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Monaco : a diversification success story. How does the Principality earn its keep ?

Dario DELL'ANTONIA - General Manager of the Monaco Tourism Office, Principality of Monaco

 

 

To convey the modern history of the Principality of Monaco, I need to go back in time a century and a half ago, and talk to you about a crucial event that took place in 1848 - the city protests in Menton and Roquebrune, which claimed their independence and asked for protection from the King of Sardinia.

For the Sovereign Prince, the challenge was to find the resources enabling the survival of his country since these resources were reduced by more than 90 %. The idea of opening a bathing establishment where games would be authorized was taking shape, as these establishments were highly successful in Germany.

The first two attempts were not so successful. In 1860, at the same King of Italy offers to France the Savoie and the Comté de Nice, and Menton and Roquebrune finally became assigned to France, Prince Charles the 3rd got in touch with François Blanc, the lucky owner of the Bod-Hombourg establishment; An agreement was reached and François Blanc arrived in Monaco in 1863, where he created the Société des Bains de Méridien et du Cercle des Etrangers that would ensure the management of the games and entertainment monopoly. He also built a new city on the land offered by the Prince.

This new district where a big casino, hotels, restaurants, gardens and villas were built achieved an instant success: the Prince decided to name it Monte-Carlo in 1866.

The legend is now on is way.

1868 The appearance of the railroad.
1869 Tax relief for residents.
1875 As an illustrative story, customers lodging at the Paris hotel have running water in their rooms.
1879 Opening of the Opera built by the architect Charles Garnier in a six-month period. More than 80 worldwide productions are staged in that place, such as the famous Russian ballets of Sergeï Diaghilev.
1897 First automobile rally from Marseille to Monaco.
1904 First motorized boat races in the harbour.
First hydroplane take-off trials.
1910 Inauguration of the Oceanographic Museum
1911 Developing the Monte-Carlo Rally

Considering the substantial changes that World War I brought to the behaviour of European people, the Principality undertakes the construction of new infrastructures that meet the demand of a new clientele.

1926 Construction of the Monte-Carlo Country and Beach Club that match today's American resorts.
1929 Setting up the first F1 Grand Prix

My evocation of the past stops with the coming of Prince Rainier III, Sovereign Prince since 1949.

His willingness to create a modern multi-facet country is conveyed through the start of a series of large construction works that will deeply affect all of Monaco :

  • The Larvotto district : the day before today, yesterday, today
  • The Monte-Carlo district : yesterday, today, tomorrow
  • The Fontvieille district : yesterday, today, the day after tomorrow

Nowadays, the Principality of Monaco is a modern sovereign and independent state, a hereditary and constitutional monarchy.

The second smallest state in the world: 195ha total from which 31ha reclaimed, and 42ha for green area. A very cosmopolitan population of.32,020 inhabitants representing 134 nationalities including: 10,200 French, 6,089 Monegasques, and 6,400 Italians.

A highly competitive economy generating 37,000 jobs among which 90 % in the private sector and 10% in the public sector. Every day 25,000 people cross the border to go to work.

An overall turnover of the private sector amounting to approximately 60 billion French francs, generated by 4,000 companies of which more than 400 produce on the Monegasque territory in industries such as : Pharmaceutical, aesthetics, electronic components, plastic parts for motor vehicles. The distribution of this turnover by type of sector are :

  • 7.7 % Industry
  • 7.2 % Real estate, public works
  • 3.1 % Hostelry, catering
  • 20.8 % Banking
  • 27.5 % Wholesales
  • 10.0 % Retails
  • 2.5 % Transports
  • 21.2 % Other activities

This sustained business also results in the number of submissions for granted patents mentioning Monaco: 3,500 to 4,000 in the past four years.

As for the state revenues, it amounts to 4 billion French francs for the 2000 budget, which break down as follows:

  • 52.8 % Sales taxes - V.A.T.
  • 5.5 % Government monopolies (tobacco, stamps)
  • 6.3 % Granted monopolies (Games - Monaco Telecom) ; as one can see, the contribution of the games industry accounts for only
  • 4 % of Principality's budget.
  • 8.6 % Real estate sector.
  • 26.8 % Miscellaneous taxes (legal transactions, business revenues, customs duties)

Even though the budget balance is a priority, the state allocates 30 % of its expenditure to investing in equipment and infrastructures for this 3rd millennium.

Some examples :

  • A railway system undergrounding of 7 km as well as a train station 540 metres long, which made it possible to recover 4 ha of external surface, a planned construction of 150,000 square metres of additional floors.
  • The Grimaldi Forum, a significant, very modern and functional complex built on a reclaimed ground; capable of hosting 2,000-person congresses, tradeshows and cultural events on top level.
  • A semi-floating dam being completed that will enable the protection of the current harbour and will double the damping apacity.

Since the very beginning, Princes of Monaco have always directed their efforts towards providing to their people and visitors a great quality of life.

This quality of life is conveyed through :

  • A first class level of security for both people and goods.
  • An exemplary tidiness throughout the territory; streets are washed every morning.
  • Strong and steady cultural happenings, the state allocates 4 % of its budget to it. Some examples:
    • A philharmonic orchestra of 101 musicians (the police officers of the Prince are only 80)
    • A ballet company that is currently ranked among the top 10 in the world.
    • A first-class Opera season, which extends the tradition of the turn of the past century.
    • A theatrical season.
    • A rich and varied art festival "Le Printemps des Arts".Moreover, the Principality endeavoured to create a major monthly event whether in the cultural/sports arena or for charity purposes.

A few reminders :

  • International Circus Festival
  • Car races
  • International TV Festival
  • Tennis internationals
  • Jumping International
  • F1 Grand Prix and Grand Prix Historic
  • Classic Week, sailing week
  • Gala of the Rose
  • Gala of the Red Cross

To end, let me mention the 5 million tourists the Principality hosts each year, and who have the opportunity to discover many museums and attraction centres such as :

  • The Prince's Palace
  • The Old City of Monaco
  • The Oceanographic Museum
  • The Exotic Gardens
  • The vintage cars private Collection from the Sovereign Prince
  • The Museum of Automates and Dolls

Not to mention a walk in the many gardens where 98 contemporary art sculptures signed by the most famous artists are exhibited permanently. A real open-air museum.

 

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