Fewer foreigners overnighting in France

ByABC News
September 10, 2009, 7:29 PM

— -- The economic crisis is touching France as well.

Last year's No. 1 tourist destination recorded a 14.5% decline in overnight stays by foreign tourists in July and August, tourism secretary of state Hervé Novelli said at a recent news conference. That loss was offset by French vacationers staying closer to home, he said. Overall overnight stays in France rose by 1% in July and August, according to preliminary figures.

Meanwhile, visitors are savoring cheaper restaurant tabs, thanks to a recent tax slash.

The French government cut the value-added tax, a kind of sales tax, from 19.6% to 5.5% in restaurants as of July 1. As part of the initiative, restaurateurs agreed to reduce the price of many items. Menus seen in Paris this week had old prices crossed out, and new, lower ones inked in.

The move is aimed at keeping restaurants afloat in hard times.