see also:
--------------------------------------------------------------------------------------------
Spain
Located on the Iberian Peninsula in south west Europe, between Portugal and France, Spain is one of the fastest growing economies in Europe.
With a population of 40 million, the country is politically stable, an EU member and economically strong with most activity concentrated in the major cities of Madrid and Barcelona. Other areas of interest include the eastern coast (Valencia and Alicante), the Basque Country (Bilbao and San Sebastian) and the south (Malaga and Seville).
Although tourism, agriculture, textiles and automotive industries prevail, the country is increasingly being seen as a shared services and call center location with its workforce’s good language skills and a Mediterranean quality of life.
Cities: Capital--Madrid (5.5 million). Other cities--Barcelona (4.9 million), Valencia (2.3 million), Seville (1.8 million), Malaga (1.3 million), Zaragoza (871,000), Bilbao (353,950)
see: http://globaledge.msu.edu/countryInsights/country.asp?countryID=73®ionID=2
Table of Contents:
Business
Top companies in Spain
Biggest 2 companies: Telefonica and Banco Santander, both of which have big businesses outside of Europe. In 2010, Telefonica got $6.4bn of its $15bn of Q3 revenues and $5.4bn of its $7.3bn of operating profit from Latin America.
Source: http://www.forbes.com/lists/2009/18/global-09_The-Global-2000_Counrty_12.html
Making contracts in Spain
Contractual arrangements are secure in Spain, though the legal system can be painfully slow, and enforcement can become a tortuous process when contracts are not honoured. Out-of-court settlements are common. Many small suppliers to retail chains complain that the law does not afford sufficient protection from late payment or even non-payment by government agencies and large retailers; these larger players often manage their cashflow problems by delaying payment to private-sector suppliers for as long as several months. Moreover, there are considerable bureaucratic obstacles at all levels, and many civil servants are not co-operative, though generational change is helping to improve dealings with the public sector.
Consumer market
see our discussion about
Investment Promotion Agency:
Agustín Mainar Alfonso
Subdirector General de Inversiones Exteriores
Ministerio de Economía
Paseo de la Castellana, 162
Madrid
28046
Spain
tel: + 34 91 349 36 16
fax: + 34 91 349 35 62
Spain Overview
Data:
- Population (2007 est.): 45,116,894.
- Ethnic groups: Distinct ethnic groups within Spain include the Basques, Catalans, and Galicians.
- Religion: Predominantly Roman Catholic; Protestant and Islamic faiths also have a significant presence.
- Languages: Spanish (official) 74%, Catalan-Valenciana 17%, Galician 7%, Basque 2%.
- Education: Years compulsory--to age 16. Literacy(2003 est.)--98%.
- Work force (19.2 million): Services--65.1%; agriculture--5.2%; construction--12.5%; industry--17.2% (2005 est.)
- GDP (2006): $1.225 trillion (seventh-largest Organization for Economic Cooperation and Development--OECD--economy).
- Annual growth rate (2006 est.): 3.9%.
- Per capita GDP (2006 est.): $27,422.
- Natural resources: Coal, lignite, iron ore, uranium, mercury, pyrites, fluorspar, gypsum, zinc, lead, tungsten, copper, kaolin, hydroelectric power.
- Agriculture and fisheries (2.8% of GDP, 2006 est.): Products--grains, vegetables, citrus and deciduous fruits, wine, olives and olive oil, sunflowers, livestock.
- Industry (15.54% of GDP, 2006 est.): Types--processed foods, textiles, footwear, petrochemicals, steel, automobiles, consumer goods, electronics.
- Trade (2006): Exports--$211.4 billion: automobiles, fruits, minerals, metals, clothing, footwear, textiles. Major markets--EU 70.35%, U.S. 4.41%. Imports--$289.8 billion: petroleum, oilseeds, aircraft, grains, chemicals, machinery, transportation equipment, fish, consumer goods. Major sources--EU 58.44%, U.S. 3.27%.
- Average exchange rate (2006): 0.797 euros=U.S.$1.
Population:
40,448,191 (July 2007 est.)
Age structure:
0-14 years: 14.4% (male 3,005,818/female 2,826,805)
Median age:
total: 40.3 years
Sex ratio:
at birth: 1.07 male(s)/female
Languages:
Castilian Spanish (official) 74%, Catalan 17%, Galician 7%, Basque 2%, are official regionally
Literacy:
definition: age 15 and over can read and write
GDP - per capita (PPP):
$33,700 (2007 est.)
GDP - composition by sector:
agriculture: 3.8%
Labor force:
22.01 million (2007 est.)
Labor force - by occupation:
agriculture: 5.3%
Unemployment rate:
7.6% (2007 est.)
Population below poverty line:
19.8% (2005)
Household income or consumption by percentage share:
lowest 10%: 2.6%
Inflation rate (consumer prices):
2.4% (2007 est.)
source: CIA World Factbook, 2008, Spain
Climate:
hot, very hot in summer....especially in the interior and in the south
Politics
Political structure
Spain is a constitutional monarchy in which the King plays a relatively modest political role. There is a 350-member Congress of Deputies (Lower House) elected for four years, and a Senate with 248 members. In the Senate, 208 members are elected for a four year term in four-member constituencies, with 40 members designated by the regional legislatures. The administrative regions have been extensively reorganised to create 17 autonomous regions, including Andalusia, Catalonia and the Basque country.
Parliamentary democracy was restored following the death of General Franco in 1975, who had ruled since the end of the civil war in 1939. The 1978 constitution established Spain as a parliamentary monarchy, with the prime minister responsible to the bicameral Cortes (Congress of Deputies and Senate) elected every 4 years.
Autonomous Regions
The 1978 constitution authorized the creation of regional autonomous governments. By 1985, 17 regions covering all of peninsular Spain, the Canaries, and the Balearic Islands had negotiated autonomy statutes with the central government. The central government continues to devolve powers to the regional governments, which will eventually have full responsibility for health care and education, as well as other social programs.
see more- Spain and regional autonomy issues
Administrative divisions:
17 autonomous communities (comunidades autonomas, singular - comunidad autonoma)and 2 autonomous cities* (ciudades autonomas, singular - ciudad autonoma);
- Andalucia,
- Aragon,
- Asturias,
- Baleares (Balearic Islands),
- Ceuta*,
- Canarias (Canary Islands),
- Cantabria,
- Castilla-La Mancha,
- Castilla y Leon,
- Cataluna,
- Comunidad Valenciana,
- Extremadura,
- Galicia,
- La Rioja,
- Madrid,
- Melilla*,
- Murcia,
- Navarra,
- Pais Vasco (Basque Country)
Terrorism
The Government of Spain is involved in a long-running campaign against Basque Fatherland and Liberty (ETA), a terrorist organization founded in 1959 and dedicated to promoting Basque independence. ETA targets Spanish security forces, military personnel, Spanish Government officials, and politicians of the Popular Party and the Socialist Party (PSOE.) The Spanish Government attributes over 800 deaths to ETA terrorism since its campaign of violence began. In recent years, the government has had more success in controlling ETA, due in part to increased security cooperation with French authorities.
Apart of the EU
see European Union
Both Spain and Portugal have been members of the European Union (EU) since 1986. EU membership has led to an increased standard of living and economic growth in the Iberian Peninsula and billions of dollars worth of EU structural funds flowing into the two countries
Spain's accession to the European Community--now European Union (EU)--in January 1986 required the country to open its economy to trade and investment, modernize its industrial base, improve infrastructure, and revise economic legislation to conform to EU guidelines.
Spain & the Global Economic Crisis:
Crisis Update 2011:
"The Spanish government has approved an austerity budget for 2011 which includes a tax rise for the rich and 8% spending cuts. Madrid has vowed to cut its deficit to 6% of GDP in 2011, from 11.1%.Government workers have had their pay cut by 5% and salaries will be frozen for 2011. The retirement age is being raised to 67.The tax on tobacco is to rise 28%, and Madrid also plans to sell off 30% of the Spanish national lottery and a minority stake in the country's airport authority. A tax rise of 1% will be applied to personal income above 120,000 euros...." Read more from BBC here: http://www.bbc.co.uk/news/10162176
Housing bubble bursts 2008-10
Spain had "a housing bubble more pronounced than that in the United States..." RGE Roubini Global Economics, Nov 2010
Austerity 2010:
"The Spanish government has approved an austerity budget for 2011 which includes a tax rise for the rich and 8% spending cuts. Madrid has promised European counterparts to cut its deficit to 6% of its gross domestic product (GDP) next year, from 11.1% last year. Government workers face a pay cut of 5%, starting in June, and salaries will then be frozen for 2011. A tax rise of 1% will be applied to personal income above 120,000 euros. Smaller savings include an end to a 2,500-euro cash payout for new mothers, known as "baby cheques". Unemployment has more than doubled - to about 20% - since 2007." read more here: BBC.com
"underlying problem. As Spain attempts to distance itself from more troubled euro-zone countries like Portugal and Ireland, it has to rein in a budget deficit that last year stood at 11.1% of GDP." read more here
Trends
Pre 2008 -
"Economy has done remarkably well"
The Spanish economy has generated more than half of all new jobs in the eurozone in recent years. The Spanish economy has grown every year for the past decade, making it one of the best-performing economies in the EU.
Spanish economic growth was estimated at 3.8 percent in 2006, slightly higher than that of the previous year, ranking as one of the fastest growing in the European Union (EU). Indications are that 2007 will be yet another good year (3.0-3.5 percent) for the Spanish economy
Construction boom
the construction sector, second only to Germany in turnover in all of Europe. In the residential sub sector alone, building was started on over 700,000 residential units in 2006, making it the most dynamic sub sector in Europe. the majority of Europe’s top-ten construction companies are headquartered in Spain
Net inflow of immigrants
Spain was a major exporter of people in the 1960s and 1970s but is now the largest recipient of immigrants in the EU. The country has been a net exporter of capital as well as a net importer of immigrant labour over the past decade.
Urban areas are also experiencing a significant increase in immigrant populations, chiefly from North Africa, South America, and Eastern Europe.
Current account inbalances
The current account deficit has also risen to unsustainable levels. The rising deficit reflects in part higher oil prices, weak demand in traditional export markets, and Spain's rising investment.
shift of tourism
Spain is increasingly losing its monopoly in sun and nightlife oriented tourism, since many young European tourists now tend to spend their holidays in other locations, such as Eastern European countries and other Mediterranean destinations, such as Greece. In addition the strength of the euro will make destinations such as the Caribbean cheaper and thus more appealing. However, if the Middle East situation continues to be unstable, the tourism market in Spain will remain strong,
The amount of money tourists spend is decreasing, especially as a result of the strength of the euro, limiting the amount tourists spend on drinks
Energy
Economic growth spurred by EU membership has led to increases in energy consumption. For example, Spain's energy demand has increased over 100 percent since the mid-1970s. The Iberian Peninsula has limited energy resources, so both Spain and Portugal must depend upon imports for the bulk of their energy needs.
Spain has a limited amount of proven domestic crude oil reserves – 150 million barrels in 2006. Its crude oil production is also marginal, averaging just 3,000 barrels per day. Exploration is underway for oil and natural gas in two offshore regions, though preliminary results are disappointing. The government's 10-year energy plan depends heavily on natural gas and renewable energy. These two sources are projected to account for 22.5% and 12.0%, respectively, of Spain's primary energy consumption by 2011. In 2006, Spain had only 90 billion cubic feet of proven natural gas reserves. The country's natural gas production is insignificant.
Attempts to develop domestic energy sources, though, have focused on hydropower and renewables. Both countries have also sought greater integration of the Iberian energy sector through policy coordination and infrastructure projects. The two announced in 2001 that they would create a single Iberian electricity market without limits on transnational ownership or market participation.
Main industries
Agriculture continues to be a very important sector, but water shortages plague many farmers. Fruits, nuts, olives, tomatoes and peppers are the main export products.
Growth of industrial output has been rising over the past two years. Major industries include electronics, steel, chemicals, fertilisers, food, wine and tobacco products, leather goods and timber products. Most important, however, is the car industry - Spanish carmakers manufacture around two million cars per year.
Recent increases in labour costs have eroded the competitiveness of some manufacturers however.
Spain's construction and real estate groups are among the largest in Europe following a 10-year building boom.
Spanish firms began turning their sights to foreign acquisitions in 2006, anticipating that the economic boom at home will soon slow.
Tourism, which accounts for 5% of GDP, is a key economic sector though growth has slowed owing in part to the strength of the euro. Nevertheless, Spain remains the second most popular tourist destination in the world. The industry employs roughly one in 10 of the workforce and visitor numbers were up by 2.2% in the first eight months of 2007. Around 80% of the visitors to Spain are Europeans.
The banking sector maintains a strong financial position, helped by the favourable macroeconomic environment, the rebound of economic activity in Latin America, and vigilant prudential oversight. (note: if Latin America is dependent on China, and Spain is dependent on Latin America...how big is the risk of a Chinese downturn??)
Rapidly rising real estate lending has heightened credit risk, but the system is sound.
Immigration
In 2005, Madrid gave legal status to 600,000 clandestine immigrants, allowing them to move to elsewhere in the EU after five years. The decision drew much criticism from other EU members.
Separatist Movements
Nationalist demands from Catalonia and the Basque region are a divisive issue. Changes in the constitution are necessary in order to satisfy Spain’s restive regions. In June 2006, voters in Catalonia approved a plan to give the region sweeping new powers to run its affairs. The ceasefire, negotiated with ETA in 2006, fell apart in 2007.
Unemployment is an issue
Unemployment remains a problem at 8.47% (2007, first quarter), but this still represents a significant improvement from previous levels.
Strong Euro is pricing Spanish exports out of the market
And, is making imports seem very cheap
Devaluations of the peseta during the 1990s made Spanish exports more competitive, but the strength of the euro since its adoption has raised recent concerns that Spanish exports are being priced out of the range of foreign buyers.
Ties to Latin America
Spain has maintained its special identification with Latin America. Its policy emphasizes the concept of Hispanidad, a mixture of linguistic, religious, ethnic, cultural, and historical ties binding Spanish-speaking America to Spain. Spain has been an effective example of transition from authoritarianism to democracy, as shown in the many trips that Spain's King and Prime Ministers have made to the region. Spain maintains economic and technical cooperation programs and cultural exchanges with Latin America, both bilaterally and within the EU.
Difficulties entering the Spanish market
Cost, financing terms, and after-sales service are important competitive factors. European exporters provide generous financing and extensive cooperative advertising, and most European governments support exporting with trade promotion events. Japanese and Chinese companies are also emerging as formidable competitors. Although U.S. products are well respected for their high level of technology and quality, American firms sometimes fall short of their competitors in flexibility on financing, adaptation of product design to local market needs, and assistance with marketing and after‑sales service.
Regions of Spain
Canary Islands
The Canary Island archipelago is made up of seven main islands, of volcanic origin. The islands are off the West African coast, about 1,000 kms from the Iberian peninsular. Administratively, the Canary Islands are divided into two provinces; Las Palmas, covering Gran Canaria, Lanzarote and Fuerteventura, and Santa Cruz, covering Tenerife, La Palma, La Gomera and El Hierro. The cities of Las Palmas de Gran Canaria and Santa Cruz de Tenerife are both joint capitals of the region.
The strategic location of the Islands means that residents enjoy an enviable quality of life and an outstanding climate, with average annual temperatures that vary between a maximum of 24ºC and a minimum of 15ºC, and a unique natural setting. The rich and varied vegetation and beautiful landscapes are the main attractions that have not only made the Canary Islands the favourite holiday resort of the European Union, but also a luxurious environment for residents of the Islands, as business conditions are perfectly complemented by a broad range of options for leisure and relaxation. Moreover, investments benefit from the Canary Islands' situation as a bridge between Europe, Africa and America, as this facilitates trade and broadens the horizon of traditional destinations for European exports.
Investment Promotion Agency:
SOFESA
c/ Nicolás Estévanez, 30-2º
35007, Las Palmas de Gran Canaria
Canary Islands
tel: +34 928 221554
fax: +34 928 221196
Central Spain
Madrid
Located in the center of the Iberian peninsula, Madrid is the capital of Spain. As the capital city it is home to the head-quarter operations of a number of Spanish companies and one of the leading regions in attracting high technology companies from overseas. Foreign investment in Madrid in 1998 was 52% of the national total.
It is a financial and trading center with a young, well-educated workforce. The major sectors in Madrid are computing/electronics and telecommunications, transportation, entertainment and multimedia, pharmaceuticals, call centers and food.
Major investors are Schweppes, Lucent Technologies, Siemens Nixdorf, Alcatel España, Danzas, Time Warner, Kinepolis, Glaxo-Wellcome, Merck Sharp & Dohme, Smithkline Beecham, Proctor & Gamble, IBM, Scania and Johnson & Johnson.
Investment Promotion Agency:
David J. Gómez Barro
IMADE
C/ José Abascal 57, 2ª
Madrid
28003
Spain
tel: +34 91 399 7473/7472
fax: +34 91 399 7464
Salamanca
Salamanca is a city located in central Spain and is capital of Salamanca province. Industries in the area include agricultural trade, food processing and the manufacture of chemicals, leather, jewelry and furniture. There are 2 universities in the city; the University of Salamanca and the Pontifical University of Salamanca
Eastern Spain
Valencia
Valencia is located in Spain. It has 4 million inhabitants which represents 10% of the total Spanish population. There are 2 Airports in Valencia and Alicante with flights to all major European centers and connections to worldwide destinations. The Port of Valencia is one of the leading on the Mediterranean peninsula.
Key sectors are toys, textiles, footwear, chemical and glass processing.
Investors in the region include Ford, Johnson Controls, UBE Industries and Alstom, Manufacture Services.
There are 7 Universities and 15 Technological Institutes across Valencia.
Tarragona
Tarragona is a city which forms part of the autonomous community of Catalonia. It is a port based city, with its port being one of the most important in the Mediterranean area.
The maritime sector therefore plays a vital role in the local economy and a major development and construction project is underway in the docks area to improve road access and overland communication links to connect the port with the main national and international road and rail network.
Investment Promotion Agency:
CIDEM
Provenca 339
5th fl
Barcelona
8037
Spain
tel: +34 (0) 93 476 72 91
fax: +34 (0) 93 476 7303
Barcelona
Culture Centers
Barcelona , Spain
Population > 4.8 million
Leading indicator > Home to 1,500 design studios, among them outposts of Hewlett-Packard , Volvo , and Audi , as well as 18 design schools
Fast companies > B01 Arquitectes; Morillas Brand Design; Smart Design
Paris and Milan may still get more ink, but Barcelona is the style capital of the European continent. Behind the twin towers of Richard Rogers's Hesperia Hotel and Jean Nouvel's Agbar high-rise, the congested district of Eixample is recovering its public spaces, with plans for a park with playgrounds, magnolia trees, benches, and statues within 200 meters of every resident by 2010.
Barcelona is one of Europe's most popular cities. Its renaissance following the Olympics in 1992 is regarded as a global best practice example of how cities should be improved and managed.
The capital of the autonomous province of Catalonia and the second largest city in Spain, Barcelona is part of a Mediterranean industrial arc that includes the south of France and northern Italy as well as Catalonia.
Barcelona is taking its place in the new economy thanks in part to the international investors it has attracted such as Hewlett-Packard, Sun and Oracle, as well as its excellent universities, local initiatives such as Digital City and Telecities and an outstanding, skilled workforce.
Investment Promotion Agency:
CIDEM
Provenca 339
5th fl
Barcelona
8037
Spain
tel: +34 (0) 93 476 72 91
fax: +34 (0) 93 476 7303
Catalonia
The autonomous province of Catalonia is home to Barcelona, the second largest city in Spain. It is part of a Mediterranean industrial arc that includes the south of France and northern Italy.
Barcelona is taking its place in the new economy thanks in part to the international investors it has attracted such as Hewlett-Packard, Sun and Oracle, as well as its excellent universities, local initiatives such as Digital City and Telecities and an outstanding, skilled workforce.
Investment Promotion Agency:
CIDEM
Provenca 339
5th fl
Barcelona
8037
Spain
tel: +34 (0) 93 476 72 91
fax: +34 (0) 93 476 7303
North Eastern Spain
Bilbao
Bilbao is located in the Basque Country which sits at the Northern part of Spain, sharing borders with France in the East and the Bay of Biscay in the North. The Basque region has a population of just over 2 million people.
Bilbao has a strong transport infrastructure which enables travel to the North and South of Europe, via one of the three airports in the region or the high speed rail network and motorways.
There are eight Technological Research Centers across the region and three Science Parks housing companies from the computing, telecommunications, electronics and aeronautics sectors. Much of the research carried out in the centers revolves around next generation computing, mechanics and automation and has attracted a large number of companies to the region.
There are almost 91,000 students at one of the regions three universities – the University of Deusto, the Basque country and the University of Mondragon.
Investment Promotion Agency:
Mr Juan Ignacio Garcia de Motiloa
Area Manager, NAFTA
SPRI
Gran Via 35
3a planta
Bilbao
48009
Spain
tel: +34 (0) 94 479 7000
fax: +34 (0) 94 479 7022
Basque Country
The Basque country is located in northern Spain. In recent years it has seen a major increase in the number of companies investing in the region and is now Spain’s fourth largest recipient of foreign direct investment.
An attractive asset for locating companies is the network of technology research centers which have been established across the region. There are eight centers supporting, promoting and facilitating the use of technology as a tool for industry. The centers specialize in 11 areas of research expertise which are indigenous to the Basque region – automotives, aeronautics, machine-tools, telecoms, iron and steel, electronics, plant equipment, environmental protection, construction, energy and consumer goods. One of the centers is CITMA, an environmental technology center which has become Spain’s largest center devoted exclusively to researching and solving environmental problems for industry.
Behind the supply of researchers to these centers is the University of the Basque country, offering more than 100 degree courses in areas ranging from chemistry and biology to engineering. The University has a very close relationship with local industry and has carried out research work for companies such as Renault, Mercedes-Benz, Ericsson, Telefonica, Elf and Shell.
Multinationals that have chosen to locate in the Basque region include Daewoo, PepsiCo, Bayer, Michelin and Candy with the region being boosted by Daimler-Chrysler’s recent decision to locate a manufacturing site in Vitoria.
Investment Promotion Agency:
Mr Juan Ignacio Garcia de Motiloa
Area Manager, NAFTA
SPRI
Gran Via 35
3a planta
Bilbao
48009
Spain
tel: +34 (0) 94 479 7000
fax: +34 (0) 94 479 7022
North Western Spain
Santander
Santander is the city and capital of the Santander province in northern Spain. It is a port city with a population of around 200,000. As well as port activity, its main industries include chemicals, textiles, vehicles and shipyards
Navarra
Navarra is situated in Southwest Europe and is bordered by the regions of Aragon, the Basque Autonomous Community and La Rioja in Spain and the Atlantic Pyrenees in France.In less than fifty years Navarra has developed its economy to become one of the most prosperous industrial areas in Spain.
For many years, the car industry was the most important sector in Navarran industry, but other industries are now being created around research and technology, such as companies involved in the search for alternative sources of energy and the development of wind parks. Other important sectors include food and drink, automation, metallic products manufacturing, electronic materials and paper and publishing.
The presence of an increasing number of multinationals in Navarra, together with the growth in the service sectors, has led to a marked increase in the number of banks and financial service companies operating in the region.. Navarra also has a wide range of companies involved with the manufacture of instruments for medical and surgical use and orthopaedic aids and others specialising in various testing devices.
Companies active in the region include Telemecánica, Grupo Schneider, Electrificaciones Lumen, PSI Telecomunications, Delphi Unicables and Sanyo.
The level of education in Navarra is high with 42% of the population over 16 holding an Ordinary or Higher National Diploma and almost one tenth of that number has a University degree.
Galicia
Galicia is situated on the border of Portugal in the Northwest corner of the Iberian Peninsula. International airports are located at A Coruna, Santiago and Vigo.
The region offers a network of technology and R&D Centers, including the Galician Technology Park, which attract investors from the automobile, food, textiles and service industries. Overseas investors include AstraZeneca, United Technologies, Carnaud Metalbox and Ralstone Purina Company.
A well networked telecommunications infrastructure and strong University system have assisted in the development of these sectors. There are three universities at La Coruña, Santiago and Vigo. The region also has an established cluster of technical institutes and laboratories, such as the Galician Supercomputing Center.
Southern Spain
Malaga
Málaga is a city and seaport in southern Spain. It is the capital of Málaga Province located on the Mediterranean Sea near Gibraltar. It is a popular holiday resort and one of the most important commercial seaports of Spain. Industries in the city produce textiles, apparel (including footwear), food and beverages, chemicals, shipbuilding and automobiles.
Seville
Located 350 miles south of Madrid, Seville is the largest city in southern Spain with a population of in excess of 1.3 million.
A new high speed train service links the city to Madrid in just over two hours whilst the city boasts excellent infrastructure thanks largely to the recent hosting of a world expo in the city.
Weather and Tourism not Reliable
Good weather conditions and tourists visiting Spain have traditionally been two reliable sources of expenditure on alcoholic drinks; however, things are changing. Global climate change is predicted to cause increasingly extreme weather conditions, with extremely hot or cold summers to come. For example, 2007 brought record hot temperatures in some European countries and record wet conditions in others. Although the most likely scenario will bring about increased temperatures in the summer, this is by no means guaranteed, and, as a result, sales of alcoholic drinks, especially beer and some RTDs, will be exposed to a high degree of uncertainty.
Tourists kept on arriving in Spain in 2007, although, according to official sources, the amount of money tourist spend on their Spanish holidays is decreasing. This trend is expected to continue over the forecast period, which will negatively affect sales of alcoholic drinks in the coastal areas and islands. Spanish coastal sales are already suffering from shorter stays and increasing competition from other European destinations, such as Greece, and a drop in the number of tourists will undermine the future performance of alcoholic drinks.
Spain is increasingly losing its position as the preferred destination for sun and nightlife tourism, a position which it has held for the last 30 years. The more competitive prices of other Mediterranean countries, and cheaper and widely available flights across Europe are among the factors leading to an increasing number of Europeans choosing other destinations, to the detriment of the Spanish coast. Nevertheless, official statistics indicate that by July 2006, the number of tourists who had visit Spain had increased by 6% over the same period of the previous year, and this trend is expected to continue over the next few years, especially if instability in the Middle East continues. Moreover, Spain will benefit from the growing number of English and Germans purchasing properties in Spain and becoming Spanish residents.
highest 10%: 26.6% (2000)
industry: 30.1%
services: 64.6% (2004 est.)
industry: 29.4%
services: 66.8% (2007 est.)
total population: 97.9%
male: 98.7%
female: 97.2% (2003 est.)
under 15 years: 1.063 male(s)/female
15-64 years: 1.007 male(s)/female
65 years and over: 0.716 male(s)/female
total population: 0.956 male(s)/female (2007 est.)
male: 39 years
female: 41.7 years (2007 est.)
15-64 years: 67.8% (male 13,758,869/female 13,661,295)
65 years and over: 17.8% (male 3,002,585/female 4,192,819) (2007 est.)
External Links
Library of Congress: Country Studies
Excellent source of historical information about a country; "The Country Studies Series presents a description and analysis of the historical setting and the social, economic, political, and national security systems and institutions of countries throughout the world.
Comments (0)
You don't have permission to comment on this page.