Business

Gas Gas, a motorcycle manufacturer from Girona Province, has ceased production after a creditors meeting at the Mercantile Court.  The company says it has to interrupt the production chain due to difficulties in restructuring a €20 million debt. Gas Gas confirms that, after seven months of failed negotiations with banks in order to restructure the debt and get additional funds, last week it seemed that progress was being made in the hope of reaching an agreement. Meanwhile, the Catalan company has filed a pre-bankruptcy request and has ceased production, but they hope to reach an agreement soon and get back to business once again.

Registered unemployment in Catalonia grew by 6,821 people by the end of January, compared to figures from December. However, it is the lowest increase since 2007 for a month in which many seasonal contracts related to Christmas sales end. Furthermore, more good news comes in the form of the 8.06% drop in annual terms posted in January and the fact that registered unemployment has been decreasing for the last 19 consecutive months in annual terms. However, registered unemployment has also been increasing in monthly terms for the last 3 consecutive months (November, December and January). In the whole of Spain, registered unemployment increased by 77,980 people compared to a month ago, also the lowest increase for this time of year since 2007.

The Catalan Parliament delivered a petition to the Constitutional Court in order to defend the Catalan law on opening hours for shops, which is more restrictive than the Spanish one. Catalonia is trying to preserve its small urban shops model, where most of the shops are run by families. The Spanish Government passed a reform in 2012 forcing Catalonia to allow longer opening hours. In 2013, the Catalan Executive promoted a new bill to invalidate the Spanish one. The new law was approved with 80% support in the Catalan Parliament in January 2014, but the Spanish Government appealed against it a few months later, and the Constitutional Court suspended the Catalan text in late 2014. 

For the first time in 7 years, in 2014 Catalan shops increased their overall sales figures compared to the previous year, growing by 1.4%. Furthermore, the figures are even more positive looking at the sales in December, which grew by 7.4% compared to the same month in 2013, according to data released on Thursday by the Spanish Statistics Institute (INE). The Catalan figures are better than the Spanish average, both for 2014’s overall figures and for those from December. In Spain as a whole, retail increased by 0.9% last year and by 5.4% in December. The worst year for Catalonia’s retail sector was 2011, when sales dropped by 6.2% in annual terms. Other years, they stagnated, such as in 2010. 

The low-cost airline Norwegian Air Shuttle announced it may connect Barcelona to 5 United States cities by 2016: San Francisco, Los Angeles, New York, Miami and Orlando. The cheapest roundtrip tickets would be less than $300, stated the Scandinavian company’s Founder and CEO, Bjorn Kjos. The announcement was made on the day Norwegian unveiled its headquarters for Southern Europe, based at Barcelona El Prat Airport. The low-cost airline has transformed the Catalan capital’s main airport into one of its main operational bases worldwide. In 2014 alone, Norwegian increased by 36% the number of passengers it transported through the airport. Last year, Barcelona El Prat broke its passenger record with 37.5 million people. The Catalan Minister for Transport, Santi Vila, stressed that Norwegian’s plans contribute to transforming Barcelona El Prat into an intercontinental hub.

The multinational company Roberlo, based in the Girona Province, has acquired the British enterprise Chemfix. Roberlo, which manufactures chemicals for the construction and automobile industries, expects to increase its profits by 30% this year with this transaction, reaching 65 million euros. 85% of the Catalan company’s turnover moves into foreign markets, so this purchase contributes to its internationalisation. The aim of the Girona-based company is to be one of the top three European producers which use chemical docking, an industrial technology.The business has two factories in Girona, one in Brazil, one in Russia and now, one in the UK. The Catalan group has ten subsidiaries and employs 400 people, 200 of which are located abroad.

2,160,646 passengers passed through Girona Costa Brava Airport in 2014, a 21.1% decrease over 2013. This figure, according to Aena, the Spanish Airport Authority, is the lowest since the low-cost Irish airline, Ryanair, began operating at the airport in 2004. From the record breaking 5.5 million passengers in 2008, the infrastructure has suffered six consecutive years of decline, coinciding with Ryanair’s arrival at Barcelona El Prat and the increase of its operation from Catalonia’s main airport.However, the 2014 data report from Aena showed that 90,364 tonnes of air freight were transported from Girona airport, an increase of 97.3% over the previous year.

Catalonia posted a 19.88% unemployment rate at the end of 2014, almost 4 percentage points lower than the rate for the whole of Spain, which was 23.70%. On 31 December 2014, there were 756,500 unemployed people in Catalonia, which represents 83,000 less jobseekers than a year ago, according to the Spanish Statistics Institute (INE). Despite the positive annual results, unemployment increased by 30,500 people in quarterly terms, compared to figures from the end of September 2014. Back then, Catalonia's unemployment rate was 19.10%. In terms of jobs, the Catalan economy ended 2014 with 49,300 more people in employment than at the end of 2013, reaching 3,048,100 workers. The Catalan Government is said to be "moderately optimistic" with the figures and highlighted that both 2014 and 2013 ended with less unemployed in annual terms, accumulating two consecutive years of decreased numbers.

The Catalan Government presented this week a first draft of the urban plan that is developing for the 800 hectares surrounding PortAventura theme park, in the Costa Daurada, near Tarragona. The $6 billion holiday resort BCN World is supposed to be built in this area, which is now being promoted by the Catalan Executive itself after the private investor Veremonte did not meet the final deadline for buying the land in December. The urban plan foresees towers of 20 to 25 floors and the construction of 500,000 square metres of tourist and residential-use areas between the Las Vegas style casinos and the beach. Veremonte and its partners Melco, Hard Rock, Caesar’s Entertainment, Melià and Value Retail continue to be involved in the project, along with other investors such as Investindusrial (which owns PortAventura), Ferrari (which wants to build its first European theme park there) and Perelada (which owns other casinos and luxury hotels in Catalonia).

This January, Grimaldi, the multinational logistics group specialised in maritime transport for major vehicle manufacturers’ world suppliers, has launched a new ferry called the “Florencia” to connect the Catalan capital and Savona, an Italian port located about 50km west of Genoa. This investment allows the company to double the frequency between the two harbours. The brand new “Florencia” is 186m long and can carry 1,000 passengers and 170 cars. It makes three trips per week: at midnight every Tuesday, Thursday and Saturday, reaching its destination the next day at 6pm.

The European Commission has warned Spain that 6 Autonomous Communities, including Catalonia, should cancel their tax on large-sized shopping centres because it may represent indirect State aid benefiting smaller shops and therefore damaging free competition. The Catalan Minister for Business and Employment, Felip Puig, announced legal actions to defend this tax, which was validated by the Constitutional Court. Catalonia’s shopping model has a great presence of small and local shops, mostly run by families with a small number of employees. In order to protect this model and make it compatible with new shopping malls and large-sized international shops, in 2000 the Catalan Parliament created a tax on shops larger than 2,500 square metres. Currently, it is set at €17 per year per square metre. The revenue collected is devoted to actions promoting local retail.

Catalonia ended 2014 with an annual inflation rate of -0.7%, the lowest rate since 1978, when records for the Spain’s Autonomous Communities began, according to data published on Thursday by the Spanish Statistics Institute (INE). The previous month, at the end of November, the annual consumer price index registered a rate of -0.3% in Catalonia. In the whole of Spain, the annual inflation rate at the end of December 2014 was -1%. This is the lowest rate registered since December 1961, when comparable data started to be collected. At the end of November, prices were decreasing by -0.4% in annual terms in Spain as a whole. Therefore, both in Catalonia and in Spain overall, last year ended with a significant price drop, mostly due to falling fuel prices.

The number of passengers going through Catalonia’s main airport grew by 6.7% in 2014 compared to 2013. In total, some 37,559,044 people travelled through Barcelona El Prat Airport, the first time this has broken the 37 million mark. The number of flights also increased, by 2.7%, with 283,850 involving the Catalan capital’s main airport. Furthermore, the amount of transported goods increased by 2.4%, with more than 102,000 tonnes of cargo. The type of passenger that registered the highest increase was travellers from within the European Union, which grew by 10.5% in 2014. All the markets registered positive figures except European flights from outside the EU and the Schengen Area, due to a drop in Russian tourists. The Asian market grew by 18.4% and those of the Middle East and Africa by 14.8% and 13.8% respectively.

Despite a decrease in Russian visitors, Catalonia increased the number of international tourists it hosted during 2014. Some 16.7 million foreigners travelled to Catalonia last year, which sets a new historic record. In addition, it represents a 7.2% increase on 2013 figures. International visitors spent more than €15 billion during their stay, 6.1% more than in 2013. Therefore, foreign tourism accounted for some 7.5% of Catalonia’s entire GDP during 2014. Each tourist spent an average of €900 during their stay. The Catalan Minister for Business and Employment, Felip Puig, presented the figures on Wednesday and emphasised that the objective for future years is not so much to increase the number of tourists but rather to increase the revenue which they bring in. 

The Barcelona-based car manufacturer Seat, which is part of the Volkswagen group, ended 2014 with a 10% growth in sales. During last year, Seat sold 390,500 vehicles worldwide, which are produced in its factory in Martorell (Greater Barcelona). This plant increased production by 13.5%, reaching its highest level for 12 years. The factory has now achieved 5 consecutive years of growth. The company’s shining light during 2014 was the León model, sales of which increased by 50%, reaching 154,100 units sold, breaking its sales record. This type of car has become “the brand’s second pillar” after the Seat Ibiza, stated the company’s President, Jürgen Stackmann. During the last 2 years, Seat global sales have grown by 21.7%, surpassing their 2007 pre-crisis levels.