Paris to the rescue of the French tourism sector. Prime Minister Édouard Phillippe announced on Thursday an "unprecedented" plan of 18 billion euros to save the French tourism sector, considered by President Emmanuel Macron "a national priority" and which has been hit hard by the coronavirus pandemic.
"Tourism faces probably the most difficult test in its modern history, while it is one of the crown jewels of the French economy. Its rescue is a priority," the prime minister said in announcing the plan. "What is good for tourism is often good for France. What hits tourism obviously hits France," added Philippe.
France, the world's first tourist destination with almost 90 million foreign tourists in 2019, wants to continue being so once the health crisis is over. Tourism is a key sector in the French economy: it represents more than 8% of the Gross Domestic Product (GDP) and two million direct and indirect jobs.
Unprecedented plan
The Prime Minister announced an "unprecedented, massive but necessary" plan to support companies in the tourism sector. With the closing of the borders and the confinement of the population in times of coronavirus, companies in the sector have become collateral victims of the health crisis of COVID-19. The pandemic has already left more than 27,000 dead in France.
95% of hotels in France are currently closed , as are the vast majority of cafes and restaurants. The country began the de-escalation last Monday, after 55 days of confinement by the coronavirus. Some restaurants have started selling takeaways to their customers.
"To enable the sector to overcome the crisis, we are launching an unprecedented € 18 billion tourism plan " between direct aid, guaranteed loans and tax exemptions, Philippe revealed when announcing this expected "Marshall plan" for the tourism sector that businessmen The French had been complaining for days.
With this plan to support the sector, the French government wants to avoid a wave of bankruptcies and layoffs in this key sector for the French economy and to prepare for the short-term reopening of hotels, bars and restaurants in the country. The Solidarity Fund for companies in the hotel, catering and tourism sector will continue to be open "until the end of 2020".
Investments
Philippe specified that an investment plan of 1,300 million euros in own funds will also be launched. Companies in the tourism sector may continue to resort to partial unemployment (the equivalent in Spain to ERTE) "under the same conditions as today until at least the end of September 2020." The 62,000 companies in the sector have already benefited from 6,200 million euros in loans guaranteed by the state.
The tourism and catering sector in France, totally stopped since mid-March, therefore begins to see the light at the end of the tunnel. The government expects cafes and restaurants to reopen their doors from June 2 in the so-called green zone, the area least affected by the pandemic. But we will have to wait until the end of May for the official announcement. Paris cafes and restaurants, in the red light district, are likely to remain closed in the short term.
And finally, the announcement came that all the French expected: "The French will be able to go on vacation in France in the months of July and August," said Philippe, who recalled that this, of course, will depend on the evolution of the epidemic and that there could be very localized restrictions. The Prime Minister encouraged the French to book their vacations now and assured that they will be "fully reimbursed" if it is not finally possible to go on vacation due to the pandemic.
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