It is well known that economics, or even better, economic sciences, are not exact sciences, even if many would like to believe so. They are rather categorized among social sciences, those that refer to people and their behaviors. Therefore, figures accompanying these can be bent to demonstrate the theses that each person supports. To put it even more simply, everyone can be right and demonstrate it (with figures to support it).
This was the sentiment one might have had after the conference by the Mayor of Nice (accompanied by several deputies and collaborators) presenting (with the famous supporting figures) the economic and social situation of “his” City after three years in office. Additionally, with a scheduled agenda for the coming years.
“Faber est suae quisque fortunae” (everyone is the maker of their own fortune). Indeed, one can only appreciate the will and determination of Christian Estrosi.
Of course, it is necessary to acknowledge a methodological framework predominantly focused on tactics or various tactics even if too many tactics do not necessarily make for a strategy.
While a positive economic approach is willingly recognized (Keynesian influences?), yet again, there’s a somewhat simplistic portrayal (is it “truly true” that supply creates its own demand, as was implied between the lines to explain the municipality’s vector role in local economic policy?).
But perhaps that was not the real goal of the day (presenting a statistical overview of economic data and the future observatory) but rather to position himself with these results as a “good manager” of his City.
An astute politician, the Mayor of Nice knows well that declarations have a performative statement and that a given situation is created merely by enunciating it. In fact, in the “saying” there is already the “doing.”
And when the general climate forces a gloomy disposition, the ability to smile gives a competitive advantage over his rivals!
Christian Estrosi: “I wanted to communicate, at mid-term, the results of the policy I have led until the economic benefits of the actions undertaken. In a perspective of transparency, there will be the implementation of an economic policy observatory to periodically evaluate the results obtained.
This observatory, developed with the Chamber of Commerce and Industry (CCI), will consist of an evaluation system providing access to precise indicators in all economic areas: employment, turnover, business creation, exports, research and development, property investment.
The management of this forecasting and analysis tool will bring together all economic players and statistical collectors to ensure data integrity and objectivity.”
Economic Positioning
The population is constantly growing and is at 344,875 people (2008) with a positive evolution of the age group 0>29.
Since the 19th century, economic activity has traditionally been based on tourism, but actions are underway to diversify sources of wealth, notably through:
- the development of innovation around new technologies (Creation of Eco Vallée; National Institute for Sustainable Development from 2012; Eco City),
- extensive event-based policy relying on both consolidating events (such as the Carnival) and international cultural and sporting events (Nice Jazz Festival, World Figure Skating Championships, and Francophone Games),
- an investment policy along two lines: major projects (Nice Stadium, tram line B, green corridor, Exhibition Palace, South Station, Thiers Station) and the reclaiming and beautification of neighborhoods to enhance the Niçoise heritage.
Results of the First Half of 2011 (compared to the same period in 2010)
Overall, economic activity has experienced significant growth.
The results of companies’ activities are very encouraging, primarily due to the dynamism of SMEs, and mainly commerce.
The creation of economic wealth shows a progression of 4.76% (indicator: amount of VAT collected by the finance administration).
Registration fees have increased by 4% and fees for real estate transactions have risen by 15%.
For corporate tax, the increase is over 10%.
Nice Airport saw a 10.80% increase in traffic, reaching a historical record in July (1,218,000 passengers).
In the hospitality sector, the number of overnight stays increased by 4.90%.
These increases had positive effects on employment with a decrease in requests for partial unemployment and a notable reduction in contract terminations for economic reasons.
The Economic Impact of Attractiveness Policies
Events and manifestations have increased from 669 in 2007 to 1030 (+54%).
These events, many of which are heavily publicized, have amplified the national and international reputation of the city.
Event management is also an investment.
The Exhibition Palace hosted 84 new events for nearly 440,000 participants, with the annual turnover forecast of over 16 million compared to about 10 a few years ago.
To attract external companies, it is also an important argument to be located in a city of recognized fame besides being a powerful catalyst for the population of an active city.
Key Figures of Artistic, Cultural, and Sporting Events
- Les Enfoirés: 63,000 spectators in 2010,
- The Jazz Festival 2011: 30,000 spectators for “jazz in” and 25,000 spectators for “jazz off”,
- The Carnival: 30 million in direct economic impact,
- The Louis Vuitton Trophy received international coverage,
- Iron Man: 2,370 competitors (60% foreigners),
- Tennis Open: 24,000 spectators over the week,
- Riviera Pétanque Show: 1,700 competitors; 40 to 50,000 spectators over three days; 1,500 overnight stays with direct impacts of 250,000 euros and indirect impacts of 1.5 million euros.
The Beautification
In total, since 2008, nearly 1 billion euros have been injected into the economy in equipment expenditures.
The public space developments over the past three years have generated a strong increase in requests for public domain occupation authorization.
The rules of public domain occupation ensure a fair balance between supporting activity and respecting residents.
Public domain economic exploitation revenues (accounting for nearly 1,500 terraces and stalls) have increased by 30% and amount to over 1.6 million euros (1.5 tax points over the year).
The Major Projects
The beautification of the city boosts daily employment and the economy, and this will be amplified with the progressive delivery of the Nice Stadium, Tram Line 2, the future Exhibition Palace, the green corridor, and more.
Local SMEs and artisans will be the beneficiaries with resulting impacts on employment.
Taxation
No increase in local taxes after a 14.8% increase in 2009.
