Spain - Insight Publications

special advertising sectionreprinted from the June 2, 2008issue of Forbes magazineSpainGOING GLOBALON THE CREST OF THE WAVEThese may be financially turbulent times, but Spain’s growingeconomy appears more than buoyant.There are few countries betterpositioned to withstand the stormyconditions currently afflicting theworld’s economy than Spain.After 14 years of consistent economicgrowth – often double the Europeanaverage – the Iberian nation has attaineda strong fiscal position and become afocal point for foreign investment.Now the world’s eighth-largest economy,it has created 3 million new jobs in the pastfour years and reduced unemploymentfrom 25% in 1994 to 8.6% in 2007.Spanish banks, publishing housesand energy companies maintain astrong presence in the former LatinAmerican colonies of Mexico andArgentina. Spanish companies areactively involved throughout Europe, andthe further internationalization of theSpanish economy is a high priority forthe country’s business community.Last year, Spain achieved a budgetsurplus of 1.8%, and it is projected toattain a surplus of 1.2% of GDP in eachof the next three years. Althougheconomic growth is expected to slowthis year, Spaniards are enjoyingrecord levels of prosperity.In a notable vote of political confidence,Prime Minister José Luis RodríguezZapatero and his socialist partygovernment were re-elected for a secondfour-year term of office in March.The country’s biggest provincial citieshave a vibrancy and character of theirown. With its extensive and high-qualitytransport infrastructure, Madrid providesaccess to global markets and isbecoming the corporate capital for LatinAmerican operations, especially amongtelecom and financial entities. Barcelonais a major industrial, commercial andcultural center, while Valencia is theleading Spanish Mediterranean port interms of trade and container traffic.Given the economic potential, RafaelFerrando, president of Valencia’sConfederation of Business Organizations,is pressing the urgency of his city toacquire a high-speed train connectionwith Madrid. He envisions the port ofValencia becoming the biggest logisticsplatform in the Mediterranean andEurope’s gateway to Asian traffic.Yet, in spite of the remarkabletransformation that has been achieved,there are still those who imagine Spain tobe a clichéd, sun-soaked tourismdestination rather than the high-tech, firstworldnation it has become.To correct such misconceptions, theSpanish Institute for Foreign Trade (ICEX)has launched “España: Technology forLife,” a campaign to present an up-to-dateimage to the world of a technologicallyadvanced Spain.“We want people to know that threeout of every five planes in the world useSpanish traffic systems, and Spain isone of the world’s leaders in the field ofrenewable energy,” says Ángel MartínAcebes, executive vice president ofICEX.“We are one of the most advancedcountries in the world in water managementand desalination. Six of the world’stop-ten infrastructure companies areSpanish. They have a global presenceand are undertaking important projectsin the U.S.”Begoña Cristeto, chief executive ofINTERES, a government agency establishedin 2005 to attract foreign investment,>>

2 Spain special advertising sectionMadrid’s vibrant street lifesays that some 12,000 foreign companiesare active in the country, contributing morethan 60% of investment annually. “We offerone of the most dynamic economies inEurope. We also offer a gateway to boththe North African market and to LatinAmerica,” she says.“British Telecom, Alston, Fujitsu andVestas are just a few examples of companiesthat have moved their LatinAmerican operations to Madrid in thelast few years.” She adds that theMadrid government offers a package ofincentives and grants to foreign investors,and that priority is given to attractingAmerican companies.“The success of Spanish companiesin the U.S. has been a huge propellingfactor for their success globally,” saysRicardo Martínez Rico, a deputy financeminister in the conservative governmentof José María Aznar and now a foundingKARL JOSEPHpartner and managing director ofMontoro & Associates, a strategic consultingfirm.The increasing global presence ofSpanish firms is rapidly changing the internationalimage of the Spanish businesscommunity, he says, but adds thatit remains important “to make Americansmore aware of the quality of Spanishbusinesses.”One of the ways this is achieved isthrough strengthening ties between thetwo countries in the field of higher education.ESADE, a leading Spanish businessschool, has recently established anumber of innovative agreements withleading U.S. education centers. Theschool is co-developing a program onsocial innovation with the StanfordSchool of Business, and is developingprograms to bridge the fields of designand management with the Art CenterCollege of Design in California.ESADE has also recently launched aGlobal Executive M.B.A. in partnershipwith both the Business School and theSchool of Foreign Service of GeorgetownUniversity.ESADE Creapolis, a state-of-the-artcampus and creativity park, which willalso house small businesses in their initialphases of development, will open in2009.Former Prime Minister Aznar, who isnow president of the think tankFundación FAES, points out that, duringhis administration, Spain began todevelop its international presence, andthat it is now well positioned to survivethe current global economic problems.This, he says, is because of thestrength and dynamism of the privatesector. “Our banks and constructionfirms are global forces, and there is amultitude of successful small- to mediumsizedenterprises,” says Aznar.“While growth may slow in the comingyears, Spain will continue to be a leaderin Europe and an emerging force in theglobal marketplace.” ■By Michael KnipeCover Photo: Oceanographic Park,City of Arts and Sciences, Valencia.Architect: Santiago Calatrava.Photolibrary

special advertising section3City of dreamsValencia is setting the pacein trade, sporting events,tourism and innovation.If there is a get-up-and-go region inSpain, it has to be Valencia. With a primelocation in the western Mediterranean,this region of 5 million people is home to420 multinationals and accounted for atenth of Spanish GDP last year, or $150billion.In terms of export volume, Valencia’scontribution represents 11.8% of thecountry’s external trade. Nowhere elseis the velocity of money so intrinsicallytied to sporting events or to internalcombustion. Last year, the 32nd annualAmerica’s Cup created 80,000 jobs. Thissummer, Valencia’s capital city will playhost to Europe’s Formula 1 Grand Prix.Why is this region so driven? AntonioLis Darder, director general of ValenciaCommunity Investments (VCI), thinks itmight be a result of the region’s industriallegacy together with its pro-businessattitude. “Valencia was one of the firstregions to realize that liberalizing theinvestment market was crucial. It putforeign and national investors on thesame playing field,” he says.These days, the VCI Web site gets35,000 hits a day, and there are 31 U.S.-based companies onboard. “You don’thave to deal with multiple bureaucracieshere. We help you from start to finish –something U.S. investors greatlyappreciate,” says Lis.Today, GDP growth here is 2% aboveSpain’s national average, thanks to adense network of small- to mediumsizedenterprises producing everythingfrom Pikolinos shoes to high-endceramic tiles.The port of Valencia, with its intermodalcargo terminals, serves as their businesscard. Carmakers such as Ford use theport’s terminals to export 64% of theirproduction. The port generates morethan $1.7 billion a year and is ISO9002/94-certified.“Our quality seal goes beyond the wetport and links to dry-port services,freight forwarding and door-to-doordelivery,” says Rafael Aznar, chairman ofthe Port Authority.With 7.4 miles of quayside and nearly1,500 acres of terminals, it has becomeSpain’s top-ranking port for containertrade.The VCI director thinks the currentmomentum is sustainable in the long run.The population has grown 20%, drawingin talent from other less buoyant places,and he believes solid infrastructure anda focus on R&D will continue to setValencia apart.“In 1995, we were the sixth-rankedregion in terms of FDI, with roughly $1.4billion. By 2003, we were ranked third,with about $4.7 billion. That’s an increaseof roughly 200%,” says Lis.This year, the effigy-burning festivalknown as Les Falles took place duringthe Easter holiday. More than 1.5 millionvisitors flocked to the city of Valencia torevel in the iconoclastic fireworks.In 2007, about 1.3 million visitorsattended a total of 40 events at FeriaValencia, the flagship convention center.VCI sees tourism and sporting eventssuch as the America’s Cup as marketingtools. The Formula 1 Grand Prix alone isexpected to draw in $78.5 million fromAugust 22 through 24 this year.The real test, however, is whether thevarious events manage to createinvestment synergies. Lis sees his roleat VCI as a conductor of dream projects,from supply-chain innovations to filmstudios.The Ciudad de la Luz, or City of Light,is the latest incursion into technologydrivenindustries. The project is basedon the city’s tradition of fireworkscraftsmen, stage-set professionals andrecording studios. There are more than700 companies working in the sector,and VCI has a strategic plan toshowcase them in Los Angeles and NewYork. “Within five years, the City of Lightwill work at 100%,” Lis predicts. ■By Paul de ZardainKARL JOSEPH

4 Spain special advertising sectionMasters in business educationSpanish universities are ranking among the top tier of European business schools.Spanish universities are taking steps to conform to astandard EU educational system to facilitate the exchangeof students, lecturers, researchers, information andemployment.This system also enables universities to set their ownadmission requirements in place of national college entranceexams.Several universities and business schools currently offer aMaster of Business Administration degree. One of these,ESADE (Escuela Superior de Administración y Dirección deEmpresas), is a business school with campuses in Barcelona,Madrid and Buenos Aires. It attracts students from all cornersof the globe and offers M.B.A. and executive educationprograms, and undergraduate and Master in Managementdegrees.ESADE was established as an initiative of the Spanishbusiness community, and as it celebrates its 50th anniversarythis year, Dean Xavier Mendoza says the relationship with thebusiness community is closer than ever.“Our model invites and engages senior executives on asystematic basis to teach and participate in our courses. Wegive our faculty many opportunities to interact with thebusiness community, and many of them sit on the boards ofprestigious multinational companies,” he says.ESADE was one of the first business schools to obtain thethree most-recognized awards in its field and is ranked amongthe top ten business schools in Europe.The dean says that foreign students, particularly Americans,are attracted to the school because of its primary location inBarcelona, its unique M.B.A. program and its superiorlanguage school. “All of our international students have beendelighted with how fast they’ve gained proficiency in Spanishwhile earning their international M.B.A.,” he says.Among ESADE’s priorities are the maintenance of itspreeminence in renewable energy issues and the developmentof its links with the Far East. “Our strategy for Asia is to developexposure to the realities of emerging markets, especially thegiants like China and India, not forgetting Southeast Asia,” saysMendoza.The school is exploring the process of offering executiveeducation programs in Asia and looking to partner with keycolleagues. “We’ve recently signed an executive educationcontract with Bayer, and some of the courses will be run inAsian and other global locations,” he adds. ■By Michael Knipe

special advertising section5From high speedto high techSpain is setting the pace ininnovative technology andmaking inroads into the U.S.,where it is building NewEngland’s first desalination plant.Eight Californian lawmakers flew toSpain in March to study the country’sexpertise in the development of highspeedrail systems.They also investigated various otherprojects, including the progress beingmade in the innovative development ofsolar power, liquefied natural gas anddesalination. The American interestreflects Spain’s growing eminence inhigh-tech industries.A 180-mph rail service betweenMadrid and Barcelona began inFebruary, with trains that can completethe 342-mile journey in two hours and 35minutes.This is just one example of theengineering skills that are boostingSpain’s worldwide reputation. Byfocusing on niche technologies inaerospace, Spanish companies havebecome leaders in the manufacture andmaintenance of small- and mediumsizedaircraft, gas-turbine engines andflight simulators.Indra, the country’s top informationtechnology and defense systemscompany, has developed ticketingsystems that are used by some of theworld’s main underground railwaysystems, including those in Paris,Shanghai and Athens.In electronics, information technologyand telecom products and services,Spanish companies devote 16% of theirworkforce to R&D and have establishedstrong positions in a range of fields fromtraffic-monitoring systems to simulationequipment.Secuware, a leading informationsecuritycompany founded in Madrid in1998, has government and commercialcustomers in more than a dozen countries.It opened its U.S. headquarters inSunnyvale, Calif., in the heart of SiliconValley two years ago, and customersinclude Warner Bros. and Wal-Mart.A long-standing area of Spanishexpertise has been water desalination, atechnology developed in the CanaryIslands in the 1970s. Alicante, a coastalcity in southeastern Spain with apopulation of 310,000, receives 40% ofits water from desalting facilities.The Spanish government is undertakinga large public-works program known asA.G.U.A., which will transform the nationalwater system, increasing the number andsize of desalination plants in order to meetgrowing demand.IN ELECTRONICS,INFORMATION TECHNOLOGYAND TELECOM PRODUCTS ANDSERVICES, SPANISHCOMPANIES DEVOTE 16% OFTHEIR WORKFORCE TO R&DNew England’s first desalination plantis being designed, built and operatedby the Spanish company Inima. Thisenvironmentally friendly project includesseveral state-of-the-art characteristicssuch as tidally controlled flows of waterintake and diluted brine discharge.“We see a huge opportunity for us nowin the U.S.,” says Ángel Martín Acebes,executive vice president of the SpanishInstitute for Foreign Trade (ICEX).“Spanish companies have already madebig inroads and established themselvesas leaders in their fields. Some haveacquired U.S. companies to betterposition themselves to serve the growingmarket.”Acebes points out that Spanish companieshave extensive experience inprivate-public partnerships in which theydesign, construct, finance and manageprojects. “There aren’t many companiesthat can integrate such projects fromstart to finish,” he says, “and as this becomesa more popular model, Spanishcompanies are winning many importantcontracts.” ■By Michael Knipe

6 Spain special advertising sectionThe magicof MadridAlready a top financialmarket, the capital’sbusiness-friendly flavor,infrastructure and qualityof life are attractinginternational companies.Madrid now ranks fourth afterLondon, Paris and Frankfurt asa banking and financial servicescenter.“While everyone is familiar with majorstock exchanges such as New York andHong Kong, not too many people knowof Madrid’s increasing internationalsignificance in the financial world,” saysFernando Merry del Val, minister of theeconomy in the Madrid regionalgovernment.For this reason, the administration andthe leading financial operators in the cityCommunications Palace, Madridhave created the Madrid InternationalFinancial Center to spread the wordabroad.In addition to its increasing importanceas a financial center, the Spanish capitaland its environs continue to be one ofEurope’s fastest-growing regions incommercial and industrial terms.Madrid registered twice the averagegrowth rate of the EU between 1995 and2005, and although its economic growtheased slightly last year, Madrid still ranksamong the continent’s fastest-growingregions.Taking full advantage of the pheno -menon of globalization, Madrid absorbsCompanyProfileBEST FOOT FORWARDPIKOLINOS was formed in 1984 in the city of Elche(Spain’s principal shoe-producing area) in the province ofAlicante. It was formed by its current president, Mr. JuanPerán Ramos. Still a family company, Ramos has permeatedthe organization with a business philosophy that hasconverted PIKOLINOS into a ‘100% friendly’ company in itsrelations with clients, workers and suppliers. For PIKOLINOS,the human team is the most important asset the companypossesses. Its more than400 workers are young,professional and dynamic,and have made PIKOLI-NOS one of the world’s topshoe companies.Since its inception, theproduct line has been definedby differentiation anda strong personality manifestedin the quality of itsleathers, designs and naturalfinishing. This meansthat the shoe is recognizableat a glance and hascarved its own nichein the internationalcomfortable fashionmarket as one of themost successfulbrands in the world.In fact, of the twomillion pairs ofshoes the companysold last year, 80%were destined for internationalmarkets. Of the more than 60 countries wherethey are sold, the U.S. has been one of the fastest-growingmarkets in recent years. With the opening of a commercialoffice and logistics center in Miami, the company plans onfurther improving the service it provides its Americanclients.A company committed to the environment, PIKOLINOShas been awarded the ISO 14001 certification forEnvironmental Management Systems. Following this spirit,PIKOLINOS was the first European company to obtain the‘Eco ticket’, granted to PIKOLINOS by the European Unionfor its product line called Amazonas.

special advertising section 7more than half of Spain’s total FDI.“Madrid’s infrastructure is among the bestin the world,” says Merry del Val. “We havedoubled all the motorways. We are buildinga very good network of high-speed trains.The city has the third-largest subway systemin the world after New York and London, andas far as airports are concerned, MadridBarajas International Airport is growing veryfast. We will soon be third in Europe afterLondon Heathrow and Charles de Gaulle interms of passenger throughput.”When it comes to inward investment, theregional government’s aim is to enhanceMadrid’s specialization in high-value-addedindustries. “We are betting on attractingcompanies involved in biotechnology,aeronautics, communications, informationtechnology and clean energy,” says Merrydel Val. “In services, we’re betting on financialservices, tourism and logistics.”One of the reasons for Madrid’s economicsuccess, he says, is its liberal businesspolicies. “We try to have a government that isbusiness friendly in the U.S. manner – to havea small state with very few state-ownedcompanies and few taxes.”Vicente Orts, the executive director ofPromoMadrid, the regional governmentagency charged with promoting investment,says one aim is to establish the Madrid regionas the R&D center of southern Europe. “Weoffer the same quality and know-how as otherEuropean cities at a lower cost,” he says.The Spanish capital’s other advantagesare the quality of life it offers expatriates andthe business access it provides to Europeand Latin America.“Foreign companies consider not only thebusiness advantages of a location but also itsattractiveness as a place where expatriateswill want to live,” says Orts. “Madrid is such aplace, especially for young professionals.”A new trend, he notes, is for internationalcompanies, particularly telecom and financialservice operators, to make Madrid “theircorporate capital for Latin America.”American companies are the top investorsin Madrid, and Orts makes it clear thatattracting more of them is his top priority.What is the secret of Madrid’s appeal?“Companies come here for one simplereason: The fact that they are going to makemoney,” he says. ■By Oliver Kaye

8 Spain special advertising sectionThe wind in their salesThe wind took Columbus to theNew World. Now Spanishspecialists in wind and solarpower are discovering a lucrativeAmerican market for green energy.From the sky, Nevada is not what itused to be. A helicopter view nolonger reveals the usual charreddesert landscape intercepted byirrigated fields. Instead, giant pylons withrotor blades sit atop bluffs harvestingwind, while solar panels below formlakes of reflected light.As recently as two years ago, greenenergy generated $63 billion of investmentworldwide, much of it in NorthAmerica. For Spanish-based companieslike Iberdrola and Siliken, it is 1492 allover again.In 2007, a quarter of new globalwind-energy capacity was installed in theU.S. That amounts to 5 gigawatts of newcapacity, a clear signal for players inrenewable sources. According to NewEnergy Finance, a consultancy, the raceis fueled by concerns over global warmingand oil prices above $100 a barrel.Meanwhile, policymakers in Washingtonare busy negotiating permits and fiscalincentives. For the first time, the landmarkU.S. energy bill will include quotas for windand solar inputs for the country’s electricitygrid.“Wind is by far the most efficient formof alternative energy. It’s our present andour future,” says Xabier Viteri, chief executiveof Iberdrola Renovables, a subsidiaryof Spain’s eponymous utility.The parent company will invest $3billion this year to capitalize onregulatory changes for thermo-solar andtidal energy, in addition to its core marketin wind power.European firms like Iberdrola pioneeredcomplex online monitoring systemsfor turbines thousands of milesaway. Now their strategy is to go beyondtechnology. Their mission is to buy intoU.S. states with astrong wind-powerbase and a panoplyof tax breaks.“We have some21,000 megawattsin the pipeline for theU.S. Approximatelyhalf of our [global]investment will bedelivered to this market,”says Viteri.Critical factors inthe cost structure ofinvestments will depend on legislativesupport at the state level and ease ofdoing business.Viteri points to 26 states that have alreadydone their homework. They includeNevada and states in the Southwest andupper Midwest. Pennsylvania has approachedSpanish-based Gamesa, 25%of which is owned by Iberdrola. “Theyshared the vision of saving energy andcreating jobs in an industrial state with highpower demand. We now have 900megawatts of installed capacity there,”says Guillermo Ulacia, Gamesa’s president.After seeing Senator Barack Obamadeliver a campaign speech at a rotorbladefactory in Pennsylvania, Viteri isconvinced of the greening of America.“Whoever wins the election will bemore active than any other president inpromoting and supporting renewableenergy,” says Viteri. So far, IberdrolaRenovables has committed $13.4 billionin capital investments through 2010.With its excellent team in the U.S., Viterithinks organic growth now falls into therealm of transmission lines.For Spanish solar-cell manufacturerslike Isofotón, staying out of the renewablerenaissance is not an option. In thissecond wave of solar power, the size ofthe panels has gone down from 12 cm to1.5 mm.“We can concentrate solar radiationand obtain better results. We’ve dedicatedseven years to this process andour work is only now beginning to bearfruit,” says José Luis Manzano, chief executiveof Isofotón.For other manufacturers of photovoltaicpanels, the market window in theU.S. has been pushing growth rates of30% to 40%. Established in 2001, Silikenproduces photovoltaic modules that canmeet residential needs of 1 kilowatt, aswell as larger industrial needs of up to 1megawatt. Based in the region ofValencia, Siliken plans to capture theAmerican market with quality, price anddelivery time.An engineer by training, Carlos Navarrois now the director general of Siliken.Building a mutually beneficial relationshipis his strategy for the U.S., where Silikenis building a presence. The idea is to findlong-term clients and enter into agreementswith suppliers. Enthusiasm forrenewable energy is also a must.At the end of last year, Siliken had 600employees, up from 65 two years earlier.Turnover numbers were no less impressive.In 2007, Siliken made $218.4 millionin profits. This year, it is set to climbto $468 million and is now consideringgoing public. “In our early years, thetripling in size didn’t translate into massivegrowth in dollar terms. The real secretis having a long-term vision,” saysNavarro.A key to competitiveness is ownershipof its own silicon plants. Next year, a newfactory in the region of La Mancha willguarantee Siliken its own proprietarysilicon. In contrast to other Spanishbasedsolar firms, Navarro’s company isnot exclusively about building sunsensitivemodules. Among his top goalsis a future plan to optimize rotor-bladesand improve on the components of windturbines.“The founders of this company aremechanical engineers, so we’re alwayslooking to develop new products,” hesays.In the meantime, Siliken has opened amanufacturing plant in San Diego, Calif.The state offers an ideal combination ofhigh levels of income and levels of solarexposure similar to that of southernSpain, but the market often lags in theimplementation of renewable energylaws.“We’re surprised at how long incentivepackages take to be enacted.The potentialis there, it just lacks the regulatorysupport,” says Santiago Seage, chief executiveof Abengoa Solar. ■By Paul de Zardain

10 Spain special advertising sectionFrom fantasyto futuristicThe comic knight Don Quixotemade La Mancha famous, buttoday pioneering naturalenergy and cutting-edgeaerospace technology areputting the region on the map.Just over four centuries ago, DonQuixote, literature’s favorite knight,first set his lance at a windmill in theheart of Castilla-La Mancha. Today,Quixote’s creator, the impoverishedSpanish writer Miguel de Cervantes,would barely recognize the economicprosperity in the valleys and plains of hishero’s homeland.Quixote’s windmills have beenreplaced by wind turbines, many of theminstalled by U.S. giant GE Energy.Indeed, Castilla-La Mancha was Spain’sleading renewable-energy producer in2007, and last year the region was thefirst in Spain to introduce specificrenewable-energy legislation.The main objective of the law is that by2012, all of the electricity used by theinhabitants of Castilla-La Mancha will begenerated by renewable energy.Impressively, half the current electricalconsumption is already generated bynatural resources.The region is also a pioneer in photovoltaicenergy. The Research Institute forPhotovoltaic Systems has been createdin the town of Puertollano and will becomethe worldwide reference point forconcentration technologies. The instituteis currently developing solar-energygenerationtechniques with SolFocus ofCalifornia.Castilla-La Mancha’s Inward InvestmentAgency is located in Toledo, which wasdeclared a World Heritage Site by UNESCO.The agency promotes Castilla-La Manchaas a gateway for doing business in Spainand also cites the importance of the locationfor access to Portugal, NorthAfrica and the rest of Europe.José Manuel Díaz-Salazar, regionalminister of industry and technology, says:“Our investment agency is there to guidethe investor through every step of his venturein this region. We offer highly professionalassistance during the researchand development phase, and feedbackfrom clients helps us ensure a continuingservice of excellence.”With regional investment projects expectedto reach $7.5 billion by 2010, hehighlights the success of Castilla-LaMancha in attracting multinational companiessuch as Siliken, Iberdrola, GE,Silicio Solar, Vestas, BP, Abengoa,Gamesa Solar, Solaria and Energí.Abundant industrial zones and asteady supply of quality engineeringgraduates have been important in makingthe region particularly attractive toaerospace firms. Eurocopter Group, adivision of EADS, a world leader in aerospace,defense and related services,has established a factory in Castilla-LaMancha that is manufacturing fuselageFELIX ALAIN. PhotolibraryMICK ROCK. Photolibraryand key sections for its EC135 and Tigeraircraft.In the Toledo province, the use of carbon-fiberfuselage sections for largecommercial planes was first achieved byAirbus Spain at its Advanced CompositesCenter. It was this fiber-placement technologythat allowed for the manufactureof curvature panels for the Airbus 380, theEuropean 600-passenger super-jumbo aircraft.Effectively, these aerospace firmshave been creating an avionics businesscluster where technology and know-howare being shared for mutual benefit, andthe region’s authorities are keenly awareof their logistical needs.Ciudad Real Airport (Madrid South) isthe first private international airport inSpain with an investment to date of $1.6billion, and it will introduce elements ofopen-airport competition to the country.Minister Díaz-Salazar adds, “Locatedapproximately 200 kilometers south ofMadrid, Ciudad Real Airport will initiallypromote the socioeconomic developmentof this region through improvedaccessibility and interaction with otherstrategic projects, including a highspeedtrain (HST) link from the airport tothe capital and to Seville in the southernregion of Andalusia.“With GDP growth of more than 4% inthe past year and international investorsbeing increasingly attracted to Castilla-La Mancha, the visitors should aim tofind time to enjoy this historical region,”says Díaz-Salazar. “The La Manchaplain, one of the largest areas under vinecultivation in the world, was the wineryfor the Spanish Court for centuries, andwe are currently seeing a revival in theexport of some of the finest reds andclarets to come out of Europe.” ■By Mark McGivernPublisher: John Gasser. Managing Editor: Beverley Blythe;Project Managers: Clinton Cossette, Muriel Guaveia;Project Development: Charlotte Saint-Arroman;Commercial Directors: Lucas Montes de Oca,Carolina Mateo; Designer: Luis IribarrenCover Photo: © S. Osolinski/CORBIS.This special advertising feature was produced by InsightPublications, a division of Impact Media Global Ltd.53 Chandos Place, London WC2N 4HS, UK.Tel: +44 20 7812 6400 Fax: +44 20 7812 6413150 East 55th Street, 7th Floor, NY, NY 10022, USA.Tel: +1 212 751 1900 Fax: +1 212 751 0088www.insight-publications.come-mail:

12 Spain special advertising sectionSuper fuel from seaweedAutomobiles of the future may run on biofuels producedfrom sunlight and the seabed.Over the next decade, eco-friendlybiofuels made from marine algae couldreplace half the fossil fuels used to powerour cars, says one Spanish researcher.When Bernard Stroiazzo-Mougin, presidentof Biofuel Systems (BFS) inValencia, observed that photosyntheticalgae replicate a process that usuallytakes millions of geological years, heknew he was on to something big.“I wondered why we were still makingessentially the same car engine we had100 years ago, knowing that 75% of theenergy is lost in heat,” he says. “That’show I got to where I am today.”The thermodynamics engineer turnedto sea algae to create biocombustiblefuel. His goal was to match the ability of petroleumto carry one ton of weight over 500kilometers at a cost of 13 gallons of gas.He now admits his perplexity at theuncanny ability of sea life to turn sunlightinto energy. Algae fuel will not replace oilcrude tomorrow, he says, but it can helptrigger its demise. After all, the sun emits15,000 times more energy than humansare able to use.“Oceans are the greatest filter of CO2and the greatest source of biomass inthe world. We thought it was too good tobe true and that there would be a drawback,but there isn’t,” says Stroiazzo-Mougin. The groundbreaking processconverts eukaryotic cells into energywithin hours, minus the CO2 emissions,and the formula does not requirechanges in existing receptors like motorsand machines.Stroiazzo-Mougin says he hopes toreplace more than 50% of global oilproduction within ten years. ■By Paul de ZardainThoroughlymodern MurciaThis coastal community hasupdated its traditional industries,developed green technologies andcultivated award-winning wines.Of Spain’s 17 autonomous communities,the one that claims thefastest economic growth over thepast ten years is Murcia.Although less well known internationallythan other self-governing communitiessuch as Catalonia or the Basque Country,Murcia is rapidly acquiring a reputationfor the quality of its small- and mediumsizedbusinesses and the opportunities itoffers in the fields of renewable energy,water treatment and environmental technologies.“We’re leaders in these areas bynecessity as we’ve had to develop thesetechnologies due to the characteristics ofour climate,” says Severiano AriasGonzález, director of INFO, the regionaldevelopment agency.“We also have a big advantage when itcomes to the agility of our administration,”he says. “Because we are one of only fiveautonomous regions that consist of justone administrative province, it means thatbusinessmen who come here have fewerlayers to work through, and more andeasier access to the government.”Situated on the southwest coast, Murciahas successfully transformed its economyby modernizing and adding value to itstraditional industrial sectors of furnituremanufacturing and shoemaking. The agriculturesector has also moved furtherdownstream by cultivating award-winningwines, and new high-tech industries suchas information technology, biotechnologyand chemicals have been attracted to theregion.Murcia’s advantages include low industrialland prices, a social climate free of laborproblems, a flourishing science park,three top-tier universities with R&D capacities,150 miles of virgin Mediterraneancoastline known as Costa Cálida (the warmcoast) and a high quality of life.By Oliver Kaye

special advertising section13Spanish sparkleheads westWith much in common, thereis increasing cross-investmentbetween Spain and the the tourism sector.Spain sparkles more brightly thananywhere else in Europe thesedays, attracting 60 million foreignvisitors a year, more than any othercountry in the world with the exceptionof the U.S.In just over three decades, the Iberiannation has transformed itself from anunloved and isolated fascist dictatorshipunder General Franco to Europe’s mostdynamic state.Today, both Spaniards and touristsalike enjoy Chef Ferrán Adrià’s Michelinstarredcuisine, Pedro Almodóvar’sprovocative films and Real Madrid’sblood-stirring advances on the soccerfield.From its passionate flamenco dancingand bullfighting traditions through its richcultural and culinary heritage to its sundrenchedbeaches and heady nightlife,Spain arguably offers greater diversitythan anywhere else in Europe.Tourism earns the country $46 billionannually, more than anywhere apart fromAmerica, which takes in $74 billion eachyear.With such strengths in common, it’snot surprising that there is increasingcross-investment between Spain and theU.S. in the tourism sector.Rafael Hotels, a relatively new hotelgroup owned by Reyal Urbis, one ofSpain’s largest real estate companies, isplanning to expand in both the Iberianpeninsula and the U.S. “By establishingRafael Hotels, we are diversifying ourbusiness operations and entering asector that we think will experience solidgrowth,” says Rafael Santamaría Trigo,president of Reyal Urbis.The group has five high-end hotels inMadrid, two in Barcelona and one in theluxury Pyrenees ski resort of Baqueira,where members of the Spanish royalfamily have been among the celebrityguests.“We will diversify the chain geographically,specifically to the U.S., on the backof a strong euro,” says SantamariaTrigo. “We think that by creating urbanhotels aimed at the business traveler andup-market tourism, we will add to thefinancial stability of the group.”The company is currently developinga five-star hotel in Lisbon and has set itssights on entering the U.S. market byacquiring a New York hotel.“Our hotels in Barcelona and Madridare principally business hotels, butlogically, our business clients don’t workon weekends, so we also offer themcultural tourism facilities,” says DirectorGeneral Juan Escudero.The company’s aim is to have a chainof four- and five-star hotels spreadthroughout the capitals of Europe and toget its foot in the door of the Americanmarket.“We’re looking to purchase a functioninghotel and then remodel it to our standard,”says Escudero. ■By Michael KnipePedro Almodóvar and Penélope CruzCARLOS ALVAREZ

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