Decision ID: 001688

In June 2005 the 1992 Fund Executive Committee noted that in February 2005 the Civil Court in Paris had rendered a judgement in respect of a claim by a real estate agent relating to losses as a result of a reduction in annual and seasonal letting activities and property sales in the affected area due the incident. It was noted that the Fund, whilst approving the claim in respect of seasonal lettings, had rejected the claim as regards annual lettings and property sales on the grounds that the incident did not have a long term impact on the economic activity of the area and that the decision by prospective clients to rent on an annual basis or to purchase property was only postponed as a result of the clean-up operations. The Committee noted that the Court had rejected the claim item relating to annual letting losses, since it had not been established that the claimant’s turnover depended on the number of tourists visiting the affected area, and also rejected the claim item relating to property sale losses, since it had not be proven that the incident had had an enduring effect on property sales.

Category: Pure economic loss (tourism)
Subject: Losses suffered by non-tourism businesses and activities