Revenue sailing away

The yachting industry in Trinidad and Tobago is seemingly adrift, and as a result, quickly losing ground to other Caribbean destinations. The feeling is that TT is no longer price competitive and may very well result in the long-term loss of market share. Erik Blommestein, Economic Affairs Officer at the Port-of-Spain ECLAC Subregional Headquar-ters for the Caribbean, in a study on the country’s yachting industry concluded that its development was being hampered by a lack of diversification of markets and the location of the main yachting centre in a marine industrial area. The industry has fallen way below its potential to contribute millions of dollars annually towards the country’s national coffers because of a number of obstacles including poor infrastructural support, lack of services and recreational development.

Incidentally, the leisure marine sector which includes the yachting Blommestein found that the industry employed at least 1,100 people and estimated that it could generate some TT$100M within the economy. “However, standards would have to be elevated and further training at the national, regional and international levels provided in order to maintain competitiveness. Other concerns included an underdeveloped recreational yachting sector, lack of data, security issues, maintaining a competitive edge, multi-user conflicts and conflicts for land acquisition and use. He recommended that training opportunities be identified, appropriate property management practices (for example, those relating to water use) be implemented, and proper data collection systems be installed and maintained.

According to the Yachting Services Association of Trinidad and Tobago (YSATT) between 1990 and 2000 the number of recorded yacht arrivals showed a five-fold increase from a low of 637 yachts in 1990 to 3,249 yachts in 2000. From 1990-1995 there was a steady increase in yacht arrivals, with 1995, proving to be a watershed year as arrivals increased by 60 percent. According to a 2004 ECLAC report on “Yachting in Eastern Caribbean Development,” the increase was not so much influenced by the devastating effects of Hurricane Luis in Simpson Bay in St Maarten as by the increases in capacity through investment in storage and haul-out equipment. The ECLAC report said of major concern is the decline in yacht arrivals since November 2000 which it described as being significant.

“This has been particularly significant in the active yacht population which has declined by 32 per cent for the period January to September in 2002, when compared with 2001. Compared with 2000 the decline has been 40 per cent.” Compared with other destinations in the Caribbean the decline “is very stark.” The report said while the drop in 2001 and 2002 arrivals was undoubtedly influenced by a region-wide lack of tourism performance, at the same time concerns have been raised that Trinidad has become less competitive compared to other destinations as prices have increased, quality concerns have been expressed and new entrants like Grenada and Venezuela have begun to enter the market. “Trinidad does not have the natural resource base on which cruising thrives. Therefore if Trinidad wants to remain competitive it must compete on other factors such as price, range of services, quality of work and time scheduling.

“Basically it means that Trinidad has to remain cheaper because, all factors being equal, destinations such as Grenada are attractive because they also offer access to blue water and sandy beaches.” Perceptions that Trinidad is no longer price competitive may very well result in the long-term loss of market share, it said. The report noted that while the development of the yachting industry has been rapid, it has been at the cost of lack of development of recreational aspects of yachting. “Some of the facilities in Chaguaramas are stark with limited or no recreational facilities, other than a bar/ restaurant. “A few have gone beyond this but no facilities have reached the recreational aspects of, say, a Simpson Bay Yacht Club in St Maarten, a Jolly Harbor in Antigua or even the much older Rodney Bay Marina in Saint Lucia,” the report said.

However the recreational aspects of yachting development are not limited to marinas. “They also include the nearby anchorages like Scotland Bay and the off-shore islands, the few possible anchorages on the North Coast and, above all, the development of recreational yachting facilities in Tobago.” The report said if further explored, such a development could result in a more complete product with industrial marinas located in the Chaguaramas area complemented by more recreational facilities in other bays and anchorages. TT may also need a strong impetus to counter the perception that it is  and Tobago is not a cruising ground. The report also identified what it called the “push and pull factors” that impacted on the yachting industry which began developing in the early 1990s. The “pull factors” included private sector initiatives in plant and equipment and the consequent availability of a wide range 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.

It also included the relatively well skilled labour force derived from an industrial background and synergies with the oil sector, competitive price levels for yachting services, location below the restricted or costly hurricane insurance boundary of 12’40” North, low cost of living compared with the other islands in the eastern Caribbean, hospitable people and events such as the annual Carnival. However, the report said that the “pull factors” are overshadowed by crime, difficulty in sailing to and from the Eastern Caribbean, increasing costs, limited range of yachting supplies, problems in meeting deadlines and shoddy workmanship.

Describing yachting as tourism, ECLAC said a most important aspect of a yachting policy would be to increase the awareness of yachting as a valuable component of tourism throughout the country. A second aspect of a proposed policy would be the development of a medium-term vision of where the stakeholders would want to see the industry heading. “This would not only pertain to the industry itself but also to the future of the Chaguaramas area.” A third aspect of the policy would be to develop a short-term programme to address the current problems and issues in the industry.