Marinas crucial for nautical tourism to thrive
Brendan Casey, the president of Riviera India, the Mumbai-based affiliate of the Australian based yacht building firm talks to Lionel Messias about the potential in India amidst a perceived interest from Indian buyers seeking to grab a piece of the action in a sporting industry that is beyond the sockets of most.
How do you see the yacht market in India?
I see the yacht market in India n its infancy. I have seen by being present at the Goa Boat Show in January that there is much interest and curiosity in pleasure boating, t attracted interest from both individuals and hotels regarding the Riviera Flybridge, Sports Yacht and Offshore Express series of pleasure boats. The Riviera boats are a good fit to the Indian market as both Australia and India share some common geographical traits such as climate and coastline. Both countries have hot temperatures and an expansive open oceans coastline, natural bays and rivers for boat use.
What is the scope and level of penetration in developed countries? Compare that to India, if you could, tad, what would be required for the industry to grow?
There are many components hat are required for the growth of the marine industry in India: marinas, jetties, public access ramps and yes, there should be a focus on educational courses for navigation, safety and the proper use of pleasure craft. A national set of rules and regulations for licensing and registration would also be nice. Riviera is already investing in India, through education and training of staff in preventative maintenance and repair of its pleasure craft.
Considering that yacht building is 30-40% cheaper in India as compared to developed markets. Even China is more expensive than India. Then why not outsource it to India? And, if quality is a concern, why not a JV where you provide technical inputs?
Riviera is an iconic brand in Australia and has a long history of design and building pleasure boats. Riviera is Australia’s most awarded pleasure boat-company. The Riviera range of pleasure craft is being sold successfully worldwide with an extensive dealer and support network across 30 countries. For instance, Riviera is the longest standing Fly-bridge brand in the market place and is synonymous with luxury boating in Australia and recognised around the world as a world class product. It is therefore difficult to replicate our production facility which operates from a 14-hectare state-of-the-art waterfront facility at Coomera on Queensland’s Gold Coast. The company’s headquarters and manufacturing plant is the largest of its kind in the southern hemisphere.
How important is a marina (a) for tourism (b) for the yacht industry?
Nautical tourism in Goa has the potential to become a significant portion of the state’s overall tourism market. Goa is known internationally as a beach and seaside resort destination, and its river estuaries are famed for their beauty and tranquility. Yet without marinas there is nowhere to accommodate yachts safely, and without yachts there can be no nautical tourism. It is not widely known that yachtsmen are one of the best tourists. They spend far, far more in the local economy than almost any other type of tourist. In fact a study carried out on behalf of the small islands of the Caribbean concluded that a yachtsman typically spends 30-times more in the local economy than a visiting cruise ship passenger. The yacht industry needs marinas because it needs to sell yachts and subsequently maintain and service them. Only a marina can provide the facilities which permit this.
Should a marina be considered infrastructure for the above or can it be a source of direct revenue like parking fees, refueling facility, employment in ancillary businesses?
A marina should be considered as basic infrastructure for the yachting industry raid for the nautical tourism sector. But just because it is ‘infrastructure’ doe not mean it must be built with public funds; in fact quite the opposite. Providing that government supports the development of marinas in Goa, then it may rely on the private sector to build and operate them. A marine’s main source of revenue is the renting of berths. Ancillary sources include sale of fuel, repairs and maintenance, and its yacht club.
What is the best location for a marina in India?
From the point of view of any country’s domestic market, a marina should ideally be located close to a major centre of population and in good yachting waters. By good yachting waters we mean an area with a beautiful coastline, numerous safe anchorages, and places to visit. Goa has a beautiful coastline, whilst its lack of a large population is compensated by the fart t hat it is a destination for both domestic and foreign tourists. Accordingly one can say that, with the possible exception of Mumbai, Goa is the best local ion in India for a marina.
If it helps tourism, then explain how a place like Goa is losing out to other destinations.
Consider some of the world’s other upscale, seaside tourism destinations such as Thailand, Greece, Turkey, Mallorca, and the Caribbean. These have all invested heavily in marinas and as a consequence have a thriving and extremely valuable nautical tourism sector. Without a marina, Goa is losing out big time because no one will even consider Goa when alternative destinations are so well provided for.
What is the kind of investment required to set up a decent marina?
Frankly, this is rather like asking how long is a piece of string! Every marina site has to be assessed on its merits. But one can say with near certainty that a marina requiring a breakwater to protect it from the ocean’s waves, or requiring a lot of dredging, will not be financially viable. But a ballpark figure for a 300-berth marina would be in the range Rs 50-75 crore.
Give details of how much area would be required, how many yachts it can service. Try to quantify employment any other benefits you can think of.
As with hotels, a marina is subject to economies of scale and, as a rule of thumb, 300 berthing spaces would be the minimum to aim for. This would occupy about 10 acres of water, although the precise area will depend on the sizes of the yachts. A marina also needs land for its service buildings, yacht dub, and car-parking etc. Unless there is a yacht yard (ie, boatyard) located nearby which provides repair and maintenance services for yachts then the marina will need additional land for this.
A typical marina generates substantial employment administration, security, cleaning, and operations staff to provide 24/7 cover. Yacht crews (most owners of yachts over 12m in length will hire a local person to help maintain their yacht). Food and beverage staff for the yacht dub. Staff for the various companies that will set up offices at the marina (eg, yacht and fishing charters, coastal cruises, sailing academy, boat and equipment sales).
Skilled and semi-skilled staff for the repair and maintenance of the yachts. In broad figures, a typical marina and its associated yacht yard will be responsible for about 200 direct jobs. With a multiplier of between 2-3 times for indirect jobs, the total may well be in the range 400-600 jobs.
