Article published on the 2008-07-31 Latest update 2008-07-31 14:46 TU
Polls show that declining purchasing power has become the principal concern for most French people, taking over from employment in Autumn 2007, and adding to the decline in popularity of President Nicolas Sarkozy, whose main election slogan was "Work more to earn more".
Restaurants and cafés have felt the penny-pinching by French consumers according to the UMIH, the national restaurant union, reporting that clientele numbers fell 20 to 30 per cent in July alone.
Hotels have reported a better showing, but vacationers are trying to bargain for hotel rooms at the lowest possible price, president Yannick Fassaert of the tourist association Gites en France told L'Humanité.
Other cost-cutting measures in use this summer include carpooling to save petrol, doing a home exchange with others to cut down on hotel costs, and taking short bicycling excursions.
In fact, more than a quarter of all French save money to go on vacation, according to the study. And 56 per cent who are hitting the road are staying closer to home, due to rising petrol prices.
Camping is becoming more popular, and the level of reservations in 2008 is "quite healthy", said French Secretary of State for Tourism, Hervé Novelli.
If camping rates go up, then other companies in the area that depend on tourism, such as restaurants, suffer. Campers prefer to go to the supermarket and make the food at the campsite instead of going to restaurants.
On the holiday hotspot of the Côte d'Azur, people are foregoing expensive dinners and instead spending money on events, such as jazz concerts or festivals in the area, said local hotelier union leader Michel Tschann.
The Communist Party takes a particular interest in the question because the right to paid vacations in France was granted by the country's first-ever left-wing government, the 1936 Popular Front which the party supported.
Workers went on general strike in 1936, paid vacations and a 40-hour working week were among their demands. They were met by the government which was led by Socialist Léon Blum.
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