Waiting for Midnight... France helps Spains economy more than its own!
My recent post on The Kudos Factor China got me thinking about other examples of foreign governments helping trade in neighbouring countries.
I have come to the conclusion that France must be Spains fairy godmother!
I have already conducted some research into the Global Tourism Industry.(Which I might do a more detailed post about later).
In 2004 France was the leading tourist destination in the world with over 77 million visitors. Spain was a poor second with just short of 52 million Visitors.
A deeper analysis revealed that despite the huge difference in the number of tourists, Spain gained more economically from tourism than France did. On average each tourist in Spain would spend €499 whereas each tourist in France would spend only €322.
Why would that be? One of the reasons is that many European tourists drive through France in order to pass the most part of their holidays in Spain, where the cost of living is lower and you can enjoy more for your euros. Another would be that France is not doing enough to attract, and keep, long stay holidaymakers.
So Now lets take a look at Ryanair, the low cost airline... Here is a simple spot the difference!
Flights to Perpignan,France, and flights to Girona,Spain.
On the left is a map of Ryanair flights to Perpignan Airport in France which is near the coast and about twenty minutes drive from the Spanish Border.
On the right is a map of Ryanair flights to Girona Airport in Spain which is near the coast and about twenty minutes drive from the French Border.
There will be some that say that "Yes but Girona is a bigger airport than Perpignan". It is now, but as recently as 5 years ago both airports were the same size.
Key strategic decisions should be taken at least 3 to 5 years in advance, in order to fully take advantage of the changing world scene.To make these decisions we need excellent business intelligence and a lot of foresight.We are reminded that when we shy away from taking these decisions, at the right time, the ensuing economic consequences can be high.
So what was it that created this enormous difference in economic power between the the two airports? Why did Ryanair invest so much in Girona, and so much less in Perpignan?
There is a clue to be found should you ever try driving from Spain across the border to France on a Sunday evening. Its very hard to miss it actually, it is a stunning sight... La Jonquera, the last stop in Spain before you cross into France is a buzzing boomtown. Yes, even on a Sunday evening!
And its all thanks to France!
France has, for a long time, prohibited lorries from driving on its autoroutes on Sundays.
So all the lorry drivers in Europe stop at La Jonqera on a Sunday evening to wait for the border to be opened at midnight! They fill up with fuel, they stock up at the supermarkets, they take advantage of lower taxes on cigarettes and alcohol. They eat in the restaurants and go to the bars. Yes La Jonquera (and I think Spainish Catalunya in general) is really booming thanks to differences in legislation between the two countries.
When you cross into France the difference is stark, France is a dark, quiet place and everything is closed! There are many that say that this tranquility should be preserved.
With the elections looming in France, I hope that whoever wins will find the strength to move away from the famous "French Social Model" to a philosophy that recognises that economic power creates wealth and jobs, and that it is better for France to create those jobs in France than in Spain.
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