From a historical standpoint, a rapid survey leads to the conclusion that from the end of the Nineteenth century and the beginning of the Twentieth, the Public Authorities have encouraged the economic growth of the Principality and provided the framework for the development of private enterprise.
The economic activity of the principality takes place along four main lines:
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 setting 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 printing, electronic materials, textiles and garments.
Industrial activity is represented by 105 establishments and 3,500 jobs. In 2005, they generated approximately 8% 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.
Tourist activity is essentially connected with private tourism or business tourism. In 2001 this sector was responsible for 13% of the Monégasque economy. The hotel industry of the Principality has 2,616 hotel rooms with a total of 3,920 beds, most of which are in the four star category. The average occupation rate in the region was 58.39% in 2005 or in other words over 800,000 overnight stays and rose to 75.5% in 2006, which worked out at around 915,650 overnight stays.
Furthermore, the cruise industry plays an important role for the tourist activity of Monaco. In 2005, over 190 ships called into port bringing a total of 133,000 passengers to the microstate.
For several years, the public authorities have been making considerable efforts in the area of catering for business touristsas for instance the construction of the Grimaldi Forum which is a approximately 592,015 square feet congress center where 454 congresses were hosted in 2005. At present time, tourists coming to Monaco on business or for converences and seminars represent 30 % in terms of hotel occupancy.
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 2005, around 44% of the turnover and its sphere of activity includes banks, insurance, consulting agencies (technical, commercial, financial and the like), auxiliary services and middlemen.
The fourth sector is that of commerce which represents 39% of the total turnover in 2005.
Finally, real estate activity plays an important role in the economy with 7% of Monégasque turnover, justifying research and determining the directions taken in the field of city planning.
The total turnover of the Principality rose from 3.25 thousand million francs in 1975 to 29 thousand million franks in 1990. In 2000, the Principality of Monaco produced a total turnover of 3.2 billion Euro and in 2005 it passed the 10 billion Euro mark with a turnover of 11 billion euro, which is a 12% increase compared to 2004.
In an uncertain and complex international environment, with the ever-enlightened encouragement of its Sovereign, the Principality of Monaco preserves its originality: without any natural resources and a tiny territory, it is developing and modernizing itself. A city of 32,000 inhabitants, it provides work for about 44,200 people, around 40,300 jobs are in the private sector and the rest of 3,900 in the public sector. Every day, 28,000 French and 6,000 Italians come into Monaco for work. The Principality makes efforts to manage its advantages in the best possible way with the constant aim of improving the quality of life so as to bring work and leisure together in a harmonious fashion.
For more information, please visit the official website of Monaco’s Economic Development Chamber, http://www.cde.mc/