the impact of the economy of gibraltar on the campo de gibraltar area

The impact of theThe impact of theeconomy of Gibraltar on the economy of Gibraltar on the

Campo de GibraltarCampo de Gibraltar- - an independent study commissioned by the an independent study commissioned by the

Gibraltar Chamber of CommerceGibraltar Chamber of Commerce

September 2009September 2009

GIBRALTAR CHAMBER OF COMMERCE

Study TeamStudy Team

Prof. John Fletcher

Prof. Adam Blake

Dr Yeganeh MorakabatiThe team has undertaken impact studies and research for more

than 100 countries for National Governments and International

Agencies such as the EU, World Bank, UN, USAID and WTO


Study ObjectivesStudy Objectives

Assess Gibraltar’s impact on the Campo

Increase awareness & educate

Use robust data to analyse the economic

flows (the official Gibraltar and Andalucía

Economic models [2000-05])


MethodologyMethodologyUsing: Gibraltar Input-Output Model Andalucía Input-Output Model Survey of members (online and paper) Data from previous studies Data from Statistics Office

Online Survey of property prices in the Campo


Gibraltar employmentGibraltar employmentby sectorby sector

Sector Employment (FTE)

% of Total

Manufacturing 438 2.3

Electricity & Water 295 1.6

Construction 2,087 11.2

Wholesale, Retail and Importers 2,484 13.3

Hotels, Restaurants & Bars 911 4.9

Transport & Communication 989 5.3

Finance Sector 1,621 8.7

Business, Real Est. & Professional Services

1,701 9.1

Government 3,735 20.0

Other Services 3,396 18.2

M.o.D. 1,032 5.5

Total 18,688 100.0


Gibraltar GDP by sectorGibraltar GDP by sectorSector GDP £m GDP per

Employee £

Manufacturing 12.74 29,082

Electricity & Water 15.04 50,989

Construction 55.68 26,678

Wholesale, Retail and Importers 104.85 42,210

Hotels, Restaurants & Bars 19.05 20,909

Transport & Communication 48.18 48,716

Finance Sector 141.07 87,028

Business, Real Est. & Professional Services

66.48 39,081

Government 123.38 33,034

Other Services 112.50 30,120

M.o.D. 22.37 21674

Total 721.33 38,599


Principle economic flowsPrinciple economic flows Visitors

Imports Earnings Spending


Expenditure by type of visitorExpenditure by type of visitor Visitor Type Expenditure £m

Staying Visitors (hotels) 26.88

Excursionists (cruise ships) 10.74

Visitors (yachts) 0.68

Visitors in Supplementary Accommodation 14.85

In-Transit Visitors 1.02

Excursionists from Spain 176.41

Total 230.58 Source: Derived from Gibraltar Tourist Survey, 2007


Expenditure by vExpenditure by visitors to Gibraltarisitors to Gibraltarfrom the Campofrom the Campo

Visitor Type Expenditure £m

Land Visitors 109.37

Air Visitors 3.05

Sea Visitors 0

Total 112.42


Business imports to GibraltarBusiness imports to Gibraltardirectly from Spaindirectly from Spain

Business Imports £m

Goods 149.85

Services 24.40

Total 174.25


Earnings of registered Spanish Earnings of registered Spanish frontier workers in frontier workers in Gibraltar Gibraltar

Sector £'s FTEsConstruction 11,864,433 671.0

Distribution 8,181,376 605.0

Education 114,539 1.5

Electricity & Water 328,392 6.0

Finance 1,713,892 63.5

Health & Soc Services 3,260,895 168.5

Hotels & Rest 3,704,725 312.5

Manufacturing 943,337 64.5

Other Services 3,504,260 193.5

Public Administration 31,080 1.5

Real Estate & Bus Services 4,509,331 273.0

Shipbuilding 1,820,861 48.5

Transport & Communications 2,990,871 137.0

Total 42,967,992 2,546.0


Registered Spanish fRegistered Spanish frontier workers:rontier workers:spending spending withinwithin Andalucía Andalucía

£'s

Distributive Trade, Restaurants, Housing Services, etc.

24,660,661

Raw Materials 12,860

Manufacturing 625,514

Other Goods 332,239

Adv & Prom 11,076

Insurance 302,706

Transport 698,743

Telecomm 605,872

Government 150,907

Total 27,400,578


Spending by frontier workers of other nationalities in the economy of Andalucía

£'s


33,065,853



Other Goods 439,737

Adv & Prom 14,851

Insurance 405,879

Transport 936,898

Telecomm 812,374

Government 202,341

Total 36,733,887


Gibraltar residents’Gibraltar residents’expenditure in Spainexpenditure in Spain

£'s


26,072,293


Manufacturing 1,430,208

Other Goods 759,649

Adv & Prom 9,741

Insurance 266,208

Transport 614,495

Telecomm 532,821

Government 132,712

Total 29,847,531


Spending by Gibraltar residents with Spending by Gibraltar residents with second homes in Spainsecond homes in Spain

£'s


30,168,171



Other Goods 406,439

Adv & Prom 13,550

Insurance 370,310

Transport 854,795

Telecomm 741,182

Government 184,610

Total 33,520,000


GibraltarGibraltar SpainSpain

Spanish Frontier Workers £27M

Spanish Visitor Spend £134M

Net Direct Effect £168M

Gib 2nd Homes Spend £33M

Gib Resident Spend £30M

Business Imports £174M

Other Frontier Workers £37M


Total economic effect of Total economic effect of Gibraltaron the Campo economyon the Campo economy

Direct Indirect Induced TotalSource GDP £m GDP £m GDP £m GDP £mGibraltar Business Imports

69.37 43.56 46.88 159.80

Spanish Frontier Workers

42.97 19.19 27.15 89.30

Other Frontier Workers

57.39 25.62 36.26 119.27

Gibraltar Resident Spending

10.69 5.07 6.39 22.14

Gibraltarians with 2nd homes in Spain

14.84 6.63 8.62 30.09

Total GDP effect 195.26 100.06 125.28 420.60


Gibraltar’s Overall Impact Gibraltar’s Overall Impact

The Gibraltar economy was responsible for

12.2% of the total GDP in the Campo de Gibraltar And 0.42% of the total GDP of Andalucía in 2007


Other ImpactsOther Impacts

The analyses excludes petroleum exports to Gibraltar from the region ~ this would add approximately another £300M to the impact of Gibraltar on the Campo’s economy

Proximity to Gibraltar increases wealth through property prices by an estimated £1.4 - £5.4 billion


SummarySummary Gibraltar is a significant creator of wealth in the Campo -

adding £420m to the economy in 2007.

Gibraltar is a significant generator of sustainable jobs – Gibraltar accounts for 1 out of every 6 jobs in the Campo.

Gibraltar businesses buy significant amounts of goods and services from Spain - £174m.

The Campo de Gibraltar benefits substantially both directly and indirectly from Gibraltar’s economy

Gibraltar continues to be an engine of economic growth and wealth creation for the entire region.


T: + 350 200 78376www.gibraltarchamberofcommerce.com

http://www.gibraltarchamberofcommerce.com/



the impact of the economy of gibraltar on the campo de gibraltar area

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