Paris has been buzzing with excitement since the start of the Olympic Games.
Despite estimates of the Olympic Games’ economic impact (€9 billion in revenue) and the investments made accordingly, the reality is quite different… It would seem that after the COVID crisis, the hotel and restaurant sector is once again extremely disrupted by the implementation of QR codes in certain areas of Paris for the Olympic Games.
Thierry Marx, President of the UMIH (Union of Hotel and Restaurant Industries), is raising the alarm about the situation for restaurants: “Today, our shopkeepers, restaurateurs, and hoteliers are affected by these Games, by this closure of the city center, and we can clearly see that the impact is having a significant effect on revenue.” He mentions revenue losses of 40% in some establishments, sometimes even reaching 70% for restaurants near the Trocadéro, an extremely worrying situation for their future.
In reality, more than 40,000 barriers have been installed around the Seine and in the city center to establish a security perimeter. This makes it extremely difficult for tourists to move around the Seine and its surrounding areas, popular destinations for them. Furthermore, to enter the secure area, a QR code, which is difficult for tourists to obtain, is mandatory and is also carefully checked by the police. This has led to a significant drop in customer traffic for cafes, restaurants, and hotels, and consequently, in revenue.
Several discussions have taken place between the Prefect of the Île-de-France region and professionals in the restaurant and hotel industry. These discussions have resulted in the establishment of a compensation commission for all professionals in the sector whose revenue has been impacted by the Olympic Games. This commission will be officially established after the Olympic Games.
To be eligible, affected businesses must demonstrate a significant and abnormal drop in revenue (for example, 20%). To substantiate this drop, businesses must provide their revenue figures for the summer of 2023 for comparison.
Michel Cadot, the interministerial delegate for the Olympic Games, indicates that the commission will base its decision on “a certificate from a chartered accountant showing the amount of the net revenue loss.”
Businesses must also demonstrate that the revenue loss is directly linked to the Olympic Games.
Finally, if businesses decide to close their establishments during this period or place their employees on furlough, they will not be eligible for this aid.
In addition, it is also possible to file a legal claim against the State due to, for example, obstacles (e.g., barricades) erected by public authorities for the Olympic Games. This has been ruled on several occasions, notably in a case where a business owner experienced a significant drop in revenue following construction work by the City of Paris (French Council of State ruling of March 6, 1970).
To do so, you must:
- First, submit a preliminary claim for compensation to the relevant government department.
- Only if you do not receive a response from the department within two months, or if your claim is rejected, can you appeal to the Administrative Court. The deadline for filing a claim with the Administrative Court is two months from the date of the department’s rejection.
Regional and departmental aid programs are not yet available, but they may be soon.
Of course, legal counsel is strongly advised for this type of procedure. We are available to assist you in your efforts to obtain compensation.