Zurich – The location marketing services of Greater Zurich Area AG (GZA) is contributing to the sustainable development of the Greater Zurich Area economic region by creating new jobs, leading to higher tax revenues and increasing the location’s competitive edge. These are the findings of a new report by the consultancy firm EY.
GZA and its public partners from its member cantons and cities are making a qualitative and sustainable contribution to the development of the Greater Zurich Area economic region, according to a new analysis conducted by the consultancy firm EY. Between 2014 and 2017, 369 companies moved into the Greater Zurich Area thanks to GZA’s location marketing services, creating a total of 2,212 jobs.
EY had previously analysed GZA’s successes between 2009 and 2014. When looked at over the entire time period from 2009 to 2017, 835 companies moved into the region and created 7,423 full-time jobs.
According to the report, the relocations between 2014 and 2017 brought the Greater Zurich Area additional tax revenues of 55 million Swiss francs, a “cautious estimate” that consists of corporate taxes and individual employee taxes on income and assets. For the total period from 2009 to 2017, tax revenues came to around 356 million francs. In contrast, some 59 million francs were spent by the public sector on the total costs of the location marketing services. In the medium term, this means that each franc of tax spent on location marketing resulted in around 6 million francs in new tax revenues.
EY also found a positive correlation between GZA’s location marketing services and the technological development and internationalization of the business location. In particular, after companies such as Google, Disney and Biogen moved to the region, other innovative and technology-oriented firms also opted to open offices in the Greater Zurich Area economic region. Since most of the companies based in the region are also active on a global level, this further increases the location’s international competitiveness.
According to the report, international companies relocating to the Greater Zurich Area economic region will ultimate benefit Switzerland as a whole because the economic added value of each relocation is generated not only at the company’s location but even more so regionally, such as at the employees’ place of residence or at supplier companies.