Tunis : The diversification card

Ranked first in Africa in terms of competitiveness at the last Davos Forum in 2008, Tunisia, despite its small size and 10.5 million inhabitants, came third in the Arab world and 32nd in the world on the political stability indicator out of 131 countries. "Our main asset is a middle class that represents around 80 % of the population, which is a good indicator of economic health," says Habib Gaida, Director General of the Tunisian-French Chamber of Commerce and Industry. What's more, per capita income is the highest in the Maghreb".

Growth of around 4 %

The signs are clear. Tunisia has the highest literacy rate of any country in North Africa and the Arab world, and women are playing an increasingly important role, with a baccalaureate pass rate of 60 % for girls and 40 % for boys in recent years. "All these indicators point to a climate conducive to annual growth currently hovering around 4 % - with the exception of 2009 - which is quite a good performance for a country devoid of natural resources," adds Habib Gaida. Clearly, Tunisia is playing the diversification card, and contrary to popular belief, its real wealth is far from being limited to agriculture and tourism. "Even though we are one of the world's leading exporters of olive oil and our tourism infrastructure is very well developed, 27 % of GDP comes from manufacturing and 60 % from services", adds the director. It's true that traditional production activities such as leather, textiles, chemicals and agri-food are still operating at full capacity, and it's also true that French companies are still setting up in Tunisia as part of a cost-cutting strategy - workers are paid six to seven times less than in France, and managers four times less - but it's clear that cutting-edge production is emerging in fields such as electronics, technical plastics, biotechnology, vehicle equipment and spare parts, and aeronautics. Recently, an Airbus subsidiary, Aerolia, set up in Tunisia to manufacture aircraft structures, and environmental projects, particularly involving solar and wind energy, are on the increase.

"As Tunisia cannot compete with countries such as Bangladesh or India, its strategy is to assert itself in the services sector," explains Habib Gaida. For several years now, this sector has accounted for the lion's share of GDP. "The country is becoming a veritable services platform, with high performance in offshoring, the relocation of service or production activities... Like the famous call centres, for example," explains Habib Gaida. According to Jacques Torregrossa, Director of Ubifrance Tunisia, these offshoring service centres, which numbered just 14 in 2002, now number almost 230. This is because, in addition to representing a gain on salaries, offshoring in Tunisia offers major tax advantages. "Exporting companies are exempt from income tax for ten years", concludes Habib Gaida. An efficient training system, low human resources costs, an attractive tax regime, numerous investment opportunities, a modern telecommunications network, pleasant living conditions: the Tunisian account is truly good.

Jacques Torregrossa continues: "Rather than being a handicap, the lack of oil and gas resources in Tunisia's subsoil is undoubtedly a blessing. After all, many hydrocarbon-producing economies are struggling to manage the post-oil era and diversify their economies. So Tunisia is banking on another source of wealth: its major projects. At El Ghazala, for example, a centre dedicated to information and communication technology founded in 1999 on the outskirts of Tunis, Alcatel-Lucent, Telnet, Ericsson, HP and Tunisie Telecom rub shoulders, as well as leading schools, start-ups and training centres such as the Microsoft centre. This success will soon be reflected in an additional 100,000 m2 of space. As a result, this technology park strategy has spread to other towns and cities. Sfax, the country's second-largest economic centre, is focusing on biotechnology, while Sousse is interested in mechanical engineering, Bizerte in agri-food and Borj Cedria in health. "The development of these clusters goes hand in hand with a constant drive to improve infrastructure and transport," explains Ubifrance's director. The major projects include several thermal power plants and a nuclear unit, an airport (350 million euros) and at Enfidha a deep-water port worth more than 1 billion euros, a power station (360 million euros), a new Régiola rail network (2 billion euros) and "Tunisie Telecom City" (3 billion dollars).1 "France will be heavily represented in these projects, and we already know that Alstom will operate the future Tunis 'RER'," stresses Jacques Torregrossa.

One of the leading partners in France

The third largest investor in Tunisia, France is also its leading customer, absorbing 29.6 % of Tunisian exports (compared with 29.3 % in 2008), ahead of Italy (21 %) and Germany (8.8 %). Since January 2008, these figures have been further boosted by the opening of a free trade zone for industrial products. French SMEs have a strong presence here," continues Jacques Torregrossa, "and in 2009, 75 new French establishments created 3,800 new direct jobs. Tunisia is France's 21st customer and 22nd supplier, and the number of French exporters stands at around 1,200, making Tunisia one of France's top ten partners.

In terms of performance, France is the leading contributor to Tunisian tourism revenue, accounting for 0.5 billion euros, or 26 % of the total. No, tourism is not the country's main source of revenue, far from it, since it only contributes a small 7 %. And yet things are changing in this area too. The mass tourism of the 1980s and 1990s is gradually being replaced by tourism based on a quest for quality and distinction. "In 2001, we were the first to open a dar, the Tunisian equivalent of a Moroccan riad, and to launch a concept based on the preservation of architectural and cultural heritage," explains Karim Ben Hassine Bey, manager of the Dar Saïd hotel in Sidi Bou Saïd. Since then, in response to demand, the concept has spread and the transformation of this beautiful nineteenth-century mansion into a luxury establishment has been emulated by a growing number of upmarket alternatives to 'club hotel tourism'. When it opened in 2005, the Villa Didon, a design hotel in the heights of Carthage, was seen as avant-garde, but it will soon be caught up this autumn by the cutting-edge Dar-Hi, in the Nefta region, designed by Matali Crasset. And the chronicle of announced luxury continues with the renovation of the Majestic hotel into a 4-star hotel. David Sierra, general manager of The Residence Tunis, the only Tunisian hotel affiliated to Leading Hotels of the World, also acknowledges that "exceptional tourism is asserting itself", while admitting that he has plans to open a hotel in the Tozeur region. The important thing is to raise standards that are still too low. "Between now and 2012, we want to bring ourselves into line with more international standards, so as to win the loyalty of our business clientele, in particular with ISO certification, fast check-in and check-out formulas and room service facilities", continues David Sierra. This desire for openness is also reflected in an open-sky project providing more international connections, such as soon with Canada, as well as new 5-star hotels, such as the Mövenpick in Tunis, which opened last September. "As all these business hotels are not far from each other, we can objectively hope for a convention centre close to Carthage," concludes David Sierra. In contrast to the Sea Sex and Sun of Epinal, a contemporary, chic Tunisia is definitely looking to the future.