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This is Andalucía
Demographics of Spain                                versus its neighbours Social indicators                            Sp...
FDI in Spain                           • The amount of FDI in Spain                             increased only slightly fr...
(Un)Employment in Spain   • Spain had an unemployment     rate of 23.6% in February     2012, compared to 10% of its     n...
Taxes in Spain                                                                     Taxes on income and profits• Taxes on I...
Political environment• Spain is a constitutional democracy• Head of state is King Juan Carlos I• Head of government is Pop...
Monarchy• In the 19th and 20th century, the  king of Spain was the head of the  government, appointed senators  and had mo...
Brief History of tourism in Spain                               Origin of tourists to Andalucía                           ...
Percentage of nights spent in tourist accommodation 2011                                Región de   Comunidad Foral    La ...
Moor and Islamic influences in                      Andalucía•   The Islamic armies came to Al-Andalus in 644 AD•   In 785...
Geographic location of Andalucía• To the North are the Sierra Morena mountains, and to the West the  Guadiana River marks ...
Eight different provinces in Andalucía•   Seville (capital) with a    population of slightly less    than 2 million•   Mal...
Distribution of tourists per province in AndalucíaMálaga most popular destination                    Sevilla              ...
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Microeconomics of Competitiveness - Andalucia

My part of the presentation for the course in Microeconomics of Competitiveness, concerning the region of Andalucia and its tourism cluster.

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Microeconomics of Competitiveness - Andalucia

  1. 1. This is Andalucía
  2. 2. Demographics of Spain versus its neighbours Social indicators Spain Portugal FrancePopulation 2010 (millions)Expected population 2030 (millions) 45.3 49.8 10.7 10.6 62.6 66.5 Andalucía specificsLife expectancyFertility rate 81.3 1.6 79.1 1.4 81.6 1.9 • The 2nd largestGNI per capita 29,661 22,105 34,341 population of SpainFDI inflows % of GNI in 2008GDP (PPP $ in billions) in 2007 29.4 1,442.90 21.7 21.9 247 2,121.70 lives in Andalucía (8.4Human Development Index 0.863 0.795 0.872 million)Human Development Index Rank 20 40 14Expected years of SchoolingPublic education spending (% of GDP) 16.4 6.1 15.5 7.1 16.1 8.7 EducationLiteracy rateHappiness Index / Life Satisfaction 97.6 7.6 94.6 5.8 100 7.1 • 25% of the populationUnemployment, seasonally adjusted, Feb 2012 23.6 15 10 has completed aPublic health expidenture (per capita)Inequality gini coefficient 2,671 34.7 2,284 38.5 3,709 33.7 tertiary education.Perception of safety 58 62 59 Slightly less than the Spanish population on average 29.9%.
  3. 3. FDI in Spain • The amount of FDI in Spain increased only slightly fromFDI per capita 1970-1980 (after Franco) • After 1986 the real increase of FDI began • The reasons were possibly: - political stability after Franco - inclusion of Spain to the EU • In 2006, FDI per capita was $700, one year later, in 2007 FDI had more than doubled to $1,441 per capita and in 2009 FDI nearly came to a halt. • In 2009 the FDI per capita in Spain was down to $200 per capita. Such low levels hadn’t been seen since 1988-1989.
  4. 4. (Un)Employment in Spain • Spain had an unemployment rate of 23.6% in February 2012, compared to 10% of its neighbour France and 15%Agriculture, hun Employment by sector, 2005, Spain Agriculture, Forestry,% GDP per industry, Spain 2010 ting and for Portugal and Fishing forestry, fishing 5.2% • Employment in the tourism 3% Mining and sectors (hotels, restaurants Quarrying 0.3% and retail) makes up for more than 25% of GDP, but Other service Industry, includi doesn’t employ as large of a activities ng energy Government Services population23% 16% 17.5% Manufacturing 16.2% • Adding up part of the “other Community, Social Construction Public Utilities service activities” industry,10% and Personal 0.5% and the house rental industry, Services Financial intermediation, Wholesale and 10.9% we can estimate that tourism real retail Construction as a whole constitutes a h estate, renting trade, repairs, Finance, Insurance, a 12.6% and business otels and considerable part of the GDP activities restaurants, tran nd Real Estate (b) of Spain. 23% sport 10.3% 25% • Tourism has higher value Wholesale and Retail added than construction Trade, Hotels and Restaurants 21.1% Transport, Storage, a nd Communication 5.5%
  5. 5. Taxes in Spain Taxes on income and profits• Taxes on Income and Profits as a % of GDP 14.0 (individuals and corporations) as a % of 12.4 12.0 GDP was at its highest point in 10.0 9.8 10.5 11.2 10.3 9.6 2007, when Spain collected tax 9.2 9.0 % of GDP 8.0 France revenues representing 12.4% of its 6.0 Portugal GDP, compared to only 9% in 2010 4.0 Spain• The tax revenues in 2007 spiked 2.0 Source: 0.0 more for Spain than for Portugal or 2003 2004 2005 2006 2007 2008 2009 2010 OECD, 2011 France• Tax revenues on income & profits as Taxes on Personal Income a % of GDP has been decreasing in as a % of GDP the past three years 9.0• Tax revenues on only personal 8.0 7.0 7.4 7.1 6.8 6.9 income have ranged from 6.1% of 6.0 6.4 6.1 6.4 6.6 % of GDP GDP in 2004, to 7.4% of GDP in 5.0 France 4.0 2007, possibly reflecting the 3.0 Portugal unemployment 2.0 Spain 1.0 0.0 Source: 2003 2004 2005 2006 2007 2008 2009 2010 OECD 2011
  6. 6. Political environment• Spain is a constitutional democracy• Head of state is King Juan Carlos I• Head of government is Popular Party leader Mariano Rajoy• The last elections were held on 20 November 2011 and the following election is set for November 2015
  7. 7. Monarchy• In the 19th and 20th century, the king of Spain was the head of the government, appointed senators and had more power to veto any decisions• Today, the king may give his advice to the president on State affairs• Given the restrictions of the king, and recent scandals, many question the existence of a king in Spain• Although a popular figure in the past, there have been some clashes where people have burned the picture of the king and demanded to see him off
  8. 8. Brief History of tourism in Spain Origin of tourists to Andalucía Rest of World 10% UK 31% Rest of EU 24%• It all began in the 1840’s• A century later, 1 million Ireland France 12% Germany mark was hit 4% Scandanavia 12% 7%• In 2010, more than 7 Source: Andalucia.com million tourists came• Northern Europeans still dominate
  9. 9. Percentage of nights spent in tourist accommodation 2011 Región de Comunidad Foral La Rioja Castilla-la Murcia Extremadura de Navarra 1% Mancha 2% 2% 1% 2% Cantabria 2% País Vasco 2% AndalucíaPrincipado de Asturias 18% 3% Aragón 3% Galicia 5% Illes Balears Cataluña 5% 17% Castilla y León 5% Comunidad de Madrid Comunidad Valenciana 7% 14% Canarias (ES) 9% Source: Eurostat
  10. 10. Moor and Islamic influences in Andalucía• The Islamic armies came to Al-Andalus in 644 AD• In 785 AD the first Islamic monument was begun; the Cordoba mosque• When the Arabs came to Andalucía, the local population gained education of many kinds; healthy diets, medicine, how to make paper, and read• An extensive program of transcribing, copying and translating the accumulated knowledge attained from various places was started in Baghdad as well as Cordoba• Thousands of book stores were opened, literacy could be found in all social classes• Universities in Cordoba, Seville, Valencia, Malaga, and Granada were opened• Monument with strong Islamic influences is the Alhambra in Grenada. Another monument left behind is the mosque and city centre of Cordoba, all of which are World Heritage Sites• After several hundred years of Muslim rule and influence on Andalucía, in 1492 the Reconquista was completed and the Christians and the Jews ruled again
  11. 11. Geographic location of Andalucía• To the North are the Sierra Morena mountains, and to the West the Guadiana River marks the border between Portugal and the western-most province of Huelva• Andalucía is the most southern point of Europe and as such has seen a large influx of both legal and illegal immigrants from Northern Africa and elsewhere• Sunny and mild climate with over 300 days of sunshine, sunbathing tourism was a natural way for tourism in Spain to start.• Spain was exotic, with a different culture than the Northern Europeans were used to• It enjoys two coasts, the Atlantic Ocean and Mediterranean Sea.
  12. 12. Eight different provinces in Andalucía• Seville (capital) with a population of slightly less than 2 million• Malaga, most popular tourist destination – Marbella (1,624,000)• Cadiz with its cathedral (1,243,000)• Granada with its Alhambra (922,000)• Cordoba and its mosque (805,000)• Jaen and the views from Castillo de Santa Catalina (669,000)• Almeria and its beaches (702,000)• Huelva and the beaches (521,000)
  13. 13. Distribution of tourists per province in AndalucíaMálaga most popular destination Sevilla Almeria 5.7% 16.5% Cádiz 12.9% Córdoba 7.9% Málaga 30.7% Granada 17.2% Jaén Huelva 3.2% 5.9%

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My part of the presentation for the course in Microeconomics of Competitiveness, concerning the region of Andalucia and its tourism cluster.

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