Long-term economic planning - Supply and demand, the Barcelona way
Some may put it as a matter of supply and demand but Marius Robert, general manager for international economic relations of the City of Barcelona, believes that if you make a good offer, the demand will surely follow. Marius Robert feels it is...
Some may put it as a matter of supply and demand but Marius Robert, general manager for international economic relations of the City of Barcelona, believes that if you make a good offer, the demand will surely follow.
Marius Robert feels it is strategically important for Malta to establish a direct link with the City of Barcelona, noting with satisfaction the decision by Spanish low-cost airline Clickair to operate to Malta.
Noting that Malta and Barcelona do not yet have strong relations, he feels that the connection offered by the regular direct flights will help contribute so that the two sides would be able to do things together possibly over the next two years.
The CEO of Malta International Airport, Julian Jaeger, notes that Spain itself and Barcelona were still untapped markets for Malta. "There is a big campaign in this sense by the Malta Tourism Authority. In 2006, passengers on the Malta-Spain route numbered 20,000. Last year they increased to 60,000 and in the first quarter this year there have already been 29,000 passengers," Mr Jaeger says.
Mr Robert points out that, together with the Chamber of Commerce, the city authorities organise what they call the Business Bridge. This is a kind of business mission, incorporating the different business institutions in the city and companies, to selected places around the world in a bid to try to explain the Barcelona model and forge business links with Catalan and Barcelona companies. "This is something we are studying to do with Malta, bringing Catalan companies and the main Catalan institutions - the port, the trade fair, the congress centres - and making them meet with their counterparts and explore the possibility of doing more things together in the future."
The City of Barcelona and the Chamber of Commerce work very closely together. In 1992, they launched a public-private platform to promote tourism, initially contributing €1 million each in a bid to attract tourists and offer them a service. Today, that platform has a budget of €24 million and the contribution of both the Chamber and the City is still €1 million a year, the rest coming from projects and products developed by the Tourism Board that finances its own activities. A tourist bus that goes around the city is one such project, as are various tourist offices where information is provided free, with income deriving from tourist merchandising.
As he sits down right beneath a little more than a dot with the legend Malta next to it on a huge map in a splendid hall inside the majestic Town Hall in the heart of the city, Mr Robert puts the record straight. As if to underline that necessity is the mother of invention, he explains that the 1992 Olympic Games were the turning point in Barcelona's tourism and economic stimulation.
"When speaking about the tourist and economic history of Barcelona there is always a before and after of the Olympic Games of 1992. There has been a tremendous change. The Olympics allowed us to do many things in a short period of time. The Games allowed us to transform the city completely. Only three per cent of the investment in the Olympics was related to sports facilities; the rest went into improving the city as a whole."
The Olympics helped the city attract a lot of public investment and Barcelona was transformed within 15 years, "a feat that would otherwise have taken 50 years to achieve. It allowed us to put the city on the map," Mr Robert proudly recalls.
Until the Games, Barcelona was to many a city where one could retire. It was neither a tourist nor a business destination, But that perception soon changed.
The airport had to be improved and enlarged. Hotel capacity had to increase, quite a feat considering that even hotel managers were sceptical. Doubling the capacity of four- and five-star hotels would work for the duration of the Games but then what, the hoteliers asked the city authorities.
The figures proved the authorities' to be the correct strategy. In the Olympic year of 1992, Barcelona hosted 2.5 million tourists. This year, it is handling some seven million. Indeed, there are plans to improve the hotel offer even further.
The airport, a crucial element in the Barcelona model, has also been going from strength to strength, even ranking as one of the fastest growing airports in Europe.
In 1975 the airport handled three million passengers; last year airport movements rose to 33 million passengers. A new terminal, that should be open in under a year, will allow movements to go up to 60 million a year, and the so-called satellite terminal - work on which is expected to commence next year - will boost capacity by 15 million more passengers a year.
Barcelona has also been very successful in attracting business. "Barcelona was not seen as an interesting place where to do business," Mr Robert admits, "but things have changed and when you see the various surveys and enquiries in relation to the best business locations, Barcelona always ranks among the top seven. Of course, there are top destinations like London, Frankfurt and Paris but Barcelona follows. It is always playing in the first division of the cities where one can do business." One can only wonder whether Frank Rijkaard and his boys have a say in this too!
But although business does usually follow the flag, there is a lot of hard work that must be done to attract such business and face competition. Mr Robert says Barcelona has been successful because of the way it has been pushing development. "It's a city that is always looking for new challenges. Today, everybody agrees that organising the Olympics is good business but when we applied everybody laughed at us and warned us we would be paying for the Olympics for the rest of our lives. Indeed, managing such a venture badly is much more risky than managing it correctly."
After the Olympics, Barcelona did not sit on its laurels and simply expected tourism and business to keep coming. It knew it had to roll up its sleeves and work hard.
International, cultural and sports events are some of the ways Barcelona keeps itself on the map and ensures a steady flow of visitors and investment its way.
Another characteristic of the Barcelona model is the public-private partnership.
Judging by what Mr Robert says, it is the city's determination in facing challenges and taking risks that has really ensured success. "We implement the policy of the offer. We strongly believe it is the offer that attracts the demand and not the demand that brings about the offer. If you don't put an offer on the market but wait until there is demand it would be too late. Given the competition from other cities and states you have to be two steps ahead."
Then there is the product. "Here is an environment where one can find all the different uses a city can offer. Here you will find that, all around the city, you can do all the things at the same time. The city is walkable. All the neighbourhoods are walkable almost 24 hours a day. Those coming to Barcelona do not want to be in a nice green technological park away from the city. They want to be in the centre of the city. Yahoo research centre; Google research centre; Volvo design centre; they want to be in the city as they want to interact with other businesses and appreciate the life of the city."
One, of course, cannot forget the good quality of life, "quality of life that is understood to be more than golf, beach, sun and ski. It means safety in the streets. a stimulating cultural offer, good shopping facilities, international schools for the children of foreigners living in Barcelona...
"If you generate this micro climate it would be easier for companies to be attracted. Today it is not the people who are chasing companies but companies chasing people. There are companies coming here because they can attract people willing to live here."
• Mr Bugeja was in Barcelona as guest of Malta International Airport and Clickair.
Marius Robert feels it is strategically important for Malta to establish a direct link with the City of Barcelona, noting with satisfaction the decision by Spanish low-cost airline Clickair to operate to Malta.
Noting that Malta and Barcelona do not yet have strong relations, he feels that the connection offered by the regular direct flights will help contribute so that the two sides would be able to do things together possibly over the next two years.
The CEO of Malta International Airport, Julian Jaeger, notes that Spain itself and Barcelona were still untapped markets for Malta. "There is a big campaign in this sense by the Malta Tourism Authority. In 2006, passengers on the Malta-Spain route numbered 20,000. Last year they increased to 60,000 and in the first quarter this year there have already been 29,000 passengers," Mr Jaeger says.
Mr Robert points out that, together with the Chamber of Commerce, the city authorities organise what they call the Business Bridge. This is a kind of business mission, incorporating the different business institutions in the city and companies, to selected places around the world in a bid to try to explain the Barcelona model and forge business links with Catalan and Barcelona companies. "This is something we are studying to do with Malta, bringing Catalan companies and the main Catalan institutions - the port, the trade fair, the congress centres - and making them meet with their counterparts and explore the possibility of doing more things together in the future."
The City of Barcelona and the Chamber of Commerce work very closely together. In 1992, they launched a public-private platform to promote tourism, initially contributing €1 million each in a bid to attract tourists and offer them a service. Today, that platform has a budget of €24 million and the contribution of both the Chamber and the City is still €1 million a year, the rest coming from projects and products developed by the Tourism Board that finances its own activities. A tourist bus that goes around the city is one such project, as are various tourist offices where information is provided free, with income deriving from tourist merchandising.
As he sits down right beneath a little more than a dot with the legend Malta next to it on a huge map in a splendid hall inside the majestic Town Hall in the heart of the city, Mr Robert puts the record straight. As if to underline that necessity is the mother of invention, he explains that the 1992 Olympic Games were the turning point in Barcelona's tourism and economic stimulation.
"When speaking about the tourist and economic history of Barcelona there is always a before and after of the Olympic Games of 1992. There has been a tremendous change. The Olympics allowed us to do many things in a short period of time. The Games allowed us to transform the city completely. Only three per cent of the investment in the Olympics was related to sports facilities; the rest went into improving the city as a whole."
The Olympics helped the city attract a lot of public investment and Barcelona was transformed within 15 years, "a feat that would otherwise have taken 50 years to achieve. It allowed us to put the city on the map," Mr Robert proudly recalls.
Until the Games, Barcelona was to many a city where one could retire. It was neither a tourist nor a business destination, But that perception soon changed.
The airport had to be improved and enlarged. Hotel capacity had to increase, quite a feat considering that even hotel managers were sceptical. Doubling the capacity of four- and five-star hotels would work for the duration of the Games but then what, the hoteliers asked the city authorities.
The figures proved the authorities' to be the correct strategy. In the Olympic year of 1992, Barcelona hosted 2.5 million tourists. This year, it is handling some seven million. Indeed, there are plans to improve the hotel offer even further.
The airport, a crucial element in the Barcelona model, has also been going from strength to strength, even ranking as one of the fastest growing airports in Europe.
In 1975 the airport handled three million passengers; last year airport movements rose to 33 million passengers. A new terminal, that should be open in under a year, will allow movements to go up to 60 million a year, and the so-called satellite terminal - work on which is expected to commence next year - will boost capacity by 15 million more passengers a year.
Barcelona has also been very successful in attracting business. "Barcelona was not seen as an interesting place where to do business," Mr Robert admits, "but things have changed and when you see the various surveys and enquiries in relation to the best business locations, Barcelona always ranks among the top seven. Of course, there are top destinations like London, Frankfurt and Paris but Barcelona follows. It is always playing in the first division of the cities where one can do business." One can only wonder whether Frank Rijkaard and his boys have a say in this too!
But although business does usually follow the flag, there is a lot of hard work that must be done to attract such business and face competition. Mr Robert says Barcelona has been successful because of the way it has been pushing development. "It's a city that is always looking for new challenges. Today, everybody agrees that organising the Olympics is good business but when we applied everybody laughed at us and warned us we would be paying for the Olympics for the rest of our lives. Indeed, managing such a venture badly is much more risky than managing it correctly."
After the Olympics, Barcelona did not sit on its laurels and simply expected tourism and business to keep coming. It knew it had to roll up its sleeves and work hard.
International, cultural and sports events are some of the ways Barcelona keeps itself on the map and ensures a steady flow of visitors and investment its way.
Another characteristic of the Barcelona model is the public-private partnership.
Judging by what Mr Robert says, it is the city's determination in facing challenges and taking risks that has really ensured success. "We implement the policy of the offer. We strongly believe it is the offer that attracts the demand and not the demand that brings about the offer. If you don't put an offer on the market but wait until there is demand it would be too late. Given the competition from other cities and states you have to be two steps ahead."
Then there is the product. "Here is an environment where one can find all the different uses a city can offer. Here you will find that, all around the city, you can do all the things at the same time. The city is walkable. All the neighbourhoods are walkable almost 24 hours a day. Those coming to Barcelona do not want to be in a nice green technological park away from the city. They want to be in the centre of the city. Yahoo research centre; Google research centre; Volvo design centre; they want to be in the city as they want to interact with other businesses and appreciate the life of the city."
One, of course, cannot forget the good quality of life, "quality of life that is understood to be more than golf, beach, sun and ski. It means safety in the streets. a stimulating cultural offer, good shopping facilities, international schools for the children of foreigners living in Barcelona...
"If you generate this micro climate it would be easier for companies to be attracted. Today it is not the people who are chasing companies but companies chasing people. There are companies coming here because they can attract people willing to live here."
• Mr Bugeja was in Barcelona as guest of Malta International Airport and Clickair.