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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 />

-92-

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