Industrial activity

Industrial activity, often little known, but an area which has undergone considerable development in less than a century. From 1906, when the State financed the construction of the first platform in Fontvieille, industrial firms such as the Monaco Brewery and companies involved in flour-milling and the manufacture of chocolate began to settle there. Over the course of the last twenty years, nearly 200,000 square meters of industrial floor-space has been built. The small area of Monaco's national territory leads to the siting of industrial premises in buildings which rise to thirteen floors. The Government of the Principality has adopted an industrial policy which operates in favor the establishment of enterprises having a high capital gain factor but which do not create any pollution.
The "chemical-pharmaceutical-cosmetics" sector appears to be the most numerous but companies working in the areas of plastic material processing and the manufacture of electrical and electronic equipment are also present.
Other sectors, while they are not on the same scale as those described above, bring renown, originality and technical performance to the Principality; they are to be found in particular in the sectors concerned with mechanical engineering, packaging, printing and clothing.
Industrial activity occupies round about a quarter of the total work force but numbers are relatively stable at around 4,000 people or 13% of the working population. In 1993, they represented approximately 11.6% (excluding the construction and public works industry) of the total turnover generated in the Principality.
The Principality of Monaco today has a diversified industry and yet it is perfectly integrated into its setting and its environment.
A tourist activity which is essentially connected with private tourism or business tourism.
The hotel industry of the Principality has 2,500 hotel rooms, most of which are in the four star category. The average occupation rate is in the region of 48,3%, which worked out at around 601.111 nights' occupation in 1993.
For several years, the public authorities have been making considerable efforts in the area of catering for business tourists; this is planned to exist alongside the private tourist clientele, which is essentially seasonal, so as to maintain steady economic activity right through the year.
The third sector includes tertiary activities which have been greatly developed over the course of recent years in the areas of banking and financial activities, and the establishment of head offices and offices of non-financial companies of international size.
The sector which has undergone the most spectacular growth is that of services. It produced, in 1993, 49,1% of the turnover and its sphere of activity includes banks, insurance, consultancy agencies (technical, commercial, financial and the like), auxiliary services and middlemen
Finally, real estate activity plays an important role in the economy, justifying research and determining the directions taken in the field of town planning.
ECONOMIC SECTORS
The backbone of the Monegasque economy is formed by high-end tourism and the services related to it, construction and the real estate market, small-scale industrial and consumer products manufacturing (chemicals, food products, plastics, precision instruments, cosmetics, and ceramics), and international trade. Of the 32,691 employed, as estimated in 1999, the private sector was responsible for 29,311 and the public sector for 3,380. Approximately 46 percent of the labor force was in services (other than tourism), 7 percent in banking, 17 percent in tourism and hotels, 12 percent in retail , 7 percent in construction and public works, and 11 percent in industry. No official data as to the distribution of GDP were available.
INDUSTRY
Industrial activity, often little known in Monaco, is an area that has undergone considerable development over the past century. From 1906, when the state financed the construction of the first industrial platform in Fontvieille, industrial firms such as the Monaco Brewery and companies involved in flour milling and the manufacture of chocolate began to develop. Currently, the chemical-pharmaceutical-cosmetics manufacturing sector appears to be the most widespread, but companies working in the areas of plastic materials processing and the manufacture of electrical and electronic equipment are also present. Other sectors, while not on the same scale as these, are the manufactures of mechanical engineering, packaging, printing, and clothing. Since 1980, nearly 1,859 square meters (20,000 square feet) of new industrial floor-space has been built, mostly on areas reclaimed from the sea. The lack of space has led to the establishment of industrial premises in buildings that rise up to 13 floors. The government of the principality has adopted an industrial policy that operates in favor of the institution of enterprises having a high capital gain factor but that do not create any pollution. Industrial activity occupies about 4,000 members of the workforce. In 1993, they represented approximately 11.6 percent (excluding the construction and public works industry) of the total revenue in the principality.
SERVICES
The service sector has undergone spectacular growth in recent decades. It produced 49.1 percent of the total revenue of the country in 1993 and included banking, insurance, consulting agencies (technical, commercial, and financial), auxiliary services, and commercial middlemen. Banking and financial activities and business services, including those associated with the establishment of head offices and offices of non-financial companies of international size, are growing in importance in Monaco. The retail sector includes small, privately held stores, luxury boutiques, and international retail chains. Retail contributed approximately 21 percent to the principality's total revenue in 1993. The banking and retail sectors are closely integrated with the French economy through the monetary union between the 2 countries and the local branches of large French and international banks, insurance firms, and stock markets. Despite the increased competition resulting from the liberalization of financial services in the EU, the introduction of the single currency, and the revolution in information technology, the economic relationship between France and Monaco remains strong. Real estate activity plays a very important role in the economy, justifying the principality's extensive research and decision-making process in the field of city planning.
TOURISM.
Monaco is a popular world luxury resort, attracting affluent tourists to its casino, rich cultural schedule, and pleasant climate. Situated in the heart of the Riviera—the narrow coastal strip extending along the Mediterranean from Hyeres, France, to La Spezia, Italy— it benefits from the proximity of the renowned French resorts of Saint Tropez, Antibes, Cannes, Nice, and Menton. The latter 2 cities are connected by 3 scenic highways, which run through or near the Monaco territory and its chief tourist quarter of Monte Carlo along the sheer cliffs of the Maritime Alps. Both private and business tourism are thriving in the principality, and there are about 2,500 hotel rooms, most of which are in the 4-star category or higher. In 1993, 601,111 rooms were occupied overnight, resulting in an average annual occupation rate of 48.3 percent. For several years, the government has been making considerable efforts to attract more business tourists in order to increase hotel occupation, since occupation by the private clientele is essentially seasonal. Among the points of interest in Monaco are a cathedral, a palace in the medieval and Renaissance styles, and a world-renowned oceanographic museum established in 1910. A major source of revenue is the famous gambling casino. The Monte Carlo Opera and Philharmonic Orchestra offer ballet and music events, and the museums, spas, beaches, flower gardens, marinas, fine dining spots, luxury boutiques, and vistas all contribute to the attractions of the principality. The Monaco Grand Prix and the Rally Monte Carlo are popular annual automobile-racing events. The Societe des Bains de Mer, a company partly owned by the government, operates the casino and most of the hotels, clubs, beaches, and other places of entertainment. There are also notable foreign direct investments in the Monaco tourist industry.
INTERNATIONAL TRADE
Monaco is a hub of international commerce, importing and exporting products and services from all over the world. It is in full customs integration with France, which collects and rebates Monegasque trade duties . Monaco participates in the EU market system through France. No recent trade statistics for the principality have been made available.
FUTURE TRENDS
The Monegasque economy is closely related to that of the French, and therefore is dependent on the development trends of the EU. The liberalization of commerce, financial, and other services in the EU, the introduction of the single European currency, and the revolution in information technology will gradually increase competition, but the increasing wealth and dynamism of the EU economies will also boost demand for Monaco's unique services. Due to its size, the country is limited in its opportunities for extensive growth, but its strong ties to high-class tourism, services, and modern technology make it unlikely to endure any major negative changes in the near future. It is likely that the principality will preserve its sound economy, particularly in the areas of tourism, services, commerce, and modern manufacturing. The maintenance of its high living standards will continue to attract foreign companies, investment, and affluent tourists and residents in the foreseeable future.

Economic Indicators
Monaco's growth, after having dropped in 2009 during the financial crisis, experienced a strong recovery. In 2013, its growth was positive but weak. Monaco's economy, which is highly based on financial services, remains subject to the international economic situation. In 2013, Monaco launched a project of expansion of its territory in order to gain several hectares on the sea. The Societé Bains de Mer, the management company of the casinos and palaces, announced its recapitalization, mainly to finance the renovation of the hotels. Lastly, Monaco has committed to sign in 2014 the Convention of Mutual Administrative Assistance in case of fiscal evasion. Meanwhile, partnership negotiations with the European Union should start in 2014, since Monaco intends to reaffirm its banking and industrial specifications.

The economy of Monaco depends essentially of its tourism (particularly the attractiveness generated by the casinos). Each year, 300,000 tourists visit the Principality. Other economy sectors are being strongly developed such as maritime activities, cosmetics and biothermics. Monaco attracts a lot of foreign investment through tax incentives. In reaction to the economic uncertainty caused by the financial crisis, Monaco adopted austerity measures to reduce its public deficit. The volume of this deficit is unprecedented, since the state has been used to keep substantial reserves. In 2013, this deficit was lower, a trend that should continue in 2014.

In order to keep a healthy economy, the government launched a stimulus plan and granted loans to support industry and trade. The country has a very high living standard and unemployment is considered non-existent. Monaco has one of the highest GDP per capita in the world.


The backbone of the Monegasque economy is formed by high-end tourism and the services related to it, construction and the real estate market, small-scale industrial and consumer products manufacturing (chemicals, food products, plastics, precision instruments, cosmetics, and ceramics), and international trade. Of the 32,691 employed, as estimated in 1999, the private sector was responsible for 29,311 and the public sector for 3,380. Approximately 46 percent of the labor force was in services (other than tourism), 7 percent in banking, 17 percent in tourism and hotels, 12 percent in retail , 7 percent in construction and public works, and 11 percent in industry. No official data as to the distribution of GDP were available.


AGRICULTURE
There are no arable lands or other agriculturally suited areas in the principality; virtually 100 percent of the Monaco territory is heavily urbanized. Accordingly, there is no commercial agriculture in the country. All foods are imported and some of them are further processed and exported.
TOURISM.
Monaco is a popular world luxury resort, attracting affluent tourists to its casino, rich cultural schedule, and pleasant climate. Situated in the heart of the Riviera—the narrow coastal strip extending along the Mediterranean from Hyeres, France, to La Spezia, Italy— it benefits from the proximity of the renowned French resorts of Saint Tropez, Antibes, Cannes, Nice, and Menton. The latter 2 cities are connected by 3 scenic highways, which run through or near the Monaco territory and its chief tourist quarter of Monte Carlo along the sheer cliffs of the Maritime Alps. Both private and business tourism are thriving in the principality, and there are about 2,500 hotel rooms, most of which are in the 4-star category or higher. In 1993, 601,111 rooms were occupied overnight, resulting in an average annual occupation rate of 48.3 percent. For several years, the government has been making considerable efforts to attract more business tourists in order to increase hotel occupation, since occupation by the private clientele is essentially seasonal. Among the points of interest in Monaco are a cathedral, a palace in the medieval and Renaissance styles, and a world-renowned oceanographic museum established in 1910. A major source of revenue is the famous gambling casino. The Monte Carlo Opera and Philharmonic Orchestra offer ballet and music events, and the museums, spas, beaches, flower gardens, marinas, fine dining spots, luxury boutiques, and vistas all contribute to the attractions of the principality. The Monaco Grand Prix and the Rally Monte Carlo are popular annual automobile-racing events. The Societe des Bains de Mer, a company partly owned by the government, operates the casino and most of the hotels, clubs, beaches, and other places of entertainment. There are also notable foreign direct investments in the Monaco tourist industry.
INTERNATIONAL TRADE
Monaco is a hub of international commerce, importing and exporting products and services from all over the world. It is in full customs integration with France, which collects and rebates Monegasque trade duties . Monaco participates in the EU market system through France. No recent trade statistics for the principality have been made availabl
Foreign Trade
In 2012, the growth of world trade slowed and fell to 2.0% compared to 5.2% the previous year. The economic downturn in Europe adversely affected world demand for imports, partially explaining this phenomenon.
The more favourable situation of the American economy and growth in China were not enough to compensate for the continued weakness of the economies of the European Union.
For 2013, the World Trade Organization (WTO) constantly revised its estimates downwards. The first figures showed an increase of only 2.5%, still below the average rate observed during the past 20 years (+5.4%).
According to the WTO, "Output and employment data in the United States have continued to disappoint, while purchasing managers' indices and industrial production figures in China point to slower growth in the world's largest exporter." "More importantly, the European sovereign debt crisis has not abated, making fiscal adjustment in the peripheral euro area economies more painful and stoking volatility."
The European Union (EC) consumes approximately one-third of the goods traded in the world.
As far as Monaco is concerned, after the decline recorded in 2012 (-11%), the increase in the overall volume of trade observed since the start of 2013 was confirmed in the last quarter, reaching +41% compared to 2012.
Growth was much more pronounced in exports (+49.1%) than in imports (+33.5%), giving a positive trade balance (21.7M€ compared to -65.2M€ in 2012) for the first time since 2009.
Shipments to the European Union are increasing (+36.6%) and represent more than 48% of sales.
Acquisitions increased by 36%. The European Union remains the Principality's main supplier, representing more than 60% of trade.
Outside Europe, China remains the main supplier.
The Manufacturing sector for other industrial products represents 60% of purchases (+31%) and 53% of sales (+56%). 59% of imports in this sector are from the European Union and 59% of exports are destined for countries outside the European Union.
Transportation and storage
The "Transportation and storage" sector covers activities linked to transport, both regular and irregular, for passengers and goods, by rail, by road, by pipeline, by water or by air, and the associated activities such as the operation of transport infrastructures, freight handling, warehousing, etc.
This section includes the renting/lease of transport equipment with driver or pilot and also postal and parcel services. These comprise transport of letters, packages and parcels outside of the activities covered by the postal monopoly (La Poste Monaco being attached to France, its workforce and results are not registered in the Principality), and local delivery and messenger services.
As of 31 December 2013 the Transportation and storage sector represents 1 979 jobs (1 447 men and 532 women) or 4% of overall employment, held at 63.1% by French people and at 73.1% by men.

Information and communication
The "Information and communication" sector comprises the production and distribution of cultural information and products, the provision of resources enabling the transmission or distribution of these products, and data or communications.
It also comprises the activities associated with IT technologies, data processing services and other information services. In the Principality, this sector's activity is strongly influenced by two major economic agents : Monaco Télécom and Télé Monte-Carlo. 
As of 31 December 2013 the Information and communication sector represents 1 185 jobs (875 men and 310 women) or 2.4% of overall employment, held at 83.9% by French people and at 73.8% by men.
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Construction
The Construction sector comprises general construction and specialised construction activities for buildings and civil engineering (new building sites, renovations, repairs, extensions and redevelopment, the assembly of prefabricated buildings).
It also includes the development of building projects for buildings or civil engineering works by bringing together financial, technical and physical means to realise the construction projects for later sale. If these activities are carried out not for later sale of the construction projects, but for their operation (e.g. rental of space in these buildings, manufacturing activities in these plants), the unit would not be classified here, but according to its operational activity, i.e. real estate, manufacturing etc.
The Construction sector represents 9.2% of the Principality's employment. The 4 421 jobs are held at over 90% by men and at 50% by French people.
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Public Finances
This focus is about Principality's public finances, revenue and expenditure as well as the Constitutional Reserve Fund.
After 3 years of deficit, the government budget returned to a surplus since 2012. It shows a positive balance of 12 M€ in 2013 (3.75 M€ in 2012).
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Accommodation and Food Service Activities
Accommodation and Food Service Activities sector includes the provision of accommodation facilities for short-term stays for visitors and other travelers as well as providing complete meals for immediate consumption.
This sector does not include the preparation of meals and drinks which are not for immediate consumption or which are sold through independent distribution channels, in other words through wholesale and retail trade activities.
As of 31 December 2013 there were 202 employers in this sector (which equals 6.0% of the total number of employers in the Principality – other than employers of domestic workers), 85 of which employ less than 5 members of staff and 5 more than 200.
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Scientific and Technical Activities, Administrative and Support Service
The Scientific and Technical Activities, Administrative and Support Service sector is whole profesionnal, scientific and technical activities requiring a high level of training and providing specialised knowledge and skills available to users, and whole various support activities of overall firms' activities such as public accountants, notaries, architects, travel agencies, temporary work agencies, etc.
As of 31 December 2013 there were 564 employers in this sector (which equals 16.8% of the total number of employers in the Principality – other than employers of domestic workers), 14 of which employ more than 200 members of staff.
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Retail trade
Retail trade is defined as the resale (sale without transformation) of new and used goods mainly to the general public for personal or household consumption or utilisation, by shops, department stores, stalls, mail-order houses, door-to-door sales persons, hawkers, consumer cooperatives etc.
As of 31 December 2013 there were 455 employers in this sector (which equals 13.5% of the total number of employers in the Principality – other than employers of domestic workers), 323 of which employ less than 5 members of staff.
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Industry
Industry is whole human activities to manufacture goods obtained from natural raw materials conversion, or materials which have undergone certain stages of processing, and the use of energy sources.
As of 31 December 2013 there were 112 employers in this sector (which equals 3.3% of the total number of employers in the Principality – other than employers of domestic workers), 48 of which employ less than 5 members of staff and 3 more than 200.
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Wholesale trade
This sector consists of all companies that buy and/or sell goods and services exclusively to other companies or professional buyers. It includes wholesale trade for own account or for a third party (commission trade) and relates to domestic trade or international wholesale trade (import/export).
As of 31 December 2013 there were 375 employers in this sector (which equals 11.2% of the total number of employers in the Principality – other than employers of domestic workers), 261 of which employ less than 5 members of staff.
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Corporate governance - gender distribution
This Focus is about the gender representation within the boards of directors and decision-making bodies of the companies registered in the Trade and Industry Register, as going concern at February 5, 2014.
Women represent 26,9% of business leaders. The "Sole trader" legal form appears to be the most feminized, with almost one in three women entrepreneur.
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Automobile Market
This first issue of Focus analyses the automotive industry, which is traditionally defined by the matching of supply (production of vehicles) with demand (vehicle registrations).
In the Principality, other than Venturi, the market is based only on vehicle registrations. Statistics on the automotive industry market therefore only relate to registrations carried out by the Driver and Vehicle Licensing Office. The period examined was the first six months of 2012.




What are the imports and exports of Monaco?
A:
Monaco exports textiles, manufactured products and art products. The principality imports food, chemicals and transportation products. Monaco's import industry is smaller than its export industry. As of 2014, the area's largest trading partners were countries in the European Union. Monaco also trades with the United States and China.
All food in Monaco is imported because there is no agricultural land in the region. The principality is completely urbanized. It has some manufacturing plants, but mostly, the area is a tourist region that attracts affluent vacationers due to its casino-rich culture and a pleasant climate. Monaco imports and exports through a full customs integration with France, and France collects and refunds all customs duties and tariffs. The residents of Monaco do not pay income taxes, which makes this small area great for getting good deals on imported items. Those who work in the import and export industry especially benefit from the lack of income taxes.
Essential oils, cosmetics and perfumes are produced in Monaco, and these goods are exported to other countries, including the United States. Additionally, artwork and antiques are also exported to America. Monaco imports gemstones and precious metals from America as well as cars, trucks and other vehicle