Crisis Economics

Economic Vulnerability

Tourism's sensitivity to shocks creates unique risks:

Historical Impacts

• 2008 Financial Crisis: -15% international arrivals
• 2015-16 Attacks: €2 billion in losses
• Yellow Vest Protests: €850 million impact
• COVID-19: €100 billion loss in 2020

Recovery Patterns

• Domestic first: French travelers return quickly
• European gradual: 6-12 month lag
• Long-haul slow: 18-24 months typically
• Business travel: Structural changes post-COVID

Economic Resilience Strategies

Diversification

• Market mix: Not over-relying on single sources
• Product variety: Multiple revenue streams
• Seasonal spread: Year-round offerings
• Geographic distribution: Multiple locations

Financial Buffers

• Cash reserves: 3-6 months recommended
• Credit facilities: Pre-arranged lines
• Insurance: Comprehensive but expensive
• Government support: Variable effectiveness