Savoy - Economy

 

Some basic data

Data

Value

Total GNP (1997, estimation)

24 000 millions USD

GNP per inhabitant (1997, estimation)

24 000 USD/inhab.

Active population

414 526

Unemployment rate

9,50%

Number of companies

of which industry
of which commerce
of which service
of which agriculture

106 574

6 895
15 216
54 388
10 778

Tourists/Year

11 000 000

Touristic revenues/year

6.86 billions EUR (45 billions FRF)

Companies created (1996)

6 082

External trade (1996)

Coverage ratio
Yearly result

 

170 %
+ 1.68 billion EUR (11 billions FRF)

 

The Economic Framework

Variety and diversity of the economic framework is deeply strong. The Savoy's activity is dealing with all economic sectors :

The primary sector (agriculture, raw material production) employs 7 % of the active population (France 5 %, Italy 7  %, Switzerland 5 %, Slovenia 5 %). The population working in agriculture is decreasing, but many efforts are done in the quality field. The majority of rawmaterials are imported, apart hydroelectricity : Savoy is a net exporter of electric energy.

The secondary sector (industry) employs 24 % of the active population (France 29 %, Italy 28 %, Switzerland 33 %, Slovenia 46 %). All company sizes coexists, but the major part of the activity is related with small and medium companies which represents a sufficient activity to prevent Savoy against the dangers of mono-activity :
- the intermediate goods industry (iron and derivates, chemical and derivates, cement and derivates, papers and derivate, timber and derivates treatment,...) is globally regressing, but remains important, specifically in Southern Savoy ;   
- the food industries are very active ;   
- the mechanical sector is highly represented through very dynamic companies for export (70 % of micro-mechanics in France is coming from the Faucigny, where are implemented hundred of small and medium-sized companies) ;
- the consumer products industry is leaded by Salomon, Tefal, Dynastar ;
- the furniture industry is quite fragmented. The leader is Mobalpa (Kitchen equipement) in Thônes.
The industry allows Savoy to win a commercial excedent of 1.68 billion EUR (11 billions de FRF), which represents 10 % of the French excedent.

The tertiary sector (all services) employs 69 % of the active population (France 66 %, Italy 65 %, Switzerland 62%, Slovenia 49 %).
- building works and real estate imply 2 300 companies and many independent professional ;
- commerce and artefact activity is diversified ;
- tourism represents an important activity, but its turnover is not over the micro-mechanics one. Despite admitted ideas, Savoy is not a touristic leisure park in the mountains. Mean
while, the touristic economy in Savoy is organized under a simple and efficient colonial logic, with the following major characteristics :

Winter tourism is under control of big institutional investors and particularly the Compagnie des Alpes, owned by the French State (through the Caisse des Dépôts et Consignations). Compagnie des Alpes is controlling practically all the altitude resorts (those which are the more profitable) : Les Arcs, la Plagne, Méribel, Les Menuires, Tignes, Peisey-Nacroix, Argentière-Lognan, Flaine-Sixt-Morillon. 7.62 M EUR (50 M FRF) are withdrawn each year and sent to the Paris headquarters. In counterpart, the deficits of the medium altitude resorts, less profitable, are paid by the Savoyard taxpayers (7 M EUR, 46 M FRF only for Northern Savoy). Profits are for Paris, deficits for Savoyards.

The second homes are increasing, occupy the territory, increase the land speculation, create costs and do not bear to the community.

Social tourism allows to give to French customers holidays with an Austrian standing at a very low cost : Savoyards directly pay all collective equipments.

Spa resorts, in Savoy, became a French public service, with rules and fares determined by the Social Security system.

- the newspapers are controlled by external big press groups and dominated by conformism. Only some weekly with low circulation (le Faucigny, l'Echo de Savoie, l'Officieux des Aravis, le Journal,...) and the Geneva newspapers in Northern Savoy modify the context. In the audiovisual press, the situation is even worst. The TV tax is paid only for the French channels FRANCE 2 and FRANCE 3, with a clear contempt for Savoy. Practically all the radios depend from French national networks (the channels are distributed by a central French authority) ;
- banks, insurances, postal service, telecommunicatiosn, the operation of transport networks, water and cleaning up services are the the major commercial services proposed to the population and employ a big part of the staff ;
- administrations (local or no), leisure and culture activities, public services (education, scientific and technical research, health,security,...), the maintenance of the transport networks represent the major non-commercial services proposed to the public..

Savoy benefits from various assets :

a good transport and communication network :
- Savoy is served by the Gaz de France network as well as by the Mediterranean - Rhône oil pipeline, linking Marseille to Geneva ;   
- Savoy has an easy access to two international airports (Geneva and Lyons) and two regional airports (Chambéry and Annecy, both in Savoy) ;
- the railway network is articulated on the corridor (Ambérieu)-Culoz-Modane-(Turin) via Aix-en-Savoie and Chambéry. It is one of the major lines in France for the freight traffic, but the network, managed by both RFF and SNCF is not as modern as elsewhere in Europe for other corridors.
- the road network is exceptionnaly dense and modern. Investments of local communities and those of the French State (particularly for the Olympic Winter Games) were important.

a position facilitating exportation, on two alpine transit corridors.

exceptional landscapes, improving tourism since the XIXth century.

a serious and competent manpower.

Meanwhile, the economic life of Savoie, exceptionnally prosperous and active, is directly threatened by the coming French bankrupt.

The 20 first Savoyard companies are the following (Turnover and Results are expressed in millions FRF) :

Company

Activity

Implantation

Turnover (FRF)

Results (FRF)

Staff

Entremont

Dairy

Annecy

4 478

21,2

1 667

Salomon

Sport Equipment

Annecy

4 420

214,2

1 463

Evian

Mineral water

Evian

3 645

294,9

1 678

Tefal

Houselhold Electric Appliances

Rumilly

3 210

180,1

2 078

Provencia

Supermarkets

Annecy

3 088

NC

1 200

SNR Roulements

Bearings

Annecy

2 234

81,1

2 742

Ugine Savoie

Steel

Ugine

2 083

131,6

1 536

Bourgey Montreuil

Transports

Mery

2 043

-32

1 207

Comptoir Savoyard

Feeding

Alby sur Chéran

1 808

14,4

298

Bianco

Oil

Ugine

1 705

43

260

Léon Grosse

Public Works

Aix en Savoie

1 536

10,5

2 014

Staübli France

Textile machines

Faverges

1 382

71,6

890

Gillette France

Shavers

Annecy

1 240

-28,9

204

Hasbro France

Games

Le Bourget

1 226

120

46

SOPRA

Data Processing

Annecy

1 066

16,3

515

Vétrotex France

Glass Fiber

Chambéry

792

24

1 430

Merlin Gérin

Electric Equipment

Montmélian

747

315,8

427

Bollon

Timber

Chambéry

722

NC

NC

SATM

Transports

Chambéry

628

20,6

NC

La Rochette

Paper

La Rochette

556

10,6

375

From : Rhône-Alpes Objectifs, July - September 1998.

Meanwhile, some Savoyard companies do not appear in this list if the "mother company" is in France and if the companies implemented in Savoy do not have any specific accountancy (which is, in particular, the case for the service companies).

An international comparison

Despite a small population, Savoy is far from being the smallest country in Europe and in the world if the GNP or the commercial results are considered :

Country

Total GNP
(1996, millions USD)

Commercial Results
(1996, millions USD)

Moldova

2 500 (population : 4 M inhab.)

-   312

Albania

2 700 (population : 3 M inhab.)

-   665

Estonia

4 500 (population : 1 M inhab.)

- 1 145

Latvia

5 700 (population : 2 M inhab.)

-   887

Iceland

7 200 (population : 0,3 M inhab.)

-   107

Lituania

8 500 (population : 4 M inhab.)

- 1 125

Bulgaria

9 900 (population : 8 M inhab.)

- 1 323

Croatia

18 100 (population : 5 M inhab.)

- 3 276

Slovenia

18 400 (population : 2 M inhab.)

- 1 276

Slovakia

18 200 (population : 5 M inhab.)

- 2 617

Luxembourg

18 850 (population : 0,4 M inhab.)

- 2 307

Vietnam

21 900 (population : 75 M inhab.)

- 2 340

Belarus

22 500 (population : 10 M inhab.)

- 2 336

Savoy

23 000 (population : 1 M inhab.)

+ 2 000

Nigeria

27 600 (population : 115 M inhab.)

+ 4 192

Bengladesh

31 200 (population : 122 M inhab.)

- 3 324

With a GNP per inhabitant of around 23 000 USD/year, Savoy joins the group of the richest countries in the world.

Last update : 09/03/02