The 2024 Olympic and Paralympic Games in Paris, while widely considered a success for the city overall, have left many local businesses struggling in their wake. Numerous shop owners are reporting significant declines in sales during the summer months, attributing the downturn to strict security measures implemented throughout the city.
Some retailers have described this summer as their worst in terms of sales, even surpassing the challenges faced during the height of the COVID-19 pandemic in 2020. Tom Denaive, proprietor of a jewelry store in close proximity to the Louvre Museum, recounted how access restrictions affected his business from mid-June through early September, coinciding with the conclusion of the Paralympic Games. “It felt like a ghost town,” Denaive remarked, drawing parallels to the economic standstill experienced during the pandemic.
The impact was not limited to small businesses alone. The
world-renowned Louvre Museum reported a substantial 22% decrease in visitor numbers during the Games compared to the same period last year.
Marina Orlando, owner of a luxury candle shop, shared similar experiences, citing a 29% drop in sales compared to the previous year. Orlando expressed frustration with the disparity between expectations and reality, stating, “We were promised an incredible Olympic experience.”
Interestingly, these reports of declining sales come despite early data suggesting a significant boost in tourism during the Games. Leaked government figures indicate that Paris welcomed over 1.7 million international visitors and 1.4 million French tourists, representing increases of 13% and 26% respectively from 2023. However, business owners like Orlando argue that these tourists were primarily focused on sporting events rather than shopping. Denaive added that many visitors had limited budgets for retail purchases after spending on accommodations, travel, and event tickets.
The situation appears particularly dire in certain areas of the city. Patrick Aboukrat, representing more than 190 shops and restaurants in the central Marais district, reported that businesses in the area experienced a 35-40% decrease in revenue from mid-June to the end of July. The economic strain was so severe that Aboukrat, along with many others, opted to close their stores for the remainder of the Olympic period due to unsustainable operating costs.
Government officials have seemingly downplayed the concerns raised by business owners. Olivia Grégoire, a representative from the tourism ministry, remarked to the press, “We often encounter individuals who express dissatisfaction.” Grégoire reaffirmed the city’s success in hosting the Games and defended the stringent security measures as necessary for public safety.
In response to the economic impact, the government has announced plans to provide financial assistance to affected businesses. A commission will be established to review compensation requests from enterprises impacted by the Games’ security measures. Grégoire clarified that only businesses within the designated security perimeters would be eligible for compensation, with case assessments scheduled to begin in January.
This situation highlights the complex economic dynamics surrounding major international sporting events. While such events can bring increased tourism and global attention to host cities, they may also present significant challenges for local businesses, particularly those in areas subject to heightened security measures or altered traffic patterns. The experience of Paris businesses during the 2024 Olympics and Paralympics serves as a reminder of the need for comprehensive planning and support systems to mitigate potential negative impacts on local economies when hosting large-scale events.