The Principality of Monaco
By: Abby Hindle, Halal Incorp
Monaco, or the Principauté de Monaco, is a sovereign principality along the French Riviera that enjoys a reputation as a place of incredibly luxurious lifestyles. Synonymous in the public imagination with gambling, glamour, and millionaires, with its mild climate, scenery, low-income tax and internationally known events such as the Grand Prix, there are many reasons why it draws the attention of the wealthy and famous and has earned a reputation as one of the most luxurious tourist destinations around the world.
The Principality of Monaco is a small city-state – the smallest only behind the Vatican City, with around 35000 permanent residents – situated on the Côte d’Azur (French Riviera) at the foothills of the Southern Alps, surrounded by the Mediterranean Sea. This idyllic location gives it the climate and scenery needed to be a year-round holiday destination. It is a constitutional monarchy ruled by the Grimaldi royal family since 1297 and has been ruled by them continuously ever since, except for two decades during the French Revolution.
It is currently ruled by Prince Albert II, son of Rainier III and American film star Grace Kelly, who took over from his father in 2005 after his father’s death. The country began to gain its current status as a tourist destination for the wealthy in the late 1800s, after the opening of the Casino de-Monte Carlo, which opened and re-opened multiple times between the 1850s and 60s until its final opening in 1863. It has been a major attraction and source of tourism revenue for the country ever since.
The country is divided into 10 ‘wards’, residential and resort districts, the traditional wards being Monaco-Ville, Monte-Carlo, La Condamine and Fontvieille. Monaco-Ville is the old town, nicknamed The Rock (Le Rocher), and holds most of Monaco’s government buildings. Monte-Carlo is the most famous district, synonymous with gambling and glamour, and is the main resort area of Monaco. Fontvieille is newer, constructed from reclaimed sea-bed in the 1970s. these are the four traditional quarters of Monaco.
Over one-third of Monaco’s residents are millionaires, with 1 in 56 having assets worth at least $30 million. This means it has the most millionaires and billionaires per capita in the world. A large draw for the wealthy residents is the fact that the government of Monaco has never introduced an income tax on its residents. Low business taxes also attract many foreign businesses to Monaco, making up a large percentage of its economy. Its reputation as a tax haven makes it appealing to those with high incomes. It is also less isolated than many offshore tax havens, being situated close to France and Italy, making it a more desirable place to live for those who don’t wish to be cut off.
Health and crime statistics also contribute to the city state’s appeal, having one of the lowest crime rates and highest life expectancies in the world – among the first of the OECD countries. As a result, it has one of the lowest poverty rates in the world, with an unemployment rate of 2%. The government gains most of its revenue through taxes on commercial transactions, franchises on media like TV and radio and state monopolies on items such as cigarettes.
Another major form of revenue is tourism, accounting for 15% of the country’s income, a result of the country’s well-earned reputation for luxury living. An average luxury holiday in Monaco costs £3614, compared to Paris (£4549) and Copenhagen (£2470). The result of all this is an extremely healthy annual GDP, the second highest in the world; its GDP per capita was estimated in 2019 to be around £122143. This puts it as one of only four countries in the world with a GDP per capita over £800000
The standard of luxury living in the Principality of Monaco is high, as demonstrated by the index created by Hushhush.com, the so-called ‘Amazon for millionaires’’. The site has created an index to rank the luxury lifestyles available in various cities by such metrics as the amount of Michelin star restaurants and five-star hotels, such as the Grand Hotel cap Ferrat, available per square kilometre, and has found that Monaco came out far ahead of other competitors, the closest being Copenhagen and Paris. The cost of the luxury lifestyle was also found to be extravagant and far ahead of other countries, being 148% higher than its closest rival, London, at around £40410 a month.
The Principality of Monaco is well-situated by the Mediterranean Sea, a very short drive (or flight) from Italy and France. Its climate is incredibly mild, ranging from an average of 10 C in January to 24 C in August, making it a year-round ideal holiday destination. In addition to the weather and the beauty of its natural scenery, many of the older parts of the city, such as the Casino, are made in the Belle Epoque architectural style. This style is dominated by features such as turrets, pinnacles and balconies, which combine to create a picturesque style. Other areas are less so, being made up of high-rise buildings to accommodate the high-density population (the highest population density in the world) but that is more than made up for by the lifestyle afforded to the residents.
For those who prefer more excitement than sunny weather and beaches can provide, it is also home to its renowned casinos such as the Casino de Monte-Carlo, one of the most prestigious casinos worldwide, where high rollers go to burn through their excess cash. As a landmark and a historical institution, it brings in a great amount of revenue (approximately 4% of Monaco’s revenue is gained from gambling) to Monaco and is much loved by visitors and residents alike. While most of Monaco’s economy is generated through finance and accounting, the small country relies on outsiders to bring in funds to maintain the high standard of living that is such an attraction.
The casino brings in a large number of these outsiders, attracted by the glamour and prestige of the institution, and the money spent by tourists on food, accommodation, and entertainment contributes greatly to the economy, allowing residents to continue to enjoy the lifestyle they enjoy.
Stepping outside of the casino, there is also the option for luxury shopping, with the One Monte-Carlo sitting directly across from the Casino de Monte-Carlo. Home of many prestigious luxury brands, with some of the biggest names in haute-couture, fashion and beauty available in one space, it is ideal for anyone with an appreciation for the extravagant. Monaco also plays host to many internationally renowned events and celebrations, such as hosting the Monaco Grand Prix, part of the Formula One motor race and often considered one of the most important events.
For those whose interest in vehicles extends beyond the races, there is the Monaco Top Cars Collection, a car museum that holds the personal collection of Prince Rainier II, a collection amassed over a period of 35 years. For those more interested in other forms of luxury travel, The Principality of MonacMonaco’s status as the playground of the wealthy is exemplified by its hosting of the Monaco Yacht Show, an international superyacht event held annually in late September. The event also showcases other goods from high-end markets, such as cars, helicopters, and private jet manufacturers.
The Principality of Monaco, home to the world’s most prestigious casinos, balmy weather, incredible restaurants and hotels and world-renowned events, Monaco has thoroughly earned its status as a tourist hotspot and magnet for those seeking to enjoy a life of luxury.
Disclaimer: The view of the author does not necessarily represent the views of Halal Incorp