5.

3 Economic impact of yachting The yachting sector in Grenada continues to enjoy increasing private sector investment and a growing competitive edge. The recently formed MAYAG successfully grouped most of the private sector entities involved in servicing visiting yachts into a strong lobbying entity. While the investments by these local entrepreneurs have not been quantified, there is no doubt that these businesses continue to create significant revenues for government, both direct and indirect. Limited existing data collected and compiled by the Grenada Tourist Board groups visiting yachts persons along with other tourist arrival categories. (Table 3 Comparison of yacht visitor arrivals and expenditures.) The data suggest visiting yachts persons spend an average of seven days on the island. This assumption is incorrect based on the yachting patterns of the other island in the Caribbean, and Grenadas vibrant yacht storage service sector. Further, the data accounts for yacht calls and yacht visitor arrivals but there are no specific figures representing expenditure by yacht visitors. The Grenada Tourist Board calculates an average daily expenditure of EC$474.00 for ALL visitors. This average could not be verified with supporting documents. Using data from the Grenada Tourist Board, the total direct revenue from yacht visitors for 2001: 11,475 x 7 (days) x EC $474.00 = EC$38,074,050. 19 Interviews conducted with MAYAG members provided the following assumptions. The average length of stay for visiting yachts persons in Grenada is 21 days. Average daily expenditure is estimated at EC$150.00. Based on these assumptions, the direct revenue from yacht would be EC$36,146,250. The dependency of these communities consists to a large degree on the provision of services and facilities to the yachting tourist, such as provisions, supplies, ice, water, fuel, docking, moorings, repairs, restaurants, transport, shopping, etc. Until the early 1990s there was no yachting industry to speak of in Trinidad and Tobago. Within a decade the country developed a product that is now well known in the region. It is interesting to summarize the push and pull factors that made this phenomenal rise possible. Most of the points raised will be discussed in more detail further in the document. Pull factors include: Private sector initiatives in plant and equipment and the consequent availability of a wide range (and concentration) of services. Efficient system for boats to import parts duty and VAT free. Supportive policies by the Customs and Excise and Immigration departments and

by TIDCO. Relatively well skilled labour force derived from an industrial background and synergies with the oil sector. Competitive price levels for yachting services.18 Location below the restricted or costly hurricane insurance boundary of 1240 North. Low cost of living compared with the other islands in the eastern Caribbean. Hospitable people. Events like carnival. Mooring buoys serve several functions and according to their use and environmental considerations the type of buoy may differ. Capacity control. This applies when space is not an immediate problem but management decides to reduce vessel capacity because of other reasons (often environmental) Increase in capacity as vessels on a mooring buoy use less space than when at anchor Source of revenue. This can be direct when entities charge a fee for the use of a mooring or indirect if business provides a mooring for customers. Environmental protection by negating anchorage damage to sensitive habitats such as coral reefs or sea grass beds. Safe anchorage is less than optimal conditions Easier for a yachtsman. In many countries mooring buoys are used in an attempt to achieve multiple objectives concurrently. In all cases the collection of revenue is an important consideration. Revenue collection methods and rates vary. Often it is private sector entities or marine parks which may

or not pay a royalty fee to government. Direct employment can be defined as jobs created and sustained due to the yachting industry. These jobs can be clearly linked to the yachting industry. If the yachting industry were to cease to exist these jobs would not be in existence. A survey of marinas in Saint Lucia revealed the following direct employment generated: Dock Masters Crane Operators Marina Managers Boat Yard Managers Sail makers, sail loft Electrical engineers Charter companies Fuel operators Mechanics Riggers Fiber glass workers Reservations workers Marina restaurants and supermarkets These can be further classed as managerial jobs, administrative jobs, jobs relating directly to yacht repair, maintenance and storage. The yachting sector also indirectly creates jobs, for example, through support services which were not created as a result of yachting but the yachting sector creates a demand for services or products. Indirect employment generated consists of: Laundry services & garbage disposal Taxi services

 Car rental Supermarkets Security Travel Agencies Tour Guide Services Banking and Foreign Exchange services Fuel Operations