Cardiff - Economy

Economy

Main article: Economy and industry of Cardiff See also: List of tallest buildings in Cardiff

As the capital city of Wales, Cardiff is the main engine of growth in the Welsh economy. The economy of Cardiff and adjacent areas makes up nearly 20% of Welsh GDP and 40% of the city’s workforce are daily in-commuters from the surrounding south Wales area.

Industry has played a major part in Cardiff's development for many centuries. The main catalyst for its transformation from a small town into a big city was the demand for coal required in making iron and later steel, brought to the sea by packhorse from Merthyr Tydfil. This was first achieved by the construction of a 25-mile (40 km) long canal from Merthyr (510 feet above sea-level) to the Taff Estuary at Cardiff. Eventually the Taff Vale Railway replaced the canal barges and massive marshalling yards sprang up as new docks were developed in Cardiff – all prompted by the soaring worldwide demand for coal from the South Wales valleys.

At its peak, Cardiff's port area, known as Tiger Bay, became the busiest port in the world and—for some time—the world's most important coal port. In the years leading up to the First World War, more than 10 million tonnes of coal was exported annually from Cardiff Docks. In 1907, Cardiff's Coal Exchange was the first host to a business deal for a million pounds Sterling. After a period of decline, Cardiff's port has started to grow again – over 3 million tonnes of cargo passed through the docks in 2007.

Today, Cardiff is the principal finance and business services centre in Wales, and as such there is a strong representation of finance and business services in the local economy. This sector, combined with the Public Administration, Education and Health sectors, have accounted for around 75% of Cardiff's economic growth since 1991. The city was recently placed seventh overall in the top 50 European cities in the fDI 2008 Cities of the Future list published by the fDi magazine, and also ranked seventh in terms of attracting foreign investment. Notable companies such as Legal & General, Admiral Insurance, HBOS, Zurich, ING Direct, The AA, Principality Building Society, 118118, British Gas, Brains, SWALEC Energy and BT, all operate large national or regional headquarters and contact centres in the city, some of them based in Cardiff's office towers such as Capital Tower and Brunel House. Other major employers include NHS Wales and the National Assembly for Wales. On 1 March 2004, Cardiff was granted Fairtrade City status.

Cardiff is one of the most popular tourist destination cities in the United Kingdom, receiving 18.3 million visitors in 2010 and generating £852 million for the city's economy. One result of this is that one in five employees in Cardiff are based in the distribution, hotels and restaurants sector, highlighting the growing retail and tourism industries in the city. There are a large number of hotels of varying sizes and standards in the city, providing almost 9,000 available bed spaces.

Cardiff is home to the Welsh media and a large media sector with BBC Wales, S4C and ITV Wales all having studios in the city. In particular, there is a large independent TV production industry sector of over 600 companies, employing around 6000 employees and with a turnover estimated at £350 m. Just to the north west of the city, in Rhondda Cynon Taff, the first completely new film studios in the UK for 30 years are being built, named Valleywood. The studios are set to be the biggest in the UK. The BBC has announced it is to build new studios in Cardiff Bay to film dramas such as Casualty and Doctor Who, with the BBC intending to double media output from the city by 2016.

Cardiff has several regeneration projects such the St David's 2 Centre and surrounding areas of the city centre, and the $1.4 billion International Sports Village in Cardiff Bay which will play a part in London 2012 Olympics. It features the only Olympic-standard swimming pool in Wales, the Cardiff International Pool, which opened on 12 January 2008.

According to the Welsh Rugby Union, the Millennium Stadium has contributed GBP1 bn to the Welsh economy in the ten years since it opened (1999), with around 85% of that amount staying in the Cardiff area.