IVIS Country Analysis – France

FRANCE

688,887 Arrivals in the United States

Loss of 45,373 over 2002, -6.2%

10.5% of all French Long-Haul Travel

-7.2% over 2002

SUMMARY

Total outbound travel from France was nearly flat (-0.5%) in 2003 over 2002. Still, this travel volume was the second highest in the past decade. Long-haul travel from France in 2003 increased 1.1 percent over 2002. French arrivals in the United States declined 6.2 percent though, resulting in a loss of market share. The U.S. long-haul market share (MSI) of 10.5 percent was a decline of 7.2 percent over the previous year. The U.S. market share of long-haul travel from France has been steadily declining since 1995. In 2003, the MSI was at its lowest level in a decade. In fact, the U.S. has lost nearly one half of its market share of French long-haul travel this decade.

France's economic growth in 2003 was flat. Real GDP grew by only 0.2 percent over 2002. Real private consumption increased 1.6 percent year-on-year and the unemployment rate grew to 9.6 percent. Consumer prices rose only 2.1 percent, nearly the 2.5 percent EU limit, but still in line with the EU goal to stem inflation.

The French currency is now the euro. (To maintain a ten-year trend, the MSI online database shows the value of each eurozone country's currency in terms of the country's former local currency. The rate of change, however, is based on the euro after 1998, the year local currencies pegged to the euro.) After appreciating 5.5 percent against the dollar in 2002, the average exchange rate for the euro in 2003 showed appreciation of 19.5 percent over 2002. A stronger currency typically helps to attract travelers to the U.S., but France was an exception in 2003.

In 2003, with only 10.5 percent of the French long-haul market, the United States was the third most popular long-haul destination among French long-haul travelers. Tunisia (15.3%) and Morocco (13.5%) ranked first and second in popularity with the French. Other popular long-haul destinations for French travelers in 2003 were Egypt (5.8%), Canada (4.6%), China and Brazil with 3.1 percent each of the long-haul travel market from France. Morocco and Egypt both gained market share in 2003, while the other destinations lost share.

Source: Global Insight

Africa is by far the most popular regional destination for long-haul travelers from France. In 2003, it captured one half (51%) of the French long-haul travel market. Asia (17.5%) was the second most popular region. As a region, the U.S. (10.5%) came in third, followed by Sout/Central America (6.1%), and the Caribbean (5.9%) for long-haul travelers from France. Both Africa and the Caribbean gained market share in 2003.

Source: Global Insight