According to a survey by INSEE, economic activity in Provence-Alpes-Côte d’Azur would remain below pre-crisis levels in the first quarter of 2021. This gap would be more pronounced than at the national level, due to the strong presence of the tourism sector and a lackluster winter season caused by health measures.
Covid-19 impacted tourism activities by 46% in the Alpes-Maritimes. The restaurant sector recorded a 70% decrease in the first quarter of 2021.
The successive waves of lockdowns, health measures, and the slowdown in air traffic are to blame. Before the crisis, the tourism sector brought in 6 billion euros annually, and accommodation and catering represent more than 70% of tourism-related jobs.
Under state support for a year, between partial unemployment and guaranteed loan systems, there is concern over the cessation of aid: in fact, there are still limits to respect, 30% of restaurants remain closed because they don’t have a terrace…
The hardest part is yet to come, hopes for recovery are based on the arrival of local tourists, so an assessment will be needed after the summer, say industry professionals.
The construction sector is also impacted: in 2020, housing construction permit applications saw a decrease of about 7%.
As a result, prospects are darkening, faced with supply tensions and rising raw material costs.
In the Alpes-Maritimes, the sector represents 23,000 jobs, 5,000 businesses, and is worth nearly 3 billion euros.
