Inflation spike in Europe is tied to the Olympics, Taylor Swift: UBS
From CNBC: 2024-08-11 08:19:55
The Paris 2024 Olympics have driven up prices for hotels and airline tickets, but French consumers are unlikely to feel the impact. Hotel revenue has surged during events like the Eras Tour, showing demand spikes that can distort inflation measurements. Prices in Paris are soaring, but locals may not be affected.
Paris hotel revenue is skyrocketing during the Olympics, with CoStar finding a 206% year-over-year revenue growth and an 85.4% occupancy rate. After the Games, bookings are expected to decline. French consumers are mostly unaffected by the surge in prices, as most won’t be staying in Paris unless they’re attending the Olympics.
The Paris 2024 Olympics have brought in 1.73 million visitors in Greater Paris during the first week, with 924,000 international tourists and 803,000 French tourists. A total of 15.3 million visitors are expected for both the Olympic and Paralympic Games. Record ticket sales have been recorded at 10.6 million.
Local businesses in Paris, like small businesses and the airline industry, are seeing gains during the Olympics. Flight bookings have increased by 39% leading up to the Games. The economic impact of the Paris Olympics is uncertain, but is expected to be positive in the long term, potentially generating $12 billion in economic impact.
Paris 2024 has marked a turning point for the Olympics, with 95% of venues being preexisting or temporary to save costs. The IOC’s Agenda 2020 reforms have helped make the events more economically sustainable. The economic impact of hosting the Games is substantial and leaves a profound impact on the local economy.
Read more: Inflation spike in Europe is tied to the Olympics, Taylor Swift: UBS