Experts reported an unusual year for French tourism, characterized by significant contrasts in terms of product categories, seasons, and regions. Nevertheless, the sector has generally demonstrated good resilience and slightly better results than in 2023. The price increases that followed the Covid pandemic, which had boosted revenue, are now beginning to diminish.
Uneven Performances of French Regions
In 2024, the accommodation sector in France experienced a 1.6% increase in turnover, with hotels growing by 1.5% and tourist residences and holiday villages by 1.8%. The 3.2% price rise helped offset a one-point decline in the occupancy rate.
The Provence-Alpes-Côte-d'Azur region emerged as a standout performer, demonstrating a growth of 5.5%. This success is attributed to a vibrant hotel market featuring numerous openings and renovations in Nice and Cannes and excellent weather that attracted a high-end clientele.
On the other hand, the Atlantic coast faced challenges due to unfavorable weather conditions, with Brittany seeing a decrease of 0.8% and Pays de la Loire declining by 2.7%. However, both regions had exceptional performances in 2022 and 2023, and MKG Consulting projects a return to normalcy.
Île-de-France as a Refuge for Moderate Budgets
In 2024, several French regions experienced significant growth in turnover for accommodation providers. Hauts-de-France saw an increase of 4.6%, mainly due to the Olympic events held in Lille. Other notable regions included Grand-Est with a 3.5% increase, Bourgogne-Franche-Comté at 2.1%, and Normandy, which benefited from the D-Day landings' 80th anniversary, recording a 1.6% gain.
The Ile-de-France region, excluding Paris, also achieved impressive results with a 4.8% increase. This success was driven by the popularity of the Paralympic Games among families and a rise in domestic visitors with moderate budgets who preferred the more accessible suburbs of Paris.
In contrast, Paris experienced fluctuations and ended the year with a stable performance. While the Olympic fortnight initially brought a significant boost, the city faced declines during numerous weeks, particularly in the spring. This stability was achieved through a price increase of 1.8%, compensating for decreased occupancy rates, falling by 1.4 points.
French Tourism underperforming
Ultimately, France did not perform as well as its main competitors in Southern Europe, such as Spain, Italy, Greece, as well as Germany. However, Germany's post-COVID recovery came later than France's.
France has reached a plateau, with rising prices potentially becoming a burden for the middle class. Also, France's hotel prices have increased by 30% compared to 2019.
Rising Prices
In 2024, the volume of French business related to tourist holiday bookings increased by 3.4%.
This growth was driven by a rise in the average spending per trip, which reached €1,795, reflecting a 3.7% increase. This increase helped offset a slight booking decline, which fell by 0.1%. Additionally, due to declining purchasing power, French consumers have had to make some trade-offs regarding travel.
As a result, there has been a partial shift away from long-haul flights, which saw a decrease of 1.9% in business volume. Instead, travelers opt for closer destinations, leading to significant growth in bookings for various regions: Spain experienced a 9.8% increase, Italy saw a 25% rise, Morocco rose by 22.7%, and Tunisia grew by 7%.