Business

An agreement between the Centre-Right pro-Catalan State Coalition (CiU) – which runs Barcelona's municipal government in minority – and the People's Party (PP) will allow shops located in tourist areas of the Catalan capital to be open on Sundays during the summer season, from 10am to 6pm. Shops in Catalonia are normally closed on Sundays, with few exceptions for the Christmas or sales seasons. However, shops in small tourist towns are allowed greater flexibility during holidays and can open on Sundays. The case of Barcelona is quite unusual, since it is the largest tourist destination in Catalonia but it is also a big city with a dense network of small and neighbourhood shops. These small shops could be damaged if they have to open longer hours (with the increase of financial and personal costs associated) in order to compete with multinationals.

In the five years since it opened, the T1 Terminal of Barcelona El Prat Airport has received over 111 million people, overseen approximately 1.3 million take-off and landing operations and processed 70 million items of luggage. The new airport terminal became operational on 17 June 2009 and marked its fifth anniversary on Tuesday. The new terminal has processed twice as many passengers in this period than the older T2 terminal. In addition, Barcelona El Prat Airport was on Tuesday night announced as the best airport in Europe, at the ACI (Airport Council International) Europe Awards 2014 held in Frankfurt. It was the second time the airport has received this accolade.

A plasma fractionation plant installed in Clayton, North Carolina by the company Grífols was unveiled on Tuesday by the President of the Catalan Government, Artur Mas, along with the President and CEO of the pharmaceutical, Víctor Grífols, and the State Governor, Pat McCrory. The new plant is 14,400 square metres big, will create over 200 jobs and represents an investment of 260 million euros. Expected to be operational by 2015, it will the largest and one of the most advanced plasma fractionation plants in the world. Grífols already has 2,300 employees in the state of North Carolina and it is among the world's top pharmaceuticals within the blood-derivates market. A few weeks ago, Víctor Grífols gave his support to the Catalan President and the self-determination process, which he confirmed on Tuesday.

The Catalan Government issued last Friday the public tender for granting licenses to build six mega-casino hotels in the Costa Daurada, next to PortAventura amusement park. These 6 Las Vegas-style recreational centres are the main part of BCN World, a $6 billion project that will create the largest holiday resort in Europe.  The main promoter of the project, Veremonte, announced on Friday they will be presenting an offer for each of the six hotel and casino licenses in partnership with international investors, such as Chinese casino giant Melco and US multinational Hard Rock. Veremonte also added they have “everything ready” to launch construction.  All candidates must submit a minimum initial investment of €300 million, as well as a business plan to prevent money laundering. The tender will have 2 eliminatory phases and bids have to be presented before 25July.

The so-called Consumer Price Index (IPC) – which represents the inflation rate – in May stood at 0.5% in Catalonia in annual terms. In April, it stood at 0.7% according to figures published on Friday by the Spanish Institute of Statistics (INE). Across the whole of Spain, inflation increased by 0.2% in May, while in April a 0.4% inflation rate was recorded, the IPC data confirms.  Core inflation – which does not take into account the prices of energy and unprocessed food –  fell from 0.3% in April to 0.0% in May. The product groups that had a greater impact on May's IPC were food and non-alcoholic beverages (-0.8%), recreation and culture (-1.1%) and hotels, cafes and restaurants (+0.5%).

The sale of homes in Catalonia rose 13.1% this April, compared with the same month last year, according to the Spanish Statistics Institute (INE).  April 2014 saw the sale of 3,724 properties in Catalonia, 3,334 of which were free (89.5%) and 390 protected (10.5%).  Of these transactions, 32% corresponded to newly-built flats and 68% were of existing homes.  Across Spain, sales have increased by 5.3% in annual terms, with a total of 24,968 transactions registered. Thus, Catalonia sits comfortably above the Spanish average, but was surpassed by eight other Autonomous Communities, including the Basque Country, Cantabria and the Balearic Islands, where purchases increased by 48.8%, 41 6% and 28.5%, respectively.

In May 2014 the Catalan airfield recorded 3,397,097 passengers, a 5.5% increase on May last year. Madrid's international airport exceeded this number with a total 3,544,649 passengers, 147,562 more than its Catalan rival, with a 4.1% growth. Madrid's airport has recovered from the 10% losses registered over the last 2 years, but it grows much slower than its Catalan competitor. One of the reasons for Barcelona's growth is the notable increase of intercontinental flyers. In the first 5 months of 2014, 13,517,143 people flew from Barcelona, a 7% increase from the same period in 2013. The equivalent figure from Madrid is 15,808,392, representing a 2.8% increase. Meanwhile, the number of passengers arriving at Girona- Costa Brava Airport, continues to decline, with a fall of 20% since 2013.

Hutchison Port Holdings (HPH) intends to make the terminal it runs in Barcelona's Port the most productive in the world, according to Clemence Cheng, Managing Director of HPH Europe. Cheng said that in its first two years the terminal has exceeded all expectations.  The Chinese company will therefore increase its ''commitment'' to Barcelona and will effect the second phase of investment at a cost of €150 million, in addition to the €315 million already invested two years ago. The President of the Catalan Government, Artur Mas, participated on Friday in a ceremony to mark the kick-off of the new phase of construction and took the opportunity to claim the right of self-determination is also in order for Barcelona's Port to have maximum autonomy and not depend on decisions taken far away in Madrid.

The new SUV model of SEAT, which is part of the Volkwagen Group, will be produced in the Czech Republic rather than in the Martorell plant despite being entirely designed in the SEAT Technical Centre in Martorell (Greater Barcelona), according to sources from the German car manufacturer. The company justified the decision because of "lower production costs" at the Czech Skoda plant. The news that the manufacturing of the model will be moved away from Barcelona has come as a blow to the CCOO trade union, which has expressed its regret that the Catalan factory has lost the opportunity to have a secure workload for the coming years. CCOO has suggested that the Martorell plant requires a business plan to ensure the allocation of new models.

Throughout this week the Fira de Barcelona's Montjuic exhibition venue in the Catalan capital is transformed into a business fair for start-ups and entrepreneurs. The BizBarcelona event takes place on Wednesday the 4^th and Thursday the 5^th of June and is the second edition of this innovative business fair. The event serves several purposes and contains as many as six different areas including e-commerce, the financial markets, exports, franchises, business consulting as well as cooperation and networking. The event offers various opportunities for established and future entrepreneurs. BizBarcelona is a welcome initiative. First quarter financial reports revealed a decrease in bankruptcy proceedings, and with a high unemployment rate in Catalonia and Spain it is hoped that these new companies can create jobs.

The Barcelona Metro will reach El Prat Airport by the first half of 2016, perhaps even earlier, according to forecasts announced on Wednesday by the President of the Catalan Government, Artur Mas. The L9 line connecting Barcelona municipality to El Prat Airport and other cities has been under construction since 2002, and was originally anticipated to open in 2008, but the financial crisis and the state of public finances have delayed its full completion. An initial stretch of the line became operational in 2009, located at the opposite end to the airport. Once fully finished, the underground line will consist of two branches spanning across the Barcelona metropolitan area, making it the longest automatic metro line in Europe. The entire project will represent a total investment of €16 billion, €3 billion of which is for the airport connection. The test phase of the airport stretch will begin this autumn and should be completed by early 2016 or earlier.

Registered unemployment in Catalonia has dropped to 592,304 people at the end of May 2014: the first time the figure has fallen below the 600,000 mark since August 2011. According to figures released by the Spanish Ministry of Employment and Social Security, between May 2013 and May 2014, registered unemployment dropped by 7.76 %, a reduction of 49,862 people. In only one month, unemployment decreased by 19,518 people from April to May, a 3.19 % drop. This has been the greatest monthly decrease recorded in May for 18 years. Furthermore, Catalonia has also experienced the greatest fall in unemployment of any Autonomous Community in Spain this last May, followed by the Region of Madrid.

The Catalan Parliament has finally approved the legal framework allowing the construction and the activities of the BCN World mega-resort, to be located next to PortAventura amusement park in the Costa Daurada. Now, the company Veremonte has the final green light to start construction, after it already had announced the first investors some months ago. Casino giant Melco, hotel brand Melià, US Hard Rock, Value Retail shopping malls and Investindustrial, which owns PortAventura, will participate in the $6 billion project. Furthermore, Ferrari announced it will build its first theme park in Europe there. BCN World involves 6 mega-casinos, large-size hotels, shopping malls, convention centres, theatres, golf courses, parks, a beach club, technology institutes and smart city developments.

The Catalan industrial sector received €1.365 billion of direct foreign investment in 2013, the highest amount since 2005, according to Barcelona’s Chamber of Commerce. This represents 52% of the total foreign investment in Spain’s industrial sector in 2013, while Catalonia represents around 19% of Spanish GDP. Across all sectors Catalonia received a total of €3.51 billion of foreign investment last year, 31% more than in 2012. In addition, the President of the Chamber, Miquel Valls, emphasized that foreign investment in Catalonia went mostly to the industrial sector and advanced services, while in the rest of Spain it mostly went to the recreational and real estate sectors. According to Valls, this indicates that international investors have identified Catalonia with “a new production model”, while this has not happened in the rest of Spain.

The Catalan highway and telecom company Abertis has closed a €291 million deal to buy the remaining 42.3% of the shares of the Rutas del Pacífico highway management enterprise. Abertis, which is a world leader in the highway management business, already controls 57.3% of the South American company and now it has bought Capital Riesgo Global, Grupo Santander and Inversora de Infrastructuras (Invin) the rest. The new operation will be completed in the second half of 2014, although the Catalan multinational will not have to pay the €291 million until August 2019. With this deal, Abertis will also take control of 50% of the Autopista Central highway company.