Browse all

Paris riots could stop the luxury market

Spikes in tourist cancellations threaten the entire industry

Paris riots could stop the luxury market Spikes in tourist cancellations threaten the entire industry

After serious protests related to pension reforms, the streets of Paris and some French cities have once again become swarming with protesters. On Tuesday, June 27, a 17-year-old boy was killed by a policeman, and since then Paris has found no peace; amid flames and tear gas, hundreds of young people are storming avenues and squares, demonstrating their disappoint and anger at institutions. For months now, France has been busy repairing the damage caused by these riots, consequently markedly affecting the tourism market, and thus also the luxury market

Concerns about a possible crisis in the French luxury market were raised by analysts at the firm Bernstain, who published a report this week. «The magnitude of the impact will depend on the duration of the events,» they explained. «We understand that high-end tourists may be tempted to stop taking cancellation or security risks and change their summer destination to quieter places in Europe.» France represents a coveted destination for so many U.S. and Chinese citizens, the researchers say, managing to get more than 50 percent of their spending duty free. Comparing this period to the protests that targeted the same French streets in 2005, analysts predict an increase in cancellations of tourist visits that could be as high as 30 percent, like that year. According to the Paris Tourism Office, since the outbreak of the first protests following the killing of the 17-year-old, there has been a 25 percent spike in booking cancellations

«Clearly, luxury businesses are equipped to accommodate tourists everywhere,» Bernstein's report continues, «but if the unrest continues in France, this will put a damper on the 3Q23E update, at least for France.» While it is not yet clear what effect these events will cause to the French luxury market, some designers who had scheduled their shows in Paris during Haute Couture Week chose not to stage them. The first was Hedi Slimane, artistic director of Celine, who decided to cancel the show because he felt it was out of place and wrong, while yesterday the Balenciaga fashion house announced that it would no longer hold its own party, or «couture celebration,» despite the fact that this morning's show was still presented.