French ski resorts are mounting a legal challenge against the government’s order to keep ski lifts closed at resorts this holiday season.
While resorts can remain open, President Emmanuel Macron has asked that the lifts that transport skiers to the mountains remain closed until at least January to help lower the spread of COVID-19, according to a Bloomberg report.
Resorts claim the measure will essentially wipe out the holiday ski season and the millions in revenue they stood to earn if the lifts remained open. Domaines Skiables de France, which represents the resorts, has filed a challenge against the closure order with France’s highest administrative court, the Council of State, Bloomberg said.
The resorts face an uphill battle, as the Council of State recently rejected an appeal by France’s hospitality industry to overturn an order closing bars and restaurants.
Like many nations, France has been battling a second wave of COVID-19 infections. The nation ordered a partial lockdown in late October that required most people to remain at home and nonessential shops to close.
French authorities have indicated they would like to open the lifts in January if they can keep the infection rate in check. They said the holiday closure will help salvage the ski industry’s busiest months, February and March. France’s ski resorts pull in around $13 billion each season, with about a quarter of that brought in around the holiday season, according to Bloomberg.
European nations have been split on whether to close their ski resorts. Germany and Italy have closed their resorts for the holidays, while those in Austria and Switzerland remain open.
In response to the closures, the French government plans to announce additional financial support for the ski industry on Wednesday (Dec. 9). Measures include partial unemployment benefits for seasonal workers and financial aid for resort-dependent businesses such as small shops, per Bloomberg.
A decision by the Council of State on the lift closures is expected by the end of next week.
Meanwhile, the second wave of lockdowns in Europe this fall has had a chilling effect on the eurozone economy, according to an analysis released by IHS Markit in late November.
The flash IHS Markit Eurozone Composite PMI dropped to 45.1 in November, compared to 50.0 the prior month. The data points to the likelihood of a drop in the fourth-quarter gross domestic product (GDP). The flash composite PMI for France dropped to 39.9, down from 47.5, marking the third consecutive monthly drop and the steepest since May, according to the report.
The service sector — especially hospitality, travel and consumer-facing firms — is being slammed the hardest, with declining output for the past three consecutive months. Manufacturing output has also slowed.
Europe’s lucrative holiday tourist industry has also been battered by the second round of lockdowns.
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