In France, urban violence dropped a notch overnight from Sunday to Monday July 3 as riots have shaken many cities since the death of young Nahel on Tuesday June 27. If a return to calm seems to be on the horizon, the economic toll already looks very heavy with hundreds of destructions and lootings. From trade to tourism, many sectors are affected in the short and medium term.
If it is still too early to precisely quantify the damage of the nights of riots, the bill already looks salty. This is first of all the case for public authorities since many public buildings have been damaged, such as schools, libraries and town halls. Street furniture and public transport were also destroyed, such as buses and trams.
The other major victim is the trade sector. The images circulating on social networks show it well: many stores have been looted and vandalized. The Minister of the Economy, Bruno Le Maire, drew up an initial assessment on Saturday July 1, speaking of at least 200 large retail stores, 250 tobacconists and 250 bank branches attacked throughout France. In addition, there are also local businesses that have been targeted.
In the Marseille region alone, a city particularly affected by the violence, the losses for traders are already estimated at more than 100 million euros by the Marseille-Provence Chamber of Commerce and Industry. A blow in the middle of the sales period, for a sector already weakened by inflation.
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The difficult question of compensation
For businesses affected by the riots, thefts and damage such as broken windows or burnt storefronts are normally taken into account by insurance companies since these damages are included in the majority of contracts taken out by professionals.
What is more of a problem is the shortfall linked to the prolonged closure of these businesses, otherwise known as operating losses. For this, insurance companies usually offer a specific contract. However, only one in two merchants would be covered according to France Assureurs.
To limit damage, Bruno Le Maire asked insurers to speed up compensation and reduce deductibles. Several measures have also been taken, including the postponement of the payment of social and tax charges, the simplification of insurance procedures and the extension of sales by one week.
An insufficient boost according to the Trade Alliance, which is calling on the State to create a compensation fund. The Medef speaks for its part of “ irreparable losses » which could result in « partial unemployment, even job destruction “.
Violence scares away tourists
The other sector concerned in the short and medium term is tourism. While professionals were expecting a good summer in prospect, the projections today are less optimistic.
conflagration, closely followed abroad, may indeed discourage some tourists. In recent days, some countries have also called on their nationals to be cautious. This is the case of the United Kingdom, the United States, and China in particular.
The effects of this bad press are already being felt. The Paris Tourist Office speaks of a cancellation rate of more than 20% for international customers. The hotel and catering industry draws the same observation with a wave of cancellations of reservations. A trend aggravated by the cancellation of several major cultural events. This degradation of France’s image is worrying employers’ organisations, which fear that investors will give up on projects in France.
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