Power Boating Going the way of the Dinosaurs?

In most people's minds there is little doubt that we are all being taken for a ride when it comes to retail fuel prices at the pump. In the 7 years since importing my boat, I have watched the petrol prices grow from $1.05 - $1.10 up to $1.70 for premium unleaded petrol. In other words, the cost to run mt boat has increased nearly 60% in that time.

If you add to the increased costs associated with marine insurance for your boat (also going up) and perhaps storage fees at your marina, things are not so rosy. Increasing operational and maintenance costs for boats mean that boat owners start to use their vessels less and less as those costs rise. Naturally, there are price brackets which dictate what market segments can afford to own and run their boats. As costs rise, a number of brackets are eliminated, as boating is no longer viable for them.

The downturn in economies worldwide - particularly western nations where boating is a lifestyle expression, is killing boaters. Considered a luxury item, they are being sold off in cut-throat fashion. The massive price reductions across used boat markets thus affects the new boat sales market. Bargains are to be had everywhere, which makes it less appealing to pay more on the showroom floor.

Back to fuel costs. We know we are being taken for a ride. Prices at the bowser go up Friday morning (or even Thursday night). They come down on Tuesdays - if you're lucky. They go up on school holidays and back down again a few days after the kids return to class. Up when there's a public holiday and back down a day or two after we return to work. We're sold a lie by Governments reliant on oil company's political donations and various commissions who have no teeth to do anything.

Power boating is becomming even more expensive at a time when people are burdened with enormous real estate debts, declining income and job prosepcts and an ever-uncertain future. That is not good news for the boating industry per se and the power boat industry specifically. The fact is that marine engine manufacturers cannot improve technology and fuel consumption performance at a rate exceeding the rate of fuel price increases. 

If you're going to get into selling sailing boats, you need no further incentive. Stink boaters are going to lose the battle! They will be consigned to forever being land-lubbers or be forced to walk the plank and jump into a rag boat!!! Take a look at the boat sales websites. Not just in Australia, but the UK and United States too.

The biggest losers are the V8 driven boats. All of a sudden, no one wants them! Not even for free. The Aussie tradie who has done so well for himself over the past decade in a relentless construction boom, knows what how much it costs to run his Holden or Ford ute around from job to job each week. His 80 litre fuel tank is now well north of $100 to fuel. So in an instant he can calculate the cost of filling a 300, 400, 500, 1000 litre fuel tank on a boat. Scary. And scared off buying a new, or even used boat. Scared to even fuel the one he has now!

Boat owners with diesel engines will be less likely to want to sell. None of them will want a petrol boat, that much is certain. But being able to cruise more economically dollar-for-dollar will not entice them to sell in a down market with few sales prospects. Older and ageing vessels are a tricky proposition, with insurance companies more likely to want a marine survey conducted before they agree to insure a vessel. Who needs these cost burdens when they are struggling to maintain their budget as it is?

Where is the light at the end of the tunnel for the boating industry? Is there a remedy to fix the growing financial mess that might envelope and swallow it? How soon will the Chinese perfect the electric engine...and the electric boat? Granted, the first electric boats will be slow and have limited cruise range and time. But you can bet your V8 engines it will be the Chinese who come to the fore.

Anyone want a cruiser with twin V6's? Mine is for sale!!!

Sanctuary Show Brings Quality Buyers

International exhibitors have claimed the quality of prospective buyers at the 23^rd Sanctuary Cove International Boat Show was the best they have seen in 10 years.

Mulpha Executive General Manager Alison Quinn said the strong support for this year’s Show “has buoyed us as we plan forward for next year’s Show leading to the quarter century celebration in 2013.

“The feedback from exhibitors underpins this Show as a ‘must attend’ event for the marine industry.”

Grand Banks Singapore dealer James Purves, who has been coming to the Show for a decade, was impressed by the quality of the visitors.

At close of business, confirmed sales included two multi-million dollar Princess motor yachts – a 72 sold to a Sydney buyer and a 52 to a Gold Coast buyer. The total value of the sale was around $A7 million.

Mark Richards who manufactures Palm Beach Motor Yachts reported the sale of two of the just-released 52s to current Palm Beach buyers who have upgraded to the new model.

Further positive comments from the 384 exhibitors included Riviera’s Stephen Milne who said: “We have had a fantastic show, we sold 10 boats which have a retail value of some $A15 million ranging in size from a number of 43 Flybridges, a 5000 Sports Yacht, two 5800 Sport Yachts and three of the brand-new 53 Flybridge model,” released in a world launch at Sanctuary Cove.

Mr Milne added he had three full days of sea trials next week and he was confident the company would exceed last year’s sales. He added sales were made to buyers in Sydney, Adelaide, South Africa, New Zealand and Puerto Rico.

“We are exceedingly happy about this year’s Show and we are cracking the champagne.”

Brett Flanagan reported the sale of two 350 Integrity Pilothouse boats – one to a walk-in couple who paid for the boat on the spot.

“We have never really sold a boat at a show before this Show, and we have six or seven sea trials booked for next week,” he said.

Ensign Ship Brokers also reported a walk-in sale on the first day of the Show with a firm order for a Beneteau Oceanis 40.

According to Clipper Motoryachts Australian Managing Director Brett Thurley, the past eight weeks have been the strongest for the company in new boat sales since taking over Australian distribution two years ago.

“We have commitments on three boats at the Show already and the strong ongoing interest will give us a lot of work to do in the weeks after the Show.”

Flying Fish Hovercraft sold three hovercraft at the Show. “I have to say the quality of the enquiries is exceptional,” said the company’s Emma Pullen.

“The big news for us is that a visitor to the Show from New Zealand is considering the purchase of 10 craft for an events business and has departed the Show for an immediate demonstration at our own events business in Caboolture – that would be a very significant sale for us in expanding the HoverCross brand internationally,” she said.

Julie Balzano from Enterprise Florida in the US managed a delegation of Florida companies exhibiting at the Show for the first time. “The overall consensus has been very positive,” she commented.

One of the five manufacturers was Florida company, Armstrong Nautical Products. Vice President Russ Sedlack said there were a lot of discerning customers at the Show.

“We don’t normally sell off the stand but people insisted they buy our product off the stand,” said Mr Sedlack. The centre pole telescopic boarding ladders and ladders for RIBs proved popular. He answered inquiries from international visitors from Fiji, Papua New Guinea, Canada, Japan and China.

Nautical Structures President Robert Bolline exhibited at Sanctuary Cove for the first time with the Florida delegation.

“We are very optimistic to build business here and we have found the boat builders to be very open-minded and open to discuss business.”

American company Westport Shipyard was at the Show in the Superyacht Australia pavilion. The company came to Sanctuary Cove for the first time as it has clients in Australia owning a 34m and 40m vessel. The company builds composite motoryachts and claims to be the largest yacht builder in North America.

“It is the first time at the Show…. We also do Abu Dhabi, Dubai, Singapore, Cannes and Monaco. We consider this a very good venue for international audiences,” said Vice President Philip Purcell.

By 4pm on Sunday, visitor numbers were tallied at 36,504 – a 6.5% drop from 2010 which compares favourably with other international shows this year.

Exhibitor Outer Reef Yachts President and CEO Jeff Druek said the company did 25 to 28 shows a year.

“We had many positive leads. Every Show has been the same – the volume of visitors is down but the quality is superior.”

“The strength of the Australian dollar has driven interest. We find we are very well received. Sanctuary Cove to us is a ‘go to’ venue,” said Mr Druek.

Australian companies also enjoyed sales. Seawind’s sales and marketing manager Brett Vaughan said the company made a number of sales of its new Seawind 1000XL2.

“Interest in the larger Seawinds – the 1160 and flagship 1250 and the Corsair C37 that debuted at this Show is also strong and we anticipate sales in the days after the Show,” he said.

Traditionally Maritimo does not reveal sales figures from shows. However Maritimo’s Director of Marketing Luke Durman acknowledged strong interest in Maritimo’s M48 Series II, A55 Aegean and C53 Sports Cabriolet models.

Sanctuary Cove’s event also saw the relaunch of the iconic Mustang brand.

“The Mustang 32 sold well as expected,” said Mr Durman. The Show also saw the unveiling of a Mustang 50, which proved to be a real surprise package to the Mustang brand loyalists.

Australasian Marine Imports also had a successful show, with the sale of a Hampton 680 Endurance and an Alaskan 57 Pilothouse along with an Alaska 46 Flybridge which are built in China.

Club Marine is a sponsor of Sanctuary Cove International Boat Show. Media partners include BoatPoint.com.au, Channel Seven, 4KQ, Trade a Boat and 92.5 Gold FM. Maritime Safety Queensland is a government supporter. Hawker Pacific and Barz Optics are supporters.

The $A2 billion Sanctuary Cove, located on the northern Gold Coast, is Australia’s leading and most successful master-planned community. Sanctuary Cove was acquired by current owners Mulpha Sanctuary Cove (Developments) Pty Limited in 2002. MSCD, an arm of Mulpha Australia Limited, which is a subsidiary of Malaysian listed Mulpha International BHD, has invested significantly in Sanctuary Cove over recent years, resulting in a major transformation designed to ensure the pre-eminent community remains at the forefront of master-planned living in Australia.

Dates for forthcoming Sanctuary Cove International Boat Shows are: May 24-27, 2012; May 23-26, 2013; May 22-25, May 2014.

FOR MEDIA INQUIRIES:

Kate Duryea, PR & Media Consultant

Sanctuary Cove International Boat Show

Direct line (07) 55 77 6549

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