PROVENCE-ALPES-CÔTE D'AZUR - Economy
The evolution of the economic context during the nineties made the region aware of its assets and of the need to build on these on a European scale. By placing the emphasis on the quality of life in the region, its geography, building on the growing development of new information and communication technologies (ICT) and the increased performance of the transport means (high-speed train - TGV), the region is trying to change its image to that of its regional capital (Euro-Mediterranean project). The region is counting on reviving its economic dynamism, which is helped by an economic fabric made up mainly of small enterprises that can move quickly. The region is obviously counting on the activities related to tourism. The region has the number one port of France and the Mediterranean at Marseille-Fos, and two first-rate international airports. The region is also renown for the wealth of its scientific competences. The main research centres are based at Sophia-Antipolis and at Marseille for agri-food. In 1999 over half of spending in R&D was by private sources. 6.8% of France?s researchers were in Provence-Alpes-Côte d'Azur in 1999.
The region has also strongly developed its know-how in electric and electronic domains at Rousset. Finally, agriculture is putting to good use the region?s contrasting geography and the mild climate to develop regional specialities: olives, perfume, aromatic, and medicinal plants, and agri-tourism.
In 2000 Provence-Alpes-Côte d'Azur accounted for 6.8% of the GDP of France. In absolute terms the region is the third largest contributor to the nation?s GDP. In terms of GDP per inhabitant it ranks sixth with 21 020 Euro per inhabitant.
The region?s biggest contribution by branch is to market services. In 2000 the region accounted for 7.1% of the nation?s gross value added of the market services sector. Its second biggest contribution was to the construction sector, accounting for 6.8% of France?s gross value added of the construction sector. Followed by agriculture (5.5%) and industry (5.1%).
Limited industrial base
Although the region is relatively under-industrialised, its economic infrastructures are soundly based, notably with the heavy industrial complex at Fos-Etang de Berre and the 'Technopole' at Sophia-Antipolis.
The contribution of the region?s industry to France?s gross value added of the industrial sector ranks the region as the fifth largest contributor.
In 2000, the production of intermediate goods accounted for 30% of the region?s industrial valued added, capital goods for 18%, consumer goods for 15%, the agri-food industry for 16%, and energy for 26%. In 1999 70% of industrial investment in the region was for production of intermediate goods.
Industry is characterised by a few capital-intensive branches, concentrated mostly in large establishments, many of which belong to extra-regional and foreign enterprises and are, for that reason, highly dependent on extra-regional factors. These large establishments are served by a complex web of SMEs operating as subcontractors or suppliers. Among the other activities that are well established in the region are naval repair work in Marseilles, and electrical engineering and electronics in Alpes-Maritimes (mainly around Cannes and Nice).
The proportion of small businesses (employing between 20 and 49 people) is among the highest in metropolitan France: 65% compared to the average for the provinces of 57% in 2001. But the establishments only employ a fifth of the region?s industrial employees. Large businesses (employing more than 500 people) account for 3.2% of all industrial establishments, but employ more than 36% of all employees in industry. Consequently Provence-Alpes-Côte d'Azur has fewer medium sized establishmnets (between 100 and 499 people) than elsewhere. In 1999 22% of the region?s industrial establishments belonged to companies of which at least 20% of the capital was owned by foreign concerns.
Specialised agricultural sector
Agriculture plays only a limited role in the regional economy, but specialises in products with high value-added: fruit, vegetables and flowers. The region also has 11% of France's vineyards, and 5% of its orchards. In an environment characterised by serious land-holding and demographic problems, agriculture occupied in 2000 only 29% of the region?s territory. Farms are small, with half of the holdings covering less than 5ha and only 11% of holdings covering 50ha or more.
Services sector dominates
The regional economy is dominated by the services sector. The impressive expansion of services in the region is attributable not only to its population size and the steady inflow of migrants, but also to its leading role in the tourist industry. This potential in household services is coupled with a high level of business and financial services, in line with the importance of its economic and administrative structures.
In 2000 market services sector produced 54.1% of the region's value-added, as against 15.7% for industry, 4.5% for construction and 2.3% for agriculture.
Financial intermediation and real estate accounts for the highest share of value added of market services with 25.9%. Wholesale and retail accounted for only 13.9% of gross value added of services, below the average for the provinces (15.2%) and on a par with national average.
Provence-Alpes-Côte d'Azur owes its position as France's leading tourist region to its unbeatable combination of natural advantages, the sea, the sun and the mountains. Visitors with water sports or mountain sports in mind will find all the facilities they need, either along the region's Mediterranean coastline, between the Rhône delta and the Italian frontier, or on the ski-slopes which are less than 100 km from Nice and only 200 km from Marseilles.
Provence-Alpes-Côte d'Azur has the second highest number of hotels in France. Tourism in Provence-Alpes-Côte d'Azur is characterised by a large number of small hotels, which means that the average capacity per hotel in 2000 was only 31 bedrooms for 2 201 hotels. In 2000 Provence-Alpes-Côte d'Azur accounted for nearly 13% of nights spent in hotels of metropolitan France, this is the second highest share, after Ile-de-France. The region also has the third largest camping site capacity (pitches) and accounts for the third highest share of nights spent in camping sites (13%).
In 2001 there were nearly 3 million vehicles registered in Provence-Alpes-Cotes d?Azur, of which 85.4% were private cars. The number of private cars in 2001 increased by 15.0% compared to 1990. The region has good roads and motorways and railway network, especially with the extension of the high speed train (TGV) which only takes 3 hours to go from Marseille to Paris. In 2000 the road network of the region had 1 844 km of national roads, and 751 km of motorway.
With Marseille the region is France?s leading seaport handling 95.3 million tons of freight in 2000, and handling the third largest volume of sea passengers with nearly 3.2 million passengers in 2000. In terms of air passenger traffic, Provence-Alpes-Cotes d?Azur is the second most important region - after Ile-de-France ? with over 15.5 million passengers departing and arriving in 2001 from its international airports in Marseille and Nice. The air freight cargo handled in the region amounted to 57 300 tons, ranking the region in third position after Ile-de-France and Alsace. With nearly 17.5 million passengers the rail network of the region handled the fourth largest volume of rail passengers in France, and ranked sixth in terms of rail freight transport with nearly 10.3 million tons in 2001.
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