Monaco, situated on the French Mediterranean coast, is a popular resort, attracting tourists to its casino and pleasant climate. Tourism, ceramics, construction, cosmetics, chemicals, precision instruments, food products and plastics are major industries of Monaco. The state has no income tax and low business taxes and thrives as a tax haven both for individuals who have established residence and for foreign companies that have set up businesses and offices. About 40% of Monaco's annual revenue comes from value-added taxes on hotels, banks and the industrial sector. Monaco has a high standard of living. Tourism and low tax levels are major vehicles of growth for Monaco economy.