Yachting… a sustainable tourism solution

Tourism in its marine environment is well-established in the Caribbean as it is a top destination for cruise ship industry.

In Jamaica alone, the Caribbean Tourism Organisation reported that there was 14.2% increase in cruise passengers during the first six months of the year, a total of 950,000.

Yachting is another marine based activity that is growing in popularity across the region. St Lucia has benefitted particularly well in this industry. The St Lucia Tourist Board reported that there was a 28% increase in the number of yacht calls to the island between January and June 2016.

It’s Rodney Bay and Marigot Bay Marinas collectively calculated that there were 29,101 yacht arrivals, compared to 25,593 in 2015.

St Lucia’s increase in yachting tourism can be attributed to a combination of factors, such as improved services at the customs department, the Air and Seaports Authority, and the state of the marinas. Another contributing factor is the participation of St Lucia in major Boat Shows such as the Annapolis Boat Show in the United States – where the majority of Caribbean tourists come from.

Exploring the Caribbean by yacht is a wonderful way to appreciate the variety and uniqueness of these islands while basking in a warm tropical setting. Yachting in the Caribbean is especially lucrative as sales of super yachts (boats over 24 metres) for the world’s super rich – Ultra High Net Worth Individuals (UHNWIs) have greatly increased.

Many UHNWIs are cash rich yet time poor and yachting provides the ultimate sanctuary for privacy and an opportunity to spend quality time with family and friends. Continued growth in the super-yacht sector is supported by a 40% increase in sales during 2015 compared with 2014 (Boat International Media).

Super yacht traffic in St Kitts and Nevis increased by 60%, which is great news for the twin island state which opened its Christophe Harbour Marina 2015. Christophe Harbour provides elite luxury yachting services and world class amenities. The marina represents a $100 million infrastructure investment that establishes St Kitts and Nevis as a major super yacht home port.

With this increase investment in in St Kitts and Nevis’ maritime sector and elsewhere in the region, the need for more skilled personnel to service the sector also increases.

Christophe Harbour held a job fair, in an effort to recruit persons for employment in the maritime sector.

Whilst this growth is welcomed, sustainable tourism needs to be enforced to ensure its impact isn’t negative. Tourism developments in marinas can result in loss and degradation of critical marine/ coastal ecosystems. Unsustainable tourism can strain natural ecosystem limits, sometimes to a point beyond recover.

Yachting is an opportunity for countries to rebrand and offer more than just what they are traditionally known for to a new set of consumers. Yachting provides a diversified Caribbean vacation experience – a subsector already identified by The Economic Commission for Latin America and the Caribbean (ECLAC) as having a huge potential. High value yachting and marine services sector tends to attract ancillary investment in hotels, retail, service yards, boat dealerships, dive and sport fishing businesses just to name a few. Additionally, it can provide a direct injection of revenue to public finances through income generated from cruising permits, anchorage fees, licenses and port charges. The impact can be incredibly meaningful to islands in the region with a small population and economic base.

Accountants are crucial to steering a country through the financial decisions needed to meet their targets for economic growth in a range of areas, including tourism. They are also crucial to CEOs wanting to successfully navigate in new sectors across the world.

Other nations can take note of the success of marina services in the Caribbean.

The Secretary-General of United Nations World Tourism Organisation (UNWTO) Taleb Rifai recently began championing maritime development Sudan’s Sanganeb Island in Red Sea.

Sanganeb Island is nicknamed “the Bride of Maritime Tourism in the Red Sea” as it is completely submerged in the water, which allows it to be a suitable place for scuba diving and attract under water photographers due to its clear blue water.

With great yachting potential like this, the world and its financial professionals will have to keenly watch this space