Visitors shun Paris’ most expensive hotels as the Olympics loom

PARIS is proving to be a surprisingly unpopular destination for wealthy tourists ahead of the Olympics this summer, with visitors concerned about difficulties in navigating the city by car.

Demand for stays at high-end hotels in the French capital have collapsed before the Games, reports UMIH Prestige – which represents hotels that charge at least 800 euros (S$1,168) a night for rooms.

Bookings are down between 20 to 50 per cent for the last week of June and most of July, compared with the same period last year, the organisation said.

“In 24 years I’ve never seen this,” said Laurence Bloch, deputy general manager at the Plaza Athenee on Avenue Montaigne, where guests pay 2,500 euros or more for chic rooms located near Chanel and Christian Dior stores.

Concerns about traffic after Paris built temporary Olympic installations have pushed occupancy down to 15 per cent for some July dates, the general manager noted.

Security has also been tightened along the Seine River before the opening ceremony on Jul 26, threatening further traffic snarls.

“Paris is currently seeing a severe drop in demand for luxury hotel rooms in the run-up to the Games,” said Christophe Laure, head of UMIH Prestige.

He, however, noted that the trend could improve after Jul 22.

Some visitors are opting out of Paris for now. “They’re instead picking the French Riviera or other cities such as London and will come to Paris at another moment,” Laure said.

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The country is also in the midst of political upheaval, following a second round of snap legislative elections which failed to produce a clear majority. 

President Emmanuel Macron – who dissolved France’s National Assembly and called the vote after his party was trounced in the European Union elections last month – has yet to name a new prime minister following the inconclusive second round last weekend.

Still, tourists do not appear to be put off by the political turmoil, and visitors are not citing it as a reason to pass on visiting Paris, Laure and Bloch said.

Both expect business to recover sharply as the Games go on.

The Plaza Athenee, part of the Dorchester Collection, is showing occupancy rates of about 85 per cent from Jul 25 onwards, Bloch said.

Corporate sponsors have booked half the rooms for most of the Games. BLOOMBERG