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Economy

French hotels' earnings slump in 2016

media A worker in the OFF Paris Seine hotel Marlene Awaad/Bloomberg via Getty Images

French hotels' takings fell 900 million euros in 2016, according to a hospitality consultancy group. It blames terror attacks and strikes for the slump in trade, which is mainly in the Paris region and on the Côte d'Azur.

Last year was the worst since 2009, according to MKG Hospitality, which says that hotels and their restaurants suffered a fall in takings of 900 million euros, 650 million euros of which was in hotels alone.

The two previous years had already seen a decline in earnings.

MKG blames the terror attacks of 2015 and 2016 and strikes against the government's labour law for the decline, although Paris is the most popular city on online flat exchange service Airbnb.

The Ile de France region around Paris and the Côte d'Azur, which bring in 50 percent of France's hospitality industry income, were responsible for the fall, with Paris alone missing out on 700 million euros and its luxury hotels being worst affected.

Outside those two regions hotel bookings actually rose 1.5 points and prices rose 1.9 percent, partly thanks to the Euro football tournament.

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