A meeting of the Hong Kong Boating Industry Association on Monday 3 June 2024 at the Lipton Room, Royal Hong Kong Yacht Club, began with drinks and canapés, and was followed by opening remarks from HKBIA Chair, Lawrence Chow. This was an Industry Update and Members' Networking event. As the saying goes, "it's good to talk".
Presentations came from Ewa Stachurska, VP Marketing of Simpson Marine; Alan Reid, Marine Manager at the Royal Hong Kong Yacht Club; and Paul Zimmerman, Founder and CEO of Designing Hong Kong Limited.
Ewa Stachurska, VP Marketing of Simpson Marine, presented a huge amount of up-to-date information on the Economic Value of Boating from the yacht dealership and services perspective. There was a great deal to digest. Yacht sales at Simpson Marine are estimated at 3,500+ units over the past four decades of business operations, and when annual maintenance, crew expenses, marina berthing, fuel and provisions are added in, a boat owner puts the same value as the boat back into the economy in less than 10 years. Simpson's own figures indicate that on average USD500M to up to US$1bn is injected into the economic community every decade.
Charter operations are only a little less valuable. Chartering puts money into crew, service teams, marinas, provisioning, shore services, sub-contractors and more. Simpson has 50 directly-managed charter boats throughout its Asian charter bases, and in 2023 recorded 350 days of charter in Hong Kong alone.
Service operations generate value from everything from painting to engine maintenance, and we all know the rule of thumb that says a boat cost 10% of its purchase price in annual running costs. Lifestyle promotion is often overlooked as a money-generator. Think creative agencies, photographers, F&B providers, shore venues (marinas, clubs, hotels, more...) Sales and Marketing consume (and recycle) 2-10% of a boat's value when it comes to lifestyle and charter brand and sales marketing.
In summary, it was pointed out that Asia is the fastest growing region in the world for yacht and boat sales, that Hong Kong is a mature market and the hub of the activity. Numbers of HNWI and UNHWI individuals are expanding rapidly, we enjoy year-round boating conditions (no need to shrink-wrap and winterise your boat in Asia ha ha!), and the infrastructure is in place. Yes, more moorings are needed in Hong Kong, but the first step is to get the governments and regulators to appreciate that boating is a money- and livelihood-generating industry.
Alan Reid, Marine Manager at the Royal Hong Kong Yacht Club, spoke about the "decarbonisation" of the yachting industry. Main message here was that there is very little that boat manufacturers and owners can contribute in practical terms. LPG engines, battery power, hydrogen power, and efficient hull shapes can contribute, but the percentage contribution of individual pleasure vessels to a world problem when viewed alongside commercial vessels is practically negligible. If you really want to reduce the carbon footprint of your boat, forget the 35kts planing 80-footer and go cruising in an 8kts displacement design. Some of us actually think this preferable, and you won't spill your gin-and-tonic.
More important is what people like government agencies are doing to reduce marine emissions. Singapore aims to have all harbour craft 'decarbonised' by 2050. Singapore MPA have taken in 32 proposals from the marine industry to support an electrification scheme - electric vessels, charging infrastucture and so on. 11 proposals are being funded by the Singapore Government: they are actually doing something.
Engine manufacturer Yamaha has a 450hp prototype hydrogen engine under test, their outboards are suitable for use with biofuels (30% reduction in emissions) and the company now owns the electric outboard company, Torqueedo. All positive.
Furthermore, 'the younger generation' is changing its boating habits. Why buy (with all the attendant costs and hassles of marinas, trailers, maintenance etc) when you can join something like the Freedom Boat Club? The 'gig economy' goes boating!
Last presentation of the evening came from Paul Zimmerman, former District Councillor, and Founder and CEO of Designing Hong Kong Limited, a not-for-profit organization promoting sustainable urban planning in Hong Kong. Zimmerman and Designing HK have a well-earned reputation as well-intentioned agitators.
Between 2007 and 2022 the commercial marine fleet in Hong Kong grew by 7%. At the same time the Class IV Pleasure Vessels fleet grew by 120%, and pleasure vessels now make up 60% of all registered vessels in Hong Kong. At the same time the number of mooring provided and administered by the Marine Dept (MarDep) has remained static.
The unwillingness of government agencies, especially MarDep, but also Leisure & Cultural Services (LCSD), Tourism, and Planning, to engage in any meaningful way with the water sports and boating sector is remarkable. Physical access to water (steps, ramps) are few and far between. Storage facilities for water sports equipment is non-existent. LCSD provides water sports training facilities, but does not support boat owning in any way.
MarDep acknowledges its responsibility for "the safety of vessels, and marine traffic" but nobody appears to hold a portfolio for the recreational boating industry.
Hong Kong is - or should be - mad keen on recreational boating. It has the longest coastline of any global city (722km), 263 islands >500sqm, and more water (1,647 km2) than land (1,108 km2). Designing Hong Kong have identified 10 locations where the government could usefully and easily construct or provide access facilities to the water, or enhance existing facilities.
Locations range from Tolo Harbour - surely the most underutilised stretch of recreation water in Hong Kong - to Tai Tam and Tung Chu. One of them, the Tsung Kwan O Sheltered Anchorage, was proposed in 2013 and gazetted in 2023. The wheels of government grind slowly. A proposal for a private development of a marina in Yau Tong Bay capable of accommodating vessels of up to 70m appears to be stalled. The Kwun Tong Typhoon Shelter is an unregulated and disorganised mess, and a request for water-access steps was rejected on grounds of "insufficient space". Promised facilities (space for waterfront al fresco dining) at North Point have been downgraded to a mere footpath.
This is all very disappointing, but provoked some lively discussion among the audience when the canapés and drinks were resumed. Zimmerman stressed the point that it is one of the responsibilities of the HKBIA to take up cudgels on these matters, with the full weight of the membership behind it: people and companies in the leisure boating industry with a vested interest in helping the Government to understand that leisure marine is real and valuable business, and should be taken seriously and treated better than it is at present.
Many thanks to all the presenters for providing a great deal of interesting and valuable information.
| Hong Kong BIA – A new voice for the leisure marine trade in Hong Kong 香港遊艇業總會- 一個新的香港休閒海事行業發聲平台 |
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