Editing Melilla (section)

== Economy ==
The [[gross domestic product]] (GDP) of the autonomous community was 1.6 billion euros in 2018, accounting for 0.1% of Spanish economic output. GDP per capita adjusted for purchasing power was 19,900 euros or 66% of the EU27 average in the same year. Melilla was the [[Nomenclature of Territorial Units for Statistics|NUTS2]] region with the lowest GDP per capita in Spain.<ref>{{Cite web|url=https://ec.europa.eu/eurostat/documents/2995521/10474907/1-05032020-AP-EN.pdf/81807e19-e4c8-2e53-c98a-933f5bf30f58|title=Regional GDP per capita ranged from 30% to 263% of the EU average in 2018|website=Eurostat}}</ref>

Melilla does not participate in the [[European Union Customs Union]] (EUCU).{{Sfn|Morón Pérez|2006|p=64}} There is no [[VAT]] (IVA) tax, but a local reduced-rate tax called IPSI.{{Sfn|Morón Pérez|2006|p=67}} Preserving the status of [[free port]], imports are free of tariffs and the only tax concerning them is the IPSI.{{Sfn|Morón Pérez|2006|pp=67–68}} Exports to the Customs Union (including Peninsular Spain) are however subject to the correspondent customs tariff and are taxed with the correspondent VAT.{{Sfn|Morón Pérez|2006|pp=67–68}} There are some special manufacturing taxes regarding electricity and transport, as well as complementary charges on tobacco and oil and fuel products.{{Sfn|Morón Pérez|2006|p=68}}

'''Labor market'''

The labor market in Melilla in 2023 shows an [[Unemployment|unemployment rate]] of 27.42%, the second-highest in Spain. The [[employment rate]] is 42.55%, lower than the national average. The [[services sector]] leads in affiliations and hiring, with 90% of contracts in this sector. Despite an improvement in contract stability, the total number of contracts decreased by 16.45%. Melilla remains a region that exports young workers, mainly to Andalusia. The most commonly hired occupations are low-skilled jobs, such as cleaning staff and waiters. Prospects for 2024 are positive in sectors such as [[retail]] and [[catering]], although mismatches between supply and demand for employment persist due to a lack of proper training.<ref>{{Cite journal |url=https://www.sepe.es/dctm/informes:09019af480252153/RElTRVdFQg==/4267-1.pdf |title=Labor Market Report of Melilla Data 2023 |journal=Public State Employment Service SEPE}}</ref>{{wide image|Melilla noche, vista general.jpg|770px|Night view of Melilla (centre) and [[Beni Ansar|Beni Ensar]] in [[Morocco]] (right)}}

=== Tertiary sector ===
The economic sector that generates the most wealth and employment is the [[Tertiary sector of the economy|services sector]], which accounts for 80% of the 1.564 billion euros of GDP in 2018, and employs 32% of the population (2021). The principal industry is fishing. Cross-border commerce (legal or smuggled) and Spanish and European grants and wages are the other income sources.

; Business activity

In 2022, there were a total of 4,856 companies in the city, generally small-sized. Of these, 2,617 were dedicated to commerce, transportation, and hospitality, 1,714 to services, 615 to professional and technical activities, and the rest to other services.<ref>{{Cite web |title=Melilla - How many companies are there in your municipality? |url=https://www.epdata.es/datos/numero-empresas-municipio-localidad/140/melilla/4494 |accessdate=2025-04-02 |website=www.epdata.es}}</ref>

Melilla is regularly connected to the Iberian peninsula by air and sea traffic and is also economically connected to Morocco: most of its fruit and vegetables are imported across the border. Moroccans in the city's hinterland are attracted to it: 36,000 Moroccans cross the border daily to work, shop or trade goods.<ref name="vk1">English translation of Volkskrant article: [http://www.presseurop.eu/en/content/article/309191-melilla-north-africa-s-european-dream Melilla North-Africa's European dream] {{Webarchive|url=https://web.archive.org/web/20120307004142/http://www.presseurop.eu/en/content/article/309191-melilla-north-africa-s-european-dream |date=7 March 2012 }}, 5 August 2010, visited 3 June 2012</ref>

==== Commerce ====
In Melilla, there are various commercial establishments, including the Centro Comercial Parque Melilla, several [[Department store|department stores]], [[hypermarkets]], and [[supermarkets]]. Among the most notable are those belonging to major distribution chains, such as the hypermarket [[Carrefour]], with a branch in the city, [[Mercadona]], with one store, [[DIA (supermarket chain)|Dia]], with three locations, [[Lidl]], with one store, and [[Aldi]], with one store.<ref>{{Cite web |last=Food |first=Financial |date=2020-02-26 |title=Murias Parque Melilla shopping center increased its sales by 16.2% in 2019 |url=https://financialfood.es/el-centro-comercial-murias-parque-melilla-elevo-sus-ventas-un-162-en-2019/ |accessdate=2025-03-22 |website=Financial Food |language=es}}</ref>

Moreover, trade with Morocco has historically been key to the economy of Melilla, especially through the commercial customs office, which facilitated the passage of essential goods for the city. However, in 2018, Morocco closed this customs office, severely affecting Melilla’s merchants and the approximately 5,000 cross-border workers who depended on informal trade. In 2020, the border closure due to the pandemic further exacerbated the situation, limiting commercial exchange.

In 2025, after nearly three years of negotiations, Spain and Morocco agreed to reopen the commercial customs offices, though with new restrictions on the products that could cross and a limit on the number of trucks per day. This agreement, although limited, has allowed a partial recovery of cross-border trade, providing relief to the sectors most affected in Melilla.<ref>{{Cite web |title=Economic sector and province employment (3990) |url=https://www.ine.es/jaxiT3/Datos.htm?t=3990 |accessdate=2022-02-13 |website=INE |language=es}}</ref><ref>{{Cite web |date=2020-02-21 |title=Morocco considers the end of atypical commerce in Melilla |url=https://elfarodemelilla.es/marruecos-da-por-finiquitado-el-comercio-atipico-en-melilla/ |accessdate=2022-02-13 |website=El Faro de Melilla |language=es-ES}}</ref><ref>{{Cite news |date=2021-07-06 |title=Morocco is considering permanently closing the borders with Ceuta and Melilla |url=https://www.niusdiario.es/internacional/africa/marruecos-plantea-definitivamente-fronteras-melilla_18_3166020487.html |language=es-ES |work=Nius Diario}}</ref>

==== Public administration ====
Melilla is a region where the [[Public Administration of Spain|Public Administrations]], especially the [[Ministry of Defence (Spain)|Ministry of Defense]], have a significant weight in the economy, accounting for a total of 47%, a circumstance it shares with Ceuta. In 2015, a Technology Center was inaugurated with the aim of promoting the development of ICT companies.<ref>{{Cite news |date=December 28, 2010 |title=The technology center will open Melilla to join the R&D+i network |url=https://www.diariosur.es/v/20101228/melilla/centro-tecnologico-abrira-melilla-20101228.html |access-date=July 31, 2018 |newspaper=Diario Sur |language=es-ES}}</ref><ref>{{Cite news |title=Melilla inaugurates its Technology Center for training and employment in R&D+i |url=https://www.diariosur.es/agencias/andalucia/201503/13/melilla-inaugura-centro-tecnologico-337557.html |archive-url=https://web.archive.org/web/20180731062110/https://www.diariosur.es/agencias/andalucia/201503/13/melilla-inaugura-centro-tecnologico-337557.html |archive-date=July 31, 2018 |access-date=July 31, 2018 |newspaper=hoy.es |language=es-ES}}</ref><ref>{{Cite news |title=Inaugurates the Technology Center, which could start operating in May |url=http://www.melillamedia.es/n/5762/inauguran-el-centro-tecnologico-que-podria-empezar-a-funcionar-en-mayo |archive-url=https://web.archive.org/web/20180731062209/http://www.melillamedia.es/n/5762/inauguran-el-centro-tecnologico-que-podria-empezar-a-funcionar-en-mayo |archive-date=July 31, 2018 |access-date=July 31, 2018 |website=melillamedia.es}}</ref><ref>{{Cite web |title=Melilla gains momentum |url=https://europa.eu/investeu/projects/ict-culture-melilla_es |access-date=July 31, 2018 |website=investEU |language=es}}</ref>

=== Secondary sector ===
The [[Industry (economics)|industry]] in Melilla played a significant role during the 20th century, especially in agricultural and canning production. In the early 20th century, the [[fishing industry]] stood out the most, with fish canning factories such as the one founded in 1907 by Luigi Dassori, the ''San Luis'' cannery. This industry grew rapidly, driven by the export of fish products to other cities in mainland Spain and Mediterranean countries.<ref>{{Cite journal |last=Saruel Hernández |first=Fernando |date=2018 |title=Melilla: su pasado industrial |url=https://dialnet.unirioja.es/servlet/articulo?codigo=6992377 |journal=II Congreso Internacional de Patrimonio Industrial y de la Obra Pública: Patrimonio Industrial: Pasado, presente y futuro, 2018, ISBN 9788409120383, págs. 79-90 |publisher=Fundación Patrimonio Industrial de Andalucía |pages=79–90 |isbn=978-84-09-12038-3}}</ref>

In addition to fishing, Melilla also developed a processing industry for products such as flour, yogurt, wine, and oil, supported by its agricultural activity. The “Granja Agrícola del Estado” (State Agricultural Farm) played a key role in the development of local production, which remained active until the mid-1990s. However, urbanization and a lack of water resources eventually hindered these productive sectors.<ref>{{Cite web|url=https://melillahoy.es/melilla-cuando-era-conocida-como-la-amrica-chica/|title=Melilla, cuando era conocida como "La América Chica" - MelillaHoy|access-date=2025-04-11|last=Mohamed|first=Farid|date=2020-08-13|language=es}}</ref>

Despite the industrial importance of fishing and agriculture in the past, industrial activities in Melilla have now significantly declined. Former factories have been replaced with other uses, and the city's economy has shifted toward the [[service sector]], largely due to urban growth and a shortage of natural resources like water.<ref>{{Cite web|url=https://elalminardemelilla.com/2011/07/04/el-pasado-industrial-de-melilla/|title=El pasado industrial de Melilla|access-date=2025-04-11|last=Hospitalario|date=2011-07-04|website=El Alminar de Melilla|language=es}}</ref>

=== Primary sector ===
Melilla has a small territory, much of which is occupied by urban land, and a significant portion belongs to the [[Ministry of Defence (Spain)|Ministry of Defence]]. This limits the development and use of land, which is essential for the [[primary sector]] and other economic activities. Land management must balance urban, defense, and productive interests.

==== Agriculture and livestock ====
Until the 1980s, [[livestock]] and [[agriculture]] were key sectors of Melilla’s economy, with orchards covering over a third of the territory, producing vegetables, cereals, and animal products that were even exported to mainland Spain. The creation of the “State Agricultural Farm” was essential to local agricultural development. However, from the 1980s onward, urbanization and water scarcity led to the decline of these sectors. Despite efforts to revive agriculture through a 1994 “Irrigation Plan,” the activity faded and is now limited to small-scale subsistence farming.<ref>{{Cite web|url=https://www.planestrategicomelilla.net/f14_01.htm|title=Ciudad Autónoma de Melilla|access-date=2025-04-11|website=www.planestrategicomelilla.net}}</ref><ref>{{Cite web|url=https://elfarodemelilla.es/el-gobierno-anuncia-la-compra-de-villa-pilar-para-su-recuperacion-agricola-y-medioambiental/|title=El Gobierno anuncia la compra de Villa Pilar para su recuperación agrícola y medioambiental - El Faro de Melilla|access-date=2025-04-13|date=2025-03-17|language=es}}</ref>

==== Fishing ====
[[File:Dársena del puerto de Melilla.jpg|left|thumb|Fishing dock of Melilla]]

[[Fishing]] in Melilla has been significant since ancient times, peaking in the early 20th century. In 1907, the San Luis cannery boosted exports, especially of sardines. From 1914 onward, Andalusian fishing boats arrived for the “Winter Campaign,” increasing production.<ref>{{Cite web|url=https://melillahoy.es/melilla-cuando-era-conocida-como-la-amrica-chica/|title=Melilla, cuando era conocida como "La América Chica" - MelillaHoy|access-date=2025-04-11|last=Mohamed|first=Farid|date=2020-08-13|language=es}}</ref>

The most common species were [[sardine]]s, [[tuna]] and [[seafood]], much of which was exported to other countries. The fleet was modernized through motorization, with over 100 boats operating by 1930.<ref>{{Cite web|url=https://elfarodemelilla.es/la-darsena-pesquera-de-melilla-un-pasado-un-presente-y-un-futuro-prometedor/|title=La Dársena Pesquera de Melilla: Un pasado, un presente y un futuro prometedor - El Faro de Melilla|access-date=2025-04-11|date=2024-05-11|language=es}}</ref>

More modern fishing facilities were built over the years, such as [[fish markets]] in 1916 and 1921. The [[canning]] and [[Salting (food)|salting]] industries, including San Luis, provided jobs for many locals.<ref>{{Cite web|url=https://elfarodemelilla.es/la-pesca-uno-de-los-sectores-mas-olvidados-de-toda-melilla/|title=La pesca, uno de los sectores más olvidados de toda Melilla|access-date=2025-04-11|date=2022-10-25|language=es}}</ref>

However, from the 1980s, the sector began to decline due to overfishing and regulatory restrictions, despite the founding of the Fishermen's Guild in 1945.<ref>{{Cite web|url=http://www.elpueblodeceuta.com/200808/20080811/200808116102.html|title=elpueblodeceuta.com|access-date=2025-04-11|website=www.elpueblodeceuta.com}}</ref>

==== Mining ====

===== Melilla–San Juan de las Minas railway line =====
The Melilla–San Juan de las Minas railway line, inaugurated in 1914, was vital to Melilla’s economy by enabling the transport of iron ore from the [[Rif]] region to its port. Operated by the Compañía Española de Minas del Rif, it boosted industrial activity, port trade, and infrastructure investment. Its profitability declined after the [[independence of Morocco]] and the rise of road transport, leading to its closure in 1972. It was one of Melilla’s economic drivers in the 20th century.<ref>{{Cite web|url=https://www.spanishrailway.com/ferrocarril-de-la-compana-espanola-de-minas-del-rif-protectorado-de-marruecos/|title=Spanish Railway » Blog Archive » Ferrocarril de la Compañía Española de Minas del Rif – Protectorado de Marruecos|access-date=2025-04-13|language=es}}</ref>[[File:Vista_desde_Melilla_la_Vieja.jpg|thumb|Melilla from [[Melilla la Vieja]]]]

=== Strategic Comprehensive Plan of Melilla ===
Melilla has developed a Strategic Comprehensive Plan with the aim of transforming its production model, focusing on three key sectors: tourism, the digital economy, and the green and circular economy. These sectors currently have a limited impact on the city, but they are considered to offer significant opportunities to diversify the economy and improve employment.<ref>{{Cite web |title=Melilla entrusts its future to the tourism sector, digital economy, and green and circular economy - El Faro de Melilla |url=https://elfarodemelilla.es/melilla-encomienda-su-futuro-al-sector-turistico-a-la-economia-digital-y-a-la-verde-y-circular/ |access-date=2025-03-15 |language=es}}</ref><ref>{{Cite web |title=Turismo Melilla |url=https://bonosmelilla.es/ |access-date=2025-03-19 |website=bonosmelilla.es |language=es}}</ref>

==== Tourism sector ====
{| class="wikitable" border="1" style="float: right; margin-left: 3em; padding-left: 2em; font-size: 90%;"
!colspan=4|Hotel Beds in Melilla in 2023
|-
!colspan=2|Type||Establishments||Beds
|-
| rowspan="4" |Hotels
|4 stars ||2||339
|-
|3 stars ||3||400
|-
|1 star ||1||35
|-
|Total||6||774
|-
| rowspan="3" |Hostels
|2 stars ||1||21
|-
|1 star ||1||21
|-
|Total||2||42
|-
| rowspan="2" |Guesthouses
|1 star ||2||22
|-
|Total||2||22
|-
! colspan="2" |Total||10||838
|}
The tourism sector in Melilla has enormous potential due to its historical heritage and its ties with Morocco, but faces challenges such as high transportation costs and the lack of a clear strategy. The Strategic Plan proposes rehabilitating historical heritage for tourism purposes, developing an international promotion plan, and fostering financing for tourism businesses, as well as implementing a tourism resilience strategy to improve infrastructure and attract more visitors. Currently, Melilla has 10 hotel establishments and 838 beds, which represents a limited capacity. Although occupancy has increased, reaching 58% in 2023, there is a recognized need to improve hotel infrastructure. In this regard, the Autonomous City is working on several projects to expand the offer, such as converting the Governor's House into a hotel, the rehabilitation of the [[Paradores de Turismo de España|Parador]], and the construction of a new hotel in the Explanada de San Lorenzo, in addition to offering subsidies to improve existing hotels, with the aim of strengthening the tourism sector, especially in the areas of conferences and events.<ref>{{cite web|periodical=Patronato de Turismo de Melilla |title=Bonos Melilla |url=https://bonosmelilla.es/}}<!-- auto-translated from Spanish by Module:CS1 translator --></ref><ref>{{cite web|title=Bonos Turísticos para visitar Melilla |url=https://bonosmelilla.es/}}<!-- auto-translated from Spanish by Module:CS1 translator --></ref><ref>{{cite web|access-date=2025-03-29 |language=es |title=La Ciudad trabaja en aumentar la oferta hotelera aunque aún hay "margen" - El Faro de Melilla |url=https://elfarodemelilla.es/la-ciudad-trabaja-en-aumentar-la-oferta-hotelera-aunque-aun-hay-margen/}}<!-- auto-translated from Spanish by Module:CS1 translator --></ref>

==== Digital economy ====
The plan seeks to strengthen the digital economy by modernizing the industrial fabric and SMEs, investing in digitalization, and improving the capabilities of businesses and workers. This would help diversify the economy, reduce dependence on the public sector, and take advantage of technological market opportunities.<ref>{{Cite news |title=digital economy - MelillaHoy |url=https://melillahoy.es/tag/economia-digital/ |access-date=2025-03-15 |newspaper=MelillaHoy - El Periódico de Melilla |language=es-ES}}</ref>

==== Green and circular economy ====
To promote a sustainable economy, the Plan includes measures to improve waste recycling, boost energy self-consumption (through energy communities), and increase energy efficiency, particularly in the tourism sector. It also highlights projects such as marine conservation and improving the water supply.

The port of Melilla offers several daily connections to [[Almería]] and [[Málaga]]. [[Melilla Airport]] offers daily flights to Almería, Málaga and [[Madrid]]. Spanish operator [[Air Nostrum|Iberia Regional/Air Nostrum]] operate in Melilla's airport.

Many people travelling between Europe and Morocco use the ferry links to Melilla, both for passengers and for freight. Because of this, the port and related companies form an important economic driver for the city.<ref name="vk1" />