French hotels suffer from fear, Airbnb

Long-term effects of terrorism and home-sharing
French hotels are heading for lasting tough times. Fear of Islamist militant attacks and the growth of home-sharing upstarts like Airbnb are likely to depress France’s hotel industry in the foreseeable future, research firm KPMG predicts.
Even if no more attacks take place, tourism declines could continue for another 18 months, and Airbnb, whose biggest market is Paris, will have an even more lasting effect.
French hotels could suffer a 10% fall in revenues this year, on average, as they see 10% less visits by foreign tourists.
“There should be difficulties for at least 18 more months. For 2017, there will be either a stagnation or a slight decline in hotel revenue,” Stephane Botz, partner at KPMG for real estate and hotels, said.
“A lasting and more structural phenomenon are alternative offerings such as Airbnb.”
Air France saw 5% fall in reservations for the June to August period and forecasts a further fall.
Last week, the French government promised more support for the tourism sector, including €10 million for a marketing campaign.
The New York Times

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