France protests knock wind out of economy
Yellow-vest movement has hit retailers, hotels, stores; Paris hotel cancellations surge by 20%
- Published 4.12.18, 1:28 AM
- Updated 4.12.18, 8:31 AM
- 2 mins read
Three weeks of “yellow vest” protests have hit the French economy hard with trade in retailers, hotel chains, high-street stores and restaurants falling significantly, finance minister Bruno Le Maire said on Monday.
Speaking after a meeting with industry groups and business federations affected by the protest movement, Le Maire said sector revenues had been hit by between 15 and 50 per cent.
While not providing a precise breakdown, Le Maire said small retailers had seen a fall in revenue of between 20 and 40 percent, the hotel industry was seeing reservations down 15 to 25 percent.
Restaurants, depending on their location, had seen takings collapse by between 20 and 50 per cent. “The impact is severe and ongoing,” Le Maire said, emphasising that it was nationwide, although Paris, after riots and looting in some of its most upmarket districts on Saturday afternoon and evening, was particularly affected.
The movement began on November 17 as a social-media-planned protest against fuel-tax rises but has since morphed into an anti-Macron uprising.
The ministry was not able to say what sort of impact the unrest would have on gross domestic product, but having hoped for a pick-up in the fourth quarter on the back of rising consumer spending, that now appears less likely.
Holiday season shopping has started poorly, according to industry group Federation du Commerce et de la Distribution, which expects a slump in hirings and a transfer of shopping to e-commerce, mainly on Amazon, a spokeswoman said.
Amazon was not immediately available to comment but CDiscount, the e-commerce arm of retailer Casino, attributed the record number of visits to its websites partly to “demonstrations or blockades organised outside some shops”.
During Saturday’s disturbances in Paris, tourists were left shocked, with some saying they would cut short their visit.
When they started, the “yellow vests” protests were focused on denouncing a squeeze on household spending brought about by President Emmanuel Macron’s taxes on diesel, which he says are necessary to combat climate change and protect the environment.
But for the past two weekends there have also been violent demonstrations and clashes with security forces in Paris and other major cities, with protesters calling for Macron to resign. Some call it a revolution against a President who they see as out of touch with the concerns of ordinary people.
Saturday’s protests in Paris turned particularly violent, with protesters from the far-Right and far-Left mixing with the “yellow vests” and intent on causing as much damage as possible.
The Arc de Triomphe was defaced and avenues off Paris’s Champs Elysees were the scene of mass-vandalism.
Shops on the Champs Elysees and in the heart of Paris, including the Apple store and Dior and Chanel boutiques, had their windows smashed. Some others were looted. Prestigious Parisian department stores Printemps and Galeries Lafayette protectively shut their doors on Saturday afternoon.
Luxury groups such as SMCP, Hermes and LVMH, which are heavily dependent on foreign tourists visiting Paris during the Christmas season are likely to suffer, said Berenberg analysts in a report.
The effect may extend through the holiday season.