Annual Report 2015

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2015 ANNUAL REPORT

CONTENT FOREWORD POLITICS CROSS FRONTIER GROUP ECONOMY WHOLESALE & RETAIL SECTOR FINANCIAL SERVICES ONLINE GAMING THE ENVIROMENT PORT & SHIPPING TOURISM SECTOR PROPERTY SECTOR REPORT & FINANCIAL STATEMENTS REPORT OF THE AUDITORS ANNUAL ACCOUNTS GIBRALTAR KEY INFORMATION

(PAGE 05) (PAGE 08) (PAGE 11) (PAGE 12) (PAGE 16) (PAGE 20) (PAGE 22) (PAGE 24) (PAGE 25) (PAGE 28) (PAGE 33) (PAGE 35) (PAGE 37) (PAGE 38) (PAGE 42)

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2015 ANNUAL REPORT

FOREWORD The start of 2015 looked to set to be quite a momentous year: elections in Gibraltar the UK and Spain. Twelve months on, the results of the Spanish and UK elections turned out to be quite different from what many had been expected (and from what the forecasters had predicted), but the results of Gibraltar’s elections followed what the polls had been predicting for months. However, it is the implications of these unexpected results, particularly the Conservative win in the UK, which will have the greatest consequences for Gibraltar. The outcome of the Spanish vote in December remains a work in progress.

Hopefully though, not for too long.

The Chamber took a more prominent role in the lead up to the elections in Gibraltar in November. Having consulted our members about some of the main issues which they wanted to be addressed by an incoming administration, the board met with the line up from both parties to ensure that the interests of the business community were fully considered. We may not have convinced the parties to adopt everything in the Chamber’s election wish list, but it is fair to say that the majority of what we suggested was taken on board and included in the manifestoes of both parties.

Another Chamber policy document which was published earlier in the year, the Agenda for Change in Employment Legislation, has taken longer to be adopted. This is not entirely surprising as the raft of changes it recommends need to be negotiated and discussed with other social partners such as the unions as well as with the government before they can be legislated. Some of the changes suggested in the Agenda are straightforward, others are more complex and some even delicate.

Nevertheless, the objective is to bring Gibraltar’s employment laws more up to date and in line with those of

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2015 ANNUAL REPORT

FOREWORD (CONTINUED) the UK. This is for the benefit of local employers as well as for employees. It is also to ensure that Gibraltar remains as competitive a jurisdiction for new companies seeking to come and invest here.

The Chamber also published its first update of the Economic Impact Study during the year. Once again the Study was conducted by Professor John Fletcher and his team from Bournemouth University. The results showed that Gibraltar’s impact on the Campo region had increased since the study was first published in 2009. Although not entirely surprising given Spain’s prolonged recession in the intervening period, it clearly illustrated that Gibraltar has been enormously beneficial to the Campo region in terms of job creation and the spending power which is derived from this. The Study shows clearly

how Gibraltar’s economy has a positive impact on the economy of the Campo region. Similarly, the study showed that the Campo has been very good for Gibraltar as well. The Chamber believes that it is important to keep repeating this position to all who will listen until the facts become fully accepted. Another remarkable highlight of the study’s findings was how Gibraltar’s economy had continued to grow. A related point worth noting is that the number of people employed in Gibraltar has grown by 50 per cent in the last ten years.

It is the simple recognition of this fact which the Cross Frontier Group has been promoting during the year. Free from political interference (although keeping local politicians briefed on developments) the Group has made some significant advances during the year in terms of its structure and its plans for the future. As

the Group’s members have met several times their relationships have developed and the vital ingredients of trust and respect have strengthened. They may not always agree on issues between themselves – lasting relationships are built on compromise – but the understanding which the frequent meetings generated has led to better communication. In turn this is likely to lead to better outcomes for all involved. The Chamber is delighted and proud in equal measure to have been a founding member of this group and we look forward to its continued progress in the months and years ahead.

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7

POLITICS IN THE 40 YEARS SINCE FRANCO DIED THERE HAD NOT BEEN, UNTIL 2015, A YEAR IN WHICH THE UK, SPAIN AND GIBRALTAR, ALL HELD GENERAL ELECTIONS IN THE SAME CALENDAR YEAR.

It was therefore an unusual prospect for change. Although the outcome of the Gibraltar election did not seem in much doubt the UK and Spain were more difficult to read. Ultimately the UK polls failed to predict the Conservative victory, which from a Gibraltar perspective recalibrated the theoretical risk of an IN/OUT EU referendum into a clear and present danger. The position in Spain, however, is full of uncertainty and although Gibraltar is currently benefitting from the lack of attention it is not likely that this situation will last for long.

The continuing austerity measures throughout the European Union, and the message from conventional political parties suggesting that the long term perspective is for more of the same economic medicine, is producing a back lash. Populist parties offering a quick-fix and blaming the traditional

parties for all the economic ills have gained traction throughout the EU and in particular the Mediterranean zone.

Spain’s chronic unemployment statistics have not improved after four years of a Partido Popular administration but this time the messy and inconclusive outcome to general elections in Spain was anticipated accurately by the polls.

Spain’s elections have been inconclusive but it seems that the markets will give them time, maybe up to a year, to reach a consensus. The outcome therefore in what could have been a year of decisive change promises only an uneasy alliance between bitter rivals. At least the nationalist interest is focused firmly on Cataluña, which is a small blessing for Gibraltar.

The dynamics which will likely affect the outcome of the referendum have been impacted by the Syrian refugee crisis.

If before May 2015 a Conservative outright majority was ‘inconceivable’ and therefore no Referendum was likely and if, even if in the event of a Referendum being held, the polls showed a clear majority for remaining in the EU, the risk in all scenarios, from a Gibraltar perspective, was low. The perception by the end of 2015, however, was considerably different and ‘the risk’ for Gibraltar is considerable. Currently Gibraltar’s Government and Opposition share the assessment of the risk but it remains to be seen whether a joint policy in the event of a ‘Brexit’ can be achieved.

The next potential crossroad is Brexit.

The process which will lead to an IN/ OUT Referendum on 23rd June has well and truly begun.

The general elections held in Gibraltar in November were emphatic and Fabian Picardo’s coalition alliance achieved a resounding victory. The first, in more

2015 ANNUAL REPORT

than a decade, which was not decided by a whisper. Such an emphatic victory brings with it additional responsibilities for government. Although the GSD opposition is considerably diminished, the principal issues raised in their campaign: prudent government borrowings, the much needed power station to regularise Gibraltar’s electricity supply and the location of the prospective, new or revamped, football stadium, all require sensitive handling by the governing party. It would serve Gibraltar’s long-term interests for these issues to be addressed by Government and opposition quietly and outside the limelight of confrontational politics. A considerable vote of confidence for Mr Picardo from those who previously supported Mr Caruana may serve to temper some of the ‘exuberance’ of the first term. Your board has long recommended that government rein-in recurring expenditure. In brief the cost of some of the larger budgets such as our Gibraltar Health Authority and the

cost of an expanding Civil Service are increasing by many times the rate of inflation. This may not be sustainable in an economy that has seen government reduce its dependency on tobacco revenues. All credit to Mr Picardo for introducing measures, which go a long way to establishing a sustainable economic model for the Tobacco sector.

Sales from this sector had been allowed by the last GSD administration to grow out of control. Mr Picardo’s tough stance is to be applauded but, as he knows too well, it comes at a significant cost to revenue. Now it is necessary to reduce expectations and to limit government expenditure, even at the cost of popularity.

The elections in late December in Spain, as predicted, produced no clear winners.

The ruling Partido Popular achieved the largest number of parliamentary seats whilst losing almost a third of the popular vote achieved in the 2010 elections. The failure of the ruling party to obtain a new mandate is

variously ascribed both to the austerity measures which have resulted in 30% unemployment figures at their peak and an endless stream of corruption scandals at every level of the party and in every region of Spain, which have scandalised party supporters.

Similar instances of corruption have rocked the PSOE and the growth of anti austerity and anti corruption parties has ended the two party hegemony that existed until now. The rise of Podemos and Cuidadanos has served to confound the leaders of the two traditional parties in their efforts to create alliances to enable a coalition government to emerge.

The prospect of a second general election remains the likeliest outcome of the stymied talks to achieve a negotiated solution. It is also possible that a second election can be deferred indefinitely notwithstanding the constitutional rules.

9

POLITICS (CONTINUED) The two most likely scenarios are either for Spain to remain without a government, as happened recently in Belgium where the country remained in limbo for almost 500 days. The factors in favour of this scenario are that Spain’s budget for 2016 has already been approved and both the IBEX and the Bond market have not reacted strongly against the vacuum of power. In light of the inability of the respective political leaders to find a compromise and the expectation that the polls indicate that fresh elections will not produce a clear mandate, this scenario may be perceived as the least bad. At least until a crisis occurs.

The second scenario is for a grand coalition with a respected third party parachuted in to serve as a technocrat Prime Minister. This

scenario will depend in large part, on the intervention of King Felipe.

Implementing a deal along these lines will cement the new King in his role as Constitutional monarch, but speculation aside, few will be privy to the process until this is announced.

Melilla are increasingly concerned that there is an anti Semitic mood emerging in the multi ethnic populations of these Spanish colonies. In the ambit of security there can be no doubt that we share common goals with Spain and all our EU partners.

It is hoped, given the very real challenges facing Spain that Gibraltar will remain a low priority. Our interests, however, are very much aligned on the question of security and the Chief Minister needs to ensure that the intelligence services on both sides of the frontier are being encouraged to cooperate fully for the mutual benefit of citizens on both sides. The jihadist apprehended on a train in France in the summer of 2015 by two passengers who foiled the attempt, was from Algeciras.

The Jewish communities of Ceuta and

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2015 ANNUAL REPORT

CROSS FRONTIER GROUP Throughout 2015 the Chamber has been actively involved in the Cross Frontier Group. The Group was set up in 2013 at the height of the difficulties experienced at the border with Spain. The Group is made up of Trade Unions and Business organisations from both sides of the border. The founding members of the Group other than the Chamber are Unite, the Union, GGCA, GTA-NASWT, GFSB, CC OO, UGT, and APYMELL. It is an apolitical group and its main aim is the sustainable socio economic development of the region for the benefit of the citizens of both Gibraltar and the Campo. To achieve this it aspires to build cross border relationships which will endure political change or interference. Furthermore it lobbies both national and European political parties and institutions to ensure that the rights of EU citizens and businesses are upheld and that these rights are not hampered or obstructed in any way.

During 2015 the Group formally adopted its Constitution which sets out its aims and modus operandi as well as its Officers who will rotate every 6 months between nationality and representation. John Isola, Chamber Vice President was elected as the first President of the Group with Angel Serrano from UGT as Vice President.

The Group has continued to lobby widely including meetings with all political parties in the run up to the respective national elections as well as in Brussels. As part of its ongoing work it has researched the possibility of setting up a European Grouping

of Territorial Cooperation (EGTC) or Associacion Europea de Cooperacion Territorial (AECT). An EGTC is a body set up by governmental organisations from two different European countries under European law to facilitate cross border relations for any specific purpose covering any socio economic activity.

An EGTC can invite legally constituted non-governmental organisations to take part and is eligible for EU funding.

The Cross Frontier Group has been instrumental in drawing the attention of Governments on both sides of the border to this possibility and has thus far received support for the creation of an

EGTC from the Gibraltar Government, the Ayuntamientos of La Linea and San Roque and the Diputacion de Cadiz.

Importantly, the Junta de Andalucia has also given its support to the EGTC application. The CFG is now actively involved with these organisations in looking at the practical steps that need to be taken to achieve the formation of an EGTC for our region.

In addition to the Group’s work on the EGTC, the CFG is always looking at further concrete measures and policies to enhance cross border relations and evaluating opportunities for businesses on both sides of the frontier.

11

ECONOMY The recovery in the Global economy has slowed down in 2015, according to the latest figures released by the IMF in January 2016. These are shown in Table 1 below. Looking at the 2015 figures alone, these are generally downgraded from the estimates published in January 2015. (These latter are shown in brackets for easy comparison) A notable exception is Spain, which has bucked the trend and upgraded.

The estimates for 2016 are also downgraded, as recovery is pushed down the line, while a more positive figure is shown for 2017.

There are several factors contributing to this growth decline. The Chinese economy, has not just slowed but is rebalancing, moving away from investment and manufacturing towards consumption and services. This has reduced China’s imports and exports, contributing to a decline in world trade. There are also concerns about the Chinese overall debt picture. The sharp decline in the oil price is a

double edged sword. While lowering costs for oil importers, oil producers’ economies are suffering from reduced revenues, with sometimes devastating economic effects. The same is also true of commodities generally, leading to a downturn in investment. The reduction in oil prices and commodities has had a relatively large impact on the Emerging Economies. Finally, prospects of a continuing and gradual rise of US

interest rates (the Fed increased rates by 0.25% in December 2015, the first such rise since 2006), will also lead to further currency depreciations in emerging markets.

The Euro area remains relatively positive, with stronger private consumption supported by lower oil prices and easy financial conditions are outweighing a weakening in net exports.

2015 ANNUAL REPORT

TABLE 1 PERCENTAGE CHANGE IN GDP GROWTH (2014-2017) SHOWN AS % COUNTRY

2014

2015

(2015)

2016 Estimate

(2015 Estimate)

2016

2017

World

3.4

3.1

(3.5)

3.4

3.6

Advanced Economies

1.8

1.9

(2.4)

2.1

2.1

USA

2.4

2.5

(3.1)

2.6

2.6

Euro Area

0.9

1.5

(1.5)

1.7

1.7

Germany

1.6

1.5

(1.5)

1.7

1.7

Spain

1.4

3.2

(2.5)

2.7

2.3

Japan

0.0

0.6

(1.0)

1.0

0.3

UK

2.9

2.2

(2.7)

2.2

2.2

China

7.3

7

(6.8)

6.3

6.0

India

7.3

7.3

(7.5)

7.5

7.5

Brazil

0.1

-3.8

(-0.1)

-3.5

0.0

Russia

0.6

-3.7

(-3.0)

-1.0

1.0

Emerging & Developing Economies

4.6

4.0

(4.3)

4.3

4.7

10.3

10.4

(Source: IMF WEO January 2016)

Gibraltar (Source: Gibraltar Statistics Office)

Looking at the UK economy, the dominant news story is, Brexit. The more recent polls show a majority in the UK wanting to leave the EU. As currencies do not like uncertainty, this has had a dampening effect on the value of Sterling, which in February dipped below the benchmark 1.30 in the Sterling/Euro conversion rate. The impact on the London Stock Exchange has also been negative. The estimate for GDP growth for 2015 in the UK has been reduced from 2.7% to 2.2%, again in part reflecting this uncertainty in what is otherwise a relatively sound economy.

In contrast to the apparent current mood of the UK electorate, many other sources of opinion suggest that Britain leaving the EU would be a bad thing.

The EU is the biggest single economic block in the world, ahead of the US and China. It is also the UK’s biggest trading partner. The big question, and the biggest unknown, is what would happen to the UK‘s economy in the event of the referendum voting for exit? The ‘out’ lobby claim that the UK would have the best of both worlds in a post Brexit world, with free access to European markets without the shackles (and cost) of Brussels. Is this realistic?

Would the remaining EU partners be happy about allowing the UK back into the EU market without hindrance? Is the UK economy too big for the EU to ignore? How would inward investment

into the UK be affected? What would be the impact on the economy and on the job market? These are all fundamental questions that nobody really knows the answers to and yet people are expected to vote on staying or leaving? The big issue is that people will likely vote on the basis of political rhetoric from opposing factions of Parliament and from the equally partisan British press, rather than on any factual basis. Hopefully, when it comes to crunch time, UK voters will vote to stay, which many observers say is the rational outcome.

The desired ‘best’ situation, where Britain stays in a reformed Europe is a scenario still being played out.

As an aside, the impact of Brexit on the wider EU is also unknown. Much will depend on what terms the UK would be able to achieve on leaving. If these are favourable, including the crucial access to EU markets, it is likely that other members would also seek to leave, with the Scandinavian bloc being a likely candidate. The leftovers would be a smaller and weaker Europe. How viable would this be?

For Gibraltar, the effects of a Brexit have been described by the Chief Minister as an existentialist threat for our currently successful economic model.

The Chamber shares this view and supports the creation of the Gibraltar 2025 Committees and other measures that Government is taking to look at

alternative scenarios going forwards in what may prove to be stormy waters.

Turning now to the Spanish economy, the news is relatively good, with robust growth prospects higher than for other major European economies and the Euro area as a whole. Consumer confidence is improving; exports are doing well, as is tourism, which continues to benefit from instabilities in competing destinations such as Tunisia, Turkey and Egypt. However, the budget deficit target is behind schedule and unemployment, while improving from a peak of nearly 28% to a current 21.4% (the highest rate in the EU apart from Greece), remains by far the biggest challenge.

Andalucía is also showing some gains, with unemployment slightly down from 33% in 2014 to 30% at end 2015.

Cadiz, while remaining the province with Spain’s highest unemployment rate, also showed an improvement, from 42% to 37% in the same period.

While these figures are not spectacular, they do show some improvement and a sign that some of the wider economic improvements seen at a national level are finally trickling their way down to the south. Hopefully, this is the beginning of a trend.

2015 saw the publication of the economic impact study that measures the effect of the Gibraltar Economy on that of the Campo. This was an

13

ECONOMY (CONTINUED) update of the 2009 study, carried out

by Professor Fletcher and his team from Bournemouth University. The study showed, once again, how positively the Gibraltar economy influences that of the Campo, and the high level of interdependency of the two economies.

Summarising the headline figures, Gibraltar directly accounts for 11% of jobs in the Campo and if we consider the indirect and induced effects i.e.

the knock-on effects, this rises to some 18%. On GDP, Gibraltar is responsible for some 18% of the Campo’s GDP and 24% if petroleum products are included. As some have said, Gibraltar is the Campo’s biggest factory. These results should be influential in cross border relations if the new Spanish government is more open in its approach to dialogue with Gibraltar. It has certainly been useful to the work of

FIG 1 GDP PROGRESSION £M

the Cross Frontier Working Group.

The Gibraltar economy continues to perform well, with the Chief Minister reporting in his budget speech double digit growth in 2014/15, with a nominal GDP of £1.638 billion.

GDP £M

2000.00

1500.00

1000.00

500.00

0.00

2000 - 01

2002 - 03

2004 - 05

2006 - 07

2008 - 09

LINEAR (GDP £M)

2010 - 11

2012 - 13

2014 - 15

GDP £M

Should the above trend continue in a linear fashion, the economy could grow to almost £2.0billion over the next four years.

The Government Expenditure/Revenue balance, always a concern to the Chamber, shows the following picture from 2010/11 to 2015/16

2015 ANNUAL REPORT

An issue is the low level of revenue over expenditure coverage if the 2015/16 estimates are proved accurate. The projection is for a very low cover of just over 3%. For 2015/16, the estimate is for a decline in revenue over the previous year. We will know more come budget time.

Successive administrations have managed to deliver budget surpluses in Gibraltar for many years now, an enviable position in comparison to most western economies which operate on a deficit. The Chamber has always advocated caution in Government recurrent expenditure. It is hoped that the recently introduced overtime ban is

the first in a series of measures to rein in recurrent expenditure in the face of the downgraded revenue scenario. Finally, on this issue, government needs to take firmer and positive action on recovery of arrears, which appear to be out of control.

FIG 2 GOVERNMENT REVENUE AND EXPENDITURE £M 800 700 600 500 400 300 200 100 0.00 Actual 2010/11

Actual 2011/12

Actual 2012/13

Actual 2013/14

Forecast Outturn...

GoG Recurrent Expenditure £M

GoG Recurrent Revenue £M

Linear (GoG Recurrent Expenditure £M)

Linear (GoG Recurrent Revenue £M)

Estimate 2015/16

TABLE 2 GOVERNMENT REVENUE OVER EXPENDITURE ACTUAL 2010/11

ACTUAL 2011/12

ACTUAL 2012/13

ACTUAL 2013/14

FORECAST OUTRUN 2014/15

ESTIMATE 2015/16

GoG Recurrent Revenue £M

388

455

490

554

571

560

GoG Recurrent Expenditure £M

352

420

452

493

520

543

10.23%

8.33%

8.41%

12.37%

9.81%

3.13%

% Cover Revenue over expenditure Source: Gibraltar Government Estimates

The issue of Public Debt is as usual a headline item. The 2015/16 estimates show Gross Debt projected at some £400m at end of March 2016, a reduction of some £47m from the previous year. At 24% of GDP, this level is quite acceptable and well below the Maastricht criteria of 60%. In this report last year, the issue of debt going forward was raised in terms of the funding of the various infrastructure projects coming on stream.

Parliament will shortly be discussing the government’s proposal to raise net debt ceiling by £100m to £300m. This is more or less in line with the projections for net debt to stand at £314m as at

end March 2016, as per the 2015/16 estimates. The Proposal also aims to remove the restriction that caps debt to 80% of Government’s recurrent revenue. The opposition’s view is that the latter part of the proposal removes a check on borrowing limits. The Government’s proposal is sure to spark a very lively debate in Parliament. The Chamber hopes that the outcome is a prudent one in these uncertain times.

Finally, the relatively long standing issue of government’s liabilities in terms of the investments (loans?) of the Gibraltar Savings Bank needs to be raised. This was a major issue during the 2015 elections. Surely, with Government

as the ultimate guarantor of the GSB, it has a contingent liability in terms of these investments. The question as to whether this liability needs to be factored into government’s overall debt commitments remains to be answered.

Prudence suggests that it should. Your board has long advocated that greater clarity in government expenditure and borrowings, regardless of the party in power, will strengthen our “brand”. In an economy which is always beset by uncertainties there needs to be an oasis of clarity and our public accounts should be one.

15

WHOLESALE & RETAIL SECTORS The artificial boom which many local traders enjoyed from mid-2013 onwards has dissipated somewhat.

The long queues to leave Gibraltar each weekend convinced many locals to remain on the Rock and spend their money at home. The bars and restaurants (and the companies which supplied them) did a roaring trade both at weekends and during the week. Even with a number of notable new openings, reservations at many establishments used to be necessary. The shops on Main Street also benefitted although the increased trade from locals did not offset the sharp fall in visitor numbers caused by long tailbacks to get onto the Rock. It was good while it lasted.

The queues to enter Spain from Gibraltar have all but disappeared, the euro exchange rate has weakened against the pound and the ever canny Gibraltarian always looking for a bargain sets off to Spain for their weekend shopping excursion once more. Part of peoples’ regular routine is to take advantage of reclaiming VAT from Spanish customs before crossing back into Gibraltar. The Chamber has continued to receive anecdotes of people who have declared their Spanish purchases to Gibraltar Customs but they have been waved through by the officers without being asked to pay. The amounts collected may be insignificant to the government’s budget overall, but officials who habitually show disinterest in duty collection have a much more deleterious effect on local traders. Not only do local traders have to pay import duty on goods they import, but they also have to pay for the high costs of doing business in Gibraltar (rents, rates, wages and taxes). Personal imports do not. No wonder the price differential between Gibraltar and Spain has widened.

The playing field for traders is unevenly swayed to the benefit of the personal shopper. It is true that shoppers do have a choice where they spend their money (locally, in Spain or increasingly online). As this continues, employees are likely to see that employers in the retail and wholesale sectors have no choice and will reduce the number of people

they employ accordingly. A number of larger traders have already done this although it is not reflected in the total number of people employed in Gibraltar as the overall employment figures continue to rise (see graph below).

What has made a particular difference is the lack of visitors from along the coast. There has been a sharp fall in the number of coaches coming into Gibraltar, down by 58% since 2000.

Whether some of these are now

GIBRALTAR’S GDP GROWTH AGAINST A DECLINING RETAIL AND WHOLESALE SECTOR (2003 – 2015) 1800 1600 1400 1200 1000 800 600 400 200 0.00

Visitor numbers to Gibraltar are still down from a 2011 peak. Fearful of long queues and a stronger pound, euro-based shoppers have failed to return to Gibraltar and it is noticed by local traders. The usual busy lead up to Christmas 2015 was lacklustre at best. There were a few good days but most local retailers ended the year with sales equal to or slightly down from the previous year.

30.00% 25.00% 20.00%

GDP growth £m (LH scale)

15.00%

% employed in retail & wholesale sectors (RH scale)

10.00% 5.00% 0.00% 0.00

dropping off their passengers in Spain to avoid the queues is not known, but many local traders agree that fewer day trippers are coming to Gibraltar.

Many members have commented that it is time that some of the tourist board’s marketing spend is targeted once more at attracting these visitors from the costas. Other excursion destinations such as Granada, Seville and even Tangier have become much more aggressive in their marketing

2015 ANNUAL REPORT

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WHOLESALE & RETAIL SECTORS (CONTINUED) to holidaying tourists on the costa.

Gibraltar needs to up its game in tapping this rich vein which is on our doorstep. These tourists have made a difference in the past and this year’s summer season in Spain is forecast to be one of the best in years. We should use this to our advantage.

businesses very inflexible when dealing with sudden changes in consumer trends. Worryingly, there is little sign that existing local traders are going to increase the number of people they employ.

The Chamber is pleased to see an increase in cruise calls to the Rock and that the decline from 2012 has been reversed. We would like to see the government provide a free shuttle bus service from the cruise terminal directly to the Market Place or to the War Memorial steps for cruise passengers to enable passengers who are not on a shore excursion to get into town.

Over and above these two pressures there is still the issue of unlicensed traders, largely from Spain, who work in Gibraltar without sanction. The Fair Trade Act which came into effect during 2015 will take time to bed in and given adequate resources we hope that these rogue traders will be weeded out or encouraged to legitimise their operations locally and so benefit Gibraltar’s economy as well as boosting the government’s coffers.

Over the year a number of traders have reduced headcount in an attempt to manage costs, but it is still increasingly difficult to compete. The competition comes in two forms: from shops in neighbouring Spain and increasingly from online retailers. Gibraltar’s retail and wholesale sectors are outgunned on both counts: they do not have the buying power or range of goods offered Amazon or Rakuten. High fixed costs of local property make local

The change in public sector working hours has been welcomed by civil servants who have been lobbying for more family friendly hours. An unintended consequence of this move has had a knock on effect on lunchtime and after work trade in the shops and restaurants on Main Street. These public sector workers now do not venture from government offices for a takeaway lunch. Nor do they pop into the shops on the way home from work

as many of them finish work at 3pm so they have time to go shopping in Spain instead.

Individually local retailers and wholesalers could adapt to each of these aforementioned challenges.

Collectively though, they present a burden for local businesses which is increasingly difficult to bear.

Reference is made elsewhere in this report to the setting up of the Gibraltar International Bank. With regards to the provision of local banking facilities for business, the new entrant has proved to be a welcome addition to the banking scene. Inevitably there were some teething problems but these are being worked through. In time, the range of services and products will expand for both personal and business customers.

It has been very reassuring for local businesses to know that with a shrinking number of banks offering business services there is one provider which is home grown.

Saccone & Speed (Gibraltar) Limited Importers and distributers of wines, spirits, beers, liqueurs, cigars & cigarettes in Gibraltar to a tied estate of hotels, bars & restaurants & also to the many off-licences, convenience stores & supermarkets on the Rock.

Operating since the 1920’s and joining the group in 1985, Louis J Abrines Limited has since expanded to frozen & chilled foods, as well as health & personal care products, cleaning materials & over the counter & pharmacy only pharmaceuticals.

Saccone & Speed (Gibraltar) Limited.

A Member of the Saccone & Speed (Gibraltar) Group Of Companies.

35 Devil’s Tower Road, P.O.Box 120, Gibraltar t: +350 200 74600 | f: + 350 200 77031 | e: mail@sacspeed.gi www.sacconeandspeedgibraltar.gi

2015 ANNUAL REPORT

19

FINANCIAL SERVICES 2015 was a significant year for Gibraltar, and for the Rock’s banking sector in particular. Barclays Bank closed its Main St branch after having had a continuous presence here for over 125 years. It retains a small office to service high end clients although with these clients often being looked after from outside Gibraltar one has to wonder how long this model will last.

It is unfortunate that Barclays could not at least have retained some form of online bank offering for its Gibraltarbased clients, some of which had been customers of the bank for generations.

This plays into the next evolution of banking generally and in particular in Gibraltar. We have seen a number of electronic banks (i.e. with no physical branch network) establish themselves and grow stronger. Indeed there is talk of others joining the fray and no doubt the push towards combining banking with telecoms will see some trying this model here too. Gibraltar is the obvious test bed and there is hope that we will be ahead of this particular curve.

Unfortunately the decision taken by Barclays is being repeated elsewhere too and a general withdrawal from many overseas locations is prevalent with the need to ‘de risk’ and ‘maximise capital’ being the head office mantra.

NatWest is now the sole true global retail brand remaining in Gibraltar. We sincerely hope that they will continue to provide what is a vital service to the community both to business and to personal customers. We hear from some of our members that they are already experiencing signs of tactical withdrawal from certain types of business with much tighter credit control and extended decision making cycles.

Meanwhile the rarified atmosphere continues to be profitable for the remaining players both in retail and private banking. The news in the final months of the year about Credit Suisse withdrawing from Gibraltar is not welcome. This time it was the Swiss version of the head office mantra. Nevertheless, it has been a long standing and important member of Gibraltar’s financial community. As the reasons cited for closure are not Gibraltar-specific it is hoped that a buyer

can be found for what is considered by local practitioners to be a very good quality book.

With these two departures there is a dearth of investment advice available locally, particularly for those less well off individuals who cannot quite meet the Private Bank entry threshold, usually around £1m in investable assets.

There is a real need for quality advice to service to this segment, which has little to choose from between Gibraltar Savings Bank Debentures on the one hand and a limited range of off the shelf products from third party providers on the other.

Early in the year the Gibraltar International Bank opened its doors to fill the vacuum left by Barclays and with the added incentive of providing community banking for this relatively small but vibrant and profitable market.

Daily business and personal banking needs have been met by this new locally owned and operated retail bank although there have been the inevitable teething problems.

The team at the new bank has done very well to go from a blank sheet of paper to opening its doors for business in record time. The complexity, some would judge, has however resulted in delays in providing robust and sufficiently varied products to fill that vacuum. Significant delays in opening accounts were caused by the deluge of Barclays customers desperately trying to find another bank before their accounts were closed. Limited balance sheets meant that NatWest and to a lesser extent, Jyske Bank now have more than their share of risk and operational demands. Clients turned to them disproportionately for lack of a viable alternative until the GIB had its business up and running.

With global regulation increasingly onerous, necessarily some would say, the FSC has upped its game and the regime change is palpable. We see more formality and with this possibly less approachability and flexibility. The increased demands are not just in raised standards; the FSC is now much larger and thus more costly, but there is a limit to the amount of subvention the government is prepared to support.

This is the inevitable price we must pay to maintain our reputation in an increasingly competitive world.

That competition has been well recognised for some time; the government continues to scale up its efforts for marketing the jurisdiction and we await the results of the increased resources in the areas of Funds, Insurance, Asset Managers, Banks and HNWIs so that financial services will continue to grow and diversify the economy, despite the withdrawal by some operators.

This drive to attract new entrants could well be stopped in its tracks if, post a Brexit, we lose our ability to operate in the EU. But there is little point in speculating until the outcome of the referendum is known and also how the result will affect the UK’s (and hence Gibraltar’s) relationship with the EU. It must be noted, however, that significant parts of the Rock’s financial services business derives from the City of London and one would anticipate that continuing whatever happens. This type of scenario planning is under way and should include alternative models including possible partnerships with other jurisdictions. With an excellent and highly-regarded regulator and world class expertise in tax and legal advice, Gibraltar still has a lot to offer.

Ultimately strategic issues such as these will continue to unfold and we

2015 ANNUAL REPORT

must continue to address those areas within our services and products that we can influence: quality of service, language skills and infrastructure.

There is little point in attracting new entrants if we cannot follow through with things like reliable utilities or unnecessary bureaucracy to obtain permits and licences. Specifically we must improve our ability to ‘on board’ business efficiently whether it is by way of streamlined regulation, ‘meeting and greeting’ potential investors and providing a well educated and flexible work force.

First impressions count more than ever and in an increasingly competitive world we may not get a second chance.

One local institution which has certainly been making an impression is the Gibraltar Stock Exchange (www.gsx.gi). Little more than a year old this private sector venture has been quietly beavering away marketing itself to financial institutions around the world about the benefits of listing funds in Gibraltar. This has all the advantages of being inside the EU but without the bureaucracy and costs often found in larger jurisdictions. It opened for business in 2015 by listing openended funds and its premise was simple: the advantage of speed to market and a listing fee which was considerably lower than many larger jurisdictions.

As the number of listings has expanded during the year the exchange has sought to extend its regulator’s licence from the technical listing of openended funds to include the listing of closed-ended funds and debt securities including bonds, derivative securities and asset-backed securities. With the funds industry having grown at 10 per cent per annum over the last eight years its timing looks to have been prescient.

21

ONLINE GAMING The full effects of the introduction of the UK’s point of consumption (POC) tax began to be felt during the year although on one level it does not appear to have been as damaging to Gibraltar’s online gambling sector as was initially feared. The locally licensed operators adjusted their cost bases accordingly as expected. What is not known yet is whether the UK exchequer has generated as much additional tax revenue as it had hoped from the move.

Nevertheless, Gibraltar’s gaming sector continued to show its robustness during the year: there are now 33 licensed operators in the jurisdiction. These operators employ 3,400 people directly or around one sixth of the Rock’s private sector workforce. When one includes the indirect impact of the gaming industry such as data storage, telecoms usage and office space it is easy to see why the sector has grown to become such an important economic pillar for Gibraltar, accounting for around one fifth of the Rock’s GDP by some estimates. But it is the eco-system of related businesses such as e-money, programming, networks system design and maintenance as well as specialised areas of cross border regulation, law and tax which is increasingly important to the Rock’s e-commerce infrastructure.

The introduction of the UK’s consumption tax did precipitate some long awaited consolidation in the sector: BWINParty the product of a merger in 2011 was itself the subject of a contested takeover during the year.

A revised offer from local operator 888 Holdings would have created the biggest operator on the Rock, but in the end the winner was relative newcomer GVC Holdings from the Isle of Man. Further consolidation plays are likely to continue with Ladbrokes looking to buy Gala Coral although this deal has been referred to the UK regulator, the Competition and Markets Authority on the grounds that the enlarged entity would reduce competition in the UK. After having been forced to play catch up with the rapidly growing sector over many years, national regulators today are exerting increased scrutiny on online gaming operators. The additional cost of complying with national regimes and individual country licences is having a depressive effect on online operators’ financial performance. The added pressures of higher marketing spend and large capital investments in technology for new platforms are likely to lead to further consolidation in the sector as operators seek the benefits of scale.

With private equity taking a growing interest in the sector, funding future acquisitions looks unlikely to be a problem provided that projected synergies in the enlarged entities can be delivered. Some recent mergers have failed to create the greater efficiencies which were promised. Being big does not guarantee more efficient financial performance so those firms which fail to create synergies are likely to become vulnerable to those that can. The bout of current merger activity is likely to lead to a number of super sized operators on the one hand and small niche players on the other. Mid-sized operators will find it increasingly hard to compete.

The revolving door of online gaming jobs looks set to keep turning for a while yet as the periodic culls which have become a feature of the sector continue. Nevertheless, as the process of consolidation plays out there are still numerous job openings with several operators in the Rock’s online gaming sector.

2015 ANNUAL REPORT

23

THE ENVIRONMENT THE ROLE WHICH BUSINESS CAN PLAY IN IMPROVING THE ENVIRONMENT IS SLOWLY COMING INTO FOCUS. Last year we commented on the government’s draft Transport & Traffic Plan saying that is was long on policy but did not have much detail on specific measures. The plan has taken months (if not years) to compile and the end result does not appear to have changed much from the plan which was put in place by the GSD administration. It is true that some parts of the plan have been implemented such as the peak hours drop off zone at St Joseph’s School and some new bus routes have been introduced, but other parts such as residential parking or pay and display on Watergardens have yet to be implemented. What are they waiting for?

Whilst we are at it, let’s be bold. Why not look at a Personal Rapid Transit system to key locations between town and say, Europort or New Harbours? If there is going to be any improvement in air quality, car usage has to be reduced.

There has to be a much greater push to encourage people to use public transport or to walk or cycle.

And yet the congestion around town rumbles on. This has not been helped by the increasingly rare sight of traffic wardens who used to write out parking tickets to the hundreds of illegallyparked vehicles. When they were first recruited their presence had the desired effect: drivers became far more careful (and considerate) about where they parked their vehicle. We understand that the wardens have been re-assigned elsewhere. In recent months the bad habits have returned as the threat of sanction has almost completely disappeared and cars are parked illegally in all manner of places around town.

Loading bays continue to be used as

free parking, often, but not only, by government-controlled entities. This prevents legitimate users of these bays from making necessary deliveries.

Similarly, the red (no stopping) zones at bus stops and elsewhere are now used with frequent regularity by drivers to park/drop off/pick up/go to the ATM/ chat/(take your pick). It is not unusual to see a police car driving past, oblivious to the offence being committed. The laws are there but there is no enforcement or even threat of enforcement. This causes delays and congestion.

Another irritant is the number of vehicles (cars and motorbikes) which have been retro-fitted with exhausts to make them especially noisy. Being an “Easy Rider” does not make for easy listening. These devices should be banned where they exceed the noise limit. If RGP traffic officers were mindful to do something about this they should be equipped with decibel meters and warn the offender the first time and then fine or confiscate the vehicle on the second offence. Why should the public have to put up with this utterly inconsiderate noise pollution?

Caring for the environment is not just about improving air quality. It is about reducing excessive and unnecessary noise as well.

The large purpose-built car and coach park has nearly been completed on Queensway. This will accommodate around 1,000 cars and is expected to open fully in 2016. Additional parking does help to alleviate some of the congestion but it does little to improve the environment if people still choose to drive. Air quality will not be improved and if Gibraltar does not meet its

emission targets the government (and hence the taxpayer) will be fined by the European Commission. If so, we will find ourselves in the ridiculous situation where we will be fined for polluting ourselves. Surely it is better to take remedial action beforehand - it would be healthier and cheaper.

The impact of EU directives will be felt by larger local companies when the Energy Savings Opportunities Scheme (ESOS) is transposed into Gibraltar law during 2016. It came into effect in the UK in December 2014 and there was a slight delay in enacting it into Gibraltar law. It will only affect those companies which employ more than 250 people locally or have an annual turnover of more than £39m. The new law will require large companies to conduct an audit of their annual energy consumption. This audit will need to be conducted every four years. Although the companies will need to pay for the cost of the audit it is envisaged that the energy savings made will more than offset the cost of the audit. The Department of the Environment is encouraging all companies to undertake an audit as the energy savings will help those companies to reduce their carbon footprint. Even if the companies do not meet the criteria defined by the number of employees or the turnover threshold it is still worth having an audit to see where energy use can be reduced.

If local companies, both large and small can get on board to undertake an energy audit it would be a good collective first step in planning reductions in energy use. This in turn would go some way in helping Gibraltar to reduce its carbon footprint by 2020.

The clock is ticking.

2015 ANNUAL REPORT

PORT & SHIPPING ARE WE ON THE WAY TO RECOVERING LOST GROUND? An overall increase of 2.85% on total number of callers to our port (including the Eastern anchorage) is not much to write home about. However, it does give us reason to feel positive compared to the negative trends of previous years.

Perhaps the most welcome news was the increase in cruise calls which we had reported last year and the benefit this has on Main Street traders, tour operators and other tourism-related businesses. It seems that more good news is on the way as the trend continues with expected increase of 14% in cruise calls for 2016, with a total of 233 calls booked.

This was tempered by news which appeared on the Spanish press regarding the construction of berths at La Linea to cater for the cruise liner market. This is obviously an issue to monitor, however given the attractions

and incentives Gibraltar has to offer in this field, it is felt that it should not pose too great a threat to our Port and may even augment what the Bay of Gibraltar offers the cruise industry.

The neighbouring development will also offer facilities for superyachts, which might be more of a concern given the shortage of berths available here. This is especially the case if these La Linea berths have bunker pipeline facilities incorporated into them, which is currently the main reason why these superyachts call at Gibraltar.

The other major issue that still also needs resolving, but which we also

YEAR

CRUISE VESSELS

CARGO

BUNKERS

REPAIRS

OFF LIMITS

OTHER

2008

222

253

5965

154

2006

2009

238

193

6712

132

1460

understand could be close to fruition, is that of an adequate transportation plan. The attractions which Gibraltar offers to cruise operators - VAT free status and quick turn arounds - may be eroded if Gibraltar’s creaking transport infrastructure is unable to deal with increased passenger numbers. Cruise liner passengers need to be mobilised smoothly, with minimal queueing time at sites and free of hassles or hurrying them through established circuits. This has to go in tandem with an improved and varied tourist attractions that meets, or preferably exceeds, passengers’ expectations.

VESSELS ON EASTERN SIDE

TOTAL NO CALLS

GROSS TONNAGE

301

9749

288,409,608

543

10042

276,370,000

2010

175

178

6724

128

1365

505

11134

258,148,181

2011

187

164

6181

117

1492

597

10350

275,168,505

2012

173

161

6362

127

1259

444

9581

277,483,060

2013

180

164

5988

115

1175

248

9140

253,843,589

2014

180

20

5475

48

1181

1414

194

8512

238,409,636

2015

204

7

5571

55

1136

1593

188

8754

243,440,385

Note : Port statistics are now compiled differently as there was a possibility that some categories were previously being duplicated, thus, the perhaps somewhat visibly drastic change to two of the brackets and the creation of a completely new one.

25

PORT & SHIPPING (CONTINUED)

Bunkering has seen the departure of one of the physical suppliers, however this does not appear to be related to the general activity of the Port, but rather connected to a general re-structure of the company, which has also seen them close down operations in at least two other ports.

Those who read this section of the Chamber’s Annual Report will know that we have for long been lobbying for construction of land-based tank storage facilities for bunker fuels. This was also included in the Chamber’s 2015 Election Wish list. It appears that at long last this is being contemplated by the current

government. Doubtless it will require new investment, but without it there is less reason for merchant ships to call at Gibraltar and with fewer ships, Port activity and the companies which depend on it, will continue to suffer.

This above, as has been mentioned previously, is an extremely important issue if we are to recover the lost ground in this area. It is only logical and obvious that physical suppliers that rely on the hinterland port for their storage, should have that port as their port of preference for delivery if they have a choice.

There are two further projects for the construction of land based fuel storage in the neighbouring port of Algeciras.

In theory this will increase capacity by another 800,000 cubic metres approximately. However, one has been scrapped altogether and the other one now looks unlikely to proceed. The main reason for the cancellation of these two expansions is because of the sharp fall in the price of oil. The twin effects of record amounts of crude oil being stored coupled with the lifting of the trade embargo against Iran are likely to ensure that a low oil price is set to continue for a while yet.

Gibraltar’s Port Operators have raised their concerns on a number of issues at the Port. These range from basic toilet and showering facilities, re-surfacing of certain areas, provision of adequate lighting to unsafe passenger landing points from port launches. The basic port infrastructure needs maintenance and some of the port dues which are collected each year should be spent to maintain the infrastructure to a decent level.

One other issue which has been raised previously, but is yet to be resolved satisfactorily, is the role of the ship agent. With current trading levels the sector has excess capacity. This is further exacerbated by Spanish-based Hub Agents which offer services in

2015 ANNUAL REPORT

Gibraltar without having a physical presence here. Local agents slash their fees to get the business acting as a subagent in the hope of securing volume business, but this rarely materialises.

Alternatively, some agents may have a registered office in Gibraltar but it is run remotely from the hinterland. It has to be said though, that consultations are actively being maintained in an endeavour to resolve these issues, or at least try and safeguard the interests of these businesses.

Of paramount importance to resolve this issue is the quality of service provided to ships and Principals, and this can only be ensured by adequate staffing levels and regular training.

Crew changes have maintained more or less the same volumes as recent years, although this has been hampered by the lack of low-cost hotel accommodation.

The loss of this facility makes Gibraltar less attractive for crew changes than other ports in the Straits region which have ample facilities this regard. The prospect of building a new lost cost accommodation facility has been hampered by a lack of support among some of the operators, even though most of whom would benefit directly.

Without wider support this project is simply unviable.

The Ministry and GPA are continuing in their endeavours to promote the port at every opportunity. There are already various events in the pipeline for 2016, commencing with the IBIA annual dinner in London early February, then a delegation visit, which will include the Minister for the Port and Captain of the Port, to Singapore and Hong Kong, participation at Posidonia in Greece and the IBIA Convention to be held in Gibraltar. As we can observe plenty to look out for in 2016.

2015 ANNUAL REPORT

27

TOURISM SECTOR For several years, the Chamber has advocated far greater investment in the tourism sector in Gibraltar, describing it as the lost pillar of the economy. Despite successive Governments making some progress in different areas of the tourism product in particular, it remains the Chamber view that there has been no long term strategy and a distinct lack of ambition to pursue an exciting and game-changing approach to a sector which continues to suggest much more potential.

OVERVIEW The current GSLP/Liberal Alliance administration, through the auspices of the Tourism Advisory Council, have now sought to deliver a long-term strategy for this important economic pillar.

This is welcome news. With positive changes already being made, we hope that this new strategy provides a real platform to unlock the undoubted potential Gibraltar has as a top short break destination in Southern Europe.

The Chamber has submitted a positioning paper to the Government and has attempted to identify key areas of concern/opportunity and highlighted potential solutions/ideas. These are based on our discussions over the last few years with industry players and Chamber Members.

1. TRANSPORT This is undoubtedly the most significant key to unlocking greater potential for increased visitor numbers and an

enhanced visitor experience. Whilst we claim the Upper Rock to be our “Jewel in the Crown” visitor numbers have been more or less static for the last decade. This is in large part due to an inefficient transport system and resultant congestion. The effect of this is a very poor experience and unless resolved will always inhibit numbers to the Reserve. Additionally current tours do not give flexibility to visitors to enjoy different sites of their choice but are controlled by the Operator.

ISSUES:

• Stagnant visitor numbers • Low exposure to interesting sites outside of the Reserve

• Poor customer experience • Inferior interactive experience • Limited opportunity to increase revenue streams

RECOMMENDATIONS/OPPORTUNITIES:

• Develop hop on – hop off experience

• Market new routes similar to other city models

• Link in to wider improvements to transport system

• Create world class hub within frontier area to capture higher volume of day trippers

2. HOTEL INFRASTRUCTURE Whilst the offering has seen important improvements with the opening of the Sunborn and the refurbishment of the Rock Hotel, the hotel offering remains below par if we have ambitions to be a world-class city break. Bed numbers also remain relatively small if we wish to deliver ambitious growth.

An internationally recognized Brand is crucial to development of this opportunity along with a more familyfriendly offering. We understand Government is encouraging further operators and would like to see real incentives provided to make growth in the number of hotels a reality.

2015 ANNUAL REPORT

ISSUES:

• Current offering is geared towards business traveller

• Overall product does not meet visitor •

expectations if we are to compete with other popular city-break destinations

No family-friendly offering (kids club etc.) offered by any of the operators

RECOMMENDATIONS/OPPORTUNITIES:

• Target beauty parade of Brand names and offer long term incentives to set up on the Rock

• Redevelop Camp Bay area for 4* family friendly leisure hotel

• Consider The Mount as location for

and engage representative bodies to focus on “world-class service” in training. This can also be aligned with the Hospitality faculty at the Gibraltar University

RECOMMENDATIONS/OPPORTUNITIES

and introduce more innovative communication and directional channels through the use of Apps and web links. For example take a look at Trip Advisor and see how much more can be made of our links and customer reference data such as official photos by the GTA

• Develop new “Mega Service Centre”

“re-enactment society” but allowing visitors to pay for photo opportunities

• Re-assess opportunity for yacht

Bay, Sandy Bay and Eastern Beach

• Embark on a development plan for

• Re-design Gibraltar’s road signage

• Greater interactive opportunities a la

luxury spa boutique hotel

• Allocate beach hire facilities in Camp

short stay traveller

4. FACILITIES & PRODUCT

• Encourage a branded budget hotel for 3. VISITOR EXPERIENCE Whilst there are plenty of complements from visitors, it has to be said that the overall experience does not meet expectations if we are to fulfil the ambition of being a world-class destination. The business community of Gibraltar need to see that the long term strategy of the Government is to convert the Rock into a leading destination and bring onside all interested parties so that private operators, the retail and hospitality sector etc. start to meaningfully buy-in to this vision.

ISSUES:

• Poor service culture • Poor signage and dis-jointed literature • Sub-standard visitor facilities at the Frontier and Cruise Liner terminal and coach park

• Current rock tour offering allows

limited time for visitors to properly exploits sites as well as less well known attractions

• Limited facilities for tourists on our beaches (such as umbrella hire)

RECOMMENDATIONS/OPPORTUNITIES:

• Create “mega” visitor service centre at the Frontier and replicate on a smaller scale at other concentration points.

This can be easily achieved once tunnel is ready

• Introduce workshops with all industry players to get “buy-in” for the vision

It is encouraging to see investment in facilities particularly in the Upper Rock, however this is playing catch up to years of under investment and even more needs to be done if (again) we aspire to deliver a world class proposition.

There is an opportunity to develop more attractions by leveraging the tunnel networks and new areas such as the Northern Defences. The Upper Rock must become a one-stop shop for adventure, hiking, leisure and historical experiences and branded as the most exciting reserve in Southern Europe.

Additionally the entry roads to the Upper Rock are appalling in terms of first impressions and need landscaping, signage and interactive visitor facilities.

The Government had done extremely well in identifying event-led tourism as a growth opportunity which specifically captures overnight stays and this can develop further. Business travellers bring a higher spend if targeted to extend their business trips.

ISSUES:

• Shoddy and poor entry facilities to the “Jewel in the Crown”

• Under investment in the Upper Rock • Consider privatization of key facilities • Creation of “mega” service centre within Frontier area

• Decreasing availability of berthing facilities for yacht visitors

• Beautify all key entry points but

importantly the Upper Rock access roads themselves

• Identify new activities and invite private investment

at the Frontier precinct to provide a one-stop shop for visitors

• Develop niche areas such as Diving/ Bird watching & History tours

• Resolve public transport issue by

introducing black cabs and improving taxi service marina given important spending power this type of visitor brings

the Old Town by spearheading a pilot scheme in Governor’s Street to highlight the potential for the back streets and set the gold standard for the re-generation of commercial zones.

5. MARKETING & PROMOTION It is the Chamber’s understanding that the GTA have focused their marketing efforts over the years on strategically identified trade fairs alongside targeting of airlines and cruise line operators. This should undoubtedly continue however more niche targeting of our product can also be considered aligned to new initiatives being developed such as event-led tourism.

ISSUES:

• A perceived lack of investment in

the traditional day-tripper from the surrounding region

• Significant drop in visitor numbers arising from the frontier problems since 2013

• Marketing budgets have not been

ring-fenced and funds at times used for other purposes

• Quality of literature available to

visitors as well as limited use of social media/twitter etc.

RECOMMENDATIONS/OPPORTUNITIES:

• Re-assess our profile on all catchment areas in Southern Spain & Portugal and set targets to increase average spend by the day-tripper trade

29

CONCLUSION

TOURISM SECTOR (CONTINUED) • Look at an overhaul of the profit share arrangements with Spanish Operators

• Develop a structured campaign for

social media and target advertising and promotions in line with Gib’s wider strategy i.e. event-led tourism, sports, military history

• Better leverage the Golf destination

and direct flights to Morocco (multidestination)

• Create a “single brand” platform from which all marketing, literature and promotional material is built from

• Use tourists home networks to target them with online Geo IP ads when they are on the Costas

• Develop www.visitgibraltar.gi to

leverage www.visitlondon.com which creates a focal point for all visitors and captures greater opportunities to increase average spend (more interactive and offers purchasing and reservation capability)

• Look at budgets with a 3-5 year horizon and not annual

• Develop longer stays with Cruise Lines 6. SERVICE CULTURE It is also fair to say that –as a whole- the private sector has not embraced tourism as a future driver of economic activity.

This is evidenced in the service culture in some areas such as hospitality and the retail trades. We believe that real partnerships should be forged with industry however this will only deliver success if the private sector buy in to a real long term vision for tourism in Gibraltar. Ultimately, this requires the Government to take the lead.

ISSUES:

• Deteriorating shopping experience • Language issues caused by employing non-English speaking employees • Relative under-investment in training • No commitment to making visitors receive a “world-class service” • Appearance of a sleepy town during weekends

RECOMMENDATIONS/OPPORTUNITIES:

• Work on the promotion of service

culture with Business Associations and direct employers to the sector

• Leverage Hospitality Faculty in the new University

• Introduce service awards to get Industry buy-in

• Tourist Board must have a visitor

centre on Main Street as well as the introduction of the mega-centre as highlighted previously

• Review legislation which makes the opening of the retail sector more feasible in respect of payment of double time etc

7. THE OLD TOWN Over the last 4 years, the government have clearly indicated that investment in the old town is important and desirable and have spearheaded projects such as the refurbishment of the Moorish Castle Estate and the magnificent St. Bernards School. Some private investment is now also taking place however it would be a mistake to continue to pepper the old town with modern structures. From a touristic perspective the “charm” of the old town remains a misnomer and a contradiction to how old towns have developed and thrived in nearly every European City. Furthermore, we all know from our travels that creating life in the old towns and giving them a purpose is a massive draw for tourists and an economic driver.

ISSUES:

• Rent controlled properties means

Landlords are not investing in assets

• No clear direction or strong leadership provided by Town Planning

• Lack of incentives to develop small businesses

RECOMMENDATIONS/OPPORTUNITIES:

• Provide tax breaks to commercial units • Leverage trade licence process to align vision for the old town

• Sponsor a “pilot scheme” – See article

The Chamber wishes to see Tourism catapulted in to a major contributor to economic activity and private sector growth. It is often said that Gibraltar has the natural product and history yet this has never been fully exploited. Over the last 20 years, whilst investment has been made, there is ample evidence that the product still falls short. The Chamber calls on the Government to deliver a real long term vision for the sector matched by the required ambition. This needs to be evidenced by a coherent strategy and supported by the hard capital and innovation required. Budgets should be re-assessed and the Government may consider a 10 year capital spending programme aligned to a strategy rather than current short term budget allocations. Tourism must be taken seriously.

It is also true that without a proper partnership with the private sector Government cannot embark on the journey alone. We firmly believe that if and when the Government take the lead and commit to real long-term initiatives and use language which turns the attention fully to this sector, then the private sector will follow. The announcement of “Gibraltar 2025” is a further opportunity to provide that leadership, for example, in challenging the future of Main Street and how we can provide incentive schemes to create diversity and a compelling shopping experience.

The political climate and on-going threats and challenges to those “pillars” that have progressed Gibraltar over the last 20 years point towards an ideal opportunity to grab the bull by the horns.

Tourism is one of the key growth drivers to many small locations around the world and as the prospect of random terror attacks become more prominent it is likely short break European travellers will evaluate security as a key consideration when choosing their next destination. Gibraltar has an opportunity not to be missed.

We trust the Government and the Minister responsible pursue the stated desire to develop a long term strategy matched by the ambition and resources required.

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2015 ANNUAL REPORT

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The Rock Hotel has been designed with a colonial feel and offers, as ever, spacious guest rooms; all-day dining restaurant, lounge bar, conference and event facilities, making it the perfect choice for leisure and business users alike.

Email: events@rockhotel.gi / Tel: 200 73000 / 3 Europa Road, Gibraltar 31

APPENDIX 1:

A Pilot Scheme for re-generation of the Old Town of Gibraltar – Brief synopsis Gibraltar’s old town has all the charm and potential beauty as many of its more established “rivals” around Europe yet it doesn’t carry the appeal to pull visitors in. Some areas are ghetto like and others are simply tired and run down. Refurbishment of facades has to a large degree been unregulated and entrepreneurs are not willing to invest.

As part of a drive to enhance the overall product of Gibraltar plc and create a lasting legacy for the old town the Chamber calls on Government to embark on a pilot scheme which would illustrate the direction, expectation and standard for all future refurbishment and re-development.

have identified the stretch of Governors Street starting from the bottom of Hospital Steps up to the junction with Prince Edwards Road (Three Roses Bar).

We have earmarked this stretch as it is possibly one of the ugliest areas of the lower old town, where shop fronts have been allowed to be painted and refurbished with no consideration or sensitivity to the buildings. This stretch is also one of the most difficult for pedestrians given the narrow paving and indiscriminate parking.

The pilot scheme would be required to deliver the following:

• Widening of pavements to create a more secure pedestrian experience

• Standardised signage in keeping with desired image of an old town, e.g. wrought iron fittings

• General landscaping, i.e. hospital steps & improved refuse disposal

BENEFITS:

• A powerful and lasting visual which

captures the vision and standard for the old town of Gibraltar

• The beautification of a much needed part of Gibraltar

• Lays down all the guidelines for

landlords and tenants for any new business or residential refurbishment and therefore makes the imposition of fines for non-compliance easier

• Eliminate illegal parking by

• Sets the momentum for a holistic

• Road resurfacing or refurbishing in

• In addition, the Government can

introducing bollards similar to those on the upper stretch of Engineers lane line with Main Street design

THE SCHEME:

• Requirement to restore all frontages

The aim of the scheme is to identify an area of the old town and provide the necessary capital (preferably with direct or indirect contribution by impacted parties) to refurbish and embellish. We

• Colour coding scheme for all

(at least ground floor commercial units) to their original state or using materials that replicate this as much as possible

approach to the old town redevelopment

expand the soft loan scheme to provide incentives for new business opportunities where part eligibility is determined by business type – i.e. local butchers, delicatessens, handicrafts, local art, curiosity shops etc.

frontages

2015 ANNUAL REPORT

PROPERTY SECTOR THERE’S A BUILDING BOOM IN GIBRALTAR. RESIDENTIAL AND COMMERCIAL PROPERTY SCHEMES ARE UNDER CONSTRUCTION IN VIRTUALLY EVERY AREA. The pace with which the World Trade Center is being built is impressive. The signage which states “open 2016” was initially questioned however, with the contractor working long hours and seemingly 7 days a week throughout 2015, it would appear that a 2016 opening is now very likely. This will add over 15,000 square metres of modern office space to the commercial property market which will be most welcome.

Commercial property rents continued to increase generally throughout 2015 as a direct result of the lack of existing supply. Rents are now reaching £400 per square metre per annum for the best offices. With Midtown adding a further 11,000 square metres of prime commercial space most likely in 2017, rent increases should ease over the next two to three years as it will take some time to absorb this new supply fully into the local property market.

The benefit of these developments to Gibraltar is the quality in terms of space, cabling, security, back-up power, light and distribution. Features which been lacking in the mainstream local office supply for many years. These offices will assist Gibraltar’s claim of being a jurisdiction for international businesses.

Other commercial schemes, Victory Place and the North Mole office development, have faced delays and perhaps market forces will delay or postpone these schemes in their current form. Gibraltar needs new space, however, the World Trade Centre and Midtown may be sufficient for the short to medium term.

As we stated in our last annual report, the challenge is what becomes of Main Street and the town centre generally as tenants migrate to these new office buildings, which many will. Coupled with the threat to the retail sector generally from internet shopping, we still advocate for a cohesive plan to help maintain the town centre as an ongoing tourist attraction and the centre of Gibraltar’s social life.

In the residential sector, the government’s schemes Beachview Terraces and Mons Calpe Mews will both be fully occupied in 2016, adding just under a thousand homes to the local property sector. Our members which sell furniture, kitchens, bathrooms and flooring should benefit, especially if the Office of Fair Trading is effective in making it more difficult for unlicensed Spanish companies to trade illegally in Gibraltar.

We also endorse the Principal Auditor’s recent comments on arrears of housing rents which in December 2015 exceeded £6m for the first time. In 2011 the arrears stood at £3.7m. It is reported that The Housing Department failed to recover any arrears during the current financial year. Obviously this is not sustainable and new processes must be implemented to reverse this trend of non-payment.

In the private residential market, 2015 saw the launch of a number of schemes: Plata Villa, West One, Eurotowers, Midtown phase 2, Ocean Spa Plaza, Quay 29 and Bourne Place. That equates to nearly 400 new apartments, most of which were sold within a few days of launch.

The property market is broadly in good shape with market forces encouraging private developers to respond to the pent up demand.

It will be interesting to see what happens in 2016 in respect of the Eastside project, Rooke development and GFA stadium. Lots of publicity, but anything concrete?

33

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Europort Ave

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Burlington

Arlington

Providence

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Queensway

Lexington Rooftop Pool Area

Phase 2 Private Gardens

Phase 1

Lincoln

Phase 3

Hudson

Midtown Car Park

Madison

Reclamation Road

Line Wall Road

CONTACT: MIDTOWN DEVELOPMENT +350 200 43511 | info@midtown.gi

HUDSON

Disclaimer: This layout is for marketing purposes only and does not constitute an offer or contract of any kind but is for general guidance and information purposes only and should therefore not be relied on as containing statements or representations of fact. Accordingly all statements and particulars evidenced herein are made without responsibility or warranty on the part of the vendor, lessor and/or their agents and it is incumbent on any prospective purchaser/lessee to satisfy themselves as to their accuracy. The vendors reserve the right to amend and/or withdraw the same at any time without notice.

2015 ANNUAL REPORT

REPORT & FINANCIAL STATEMENTS 31 DECEMBER 2015

35

2015 ANNUAL REPORT

THE GIBRALTAR CHAMBER OF COMMERCE

REPORT OF THE AUDITORS

TO THE MEMBERS OF THE GIBRALTAR CHAMBER OF COMMERCE We have audited the financial statements on pages 38 to 45 which have been prepared under the historic cost convention and on the basis of accounting policies set out on page 41.

DIRECTORS, OFFICERS & OTHER INFORMATION DIRECTORS

RESPECTIVE RESPONSIBILITIES OF THE HONORARY TREASURER, DIRECTORS AND AUDITORS It is the responsibility of the honorary treasurer to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Chamber and of the surplus or deficit of the Chamber for that year. In preparing those financial statements the honorary treasurer is required to:

• select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent; • state whether applicable accounting standards have been followed, subject to any

C Hernandez President J Isola Vice President M Nicholls Hon Treasurer M Cartwright Hon Secretary N Quigley F Cassar G Desoisa G Dyke E Felipes A Haynes J Nicholls N Russo

The honorary treasurer is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Chamber.

The directors are also responsible for controlling the funds of the Chamber and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HONORARY AUDITORS

BASIS OF OPINION

Baker Tilly (Gibraltar) Limited Regal House Queensway Gibraltar

We conducted our audit in accordance with International Auditing Standards. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements and of whether the accounting policies are appropriate to the Chamber’s circumstances, consistently applied and adequately disclosed.

REGISTERED OFFICE 2/6 Casemates Square Gibraltar

material departures disclosed and explained in the financial statements; and

• prepare the accounts on the going concern basis unless it is inappropriate to presume that the Chamber will continue in operation.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

OPINION In our opinion the financial statements give a true and fair view of the state of affairs of the Chamber as at 31 December 2015 and its deficit for the year then ended, according to the best of our information and the explanations given to us and as shown by the books of the Chamber.

Ian Collinson

Statutory auditor for and on behalf of

BAKER TILLY (GIBRALTAR) LIMITED Chartered Accountants Honorary Auditors Date: 22 March 2016

37

THE GIBRALTAR CHAMBER OF COMMERCE

STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED 31 DECEMBER 2015

Notes

2015 £

2014 £

54,810

55,415

-

87

50,375

24,877

105,185

80,379

(44,929)

(44,929)

(7,647)

(7,571)

TURNOVER Subscriptions Deposit interest Other income

2

Total income ADMINISTRATIVE EXPENSES Staff remuneration and social insurance Office rent Rates Electricity and water General administration

3

Bad debt written off

(399)

(2,151)

(1,006)

(983)

(51,410)

(34,615)

-

(1,455)

(2,060)

-

(2,176)

(2,306)

(109,627)

(94,010)

(4,442)

(13,631)

Retained surplus at 1 January

78,184

91,815

Retained surplus at 31 December

73,742

78,184

Provision for bad debts Depreciation

4

Total expenditure DEFICIT FOR THE YEAR

8

The deficit for the period arises from the Chamber’s continuing operations. The deficit is stated on a historical cost basis.

No separate statement of comprehensive income has been presented as the only changes in reserves during the year arise from the surplus and deficits disclosed above.

2015 ANNUAL REPORT

THE GIBRALTAR CHAMBER OF COMMERCE

STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2015

Notes

2015 £

2014 £

4

7,705

9,129

Debtors

5

23,606

28,829

Cash at bank and in hand

6

49,141

63,049

72,747

91,878

(6,710)

(22,823)

NET CURRENT ASSETS

66,037

69,055

TOTAL ASSETS LESS CURRENT LIABILITIES

73,742

78,184

RESERVES

73,742

78,184

TANGIBLE FIXED ASSETS CURRENT ASSETS

CREDITORS: amounts falling due within one year

7

Approved by the board on: 22 March 2016 M Nicholls Honorary Treasurer

39

THE GIBRALTAR CHAMBER OF COMMERCE

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2015

Notes

NET CASH OUTFLOW FROM OPERATING ACTIVITIES

8

2015 £

2014 £

(13,155)

(428)

-

87

CASH FLOWS FROM INVESTING ACTIVITIES Interest on deposit account Purchase of tangible fixed assets

4

(753)

(5,390)

DECREASE IN CASH

6

(13,908)

(5,731)

2015 ANNUAL REPORT

THE GIBRALTAR CHAMBER OF COMMERCE

PRINCIPAL ACCOUNTING POLICIES

BASIS OF ACCOUNTING The financial statements have been prepared under the historical cost convention and in accordance with Gibraltar Accounting Standards.

FINANCIAL STATEMENT PRESENTATION A single Statement of Income and Retained Earnings has been presented in place of the Statement of Comprehensive Income and the Statement of Changes in Equity as the only changes to reserves during the year arises from the surplus and deficit disclosed.

TANGIBLE FIXED ASSETS All property, plant and equipment shall initially be recognised at cost. Cost comprises purchase price and attributable costs.

DEPRECIATION

Fixed assets are depreciated over their expected useful lives as follows: Furniture and fittings Office equipment Computer equipment Air conditioning units Leasehold improvements

15% on cost 15% reducing balance 25% reducing balance 20% on cost over 9 years

FOREIGN CURRENCIES Transactions denominated in foreign currencies are recorded at the rates of exchange ruling at the dates of the transactions.

41

THE GIBRALTAR CHAMBER OF COMMERCE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 1. BASIS OF PREPARATION

These financial statements have been prepared in accordance with Gibraltar Accounting Standards including Gibraltar Financial Reporting Standard 102 and the Gibraltar Companies Act 2014.

In addition Section 1A of GFRS 102 has been adopted as the association falls within the threshold of a small entity and is permitted certain presentation and disclosure exemptions.

This is the first year in which the financial statements have been prepared under GFRS 102. The Transition to GFRS 102 has resulted in no changes in accounting policies to those previously used.

2. OTHER INCOME 2015 £ ATA Carnets

2014 £

1,261

2,450

Fees for certificates of origin and invoices

11,997

12,395

Impact study income

21,000

-

- Chamber dinners

4,685

611

- Publications

8,927

7,591

785

330

Surplus on:

- Other certificates - Mailing list rental - Office hire

300

-

1,420

1,500

50,375

24,877

2015 £

2014 £

3. GENERAL ADMINISTRATION EXPENSES

Advertising

(2,066)

(2,122)

Telephone

(1,660)

(2,212)

Printing, postage and stationery

(12,863)

(8,262)

Miscellaneous expenses

(594)

(902)

Insurance

(435)

(435)

(4,915)

(6,319)

Travel and entertainment Office cleaning

(2,251)

(2,655)

Repairs and maintenance

(4,454)

(3,807)

(207)

(585)

Subscriptions Accountancy fees

(1,200)

(1,200)

Professional fees

(2,695)

(5,405)

-

(547)

Training expenses Bank charges Impact study fees

(155)

(164)

(17,915)

-

(51,410)

(34,615)

2015 ANNUAL REPORT

THE GIBRALTAR CHAMBER OF COMMERCE

NOTE TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2015

4. FIXED ASSETS Leasehold improvements £

Furniture & fittings £

Office equipment £

Air Conditioning £

Computer equipment £

Total £

Cost: At 1 January 2015 Additions during year

35,755

11,856

25,361

7,355

12,011

92,338

-

-

753

-

-

753

At 31 December 2015

35,755

11,856

26,114

7,355

12,011

93,091

At 1 January 2015 Charge for year

35,675

11,622

22,404

2,818

10,691

83,210

27

215

557

1,047

330

2,176

At 31 December 2015

35,702

11,837

22,961

3,865

11,021

85,386

53

19

3,153

3,490

990

7,705

80

234

2,957

4,537

1,320

9,128

Depreciation:

Net book value: At 31 December 2015 Net book value: At 31 December 2014

43

THE GIBRALTAR CHAMBER OF COMMERCE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015

5. DEBTORS 2015 £

2014 £

Subscriptions

6,927

4,897

Other debtors

16,123

14,994

556

8,938

23,606

28,829

2015 £

2014 £

63,049

68,780

(13,908)

(5,731)

49,141

63,049

2015 £

2014 £

Creditors and accruals

4,629

22,065

PAYE and Social Security

2,081

758

6,710

22,823

Prepayments and accrued income

6. CASH AT BANK AND IN HAND

At 1 January Net cash (outflow) At 31 December

7. CREDITORS: amounts falling due within one

2015 ANNUAL REPORT

THE GIBRALTAR CHAMBER OF COMMERCE

NOTE TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2015

8. NOTES TO THE STATEMENT OF CASH FLOWS Reconciliation of results for the year to net cash flow from operating activities

Deficit for the year Interest on deposit account

2015 £

2014 £

(4,442)

(13,631)

-

(87)

(4,442)

(13,718)

Depreciation

2,176

2,306

Decrease/(increase) in debtors

5,224

(3,869)

(Decrease)/increase in creditors

(16,113)

Net cash (outflow) /inflow from operating activities

(13,155)

14,853 (428)

9. OTHER FINANCIAL COMMITMENTS At 31 December 2015 the Chamber had annual commitments under non-cancellable operating leases as set out below:

Operating leases on land and buildings which expire:

Under five years

31 December 2015 £ 7,647

31 December 2014 £ 7,571

45

GIBRALTAR KEY INFORMATION POPULATION: 30,140 (2014) TOTAL LAND AREA: 6.5 SQ KM NATURAL RESOURCES: NONE

HEAD OF STATE: HER MAJESTY QUEEN ELIZABETH II CHIEF MINISTER: HON FABIAN PICARDO, MP, QC LEGISLATURE: PARLIAMENT (NO UPPER HOUSE) LANGUAGES: ENGLISH & SPANISH

BUSINESS HOURS: 9 AM – 5 PM MONDAY TO FRIDAY INFLATION RATE: 0% PER ANNUM (OCTOBER 2015) MINIMUM WAGE: £6.25 PER HOUR (243.75 PER WEEK) AVERAGE EARNINGS: £28,244 (2014) REGISTERED EMPLOYED: 24,422 (OCTOBER 2014) GDP PER CAPITA: £49,419 (2014) IMPORTS: UK: 60%, SPAIN: 30%, OTHER EU:10%

CORPORATION TAX

TAX PAYABLE

Resident Companies

10%

Utilities Companies

20%

PERSONAL INCOME TAX £0-£10,000 of Annual gross income

6%

£10,001 - £17,000 Annual gross income

20%

Balance

28%

NO CAPITAL GAINS TAXES NO INHERITANCE TAX/DEATH DUTIES OR ESTATE DUTY SPECIAL STATUS PERSONAL TAX RATES Qualifying individuals who are non-resident and derive no income from Gibraltar can apply for Category II resident status.

Applications should be made to the Finance Centre Director, info@financecentre.gov.gi.

NO TAX ON DIVIDENDS NO WEALTH, GIFT OR CAPITAL TAXES TAX PAYABLE Minimum tax payable of £22,000 per annum up to a maximum tax payable of £30,000 per annum.

2015 ANNUAL REPORT

USEFUL WEBLINKS www.gibraltar.gov.gi www.fsc.gi www.gibraltarport.com www.companieshouse.gi www.gibraltarlaws.gov.gi www.gibyellow.gi

AIRLINES & HOTELS www.ba.com www.flymonarch.com www.easyjet.com www.royalairmaroc.com www.caletahotel.com www.rockhotelgibraltar.com www.ocallaghanhotels.com/eliott www.sunborngibraltar.com

GIBRALTAR GDP 2000-2016 (£M) GDP £M 1600.00

1200.00

800.00

400.00

0.00

2000 - 01

2002 - 03

2004 - 05

2006 - 07

2008 - 09

LINEAR (GDP £M)

2010 - 11

2012 - 13

2014 - 15

GDP £M

EMPLOYMENT GROWTH 2000-2014 Male

Female

25000 20000 15000 10000 5000

0.

2000

2002

2004

2006

2008

2010

2012

2014

47

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