France - background market data

Population — 60.9 million. Language — French. Boat ownership relatively high for such a large country, per capita estimated at around 1:120.

Currency — Euro (€): UK£1=€1.3298, US$1=€0.6701. The pound was steady against the euro for most of 2007, falling sharply towards the end of the year. The dollar weakened against the euro throughout 2007, rising slightly in December.

Government — Member of the right-wing UMP party and neo-Gaullist Nicolas Sarkozy has been President since May 2007 and promises pro-market reforms to tackle sluggish economic growth. Recent legislative elections did not result in the strong conservative majority expected, with the UMP controlling only 54.3 per cent of the national assembly.

Economy — A leading member of the EU, France is currently transitioning from an economy reliant on government ownership and intervention to one based more on market mechanisms. The government has privatised many large companies and banks, and has ceded stakes in leading firms such as Air France and Renault.
France’s tax burden remains one of the highest in Europe (nearly 50 per cent of GDP in 2005). The country is committed to a capitalism in which social equity is maintained by laws, tax policies and social spending. In recent years this model has proved a disincentive to growth and job creation, although in 2007 unemployment was reduced to eight per cent. Real GDP growth was 1.8 per cent in 2007, the same as the previous year, and the rate of inflation for 2007 was 1.5 per cent, down from 1.8 in 2006.

Boat Park — Estimated at 600,000, 75 per cent power and 25 per cent sail.

Restrictions — France has a high VAT rate of 19.6 per cent. There is registration for inland boats over 4.5kW/sea-going boats over 3.5kW or all over 5m (16ft) in length. Speed limits are in force on inland waterways, in harbours and coastal waters where beach traffic schemes exist.

Industry Body — FIN, Port de Javel Haut, 75015 Paris, France. Tel: +33 144 37 04 00. Fax: +33 145 77 21 88. E-Mail: fin@france-nautic.com. Website: www.france-nautic.com. Contact: Chairman, Thierry Verneuil or CEO, Philippe Fourrier. ICOMIA member organisation with over 700 member companies that employ over 25,000 people and between them are responsible for a turnover of around €2 billion.

Key Boat Shows (3)

— Festival International de la Plaisance, Cannes. Normally around 430 exhibitors. 65,000 visitors attended the September 2007 edition. Next edition is September 10-15, 2008. Website: www.salonnautiquecannes.com

— Grand Pavois de La Rochelle, La Rochelle. In-water event held annually in September. 832 exhibitors were at 2007’s edition, with 104,000 visitors attending over six days. Next edition is September 10-15, 2008. Website: www.grand-pavois.com.

— Salon Nautique International de Paris (Paris International Boat Show). Held annually in early December. Around 1,400-plus exhibitors and 270,000 visitors in December 2007. Next edition runs from December 5-14, 2008. Website: www.salonnautiqueparis.com

Market Outlook — Like most other countries in Europe, France’s marine leisure market has managed to grow more or less consistently for much of the past decade. Today it ranks as the world’s second and Europe’s largest consumer boating market. Now is an interesting time, however. Where do we go from here? The current crisis in the world’s financial markets must surely impact business in France as everywhere else and has resulted in a definite nervousness as to what 2008-09 holds in store.
As it stands — and not factoring in any global financial meltdown — it appears France is looking at a flat year ahead. It has that feel to it. There isn’t a crisis yet; but who knows?

Next IBI French Business Report in the February/March 2009 issue.