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