Issue:

Analyze and select a country for the new Universal Studios Theme Park. The options are France, Italy, or Spain.

Recommendation:
Construct the theme park in Barcelona, Spain based on:
Weather and Tourism Business, Utility, Labor, and Land costs Economics GDP, Population, Work Week Transportation

Weather:
Weather in Spain is conducive to year-long tourism Moderate climate invites tourists from Northern Europe
Country: April Temp F August Temp F October Temp F Rank: Spain 61 84 65 2 Italy 65 87 73 1 France 57 75 59 3

Tourism:
60 million tourists to Spain in 2010 Popular vacation spot for Europeans
Spain Tourism Revenue 2010 World Rank Rank $53 million 4 2 Italy $46 million 5 3 France $76 million 1 1

There is a high influx of tourists

Business Costs:
Corporate Income Tax Rates
25-30% 31.4% 33.3% 1
2 3
Represents a great opportunity to save money on corporate costs

Utility Costs:
Spain
Unleaded Fuel (USD/gallon) Diesel Fuel (USD/gallon) Natural Gas (USD/kWh) Electricity (USD/kWh)

Italy 8.297 7.766 0.0667 0.2032

France 8.276 7.391 0.0681 0.0991

6.813 6.793 0.0582 0.1635

Lower utility costs are key to lowering expenses

Labor Costs:
Spain $/hr Rank 18.30 1 Italy 24.50 2 France 31.90 3

Spain has lower labor costs

Applies to construction and operations

Saved labor costs have large effect in the long term success

Land Costs:

Spain has lower labor costs

Applies to construction and operations

Saved labor costs have large effect in the long term success

Labor Costs:

Due to the recession, Land costs in Spain have fallen dramatically

Economy: GDP
Spain GDP PPP GINI GNI per cap Ranking: 1.41 trillion 29,830 32 $31,640 3 Italy 2.05 Trillion 29,480 36.03 $35,090 2 France 2.5 Trillion 33,910 40 $34,440 1

Despite recessions, Spains economy is still on par with France and Italys

Economy: Working Conditions

Spain Ease of Doing Business (World Rank) Paid Vacation Days Hours/Week Ranking Italy France 44 36 days 38 2 83 42 days 40 3 29 40 days 35 1

Ranked #44 in ease of doing business Spain is in average in terms of working hours

Economy: Labor and Population

Spain Unemployment Population Ranking 21.5% 46 million 3 Italy 7.80% 60million 1 France 9.3% 66 million 2

Universal can capitalize on the high amounts of available labor Spain has smallest population, but is close in proximity to other larger countries

Transportation:
Spain KM of Highspeed rails Ranking 2,665 1 Italy 926 3 France 1,897 2

Spain offers cheap local transportation 30 million passengers/year in Barcelona Airport Low-cost international flights and trains

Why Barcelona, Spain?

Spain Weather Tourism Business Costs Utility Costs Labor Costs 2 2 1 1 1 Italy 1 3 2 3 2 France 3 1 3 2 3

Overall Economy
Population Ease of Business Transportation Total

3
3 2 1 16

2
1 3 3 20

1
2 1 2 18

Thank You.