French economy benefits from 'Olympic effect'

PARIS – The Paris 2024 Olympics are expected to boost France's GDP in the third quarter (Q3) by 0.3 percentage points, raising the growth rate during the period up to 0.5 percent, according to France's National Institute of Statistics and Economic Studies (INSEE).

Ticket sales and revenues from audiovisual broadcasting have a direct positive effect on French economic activities in Q3, contributing 0.25 percentage points, it said, while tourists, an uncertain factor of the "Olympic effect," will also contribute to the GDP growth in the period.

French research organizations said the Paris Olympics are expected to boost the French economy in the short term, but long-term effects remain to be seen.

According to INSEE, the increase in tourist numbers will lead to a rise in the use of transport and boost the hotel and catering sector.

INSEE economist Dorian Roucher said the situation is comparable to the boost given to the British economy by the London 2012 Olympic Games.

The Centre for Law and Economics of Sport (CDES) at the University of Limoges estimates that between 2018, when preparations for the Paris Olympics began, and 2034, a decade after the event, the economic impact of the Olympics for the Ile-de-France region will be between 6.7 and 11.1 billion euros (USD6.1 and USD10.2 billion), with a median of around 9 billion euros (about USD8.26 billion).

Of this amount, 70 percent would come from construction and event organization, with 30 percent from tourism.

The CDES estimates that 84 percent of the "Olympics effect" will be released during the Games' preparation and staging phase, while the remainder will be felt 10 years after the Games, mainly in the tourism sector.

Didier Arino, managing director of travel consultancy and research firm Protourisme, also believes that the positive impact of the Olympic Games on the French tourism industry will continue to be felt for years to come, because the Games "gave France an exceptional image."

Paris usually welcomes around 12 million visitors between July and August, whereas the Paris tourism office expects to welcome 15.3 million tourists during the Olympic Games.

According to the office, Paris welcomed 650,000 tourists between July 24 and 27, an increase of 16 percent, with the number of French visitors rising by 17.3 percent and foreign visitors by 14.8 percent. On the eve of the opening ceremony, the number of tourists in Paris rose by 34.6 percent year on year.

Corinne Menegaux, director of the Paris tourism office, said August is traditionally a very quiet month in Paris, but it will be "very good" this year.

The office forecasts that the first weekend of August will see the occupancy rates in Parisian hotels come close to 90 percent, while throughout the Olympic period, the occupancy rates of Parisian hotels will be over 80 percent, up 20 percent on year.

In Centre-Val de Loire, Champagne and Normandy regions, which are closer to Paris, the "Olympics effect" is also evident. According to the country's official agency Atout France, this phenomenon is partly linked to the number of foreign tourists visiting the capital.

With the Olympic events spread across several French cities, there are over 1,000 Games preparation centers throughout the country, serving as training and rehabilitation bases for the 206 Olympic delegations. In fact, all cities that host Olympic events and provide training sites benefit from the "Olympics effect."

Marseille, home to Olympic football and sailing events, is expected to welcome 825,000 spectators during the Games, with economic spin-offs of 179 million euros (about USD164 million).

Clichy, in the Hauts-de-Seine region, was chosen by the British delegation in 2022. Over 1,000 people, including 327 athletes from the British delegation, their families and staff, will be staying in the small town during the Games.

A local high school, which was renovated thanks to an investment by the British delegation, has become a high performance center for the British delegation, which also represents a qualitative improvement in the local sports infrastructure.

In terms of employment, the International Olympic Committee predicts that the Paris Olympics will create 181,000 jobs and train 30,000 people in professional skills.

Industry professionals believe that hosting the Games will undoubtedly boost the "soft power" of Paris and France at large. In the words of Menegaux, "the positive effect of the Olympics must be measured in the long term." (PNA)