The awful attacks on Paris this past weekend not only devastated the cities morale, but it could also pose potential losses in the financial sector for the country moving forward. The events that occurred in Paris could certainly have a significant
negative impact on the confidence of consumers in the near future, primarily in France, but also elsewhere in Europe. Seeing as tourism is a major source of revenue for Paris (third most visited city in the world), the attacks could substantially affect the economy as the city suffers in the wakes of the attacks.
Despite all that happened this past weekend, the markets will open as normal at Euronext on Monday; however, at this point in time their priority is
the safety of their staff, therefore there will be extra security in
place in Paris on Monday. As of close on Friday, stocks trading on the Paris benchmark CAC were up 12.5%; however, it will be interesting to see where the French market heads, and how is responds to the events that took place this weekend.
http://money.cnn.com/2015/11/15/investing/paris-attacks-french-stocks/index.html?iid=hp-stack-dom
10 comments:
I definitely agree that the terrorist attacks will frighten some people, but it will not be enough to see a decrease in tourism in all of Europe. Attacks are just as likely any place in the world and most people are not going to change their travel plans based on it. Paris will probably only see a decline in tourism in the very near future, but not long after that.
The attacks will definitely play a role in the economic activity. Tourism will take a hit and as much as people would not want to admit it, they will be scared to go out to big events. Big events in the city, not only Paris but all throughout the world, are potential targets for attacks. ISIS stated that this is only the beginning of the storm and this fear will definitely effect the behavior of people going forward.
In terms of tourism and its related activities it will be interesting to see the impact the events on the 13th will have, especially for a city like Paris. For it to remain a popular tourist destination and more importantly safeguard its denizens, the Council of Paris will undoubtedly spend money to increase its security standards possibly through re-training of police and other public service employees, hiring new employees or investing in new equipment and technology. Perhaps the potential increase in government spending will drive some economic growth in Paris.
Global economic activity will definitely be stunted, at least in the short run. Consumer confidence is down internationally, and people's incentive to travel anywhere is extremely low. Tourism not only in Paris, but throughout Europe and in big cities around the globe, will be harshly negatively effected. Further, the tourism market affects other markets as well (such as retail, etc.) Thus, clearly economic activity as a whole will suffer, and the terrorist attacks on Paris will have a long standing impact.
I agree with Matt. I think that in light of the attacks on Paris, tourism will take a major hit. While tourism was not drastically affected after the attack on the French satirical newspaper, Charlie Hebdo, on January 7th, 2015, this is the second attack to plague France this year alone - even after more security measures were enforced int he capital. During the terrorist attack on January 7th, 16 people died. During the terrorist attack last Friday, November 13th, at least 128 people have died with over 100 still remaining in critical condition - and an imminent threat still remains at large.
In all honesty, I think that the city of Paris will see a major decline in tourist activities even if security measures are heightened over the coming months. A terrorist attack could happen anytime and at anywhere across the world, yes, but to happen in the same city twice in one year... There will be consequences. I am very interested to see how France deals with this matter in terms of citizen morale.
I don't think that terrorism will stop people from living their lives and traveling, there will always be a risk of terrorism no matter where you are in the world. I'm sure that many people will still want to visit Europe France included when they open the boarders because of the rich history that comes along with the country, this latest attack has added sadness into the mix.
I feel like most of the world is behind France, all our prayers and thoughts are with them as well as any monetary help they may need.
As for the economy, it will continue on but most of its financing will go towards the military and protection. I also read an article that said France is starting air strikes on Syria which are definitely costly.
I've read articles that many people are purposely planning trips to Paris in wake of the attacks. Just like after 9/11, people were encouraged to go about their everyday lives. Yes, some will be deterred in going to a recently attacked area, but I really don't think tourism in a place like Paris will be changed that much.
I agree with Emily and Montana, I don't believe that tourism will take a major hit. Individuals should lead their lives as they would normally - the risk for terrorism hasn't drastically increased. You are still as likely to be a victim of a terror attack than you were a few days ago. You are several times more likely to be physically injured in a motor vehicle accident abroad than in a terror attack. I also believe that it's important for people to go about their normal routines, otherwise the terrorists have won in making you scared to get on a plane, a bus, go to a show.
In times of crisis, people are less likely to spend money (consumption decreases) due to fear of going out in public and doing so, as well as trust issues. However, jobs with security will increase, as well as the demands in the job descriptions for people in charge of France's security, as well as in the United States and other countries.
I think the attacks will play a role in the current economy of France. ISIS has made statements that France was not the only country that will be attacked. I don't think tourism will be affected to the point where it will cripple the economy. but it will probably stun it. Also, the government will have to increase the amount of spending on security and protection to help increase the safety and morale of citizens. There will be an effect on the French economy, but it shouldn't be anything too major.
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