How Monaco’s major infrastructure projects boost local economy
The Mareterra offshore extension adds six hectares to Monaco's territory © Mareterra Monaco
At a conference organised by MonacoTech, the key players in Monegasque construction projects revealed how these massive investments are shaping the economic future of the region.
“What would Monaco be without the Casino and its Carré d’Or, without Fontvieille? Certainly not the country we know,” said Guillaume Rose, Executive Director of the Monaco Economic Board (MEB), by way of an introduction on Tuesday 13 May. Groupe Nice-Matin’s partner kicked off the debates at an event organised by Club Eco Monaco.
A third of the Principality’s budget is currently devoted to infrastructure: a strategic choice that has a multiplier effect on the local economy. According to Céline Caron Dagioni, Minister of Public Works, the Environment and Urban Development, the scale of these investments creates a virtuous circle: VAT, social security contributions and tax on profits are bolstering public finances, while also benefiting the Monegasque companies involved in the projects. “Each public procurement euro is a euro that will multiply as different sources of revenue for the State, and therefore support our social model,” she stated during her speech.
Three central projects
The carré d’or facelift: a successful gamble for SBM
The transformation of the emblematic Casino district, begun in 2014, is a good illustration of this dynamic. Olivier Bernard, director of property development at Monte-Carlo SBM, shared some impressive figures: “Since the renovation 10 years ago, the average price of a room at the Hôtel de Paris has increased from €380 to €740, and rental property revenue has risen from €28 million to €135 million.” These new infrastructures now generate an additional €20 million in VAT annually.
Mareterra: territorial expansion to drive growth
The extension over the sea, completed six months ahead of schedule, is part of a century-old vision of territorial development. The private project, coordinated with the State, involved 300 companies and over 5,000 workers. Guy-Thomas Levy-Soussan, Managing Director of the project, emphasised the balance struck between economic ambition and environmental concerns.
The future CHPG: an asset for attractiveness
As Monaco’s third-largest employer, and purchasing 25 million euros in goods and services from Monegasque suppliers every year, the new Princess Grace Hospital is one of the local economy’s powerhouses. Its director, Benoite Rousseau de Sevelinges, highlighted the strengths of the modern establishment, which is designed to make Monaco even more attractive to a wealthy international clientele, while improving the care provided for local residents.