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Economic Impact of Welsh Marinas 480060010160000-6858006159500 Report Authored (2010) by Dr. Steve Morris, Sea Mouse Coastal Management and David S. Reed DipM MCIM, South and West Wales Marine Leisure Federationfor Irish-457200937260000457200937260000Aims & ObjectivesThe aims of this report are to assess the economic impact of Marinas in Wales on their local economies, and by aggregating these, their overall impact on the Welsh economy.These were achieved through a series of case studies of Welsh marinas undertaken during summer 2010 which provided a robust analysis of the value that Marina operations bring to the economy of Wales.The objectives of the research were:To establish the spend of berth-holders both at the marina & into the local economy.To establish the spend from these craft both at the marina & into the local economy.To establish the impact that this spend has on both marina operating companies & other local marine companies which service these marinas both in terms of turnover & employment. To establish what economic impact marinas offer to the local supply chain & tourism economy.To establish the profiles of boats moored at marinas in Wales.To establish the boat buying patterns of the berth-holders interviewed.7. To provide a robust economic analysis of the value that marina operations bring to the economy of WalesThe Structure of the reportSection 1. Introduction and Overview ..........Page 1The Marina sector in Wales - rationale for research. Section 2. Methodology ........Page 2 How the surveys were completed. Section 3. Results from the Research ..........Page 4Survey results for: 1.Conwy Marina ...........Page 52. Holyhead Marina ..........Page 73. Hafan Pwllheli ...........Page 94.Aberystwyth Marina. ...........Page 115. Neyland Marina ..........Page 136.Swansea Marina. ..........Page 15 Section 4. National Estimates ........Page 17An extrapolation of the results to estimate National figures for the industry in Wales Section 5. ..........Page 19Summary tables of all results and estimates. Section 6. .......Page 21Responses and estimates for support businesses.Section 7. ......Page 22Boat size profiles and purchasing behaviour of respondent berth holders. Discussion ..........Page 23Some consideration of the robustness of the parison with other sources.Appendices ..........Page 25Some discussion of the nature of the sample and the methods adopted to achieve a robust interpretation of the responses.References .........Page 27Section 1: Introduction and OverviewMarinas are accepted as major drivers to the development of Marine Leisure both to the cruising sector – i.e. boats moored on the marina berths - & to water-sports participators through provision of good access to the water, car parking, storage & other facilities. They can also become an attraction in their own right for non-boating visitors & become a valuable tourism asset.The economic impacts that marinas offer are not just restricted to the marina itself. Additional economic benefit can also be expected from:other Marine Leisure businesses that service craft on marinas – marine engineers, repair & maintenance companies, chandleries, sail-makers, boat & engine sales, haul & store operations, etc.boat trips to local heritage & wildlife attractions, diving & charter operations, sailing & training schools, etc.catering & accommodation providers to boat owners & their family & friends, as well as visiting touristslocal general supply chain – retailers, consumer services, other attractions & activity providers, entertainment venues, other tourism offers, etc.Research into the core & secondary economic impact of marinas in the UK & Channel Islands was carried out by GHK Consulting on behalf of the BMF in 2007, which included only one Welsh Marina (Conwy). Irish Sea Marine reported on the economic impacts of marinas in the East & South-east of Ireland within ‘The Potential for Growing Marine Leisure’, again in 2007. It is, however, now considered important to revisit such research as the current economic situation did not significantly impact until 2008 - post-previous research - & also Wales-specific research is required to inform the Irish- programme, & its stakeholders, for future development.The Welsh Marina industry has expanded steadily over recent decades. It was recorded at 3,525 estimated berths capacity in 2007 ( British Marine Federation ) and 4137 berths capacity in 2010 (this study). Potential for further expansion to improve the continuity of service around the Welsh Coast is clear, and the 2007 report recorded 50% excess demand for berths in existing marinas. However the current economic climate will probably reduce this demand, and realistically, current economic research and data will be a useful adjunct for development planners within the industry. To this end, this study has been careful to present figures as carefully and conservatively as possible. (So for instance when scaling survey results to the National level, the average occupancy of 90% reported by interview responses has been applied to the berth capacity, to scale to an estimate of 3700 active berths, not the maximum capacity reported here as 4137)Section 2: MethodologyA selection of 6 representative marinas formed the basis for the research. They were selected to cover geographic spread – North and South & West Wales; management status - public and private sector ownership; and size – however it is generally accepted that lowest number of berths that make a marina viable is 250, therefore most marinas in Wales are above this number. The selected marinas, in North – South order were: 1. Conwy Marina, Conwy 2. Holyhead Marina, Anglesey3. Hafan Pwllheli, Gwynedd 4. Aberystwyth Marina, Ceredigion5. Neyland Marina, Pembrokeshire 6. Swansea Marina, West GlamorganFour questionnaires were used: to Marina management – a brief 1-2-1 interview was carried out covering turnover and employment levels, five respondents co-operated fully giving a full set of responses, one respondent gave an incomplete set of responses, due to commercial privacy issues.to Marina berth-holders – a sample was visited on each marina & 1-2-1 interviews conducted using a prescribed list of questions. A total sample of 122 respondents was obtained. to Visiting craft – a sheaf of printed questionnaires was left with each marina management company with requests that they are given to each craft when ‘booking in’. A total sample of 25 responses were obtained. to Marine businesses servicing marinas – identified from visits to the marinas and subsequent internet research 43 companies were asked to respond to a prescribed list of questions. Responses were received from 8 companies.The results of the Marina Management interviews have been used to provide the Marina descriptions, and figures on estimated turnover and employment.The responses of the berth-holder surveys have been processed to provide estimates of spend over a variety of categories. The sample averages have been extrapolated to estimate total spend over the active number of berths for each marina, an adjustment being made to the variable spend estimates to account for the non-random nature of the samples (See Appendix 1 for explanation). The samples have also been pooled to provide overall estimates for each category, again extrapolated, this time to the estimated number of active berths in Wales (3700). This gives an estimate of the total economic contribution of marinas to the Welsh marine leisure industry. A number of additional aspects of this data have been presented under the Boat purchase section.The results of the visitor survey have been used to estimate an average spend per day, this has been multiplied by visitor-night estimates provided during the Marina Management surveys to estimate the spend added by visitors into each Marina and its local economy.Only a small number of detailed returns were obtained from support industries, due to, understandably, some reluctance to share confidential information, despite reassurances given on the respect of security and anonymity given by the researcher. However those obtained were able to be used to give a reasonable impression of the additional value these bring to local economies. An estimate of total jobs was generated using the number of jobs, both full-time and part-time, reported by the marinas and supporting companies. These were totalled over the whole sample then divided by the total number of active berths in the sample to yield estimates of the number of jobs generated per berth. Multiplication by active berths in each case then gives the jobs estimates for each marina. In each case this method equated well with the jobs reported by individual marina managements, which suggests that the support company estimates are also realistic. Jobs in the wider economy were estimated by taking the overall “non-marina” spend and dividing it by Visit Wales’ estimate of ?40,000 spend per job.Section 3. Individual Marina Results1. Conwy MarinaConwy Marina is a privately owned marina, part of the Quay Marina Group. It is located near to the historic walled town of Conwy. Management InterviewThe marina provides 500 berths, of which 490 are estimated to be active (98% occupancy), unoccupied berths are used to provide visitor berthing. There are electricity and water connections to the berths, berth-holder shower/toilet block and laundrette, a hoist service and on-site boat storage. There are many other services on site including chandlery and pub/restaurant. To access services in the town, the distance is such that although it is possible to walk, most people would choose to drive. Approximate Turnover ?1.3mFull-time employees10Part-time employees1Visitor Nights1,050Number of support businesses listed10The sample day was a fine day over the summer bank holiday weekend, a good sample of responses (24) was obtained. Estimates of spend based on Berth-holder responsesHere, and throughout the report, a zero response indicates non-availability of the facility concerned.Estimated spend per categoryEstimate based on active berth numbers Berthing Fees?1,491,111Annual maintenance?330,180Chandlery?134,842Annual spend on fuel?305,763Personal protective equipment?60,789Insurance?186,976Training?46,648Buying supplies at the marina0Buying supplies in the wider locality?244,902Buying supplies away from the locality?61,226Eating and drinking “out” at the marina?219,391Eating and drinking “out” in the locality?201,461Other entertainment?8,018Other general purchases?23,980Total Berth holder Spend?3,315,285Estimates of Visitor spend.Category of spendEstimates based on reported visitor nights.Marina services (Berthing, fuel, chandlery)?49,290Other spend (supplies, entertainment etc.)?48,384Total Visitor Spend?97,674Economic Impact.Total spend in the local economy attributable to the marina. ?3.4mEstimated FTE jobs supported in Marina related companies.62Estimated FTE jobs supported in the wider economy13Secondary benefits*Berth holder ?994,585Visitor ?29,302Total secondary benefits?1,023,887TOTAL ECONOMIC IMPACT OF CONWY MARINA ?4.4m*Using multiplier of 1.3 - i.e. each total spend is multiplied by 0.3, and this additional sum added to reported spend to represent the true economic benefit from the money recycling through the local economy (source: as applied by GHK Consulting for the BMF).2. Holyhead MarinaHolyhead marina is a private, locally owned marina in the process of expanding its capacity.Management InterviewThe marina currently offers 350 berths of which 245 are active (70% occupancy, split 75/25% sail/power), it also offers 30 visitor berths. The marina is ideally situated as a stop-off for coasting visitors. There are electricity and water connections to the berths, berth-holder shower/toilet block and laundrette, a hoist service and on-site boat storage. There are several other services on-site including chandlery and shop/cafe/restaurant.Approximate Turnover?600,000Full-time employees11Part-time employees2Visitor nights700Number of support businesses4The marina was visited on two half days over the summer bank holiday weekend, the first a rather unsuitable, blowy day, the second sunny and still, a good sample (16) was obtained between both days.Estimates of spend based on Berth-holder responsesEstimated spend per categoryEstimates based on active berth numbers Berthing Fees?526,750Annual maintenance?168,127Chandlery?58,310Annual spend on fuel?52,187Personal protective equipment?43,246Insurance?112,578Training?2,430Buying supplies at the marina0Buying supplies in the wider locality?144,317Buying supplies away from the locality?972Eating and drinking “out” at the marina?27,697Eating and drinking “out” in the locality?91,838Other entertainment?826Other general purchases?18,513Total Berth holder Spend?1,247,792Estimates of Visitor spend.Category of spendEstimates based on reported visitor nights.Marina services (Berthing, fuel, chandlery)?32,860Other spend (supplies, entertainment etc.)?32,256Total Visitor Spend?65,116Economic Impact.Total spend in the local economy attributable to the marina. ?1.3mEstimated FTE jobs supported in Marina related companies.44Estimated FTE jobs supported in the wider economy9Secondary benefitsBerth holder?374,337Visitor ?19,535Total secondary benefits?393,872TOTAL ECONOMIC IMPACT OF HOLYHEAD MARINA ?1.7m3. Hafan PwllheliPwllheli Marina is owned and operated by the local authority, Gwynedd County Council.Management InterviewHafan Pwllheli offers 420 berths of which 408 are currently active (97% occupancy, split 44/56% sail/power). There are electricity and water connections to the berths, berth-holder shower/toilet block and laundrette. A hoist service and on site boat storage are also available.Approximate Turnover?1.5mFull-time employees8Part-time employees1Visitor Nights3,121Number of Support Businesses Listed8The Marina was visited on the Monday of the summer bank holiday. A sample of 30 responses were obtained.Estimates of spend based on Berth-holder responsesEstimated spend per categoryEstimate based on active berth numbers Berthing Fees?1,328,856Annual maintenance?293,254Chandlery?109,728Annual spend on fuel?232,904Personal protective equipment?50,154Insurance?194,113Training?22,819Buying supplies at the marina0Buying supplies in the wider locality?391,135Buying supplies away from the locality?34,472Eating and drinking “out” at the marina?40,007Eating and drinking “out” in the locality?220,523Other entertainment?8,448Other general purchases?90,248Total Berth holder Spend?3,016,661Estimates of Visitor spend.Category of spendEstimates based on reported visitor nights.Marina services (Berthing, fuel, chandlery)?146,505Other spend (supplies, entertainment etc.)?143,817Total Visitor Spend?290,322Economic Impact.Total spend in the local economy attributable to the marina. ?3.3mEstimated FTE jobs supported in Marina related companies.52Estimated FTE jobs supported in the wider economy11Secondary benefitsBerth holder?904,998Visitor ?87,966Total secondary benefits?995,959TOTAL ECONOMIC IMPACT OF HAFAN PWLLHELI ?4.3m4. Aberystwyth MarinaAberystwyth Marina is the only mid-Wales marina in the survey. It is a private, locally owned enterprise.Management InterviewThe marina is privately owned, offering 150 berths, with unoccupied berths being used to provide visitor berthing. There are electricity and water connections to the berths, berth-holder shower/toilet block and laundrette, a hoist service and on site boat storage. There is a chandlery on-site and all the shopping facilities and other services of Aberystwyth town centre and sea front are a short walk from the marina site.Approximate Turnover?300,000*Full-time employees2Part-time employees1Visitor nights1000Number of support businesses listed1*Estimated by scaling the whole sample average per berth. The sample day was a poor weather day and a weekday in the summer holiday, so this marina yielded the lowest sample of bertholder responses (6), as a result the spend estimates are the least robust for the marinas sampled. Categories with zero bids indicate non-availability of the facility concerned at this marina.Estimates of spend based on Berth-holder responsesCategory of spendEstimates based on active berth numbers Berthing Fees?292,800Annual maintenance?112,098Chandlery?22,134Annual spend on fuel?25,704Personal protective equipment?17,850Insurance?43,600Training?7,140Buying supplies at the marina0Buying supplies in the wider locality?43,126Buying supplies away from the locality?1,428Eating and drinking “out” at the marina0Eating and drinking “out” in the locality?25,990Other entertainment?3,856Other general purchases?13,066Total Bertholder Spend?608,791Estimates of Visitor spend.Category of spendEstimates based on reported visitor nights.Marina services (Berthing, fuel, chandlery)?46,942Other spend (supplies, entertainment etc.)?46,080Total Visitor Spend?93,022Economic Impact.Total spend in the local economy attributable to the marina. ?0.7mEstimated FTE jobs supported in Marina related companies.13Estimated FTE jobs supported in the wider economy3Secondary benefitsBerth holder?182,637Visitor ?27,906Total secondary benefits?210,543TOTAL ECONOMIC IMPACT OF ABERYSTWYTH MARINA ?0.9m5. Neyland Yacht HavenNeyland Yacht Haven is a privately owned marina on the Milford Haven, part of the Yacht Havens Group. Management InterviewThe marina currently offers 420 berths of which 405 are currently active (96% occupancy, split 52/48% sail/power). The marina provides 4 visitor berths. There are electricity and water connections to the berths, berth-holder shower/toilet block and laundrette. A hoist service and on site boat storage is offered by the adjacent Dale Sailing Company.Approximate Turnover?700,000Full-time employees5Part-time employees2Visitor Nights1,600Number of Support Businesses Listed21The Marina was visited on a weekday in the summer holidays and on a Saturday just after the end of the holiday. A sample of 23 responses was obtained.Estimates of spend based on Berth-holder responsesEstimated spend per categoryEstimate based on active berth numbers Berthing Fees?829,409Annual maintenance?391,148Chandlery?98,309Annual spend on fuel?102,350Personal protective equipment?27,862Insurance?161,974Training?6,128Buying supplies at the marina0Buying supplies in the wider locality?149,288Buying supplies away from the locality?912Eating and drinking “out” at the marina?42,700Eating and drinking “out” in the locality?81,684Other entertainment?1,564Other general purchases?33,704Total Berth holder Spend?1,927,034Estimates of Visitor spend.Category of spendEstimates based on reported visitor nights.Marina services (Berthing, fuel, chandlery)?75,108Other spend (supplies, entertainment etc.)?73,728Total Visitor Spend?148,836Economic Impact.Total spend in the local economy attributable to the marina. ?2.08mEstimated FTE jobs supported in Marina related companies.52Estimated FTE jobs supported in the wider economy11Secondary benefitsBerth holder?578,110Visitor ?44,651Total secondary benefits?622,761TOTAL ECONOMIC IMPACT OF NEYLAND MARINA ?2.7m6. Swansea MarinaSwansea Marina is owned and operated by the local authority. Management InterviewSwansea Marina offers 550 berths of which 522 are currently active (95%occupancy). There are electricity and water connections to the berths, berth holder shower/toilet blocks and laundrette. A hoist service and on site boat storage are also available.Approximate Turnover?1,100,000Full-time employees12Part-time employees4Visitor nights2,100Number of support businesses12The Marina was visited on a weekday in the summer holiday and the Saturday of the summer Bank Holiday weekend.Estimates of spend based on Berth-holder responsesEstimated spend per categoryEstimate based on active berth numbersBerthing Fees?1,041,153Annual maintenance?308,331Chandlery?140,951Annual spend on fuel?260,218Personal protective equipment?86,146Insurance?180,019Training?40,574Buying supplies at the marina?82,504Buying supplies in the wider locality?219,389Buying supplies away from the locality?1,694Eating and drinking “out” at the marina?225,488Eating and drinking “out” in the locality?69,459Other entertainment?28,122Other general purchases?22,871Total Bertholder Spend?2,706,922Estimates of Visitor spend.Category of spendEstimates based on reported visitor nights.Marina services (Berthing, fuel, chandlery)?98,580Other spend (supplies, entertainment etc.)?96,769Total Visitor Spend?195,349Economic Impact.Total spend in the local economy attributable to the marina. ?2.9mEstimated FTE jobs supported in Marina related companies.69Estimated FTE jobs supported in the wider economy14Secondary benefitsBerth holder?812,706Visitor ?58,605Total secondary benefits?871,311TOTAL ECONOMIC IMPACT OF SWANSEA MARINA ?3.8mSection 4. Overall Estimates for the Welsh Marina IndustryThe average spend per berth in each spend category of the total berth-holder sample for all sampled marinas has been scaled by the number of active Welsh marina berths (c. 3700) to yield an overall estimate of the contribution that Welsh Marinas make to the economy. The proportion of spend between ‘marina’ and ‘locality’ is not consistent across all marinas as there is considerable disparity in whether or how these facilities are provided at each Marina and, consequently, the individual results cannot be regarded as comparable, therefore, the combined totals of these are used to estimate total spending on supplies and eating out.Estimated spend per categoryEstimate based on active berth numbersBerthing Fees?9,504,269Annual maintenance?2,937,323Chandlery?967,779Annual spend on fuel?1,658,610Personal protective equipment?489,988Insurance?1,565,162Training?201,768Buying supplies at the marina?107,213Buying supplies in the wider locality?2,187,190Buying supplies away from the locality?178,762Eating and drinking “out” at the marina?861,337Eating and drinking “out” in the locality?1,269,055Other entertainment?78,263Other general purchases?389,533Total Berth holder Spend?22,396,253Category of spendEstimated visitor nights and associated spend.Estimated pan -Wales visitor nights12,210Marina services (Berthing, fuel, chandlery)?558,483Other spend (supplies, entertainment etc.)?607,372Total Visitor Spend?1,165,855Total spend in the Welsh economy attributable marinas. ?23.5mEstimated FTE jobs supported in Marina related companies.490Estimated FTE jobs supported in the wider economy124Secondary benefitsBerth holder?6,718,876Visitor ?349,756Total secondary benefits?7,068,632TOTAL IMPACT OF MARINA SECTOR ON THE WELSH ECONOMY ?30.6mPlease note:A reasonable estimate, based on the berth-holder survey and information provided by marinas, is that approx 50% of this expenditure is by English domiciled berth-holders, hence “new” money brought into the Welsh economy.This spend includes all berthing costs, servicing, supplies of goods and fuel, etc. but excludes boat sales revenues.Section 5. Summary Tables of All Results and EstimatesEstimated spend per categoryConwy MarinaHolyhead MarinaHafan PwllheliAberystwyth MarinaNeyland Yacht HavenSwansea MarinaAll Wales EstimatesNo. of Active Berths4902454081504055223,700Berthing Fees?1,491,111?526,750?1,328,856?292,800?829,409?1,041,153?9,504,269Annual maintenance?330,180?168,127?293,254?112,098?391,148?308,331?2,937,323Chandlery?134,842?58,310?109,728?22,134?98,309?140,951?967,779Annual spend on fuel?305,763?52,187?232,904?25,704?102,350?260,218?1,658,610Personal protective equipment?60,789?43,246?50,154?17,850?27,862?86,146?489,988Insurance?186,976?112,578?194,113?43,600?161,974?180,019?1,565,162Training?46,648?2,430?22,819?7,140?6,128?40,574?201,768Buying supplies at the marina00000?82,504?107,213Total Direct berth-holder spend at marina?2,556,309?963,628?2,231,828?521,326?1,617,180?2,139,896?17,432,112Buying supplies in the wider locality?244,902?144,317?391,135?43,126?149,288?219,389?2,187,190Buying supplies away from the locality?61,226?972?34,472?1,428?912?1,694?178,762Eating and drinking “out” at the marina?219,391?27,697?40,0070?42,700?225,488?861,337Eating and drinking “out” in the locality?201,461?91,838?220,523?25,990?81,684?69,459?1,269,055Other entertainment?8,018?826?8,448?3,856?1,564?28,122?78,263Other general purchases?23,980?18,513?90,248?13,066?33,704?22,871?389,533Total Secondary spend?758,976?284,164?784,833?87,465?309,854?567,026?4,964,141Total Berth holder Spend?3,315,285?1,247,792?3,016,661?608,791?1,927,034?2,706,922?22,396,253Visitor Category of spendConwy MarinaHolyhead MarinaHafan PwllheliAberystwyth MarinaNeyland Yacht HavenSwansea MarinaAll Wales EstimatesMarina services (Berthing, fuel, chandlery)?98,580?32,860?146,505?46,942?75,108?98,580?558,483Other spend (supplies, entertainment etc.)?96,769?32,256?143,817?46,080?73,728?96,769?607,372Total Visitor Spend?195,349?65,116?290,322?93,022?148,836?195,349?1,165,855Secondary benefits*Conwy MarinaHolyhead MarinaHafan PwllheliAberystwyth MarinaNeyland Yacht HavenSwansea MarinaAll Wales EstimatesBerth holder ?994,585?374,337?904,998?182,637?578,110?812,706?6,718,876Visitor ?29,302 ?19,535 ?87,966 ?27,906 ?44,651 ?58,605 ?349,756Total secondary benefits?1,023,887?393,872?995,959?210,543?622,761?871,311?7,068,632Conwy MarinaHolyhead MarinaHafan PwllheliAberystwyth MarinaNeyland Yacht HavenSwansea MarinaAll Wales EstimatesTOTAL ECONOMIC IMPACT?4.4M?1.7M?4.3M?0.9M?2.7M?3.8M?30.6M*Using multiplier of 1.3 - i.e. each total spend is multiplied by 0.3, and this additional sum added to reported spend to represent the true economic benefit from the money recycling through the local economy (source: as applied by GHK Consulting for the BMF).Section 6. Support BusinessesGiven the relatively small number of responses from businesses, the figures given here must be regarded as broad indications, rather than robust estimates. Nevertheless on the basis of the responses from the marina management and the support businesses, it is possible to make the following broad estimates.Support businesses are found at a rate of approximately 2.4 companies per 100 berths. An average support company has a turnover of around ?190k and generates 4 full-time and 3 part-time jobs, about 58% of which are directly attributable to the marina. EmploymentOn the basis of these responses from Marina managements and support businesses the following estimates emergeMarina JobsJobs in supporting companiesFull timePart timeFull timePart timeJobs per berth0.0219180.0050230.0603840.045288Welsh Jobs8119223168Berths per FTE job - all marina related jobs.7.5Total Welsh FTE Jobs in Marinas and supporting companies.490This estimate equates well with an alternative estimate based on a simple application of a turnover per job of ?40,000 (as used by Visit Wales) to the berth-holder spend estimates which yields an estimate of 436 jobs in marinas and marina support industries and a further 124 jobs in the wider supply chain. This second method is the only practical way to estimate additional supply chain jobs. These additional supply chain jobs, added to the 490 jobs directly attributable to marinas, gives us an overall estimate of jobs supported by the Welsh Marina industry of approximately 614 (excluding the boat retailing industry).Section 7. Boat profiles and purchasing behaviour of respondent berth-holders1. Power BoatsResponses were obtained from a sample of 55 power boat owners. The power boats sampled were concentrated in the 7 to 10 metre length category - 19% of boats were less than 7 metres in length, most (57%) of boats were in the 7-10 metre class, 20% were 11-15 metres and a small number (4%) larger than this. 56957610617240015 % of respondents reported their boat to be their first purchase, whilst over a quarter of respondents (28%) reported that they had bought their current boat new. Bids from 44 respondents yielded an average period to changing the boat of 6.0 years. A qualitative impression was that most power boats below 7 metres in length had no, or very basic, live aboard facilities, and were almost exclusively being used as “day” boats.Of the 15 reports of new power boat purchases, 4 were reported as being bought at their home marina, 7 in the rest of Wales and 4 elsewhere in the UK.21% of boats were reported as being bought at their home marina, with a further 38% being bought elsewhere in Wales giving an overall total of boats bought in Wales of 59%. Nearly all other boats were reported to have been bought elsewhere in the UK (38% of total purchases).639223132337002. Sail BoatsResponses were obtained from 68 sail boat owners. Very few sailboats in marinas are less than 7 metres in length, with nearly all boats interviewed being in either the 7 to 10 metre category (56%) or the 11 to 15 metre category (41%). A much higher percentage (29%) of sail boat respondents reported their current boat to be their first, and a much lower percentage (12%) reported their current boat to be bought new. Average period to renewing the boat was 10.25 years. 77887313549100Of the 7 reports of new sail boat purchases, none were reported as being bought at their home marina, 1 in the rest of Wales, 5 elsewhere in the UK and 1 in France.26% of boats were reported as being bought at their home marina, with a further 23% being bought elsewhere in Wales giving an overall total of boats bought in Wales of 49%. Nearly all other boats were reported to have been bought elsewhere in the UK (48% of total purchases).84858812190200DiscussionEstimating the “fixed” spends (Berthing and Insurance) of marina berth-holders in Wales is straightforward and can be reported with considerable confidence. It is clear from the analysis that robustly estimating the value of variable spend in marinas is a more difficult task, given the issues surrounding the nature of a survey sample, and the largely weather related annual variability in visits reported by respondents. However adjustment has been made for these factors when multiplying survey bids, and the resulting estimates are as realistic as they can be. The most recent direct comparison available to verify the figures reported here is the survey of Conwy Marina as reported in “Economic Benefits of Coastal Marinas” (BMF, 2007), where methodology was somewhat different, depending more on the company’s responses rather than that of berth-holders’. It is reassuring, therefore, that their estimate of turnover which included berthing, boatyard services and fuel, as well as tenant rent (not assessed in this report) and a small unspecified “other” category, is reported as ?1.38m. The management reported a turnover estimate of 1.3m in this report, but our estimate from questionnaire response would place this at more like 1.9m if we include the additional categories used in the BMF estimate, this shows some increase on 2007, and would therefore seem to be consistent with what might be expected. The BMF estimate of 54 FTE Marina related jobs and 16 FTE jobs in the wider economy, relates to 62 and 13 respectively, as reported here. This report presents a much higher estimate of visitor spend for Conwy than that in the BMF report, this is in part attributable to the slightly higher average bid (?56 per night) than the ?50 used in the BMF report, but mainly due to the greater number of visitor nights reported (1,050 p.a.) in 2010.In looking for other results to compare, the results of the Irish Sea Marine report “The Potential for Growing Marine Leisure” (2007, Annett, MacNulty and O’Driscoll) present the following comparison. Comparison of Welsh Data with Irish Sea Marine Report 2007All expressed in EurosDun Laoghaire(Irish Sea Report)Conwy(This report)Malahide(Irish Sea Report)Holyhead(This report)Active Berths510490273245Direct Spend5.61m3.41m2.13m1.45mBerth-holder secondary2.25m1.70m0.85m0.74mDirect spend per berth11,0007,0007,8005,900Secondary spend per berth4,4003,5003,1003,000Total spend per berth15,40010,50010,9008,900Welsh Marinas seem to be comparable to Malahide in Ireland, but not to Dublin, this may be due to some sort of “Capital City” effect, as we might expect from the premium on convenience, and the general tendency to greater expenditure to be greater in an area of higher average earnings. It would be interesting to extend the comparison to Marinas on Cardiff Bay to see if such an effect is apparent in the Welsh Capital.Examining the figures more closely suggests that berthing costs are actually quite similar, and secondary expenditures are quite close, apart from the quite large “Dublin” effect where spend is noticeably higher than elsewhere. However, when the Irish estimates for insurance and variable costs are considered, Welsh respondents have considerably underbid their Irish counterparts. Insurance bids are somewhat perplexing as the average insurance per berth in Ireland (€1,447 for Dublin and €1,535 for Malahide) as quoted in the Irish Sea Marine report is three times the average for the whole Wales sample analysed here(€499), a seemingly unlikely discrepancy, as the power to sail ratios are similar. Similarly, Irish maintenance bids are around double those for Wales and it is these two differences that account for the bulk of the differences between the studies.In 2009, Hyder Consulting provided economic estimates for development of Ramsey Marina on the Isle of Man, a development which would be similar in size to Aberystwyth Marina. The conclusions arrived at were broadly comparable in scale to those presented here, but the overall revenues predicted were smaller mainly due to presentation of surprisingly low per metre berthing charges of ?118 p.a. which compare to a Welsh average of around ?280 per metre.The only other relevant study consulted was the Hafan Pwllheli Economic Impact Evaluation (Brooksbank, Hill and Jones-Evans, 2005), which come to conclusions of an altogether different magnitude, apparently based in berth-holder responses of similar type to this study. Their study appears to suggest combined income generation of ?40,000+ per berth, (?19m in the region of the Marina) and job creation of some 266 FTE, conclusions approximately six times greater than those presented here for Hafan Pwllheli. It is not clear why this difference occurs, but there is no evidence in the surveys conducted this year to support estimates as high as those presented by Brooksbank, Hill and Jones-Evans.It would seem reasonable to conclude from these comparisons that the estimates derived from the responses obtained in this survey are largely consistent with the picture derived from other studies. There are some differences which would bear further investigation, but the figures are robust and internally consistent. These results present a fuller picture of the Marine Leisure Industry in Wales, its internal economy and how it contributes to the communities around it, than has hitherto been available.Boat purchase data has been presented as a matter of potential interest to the Marine Leisure community, but it was regarded as outside the scope of this study to analyse these in any detail. The most noticeable contrasts are between sail and power in the source of newly bought boats, and the lower frequency with which sail owners replace their boats.Appendices1. On the nature of the sample.There are fundamental issues associated with the statistical reliability of the berth-holder sample when it comes to assessing the values sought. Although the sample was as random as possible on the day of sampling, it is quite clear when looking at the variable spend, that this is related to the number of days that berth-holders attend their boats (see Fig 1). This will bias the spend estimates, as it is clearly more likely that any single, one-off, day sample will over-represent the more frequent boat users. This is difficult to correct for, as it is also clear that each day of the year (and therefore each sampling day) is not equivalent with respect to sampling probabilities. Two approaches have been taken to address with this issue which should give realistic estimates of an optimistic and pessimistic nature, which can be regarded as a robust estimate of the likely range of the data.48895011938000The sampling problem should have no impact on “fixed” spend – berthing costs, and insurance, which are represented by the y intercept in fig. 1 (?2,739 estimated this way - ?2,991 when estimated directly from bids) but will impact on “variable” spend, in which servicing, chandlery, PPE, training and supplies have been included, which this graph then estimates as ?41.44 per day.2. On the confidence in the dataAs a consequence of the above issues, rather than simply calculate standard errors or confidence intervals, neither of which would give a robust indication of the likely spread of the estimates, the estimates generated from the sample have been treated in two ways:1. For the optimistic estimate, it has been assumed that the sample is truly random and totals have simply scaled the average variable spend over the whole sample to total berth availability. This will tend to overestimate the spend, as it assumes that there is an equal probability of sampling any berth-holder whatever their attendance rate at the marina. This will tend to bias the estimates towards the spend rates of more frequent attendees.2. For the pessimistic estimate, the scaled estimate of berth holders’ variable spend has been remodelled, using a weighting based on the probability of sampling a person with a given attendance rate on any given day. The model assumes that all days of the year are equivalent in terms of sampling probabilities. This will tend to bias the estimates towards the spend rates of less frequent attendees and hence underestimate overall variable spend.The true value of variable spend should fall somewhere between the two as the actual sample of different frequency attendees will fall somewhere between the two, given that the sample days were all in the summer holidays and mainly on weekends and bank holidays. Sampling on these “favourable” days should yield a much higher probability of actually sampling low rate attendees than that used in the pessimistic estimate. It is difficult to see a justifiable way of modelling the sample probabilities for this intermediate situation that wouldn’t simply be a guess, so the mid-point between the optimistic and pessimistic methods has been taken as the best estimate available.Summary contribution of Welsh Marinas (millions)Variable Marina servicesOther goods and servicesTotal variable spendBerthing and InsuranceTotal berth-holder spendEst. Jobs Supported“Optimistic “ Total Spend?8.76 +?6.95 =?15.71?11.07?26.78511“Pessimistic”Total spend?3.76 +?2.96 =?6.72?11.07?17.45Total berth-holder spend reportedMean variable spend?11.215?11.07?22.33. On approach to rounding.All whole number figures have been retained in the subtotals presented, this clearly implies a spurious accuracy in these figures. This was carried through to the final totals to minimise any effects of rounding errors.ReferencesAnnett, MacNulty and O’Driscoll (2007), The Potential for Growing Marine Leisure. Interreg III Report for Irish Sea Marine.British Marine Federation (2007), Economic Benefits of Coastal Marinas. Report by GHK Consulting Ltd.Brooksbank, Hill and Jones-Evans, (2005) Hafan Pwllheli Economic impact Evaluation. Report by Newidiem Consulting.Department of Transport, Isle of Man Government (2009), Ramsey Marina Economic Study. Report by Hyder ConsultingDisclaimer:South & West Wales Marine Leisure Federation does not represent nor endorses the accuracy or reliability of the information, recommendations or content of the research material obtained from external sources. Details are gathered and analysed in good faith and represent the best professional judgement on the basis of information obtained from such external sources during the course of the assignment, and it is the responsibility of the client to accept it as such. Neither can South & West Wales Marine Leisure Federation be liable for any action taken in reliance thereon, nor the proposals contained within any other document, since the achievement of suggestions, tactics and objectives depend on factors outside of their control. South & West Wales Marine Leisure Federation expressly disclaims all warranties, expressed or implied, as to the accuracy of any content provided, or as to the fitness of the information for any purpose.3492500220345south & west wales marine leisure federationHavens Head Business ParkMilford Haven Pembrokeshire SA73 3LDTel: 01646 696632eMail: david@irish-web: irish-00south & west wales marine leisure federationHavens Head Business ParkMilford Haven Pembrokeshire SA73 3LDTel: 01646 696632eMail: david@irish-web: irish-3073400220345002794002464435001397001853565This research is funded as part of the Irish- project which is funded by the European Regional Development Fund through the Ireland Wales Interreg 4A Programme.00This research is funded as part of the Irish- project which is funded by the European Regional Development Fund through the Ireland Wales Interreg 4A Programme. ................
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