Business

The Catalan company presented its strategic plan for next two years, which fosters its main hub, Barcelona El Prat Airport, by adding 28 new routes from next summer. Vueling plans to transform Barcelona Airport into the main European hub for short and medium distance flights. Currently, it is already the second continental hub in this category. Furthermore Vueling will strengthen its offer to business travellers by unveiling the ‘Excellence’ flying class and direct flights between Barcelona and London-Gatwick or Frankfurt. In addition, the Catalan airline will end 2012 with a profit for the fourth consecutive year.

The chemical industries based in Tarragona, such as BASF, Dow Chemical and Repsol, expect their turnover to increase by 4% in 2012 compared to a year ago. In 2011, they exported 60% of their production, while in 2000 they were only exporting 30% of it. Furthermore, they have requested transport infrastructures to be improved and criticised the increase in energy taxes. About Catalonia’s hypothetical independence, they stated they “will respect what will be decided and will adapt to it”. These companies represent around 7% of Catalonia’s GDP.

Barcelona will hold, at least until 2018, the status of being the world’s mobile industry capital. Every year Barcelona hosts the world’s main event in this industry, the Mobile World Congress. This event is part of a broader project: the Mobile World Capital, which plans activities and events throughout the year and works to make Barcelona the greatest business and technological centre of the mobile industry. The Spanish telecommunication giant Telefonica announced it will bring €7.8 million to develop this project. Furthermore, it will allow MWCapital to use 1,800 square metres of a building located in Barcelona’s main square – Plaça Catalunya – to show the latest technological developments.

By early 2013 the Airport of Lleida-Alguaire, located in Western Catalonia next to the border with Aragon, will have a maintenance centre with a capacity to host up to 50 airplanes like the Airbus model A320. The private company AirHoster will invest €3 million in building the initial facilities. 75 jobs will be created, as well as a school to train technicians. The Lleida-Alguaire Airport has received very few flights since it opened its doors in January 2010, most of them run by tour operators bringing skiers to the Pyrenees.

However, CatalunyaBanc would need a maximum of €10.83 billion in the most stressed scenario. According to the independent audit by Oliver Wyman, with KPGM, Deloitte, PwC and Ernst & Young, the Spanish banking system would need a maximum of €53.75 billion in the worst case scenario. 4 banking groups would concentrate 86% of these additional funds. In total, 7 banking groups would need additional funds, while 7 groups would be strong enough, with their own resources, to resist a hypothetical scenario with a 6.5% recession between 2012 and 2014, 27% unemployment, a 85% drop in land prices and a 55% decrease in housing prices.

The Catalan capital hosts the largest and most modern container terminal of the Mediterranean Sea, a true gate for cargo ships, linking Europe with the Middle East, Northern Africa and Asia. BEST, which stands for Barcelona Europe South Terminal, represents a €515 million investment by Hutchison Port Holdings (HPH). This week it has unveiled the first part of the project: 100 hectares to store containers, 1.5 kilometres of docking space for cargo ships, 98 cranes and a provisional international-width railway connection to compete with northern European harbours. However, the Spanish Government has not started the definitive railway connection yet, despite many promises.

2 million foreigners visited Catalonia in August, a 14.7% increase compared to August 2011. In total, in the first 8 months of the year, 10.4 million international visitors came to Catalonia, a 12.1% raise compared to the same period from 2011. Madrid was visited by 381,000 foreigners in August, a 29.7% decrease. In the whole of Spain, the number of international tourists reached 7.9 million in August, a 5% increase. Out of all the tourists who visited Spain in August, 25.4% went to Catalonia.

The Catalan Government has confirmed that Ryanair will route its flights through Reus Airport, next to Tarragona and the Costa Daurada, during the winter season. It will link the Catalan airport with 7 European destinations, with a frequency of 21 rotations per week. It is expected that 100,000 passengers will be transported. Last year, the Irish low-cost airline cancelled all its flights operated through Reus in winter time and was only present during the summer season.

The Catalan Government approved a simplification of the red tape businesses need to get through by unifying all the public institution windows in a single point of contact and by rationalising procedures and certificates. By 2014 it is expected that 20% of the administrative procedures will be eliminated and 68% will simplified, involving procedures at local, Catalan and Spanish level. The measure will represent a €640 million saving for companies, according to the Catalan Government.

The Mayor of Barcelona welcomed the company’s investments and commitment to efficiency at the Port of Barcelona. The Catalan harbour is significantly increasing its container traffic in the last few years. Barcelona’s Port aims to become the main logistical hub in Southern Europe, using the international standard rail gauge to directly connect to Central Europe and new freight terminals. The Catalan company TCB is expanding its freight railway station and its power substation, as well as enlarging the ship docking space. The improvements will increase the maximum number of shipping containers transported by TCB from 0.9 million to 2.3 million by the end of 2013.

Catalonia’s main airport had 3,874,131 passengers in August which is the highest monthly figure the airport has ever achieved. In the first 8 months of the year, there have been over 24 million passengers travelling through Barcelona El Prat Airport, 4.4% more than during the same period in 2011. Girona Costa Brava Airport also had success this August with 14.5% more passengers and 15% more flights compared to the same month last year. However, the number of passengers at the small Reus Airport fell by 28.5%, due to Ryanair’s reduction of flights.

‘Barcelona World’, located next to Salou’s beaches and PortaAventura, will have 6 new theme parks, as well as 12,000 hotel rooms, casinos, convention centres, golf courses and other amusement facilities. 10 million people are expected to visit the mega-resort funded by Veremonte each year, which will create 40,000 jobs. ‘Barcelona World’, located next to Tarragona in the Costa Daurada, will be Europe’s largest amusement resort and among the world’s largest, targeting family and business tourism. Construction may be complete by late 2016. The project has been announced after the expiration of the offer made to Las Vegas Sands to build its casinos next to Barcelona. This American company has not announced if it will finally build ‘Eurovegas’ in Madrid yet, but the Barcelona option seems to be ruled out.

The debt of Spanish families has been reduced by 4% compared to July 2011, reaching €848.4 billion by the end of July 2012. 77% of this family debt is related to real estate loans. Private companies passed from a global debt of €863.9 billion in July 2011 to a debt of €804.2 billion a year later.

The Catalan multinational company will provide Gail, the largest gas distributor in India, around 3 bcm of liquefied natural gas for three years. This quantity represents 10% of Spain’s annual gas consumption. Gas Natural Fenosa refused to disclose the value of the contract, but sources from the sector estimate it would be worth more than €1 billion. This would be the largest contract in Asia for this Barcelona-based company, which has a significant presence in South America.

The Damm Group, manufacturer of the popular Catalan beer brand Estrella, had a turnover of 421 million in the first six months of 2012, a 8.5% increase in relation to the same period last year. The company is not making any predictions for the second half of the year due to the uncertainty over the VAT increase but has stated that sales over the past weeks have “evolved satisfactorily”.