> Doge’s palace in Venice than in 2007, and attendance was down<br />
by 3.8% at Florence’s Uffizi gallery and 12.4% at Pompeii. Yet some attractions hold <strong>the</strong>ir own.<br />
Disneyland Paris, Europe’s biggest crowd-puller with 15.3m visitors in <strong>the</strong> year to last September,<br />
reported a slight pick-up in <strong>the</strong> next six months. But that was something of a pyrrhic victory. Occupancy<br />
at <strong>the</strong> park’s hotels was 2.7 percentage points lower, average spending by visitors fell by 3.7% and<br />
revenues by 7.3%. At museums, resorts and <strong>the</strong>me parks, expectations for this year and next are<br />
generally poor.<br />
The euro’s strength against <strong>the</strong> pound and <strong>the</strong> dollar adds to <strong>the</strong> problems of European tourism’s big<br />
three. Britain sends more tourists to Spain than any o<strong>the</strong>r country, but <strong>the</strong> 6.1m that arrived between<br />
January and June were 16% fewer than during <strong>the</strong> same period of 2008. British and American tourists are<br />
<strong>the</strong> most numerous guests at expensive hotels in particular, so <strong>the</strong> luxury hoteliers of Paris and Rome are<br />
feeling <strong>the</strong>ir absence.<br />
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