‘Steady as she goes’ for the UK’s coastal marinas and moorings market

by British Marine on 30 Aug 2017 The UK’s coastal marinas and moorings sector is in good health, according to the latest economic research from British Marine.

The sector reported revenues of £152m in 2015/16, which is slightly down on 2014/15 figures (-1.2%), but 3.4% up on revenues posted in 2013/14. It is contributing over £70m in gross value added to the UK economy and supporting nearly 2,000 full time equivalent (FTE) employees.

‘The Coastal Marinas and Moorings Report’ forms part of a national survey of UK marinas and moorings, and uses figures taken from 2016 reported results and a survey of occupancy levels in Spring this year. It represents the first piece of in-depth analysis of the UK’s 297 coastal operations and has been undertaken by British Marine, the membership organisation for the leisure, superyacht and small commercial marine industry. The study provides accurate and robust evidence for the sector, identifying key trends over time and providing key capacity and occupancy information for marina operators.

While last year’s ‘Leave’ vote in the EU Referendum sent business confidence in the sector to its lowest reported mark since 2011, the last 12 months have seen coastal operations rebound through the devaluation of Sterling, which has encouraged overseas sailors and marina customers to visit UK facilities. UK coastal marinas and moorings have experienced both strong market demand and berth occupancy which have reached their highest levels (88.0%) since those reported in 2013. Many British Marine members are reporting healthy waiting lists and strong performances across the major marina trades.

The majority of coastal marinas and moorings operations are small and micro-businesses (85.0%), with an average of 200 berths per operator and average revenues generated standing at £510,572, supporting [an average of] 6.2 employees (full time equivalents). Many marinas and moorings operators have reported experiencing a boost from overseas customers, particularly EU sailors, and this has encouraged continued investment and expansion in facilities. Of the 808 additional berths being planned, well over half of these are through expansion of existing marina sites.

During the report’s research, coastal marinas and moorings operators reported a number of challenges to their businesses, for example, how to meet the needs of an ageing consumer who is finding it increasingly difficult to justify the increasing expenditures associated with berthing a vessel. Coupled with a current rise in inflation in the UK (currently at 2.6%), operators are expecting a tough next 12 months, particularly on activities like hiring new staff.

However, the report highlights a number of innovative ways in which coastal operators are seeking to resolve these problems. ‘Shared’ ownership schemes are becoming more prevalent, helping to make owning and mooring a boat more affordable. Dry-stack storage facilities are on the increase around the coast, making the off-season berthing of smaller vessels more affordable. These solutions are supporting work to diversify the social offering of the business, to make marinas and moorings operations a more attractive tourism offer to a broader customer base.

Jon White, General Manager of The Yacht Harbour Association, the British Marine group association representing the interests of this sector, commented: “While the UK is not always blessed with the most welcoming weather, we can be extremely encouraged by the reports of 88% berth occupancy and strong interest from overseas sailors, taking advantage of the weak pound. And like all marine businesses, these coastal operations are seeking out new ways to broaden their customer base, while ensuring they meet the needs of their core market, so it is particularly heartening to see that 74% of marinas offer the general public access to their site and facilities.”

Jonathan Dyke, MD at Suffolk Yacht Marina, an independent marina and British Marine member commented: “British Marine’s research reports, like this one, are invaluable to us as an independent marina, in helping us understand the current state of the sector and where the trends are leading us.”

The complete ‘UK Marinas and Moorings Report’, including the coastal sub-sector report, is available to download free of charge to British Marine members.