POST-COVID PARIS: THE RESTAURANTS ARE GOING BANKRUPT, THE TOURISTS ARE LEAVING

The capital of France is gradually recovering, softening social restrictions. After anti-epidemic measures, adopted by the state, the number of the stores customers reduced by 80%, but now Paris is coming back to life. However, the city may be covered by a wave of economic crisis. The experts note that the Parisians made “purchases from revenge” - the citizens who spent several weeks in isolation seek to satisfy the need for shopping, despite the need to keep the social distance.

It might have been said that the long-awaited freedom came to Paris, pushing cautious citizens to line up at a distance from each other in order to experience indescribable emotions from shopping. However, it is too early to enjoy the freedom, as the experts warn. Each store, opened in the city center, is adjoined by several closed ones.

Entertainment facilities (cinemas, bars, restaurants), including the Lafayette Galleries, the French government does not plan to open at least until the beginning of summer.

But the Lafayette Galleries Lafayette is a unique trading network that has existed since 1893, the passage of the flagship store of which was one of the main attractions of Paris. What is the capital of France without open cafes and epicurean delicacies?

According to the local experts, there is fear in the city. Many people wear masks everywhere, although they are only needed for public transport. Stickers at stations and subway crossings, signs in stores help visitors avoid unplanned contacts with strangers. From the numerous cafes, only takeaway food points are operating.

Considering that 40% of the deaths from COVID-19 in France were in Paris and that there is still no certainty about the treatment of the disease, the population remains afraid of the onset of a new wave of coronavirus.

Research data suggests that 40% of the French expect a reduction in their spending on shopping in the nearest future.

However, the costs for business are likely to increase. The owners of the stores are forced to change the interior of their establishments and prepare employees for keeping the social distance. However, according to representatives of the catering and entertainment services sector, a low margin can lead to bankruptcy of up to 30% of the restaurants and cafes. The tourists could become a salvation for Parisian enterprises in a normal situation, those 2 million people who visited France annually, were bringing about 4 million euros as associated costs. But there is no more such an opportunity, the experts say. All the tourist shopping "temples" (Parisian Disneyland, Lafayette Galleries, etc.) are closed.

The GDP of France was reduced by 5.8% in the first three months of this year.

It is expected that a 16.4% drop in GDP will be even more serious in the next quarter. The capital occupies about one third of the total state GDP. The authorities, issuing benefits for 12 million people, allowed people to visit shopping centers. But as soon as the main problems in the health sector are over, the wage payments will again be passed on to the French entrepreneurs. That is why we should not expect a quick return to the pre-crisis state of France.