The Olympic Games Paris 2024 have ignited a significant economic surge in the French capital, with new data from Visa, the Official Payment Technology Partner of the Olympic and Paralympic Games, highlighting a 26% year-on-year rise in sales for Parisian small businesses during the event’s opening weekend.

Economic Impact on Paris Small Businesses

Visa’s latest report reveals the substantial boost to commerce in Paris driven by Olympic visitors. The data shows a remarkable 26% increase in sales for small businesses, with notable spending spikes in various sectors. Theatres and museums experienced an astounding 159% rise, while food and grocery sales climbed by 42%, restaurant revenues grew by 36%, retail goods saw a 21% increase, and entertainment spending jumped by 18%.

International Spending Trends

The influx of international visitors has played a crucial role in this economic uplift. The largest share of overseas spending comes from U.S. Visa cardholders, who accounted for 29% of the total foreign expenditure. Furthermore, year-on-year spending has surged significantly from Brazilian (+33%) and Japanese (+129%) Visa cardholders.

Contactless Payments and Travel Trends

The trend towards contactless payments continues to grow. In Paris, 78% of international purchases are contactless, marking a 9% increase from the previous year. This trend aligns with the broader movement towards digital payments, further accelerated by Visa’s initiatives.

Travel to Paris has also seen a significant rise, with a 39% increase in flight bookings in the lead-up to the Games compared to the same period in 2023. Notably, a 120% year-on-year increase in travellers under 35 indicates the Games’ appeal to younger generations. The most significant influx of tourists came from the U.S. (+64%), followed by Germany (+61%) and Spain (+27%).

Impact Beyond Paris

The economic benefits of the Olympic Games have extended beyond Paris. Cities hosting Olympic events have also seen considerable increases in spending. Saint-Etienne reported a staggering 214% rise, Lille saw a 100% increase, and Marseille experienced a 38% uplift in consumer spending.

Visa’s Strategic Initiatives

Visa’s Official Payment Technology Partner role has been pivotal in facilitating these economic benefits. Over the past three years, Visa has collaborated with the Organizing Committee to build a custom payment network across Paris and beyond. This network ensures that Visa contactless payments are accepted at 3,500 points of sale across 32 Olympic venues and 16 Paralympic venues.

Charlotte Hogg, CEO of Visa Europe, emphasized the significance of these developments, stating, “As a sponsor of the Olympic Movement for almost 40 years and the Paralympic Games since 2002, we know first-hand the impact that the Games can have to boost host-country economies, in line with Visa’s purpose to uplift everyone everywhere. Our latest data shows a significant increase in consumer spending among Visa cardholders during the Opening Ceremony Weekend.”

Hogg also highlighted the success of Visa’s efforts to digitize small businesses, saying, “We’re particularly pleased to see the uptick in spending at French small businesses after we helped 13 million of them digitize over the last 4 years in Europe and connected them to spectators through the Visa Go app.”

Future Prospects

The increased engagement of younger generations in travel and spending is a promising trend for the future. “The increased engagement of younger generations, which we see in the travel data, is also an exciting finding and shows the reach and relevance of the Games today and into the future,” Hogg added.

Visa’s commitment to providing robust and venue-specific payment systems has been crucial in managing the financial activities surrounding the Games. The company’s introduction of the Visa Go app has further enhanced the experience for spectators and tourists, connecting them with local businesses throughout the event. Visitors can download the app here.

As the Olympic Games Paris 2024 continues, the positive economic impact on the city and its businesses is expected to grow, showcasing the enduring value of global sporting events in fostering economic development and cultural exchange.

 

 

 

Written by: Yves Thomas

 

 

 

 

 

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