According to The Times on Monday, the Paris City Council is considering a further hike in admission fees as the Eiffel Tower suffers from accumulated deficits. The price of a ticket to the elevator on the highest floor for adults is 36.10 euros, which is an increase of 18 percent year-on-year. Despite the measures, however, the Eiffel Tower’s financial difficulties have not improved.
According to a report by the French Audit Office, the Eiffel Tower lost 8.5 million euros last year. The cumulative deficit is expected to reach 31 million euros by 2031. The Board of Audit and Inspection pointed out that the Eiffel Tower operator SETE seriously underestimated the maintenance and repair costs of the structure, which consists of 180,000 metal parts and 2.5 million bolts.
The budget for repainting in 2018 was initially set at 50 million euros, but the actual cost amounted to 142 million euros. The renovation project for the northern tower elevator also cost 58.3 million euros, far more than the budget of 32 million euros.
Rising labor costs are also a major factor in the deficit. Labor costs for 441 Eiffel Tower employees increased from 25.9 million euros in 2019 to 32.3 million euros this year. The average employee’s annual salary is 72,317 euros, and even simple workers receive an average of 49,032 euros if bonuses are included.
Additionally, the COVID-19 pandemic has dealt a significant blow. Approximately 149 million euros of income has evaporated during the lockdown, but the fiscal gap has not yet been fully filled. As a result, analysts say that an additional increase in admission fees is inevitable. “We are considering adjusting the Eiffel Tower rate system,” the Paris City Council said, hinting at an increase.
France has been considered the least cost-effective travel. According to a survey conducted by Consumer Insights, a travel research agency, on the results of “cost-effectiveness using daily expenditure and satisfaction of 27 overseas destinations frequented by domestic travelers,” overseas destinations Japan and Thailand are the most cost-effective, while France and the U.S. are the least cost-effective.
France (-16) was a representative destination with low cost-effectiveness for “high cost and low satisfaction.” It was followed by the United States (-13), Hawaii (-12), and the United Kingdom (-9). The average daily travel cost of these countries was 350,000 won to 450,000 won, the highest level (1st to 7th), but the satisfaction level was only in the middle and lower ranks (13th to 20th). This is because airfare is high and prices such as eating out and accommodation are significantly higher than those in Asia.
JENNIFER KIM
US ASIA JOURNAL
