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France Outbound - April 2018
Introduction
 
“France ranks as the fifth-largest outbound market in expenditure terms, spending US$40.5 billion in 2016, reports the UNWTO. Despite a marginal decline in outbound trips by 0.6% in 2016, tourism expenditure increased 5.5% in 2016 – a positive sign for the outbound market. French tourists may be taking fewer trips but they are choosing to invest more in each trip.” 

France has witnessed sluggish economic growth in recent years, directly impacting its outbound market. Following two years of buoyant growth in 2012/13, outbound trips declined in 2015/16 as the French made cutbacks in foreign holidays. In 2015, the French indulged in fewer personal (leisure) trips, according to the Direction Générale des Entreprises (DGE), followed by a reduction in personal (leisure) short breaks in 2016. 

French tourists are a highly lucrative tourism source by world standards and a desirable target for many national tourism organisations (NTOs). Often referred to as ‘cultural connoisseurs’, they seek out destinations for the cultural attractions, nature, landscapes and beautiful beaches. France itself is the world’s leading tourism destination and its citizens have somewhat high standards when considering destinations abroad. The value of France’s outbound market is also reflected by the importance NTOs attach to this market worldwide. France features as a leading source market among many European nations, including Spain, Italy and Germany. 

Over the past decade there has been a shift in destination choice away from the French-speaking destinations of Morocco, Tunisia, Egypt and Turkey to European favourites, including Spain, Italy and Portugal. On balance, Europe is the main playground for French tourists but long-haul travel is growing. 

French travel agencies and tour operators work in a highly competitive marketplace. Tour operators are under pressure from more travellers adopting a DIY approach to travel planning and organisation. Consequently, revenues in package holidays abroad came under pressure in 2015/16. 

Modes of transport vary by geographic position. Road, rail and sea all play a critical role depending on the market. Air travel is essential to growth of the outbound market bringing in more travellers with the promise of cheaper airfares. Long-haul low-cost carriers (LCCs) from Norwegian could prove pivotal, enticing more French tourists outside of the popular European and Mediterranean routes. LCCs such as easyJet and Ryanair are making stronger investments in the French market, keen to tap into this growth market. Air France is making tangible investments to stay relevant to its target audience. 

After several years of sluggish growth, the French economy showed more promising growth in 2017. Gross domestic product (GDP) increased 1.8% in this year spurred on by the appointment of President Macron in May 2017, who has ushered in new business and consumer confidence. In 2018, the mood remains buoyant and the European Commission (EC) predicts 2.0% GDP growth for the full year. Against this background, there are good prospects for the France outbound market. 

This report looks at the following areas:

●	What foreign destinations do French citizens visit? 
●	How is the economy affecting outbound travel?
●	What are the driving factors behind destination choice?
●	What modes of transport are used most often?

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