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Paris - Overview:
Paris is at the centre of the French economy and generates in the region of one-fifth of the national GDP. According to a report produced in 2001 by the wealth-management arm of Barclays Bank, the city's GDP is approximately 135 billion euros, making it Europe's 2nd wealthiest city after London. The city is home to more than 2 million people and the surrounding Ile de France region is one of the most populated metropolitan areas in the world with approximately 11 million inhabitants. In the 'European Cities Monitor 2001' published by the international property consultancy firm Healey & Baker, Paris was considered to be the second best business location in Europe behind London.
Economy:
The service sector, especially corporate services, dominates the economy of Paris and the wider Ile de France region, employing approximately four-fifths of the local workforce. The position of Paris as a major tourist and international conference centre attracts in the region of twenty-eight million visitors to the city each year. The region is also France's premier industrial area and is characterised by large numbers of SMEs. More than two thirds of the industrial sector is comprised of firms in high technology fields ranging from electronic manufacturing to the automotive and chemical industries. The Ile de France area is also a significant agricultural region, with farmland covering around half of the land.
Local Infrastructure:
Paris and its surrounding area benefit from an extensive, modern transport infrastructure. The region boasts two major international airports, offering flights to some 134 countries, and a further twelve airports for light aircraft. Orly International Airport is located just 14 kilometres to the south of the city, while Roissy, Charles de Gaulle Airport is situated 23 kilometres to the north east. According to Aéroports de Paris, the airport authority responsible for the operation of the region's airports, approximately 71 million passengers and 1.7 million tonnes of freight and mail passed through the two airports in 2001. Figures for 2000, produced by IATA, the international trade association for the air transport industry, show that the Paris, Ile de France region has the second largest airport capacity in Europe and the sixth largest in the world.
The high-speed TGV passenger trains connect Paris with hundreds of destinations throughout France and Europe. Via the TGV network, Brussels can be reached in less than ninety minutes, London in just over two and a half hours, Frankfurt in around three hours and Barcelona in eight hours. The network also provides rapid connections between the cities two international airports.
The region also has an extensive road network with over 2000 kilometres of major roads and highways. By road Brussels can be reached in three hours, Frankfurt in 6 hours and Barcelona in 12 hours.
Local workforce:
The region has a workforce of over 5 million people, characterised by a growing number of executives and professionals. Unemployment in the region is below the national average, at approximately 7.5 per cent in 2000, according to the Association of European Chambers of Commerce and Industry. Training to help young people find employment is a top priority and, in 2001, 17 per cent of the local government budget was devoted to employment and training.
The region has approximately 170 apprenticeship training centres and local training programmes are organised in association with Chambers of Commerce and Industry, local authorities, businesses and professional associations in order to ensure that skills match the needs of business. Figures published by the French National Institute of Statistics and Economic Studies (INSEE) show that 70 per cent of young people in the region who left the education system in 1999 were employed in March 2000.
Standard of Living:
Paris is ranked ninth in the EU and thirty-first in the world in the quality of life report published by Mercer Human Resource Consulting in 2002. The report was based on the evaluation of 39 criteria such as political, social, economic and environmental factors as well as personal safety, health, education, transport and several other public services. The city scored a total of 101.5 points, compared to 106.5 points for the first placed city of Zurich. In the same report, Frankfurt was ranked sixth in the world with 105 points, Munich was tenth with 104.5 points, Brussels was fifteenth with 103.5 points and London was ranked forty-first with 100 points. In terms of cleanliness, based on air pollution levels and the efficiency of waste disposal and sewage systems, Paris is positioned twelfth in the EU and eighty-fourth in the world. For cost of living, the city is ranked as the fifth most expensive in the EU and seventy-fourth in the world.
Business Costs:
Office occupancy costs in Paris are much lower than in London but higher than in most other European cities. In a report published in 2002 by one of the world's leading real estate advisory companies, DTZ, the total office occupancy cost in Paris was approximately 826.56 euros per metre squared per annum, compared with a cost of 1496.32 euros for London. The cost in Frankfurt, Munich and Brussels was 672, 414.4 and 275.52 respectively. The report included factors such as maintenance costs and property taxes in addition to rent. According to data from 2001, published in an annual report by international property consultant Healey & Baker, prime industrial rents in Paris are lower than in many European cities. Paris rents averaged 69 euros per metre squared per annum, while rent in London, Heathrow was 213 euros, rent in Frankfurt was 92 euros, rent in Munich was 86 euros and rent in Brussels was 55 euros.
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