The fear factor: how the terrorist attack in nice impact on the business

Flowers in memory of the victims of the terrorist attack on the promenade in nice

Tourist shock

The number of Russian search queries in France on Friday—Saturday, following the attack, declined by 13% compared to the same days a week earlier. Sales decreased by 27%, follows from the data of tourist service “For the whole day there was no application on rest is not only nice, but also in France, although in the summer this area is traditionally in great demand,” — said in a conversation with RBC’s employee of tour operators “Amigo-Turs”.

“Tourists in shock, it is natural. But we are not one attack “survived.” A similar picture is observed and in Moscow and in Brussels,” — said General Director of DSBW Tours Continent Karen Goncharov. According to his estimates, after the Paris and Brussels attacks sales fell by about 20-30%. Demand started to recover after about a week and a half.

In 2015, nice, visited 2.2 million foreign tourists. “Of those who booked their tickets and hotels for vacation on the Cote d’azur this summer, few will cancel the booking, — quotes the Guardian the words of Frank Behany, Director at Holiday Travel Watch service to assist British tourists abroad. — First, they did not want to lose their money; second, most reassured by the reaction of the French government, extending the state of emergency and promised to take extra security measures for tourists.”

However, in the future terrorist attack will deal a serious blow to local businesses, especially the Cote d’azur resorts to the tragic event began to lose reputation of an ideal place for relaxing billionaires on luxury yachts, writes in his column browser Guardian Jamie Doward. According to him, Cote d’azur in recent years has become one of the main centers of radical Islam in the cities a huge number of descendants of immigrants from the Maghreb and the Salafist preachers. According to estimates of the Economist magazine, the region takes the second place after Paris in the number of persons under the control of the police on suspicion of having links with radical Islamic organizations.

The attack in nice may have on the tourism industry a greater impact than the bombings in Paris, said the representative of the Russian Union of travel industry (PCT) Irina Tyurina, as the attack took place in the middle of high season and were directed against tourists. According to analyst Euromonitor Vatera of Girts, quoted by CNN, in France, which is not the first time in the last six years is under attack by terrorists, can have a cumulative effect, which will lead to the fact that tourists will look for other countries for vacation. “After the terrorist attack in Paris was a brief period of shock, when the demand for travel to the French capital fell, however, then the number of tourists was restored, and people began to calm down. Moreover, because of the football Euro 2016 went well from the point of view of security. But now, after what happened in nice, tourists planning to visit, will remember a number of similar episodes and no longer regarded France as a whole as a safe place”. As a similar example, Turina results in Tunisia, where in early 2015 have been terrorist attacks in hotels in the city of Sousse and in the National Museum of Bardo. After that, the flow of tourists into the country fell by almost half. However, already in the first half of 2016, the Tunisian national office for tourism in Russia and CIS countries reported that the number of tourists has recovered, showing a growth of 87% over the same period of 2015.

That means tourism for Provence

Tourism is the main source of income for the province Provence — Alpes — Cote d’azur. According to the Department of tourism in the region, annual revenues from the provision of tourism services brings revenue in the region of €14 billion, representing 11% of the regional GDP. In the industry associated with the servicing of tourists, busy 150 thousand people.

Photo gallery
The truck crashed into a crowd in nice

White truck on the evening of 14 July, drove into the crowd to celebrate the Bastille Day of citizens on the promenade des Anglais in nice. According to recent reports, the death toll was 84 people. The driver…

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The Fading Riviera

Estimated PCT, at the time of the attack on the Cote d’azur could be about 10 thousand citizens of Russia.

In 2016 the popularity of this destination for vacation among Russians has decreased: if in 2015, the region was visited by 216 thousand Russian tourists, according to for the period from 1 January to 14 July 2016, the number of bookings of tickets to nice from Russia decreased by 23% compared to the same period last year. The company OneTwoTrip confirmed that this year nice was not included in the top regions for summer holidays, due to the reorientation of people to more low cost areas. According to estimates Karen Goncharov of DSBW, the minimum cost of a week tour on the Cote d’azur on people with connecting flights and hotel accommodation three stars starts from €700-800.

From January 2015, for the moment, France have shocked ten attacks, which have claimed more than 220 lives. But experts have attributed the decline of interest primarily to economic factors: anti-Russian sanctions, the devaluation of the ruble and, as a consequence, a fall in the purchasing power of Russians. “Fear of terrorist attacks takes place, and the economic factor remains,” — said Turina.

With 1990-x years, nice, Monaco and the towns of the côte d’azur became one of the most popular holiday destinations for families of Russian businessmen and officials. The exact number of owners and tenants of properties on the French Riviera among Russians is unknown. In 2011, “RIA Novosti” with reference to the representative of regional Committee on tourism & conventions côte d’azur, Sandrine Carsalade reported 2 thousand owners of real estate, having a Russian passport.

In 2015, the international Agency Savills found that in the 2011-2014 citizens of Russia took the second place (after the representatives of the countries of the Middle East) among buyers of real estate on the Cote d’azur. The Russians accounted for 30% of all transactions for the purchase houses on the most expensive Bank in the French Mediterranean.

The company analyzes the market of real estate, testified that the number of wealthy Russians, who came to the côte d’azur, rapidly increased until 2014, when Russia imposed sanctions, including France, within the European Union. After the imposition of sanctions, the demand for rental residences on the Cote d’azur dropped by 30%, says the Director of the Agency for French property France Only Dmitry Dedov, however, in 2016, after two years of decline, demand for property in the region from the Russians began to show signs of recovery. “The situation has stabilized, as prices are still attractive and the côte d’azur is one of the favorite places of wealthy Russians”, — told RBC Director of foreign real estate Knight Frank Marina Kuzmina.

The calm after the storm

While local entrepreneurs, whose business is connected with entertainment and tourist infrastructure, operate cautiously. It is known that in nice was cancelled jazz festival featuring British electronic group Massive Attack and a concert of Barbadian pop star Rihanna, who was scheduled for the weekend immediately after Bastille Day.

A number of companies working in the field of tourism on the French Riviera, has declared readiness to provide any assistance and support to its customers. So, Marriott has announced that it will waive fines for late cancellation or early check-out guests from their already paid rooms.

Most of the institutions, whose representatives contacted RBC, declare that they will continue to operate as usual, however, in General, security measures enhanced. “We are working as usual. Taken all security measures so that you can come without any doubt,” — said RBC in the Casinos Barrière, located on the Promenade des Anglais, where the attack took place.

In normal mode, for example, operates a night club Twiga Monte Carlo (located 15 km from nice), confirmed an employee of RBC. The club became widely known in Russia after a controversial party with players of the Russian team Alexander Kokorin and Pavel Mamaev after a disastrous performance at Euro 2016.

On the official website in the partners section of our club posted photos from the concert of the Russian artist Timati is a frequent guest of the côte d’azur. “It was just one day, to draw conclusions, but I think nothing will change, — said the representative of the singer Paul Kuryanov. — Unless, of course, soon, God forbid, will not happen something else. People quickly, unfortunately or fortunately, you forget about such events (the terrorist attacks. — RBC) and return to normal life”.

The investigation of the attack in nice
Video: RBC