Strategic Plan for the Yachting Industry of Trinidad and

Strategic Plan for the Yachting Industry of Trinidad and Tobago FINAL REPORT March 04, 2005 The Yachting Industry Team of The Prime Minister’s Standing Committee on Business Development (SCBD) This report may not be quoted or used for any purpose without the written consent of the Ministry of Trade and Industry. If you need clarification or assistance in this matter, please contact La Shaun Prescott (lprescott@tradeind.gov.tt). Members of the Yachting Industry Team Ms. Jacqueline Clarke Team Leader General Manager Yacht Services Association of Trinidad and Tobago (YSATT) Mr. Mike Singh Managing Director Compression and Power Services (1988) Ltd Mr. Colin Barcant Independent Consultant ……………………... ……………………... ……………………... Mr. Silbourne Clarke Honorary Secretary Trinidad and Tobago Yacht Club (TTYC) Dr. Ralph Henry Executive Chairman Kairi Consultants ……………………... ……………………... Ms. Alicia Aq uing Investment Sector and Business Development Officer ……………………... Tourism and Industrial Development Company of Trinidad and Tobago Ltd. (TIDCO) Mr. Norris Jack Special Advisor to the Chief Secretary Tobago House of Assembly (THA) Ms. La Shaun Prescott Industry Specialist Ministry of Trade and Industry ……………………... ……………………... Members Co-Opted Mr. Erik Blommestein Economic Affairs and Environment Officer ……………………... United Nations Economic Commission for Latin America and the Caribbean (UNECLAC) Table of Contents 1.0 Nature and outlook of the Industry................................................................................... 11 1.1 Definitions ..................................................................................................................... 11 1.2 Status of the International Yachting Industry............................................................... 12 1.2.1 Increase in Leisure Marine Activity...................................................................... 12 1.2.2 Increasing production of yachts ............................................................................ 13 1.2.3 Lack of Marina Space ........................................................................................... 13 1.2.4 Increasing investment in infrastructure in the yachting sector ............................. 14 1.3 Regional Yachting Industries........................................................................................ 14 1.3.1 Cruising destination .............................................................................................. 16 1.3.2 Charter boat base................................................................................................... 17 1.3.3 Hurricane shelter/ storage ..................................................................................... 17 1.3.4 Repair .................................................................................................................... 18 1.3.5 Recent Developments ........................................................................................... 19 1.4 Economic Returns ......................................................................................................... 20 1.4.1 Direct Expenditure by Yachtsmen........................................................................ 21 1.4.2 Revenue Generation.............................................................................................. 22 1.4.3 Employment and Job creation............................................................................... 23 1.5 Impact of Yachting Industry......................................................................................... 24 Summary................................................................................................................................... 24 2.0 The case of Trinidad and Tobago ..................................................................................... 26 2.1 A Brief History.............................................................................................................. 26 2.2 Profile of the Yachting Industry of Trinidad and Tobago ............................................ 28 2.2.1 Geographic characteristics of Trinidad ................................................................. 29 2.2.2 Geographic characteristics of Tobago ................................................................... 34 2.2.3 Infrastructure ......................................................................................................... 36 2.2.4 Legislation and Incentives .................................................................................... 36 2.2.5 Training and Human Resource Development ....................................................... 40 2.2.6 Institutional Support for the Yachting Industry.................................................... 41 2.3 S.W.O.T. Analysis and Key Challenges in the Yachting Industry............................... 46 2.4 Economic Contribution of Industry .............................................................................. 56 3.0 International Best Practices............................................................................................... 58 3.1 Voluntary Programs for Certification for Marinas to meet high standards .................. 58 3.2 Measures for Environmental Protection ....................................................................... 59 3.3 Marketing and Promotion ............................................................................................. 61 3.4 Training and Human Resource Development ............................................................... 61 3.5 Legislation and Incentives ............................................................................................ 62 3.6 Emergency planning and disaster preparedness............................................................ 63 4.0 Strategy for the Development of the Industry................................................................... 64 4.1 Vision and Objectives of the Yachting Industry of Trinidad and Tobago .................... 64 4.2 Phase 1 of Implementation Schedule ............................................................................ 66 4.3 Phase 2 of Implementation Schedule ............................................................................ 71 4.4 Phase 3 of Implementation Schedule ............................................................................ 74 CONCLUSION......................................................................................................................... 75 -3- List of Appendices Appendix I Appendix II Appendix III Appendix IV Appendix V Tobago Survey List of Persons Consulted Single Immigration Form Grenada Yachting Act 2000 Literature Review List of Tables Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Number of Boats per Thousand Inhabitants for Selected Countries Estimated Number of Charter Boats in Selected Caribbean Countries Yachting Products and Infrastructure offered by Selected Caribbean Countries Average Daily Expenditure of the Yacht Tourist in Selected Caribbean Countries Average Length of Stay of Yacht Tourists in Selected Caribbean Countries Estimated Direct Employment in the Yachting Industry in Selected Caribbean Countries for the year 2000 Economic Contribution of the Yachting Industry in Selected Caribbean Countries for the year 2001 Land Availability in Chaguaramas Capacity of Boatyards and Marinas Economic Contribution of the Yachting Industry in Trinidad and Tobago List of Figures Figure 1 Figure 2 List of Boxes Box 1 Box 2 Box 3 Description of the Anchorages in Chaguaramas Description of the Anchorages in Tobago Indirect Economic Returns from the Yachting Industry in Trinidad and Tobago Number of Incoming Yachts in Trinidad and Tobago Yacht Location in Trinidad -4- Abbreviations AMIF ARC BDC CARIRI CAST CDA CFTC CFTDI CSO CTO ECLAC EMA FTAA GDP ICOMIA IMA IMDG IYT MCA MOE MONS MOT MOWT MSD MSTTE MSWI MTI NEMA NOSCP SCBD SSCA TDI THA TIDCO TTIT TTSA TTYC UWI YIT YSATT Australian Marine Industries Federation Atlantic Rally for Cruisers Business Development Company Caribbean Industrial Research Institute Caribbean Alliance for Sustainable Tourism Chaguaramas Development Agency Commonwealth Secretariat Commonwealth Fund for Technical Corporation Caribbean Fisherie s Training Development Institute Central Statistical Office Caribbean Tourism Organization Economic Commission for Latin America and the Caribbean Environmental Management Authority Free Trade Area of the Americas Gross Domestic Product The International Council of Marine Industry Association The Institute of Marine Affairs International Maritime Dangerous Goods International Yachtmaster Training Inc Maritime and Coastguard Agency Ministry of Education Ministry of National Security Ministry of Tourism Ministry of Works and Transport Maritime Services Division Ministry of Science, Technology and Tertiary Education Maritime School for the West Indies Ministry of Trade and Industry National Emergency Management Agency National Oil Spill Contingency Plan Standing Committee on Business Development Seven Seas Cruising Association Trade Development Institute Tobago House of Assembly Tourism and Industrial Development Company of Trinidad and Tobago Trinidad and Tobago Institute of Technology Trinidad and Tobago Sailing Association Trinidad and Tobago Yacht Club The University of the West Indies Yachting Industry Team Yacht Services Association of Trinidad and Tobago -5- Acknowledgements The Yachting Industry Team would like to thank the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) for hosting the team’s meetings. The team is especially grateful to Mr. Erik Blommestein, Economic Affairs and Environment Officer of ECLAC for his close collaboration and assistance in the conduct of research for this report and to Mr. Colin Barcant, Independent Consultant f r conducting the survey of the Tobago Yachting o Industry. Our appreciation also extends to Ms. Jo’s-Ann Pollidore and Ms. Shirley King, Research Assistants of the Ministry of Trade and Industry. In addition, we are indebted to those members of the public and private institutions, as well as the yachtsmen with whom we consulted in our survey of the current status of the yachting industry of Trinidad and Tobago. -6- Executive Summary The yachting industry is in a state of growth internationally. With an inc reasing number of persons retiring early, and higher average incomes, there is an increasing amount of leisure time. Furthermore, a greater proportion of leisure time is now being spent in water-based activity. The growth of the industry is also evident by the growth in the production of pleasure craft and megayachts in particular. This increase in the number of recreational boats worldwide is creating additional strain on the existing infrastructure and the demand for marina space is increasing. The benefits of developing the yachting industry seem to outweigh the costs to a great extent and nations around the world are now investing significant amounts in additional infrastructure in an attempt to meet the increasing demand. Regionally, the islands offer various yachting products including cruising destinations, charter boat bases, hurricane shelters/ storage and repair. However, changing weather patterns may cause an increasing number of yachts to come to Trinidad and Tobago for yacht repair and storage. There are several key international best practices, which have been identified. These include: Voluntary programs for certification for marinas to meet high standards; Measures for environmental protection including: o Sewerage and hazardous waste management; o Oil spill prevention and clean up policies; Aggressive marketing to promote the country as a yachting destination; Provision of adequate training facilities to expand the workforce in the yachting sector; Provision of incentives and supporting legislation to facilitate further growth of the industry; Emergency planning and disaster preparedness. - Trinidad and Tobago has experienced a significant growth in its yachting industry since the 90’s, emerging as the repair center and hurricane shelter of the Caribbean. Direct employment of some 1,100 – 1,400 persons and revenues of US$23.3 million were recorded in the year 2001 and as such the industry has been targeted for development as it was seen to display great potential for diversifying the economy from its dependence on the energy sector. However, this growth has not been sustained in recent years. Environmental pollution such as oil spills, decreasing work standards, and negative perceptions have affected the industry causing considerable fallout. Government intervention has now become necessary to facilitate a reversal of this trend. It is expected that the recommendations for further development of the industry outlined below will be implemented in consultation with YSATT and the Tobago Ho use of Assembly where appropriate. In order to maintain levels of employment and revenue similar to the average levels experienced during the 90’s, there is a need for: • Improvement in efficiency of operations by Government agencies such as Customs, Immigration, and the Police; • Improvement in enforcement of regulations; • Infrastructural works on roads etc; -7- • • • Training of the existing and potential workforce in order to increase the quality of workmanship and reverse the perception of low standards of labour; Use of Code of Conduct for the prevention of pollution from small ships in the marinas and anchorages; Comprehensive marketing and promotional plan. To maintain the country’s competitive advantage and expand the market, the recommendations include: • Implementation of a zoning plan and mooring buoy policy for anchorage areas; • Implementation of a crewed charter policy; • Adoption of Blue Flag program at boatyards and marinas; • The introduction of a Yachting Act to provide the legal framework for all aspects of the yachting industry. For long-term sustainability and future development, the following presents viable options: • Development of Chacachachare and establishment of a marina; • Development of a policy for the creation of a marina facility in Tobago and the commissioning of a site selection survey for possible marina sites; Through implementation of these recommendations, Trinidad and Tobago can become the premier destination for yacht repair services in the Caribbean and a must-see destination on a yachting tourist’s cruising schedule. -8- Introduction Background The Government of Trinidad and Tobago is actively seeking economic diversification to reduce the country’s reliance on the oil and energy sectors. To this end, the Prime Minister’s Standing Committee on Business Development (SCBD) was formed in 2003 to coordinate the development of key industry areas in the non-energy sector. Seven industries were targeted for further development, and industry teams were formed comprising representatives from the public and private sector to develop strategic plans for the industries identified. The Yachting Industry Team was established in February 2004 with the following mandate: § § § § Collate and analyze existing industry studies; Develop a Plan of Action for the development of the industry; Conduct SWOT Analysis; Recommend a Business Plan for the implementation of the recommendations. Rationale The yachting industry has great potential to facilitate the country’s diversification for several reasons: § The world economy is increasingly pursuing trade liberalization by negotiating new trade agreements such as the Free Trade Area of the Americas (FTAA). The yachting industry, being location specific, is not subject to increased competition resulting from globalization, as other industries such as the garment industry or the food and beverage industry; The industry has strong linkages with several other industries such as tourism, manufacturing, boat-building, maritime services and fishing. Addressing the challenges faced by the yachting industry (such as training) would have positive spin off effects for these related industries; The Government’s efforts to assist in the development of the industry could be limited to being facilitative and promotional. As no major capital investments in plant and machinery would be required, the return on investment would be large. The development of the yachting industry would also facilitate expansion of the tourism industry without major investment in additional hotels and airlift; The yachting industry is majority locally-owned, thus decreasing the possibilities of major job losses which may occur when foreign investors close their business and return abroad; Environmental issues are far easier to control in comparison to other industries; § § § § § -9- § The industry employs approximately 1,100 – 1,400 persons directly and can generate revenues of up to US$23.3m annually 1 . The yachting industry is just one aspect of leisure marine tourism, which includes such activities as whale watching and boat building. The team was given a mandate to focus only on the yachting sector, however it should noted that there are other related aspects of leisure marine tourism that if further developed, will have positive spin off effects for the yachting industry as well. The Government’s role in economic growth and development should be a facilitative one, creating an appropriate environment conducive to private sector investment. The yachting industry has traditionally been private sector driven. However, the enabling environment has been declining in recent years, and there is the urgent need for these issues to be addressed. Methodology The Yachting Industry Team held bi-weekly twenty meetings at various locations including the Ministry of Trade and Industry, Riverside Plaza, Port of Spain, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), Chancery Lane, Port of Spain, and the Yacht Services Association of Trinidad and Tobago, Crews Inn Compound, Chaguaramas. Several persons were also consulted in the development of the Strategic Plan (See Appendix II.) Research on the yachting industry in Trinidad and Tobago is relatively limited. Few studies were conducted by the Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO), the Institute of Marine Affairs (IMA) and the most comprehensive one by ECLAC in 2002. These studies were reviewed and a summary is provided in Appendix VIII. However, the studies concentrated mainly on Trinidad and as such, the team found it necessary to commission a separate study on the Tobago Yachting Industry. This report is attached in Appendix I. Outline This report differs from previous research done in that it includes an action plan for overcoming the challenges current ly hindering the development of the yachting industry. The first section briefly describes the nature of the industry, providing definitions, and summarizing the status of the international yachting industry. A brief history of the development of the industry and S.W.O.T. analysis are provided in section 2. The report then identifies the best practices used internationally for the development of the yachting industry. Based on these international best practices, the strategy for the development of the industry is outlined including the vision and objectives for the industry’s sustainable development. Concluding statements are then made. 1 2001 Estimates - 10 - 1.0 Nature and outlook of the Industry The yachting industry can be considered as a sub-sector of the tourism industry but unlike other sub-sectors it can exist on its own. For example, tourists visiting a country to experience the dive or eco-tourism product invariably use the destination’s airport to access the product and utilize hotel accommodation for the duration of their stay. A yachting tourist, on the other hand, arrives on his own yacht, stays in his own accommodation and will often bring his own supplies such as food and water. The yachting industry includes the following: § § § § Yachting tourists - visitors who stay for more than 24 hours in a particular country and whose place of stay is a vessel. Crewed charter boats operated as a resident or non-resident business: Sport fishing, diving, glass bottom boats; Yachting commercial enterprises to accommodate the visitor including marinas, boatyards, moorings, marine equipment supply shops and chandlers; Other ancillary commercial enterprises such as communication service providers, taxi drivers, car rentals, travel agents, banks, restaurants, supermarkets, tour operators as well as entertainment; Skilled workers and repair services such as provided by Shipwrights, Chandlers, Mechanics, Electricians, Plumbers, Painters, Riggers and Sail makers; Yachting events such as Regattas. § § 1.1 Definitions The following definitions are provided for terms used in this report: A yacht is a seaworthy vessel of not less than 5 metres in length propelled by motor or sail, categorized as private or charter vessels and used primarily for pleasure. It includes pirogues and pleasure boats with or without sail. A cruising or live aboard yacht is used typically by its owner for various periods of time. A bareboat yacht is a yacht rented without a paid full-time crew for a fixed period of time. A crewed charter boat is a yacht rented for a fixed period of time whereby the crew is responsible for all aspects of the boating experience. A super or mega yacht is a yacht over 30 metres. - 11 - A marina is a facility providing berthing facilities, including moorings, for a minimum of 10 yachts offering bathroom, shower and change facilities as well as receptacles for the disposal of waste. A boatyard facility provides a lifting capability of a minimum of 10 tonnes and land storage and services to marine craft. A mooring is an anchoring device permanently in position on the seabed, attached by ropes or chains to a floating buoy. The type of anchoring device used depends on the nature of the sea bottom and the type of vessel for which it is intended. 1.2 1.2.1 Status of the International Yachting Industry Increase in Leisure Marine Activity Two of the largest groups of the world’s population, commonly known as the Baby Boomers and the Generation Xers are expected to have a significant effect on the international Yachting Industry. There is an increasing trend among these age groups towards early retirement and as a result there is a greater proportion of leisure time. These groups are now enjoying the ocean on cruise liners and their own boats. The Generation Xers has been reported to focus more on adventure sports, such as kayaking, wave boarding, rafting and water-skiing. According to Leisure Trends Group, Americans have shown a keen interest in increasing time devoted to recreational activities in the 21st century, as an effective way to cope with the stresses of terrorism, war and economic downturns. Much of this recreation will centre around waterbased activities. In Germany, it is estimated that some eight million persons (or ten per cent of the population) own a boat and regularly spend their leisure time on the water. The country has approximately 130,000 motor yachts and sailing yachts2 . Australia, with an estimated one million recreational boat users, has more than 600,000 registered boats in the country according to the Australian Marine Industries Federation (AMIF) 3 . In the United States, there is an even greater record of leisure marine activity. An estimated 17.5 million recreational boats were in use in the year 2003. Statistics show that in 1999, there were an estimated 78 million people participating in recreational boating with an associated infrastructure of 11,500 marinas, boatyards, yacht clubs, dockominiums and parks. Lydecker et. al. calculated approximately one boat in the country for every 17 people. 2 Industry Canada August 2001: Industry Sector Analysis “Recreational Boat Market – Germany” Available online at: http://strategis.gc.ca/epic/internet/inimir-ri.nsf/en/gr-71923e.html 3 Industry Canada May 2001: Industry Sector Analysis “Pleasure Boat Industry – Australia” Available online at: http://strategis.gc.ca/epic/internet/inimir-ri.nsf/en/gr-78483e.html - 12 - 1.2.2 Increasing production of yachts With increased leisure time and the associated demand for leisure marine goods and services, production of yachts worldwide has increased significantly. The pleasure boat market in Italy, which is one of the top five largest in the world, is growing, spurred further by the new financing possibilities which allow a greater number of Italians to afford their own yachts. The industry is worth an estimated US$1.5 billion compared to the United States, whose industry is valued at US$11 billion – the largest in the world. France also ranks among the top five in the world with a pleasure boat fleet totaling 800,000 units in 2001. Sales of pleasure boats, engines, equipment, accessories, distribution and related services, amo unted to US$2.73 billion in 2000. In addition, these European countries have the greatest number of boats per capita as seen in Table 1. Table 1: Number of Boats per Thousand Inhabitants for Selected Countries4 Country Norway Sweden Finland New Zealand Canada United States No. of boats per thousand persons 166 142 142 100 83 43 Source: Caribbean Statistical Tourism Report 1998 It is estimated that the world pleasure boat fleet is currently in excess of 20 million, of which, 17 million are motorboats of varying kinds and 3 million are sailing boats (The International Council of Marine Industry Association (ICOMIA)). 1.2.3 Lack of Marina Space The steady growth in the number of recreational boats has in turn created a high demand for existing marinas and areas suitable for the construction of new marinas, as the current facilities are severely limited (Colt et. al. 2000). For example, in Canada the lack of pleasure boat accommodations was in danger of impeding market growth in this industry. The 261 pleasure boat seaports, which represent 165,000 cleat tie-ups, were saturated (Industry Canada, 2003). Another trend being observed is the increasing focus of manufacturers on the production of mega-yachts (especially in Italy and Germany). There is now a dearth of marina space to accommodate mega-yachts; of the 950 berths for vessels over 50 m in length that have been identified worldwide, 45% are on the East Coast of the USA and the Caribbean. Northern Europe and the Mediterranean follow closely with 42.9% and the West Coast USA and the rest of the world contribute to the remaining 12.1%. However, many of these berths are not for permanent mooring. 4 Accurate data on Trinidad and Tobago are not available as boats are not registered. - 13 - 1.2.4 Increasing investment in infrastructure in the yachting sector Never-the- less, the lack of marina space does not appear to be a lasting problem as Governments around the world are recognizing the benefits to be derived from investing in the yachting industry and are taking steps to further develop the industry. Some examples include the following: (i) (ii) The Irish Government plans to invest more than 25 million Euros for a string of marinas along the coast; In Mexico, there are plans for a US$1.9 billion dollar project ($210 million of which is to be government funded) entitled the “Sea of Cortez Project” to build a network of new or renovated marinas and other ancillary services in Baja California. It is envisioned to serve approximately 76,000 recreational boaters annually. The project includes plans for luxury hotels, new airports, world-class golf courses and exclusive spas; The Italian Government also proposes to more than double the number of berths, by renovating the old berths and creating new ones. (iii) 1.3 Regional Yachting Industries The Caribbean as a region has the potential to be the ideal destination for yachting tourism for two main reasons: 1. The islands are located in close proximity to a major yachting generating location, North America; 2. The islands of the Caribbean form a chain, each within eight to twenty- four hours’ sail of each other. This has two benefits – all skill levels of sailor can easily travel from one destination to another, i.e. land is never long out of sight, and many destinations can be visited in a relatively short period of time. In comparison, in the Pacific Ocean destinations are fourteen to twenty-one days’ sail away from each other. The sailing pattern in this region is usually down the Caribbean islands from the North to the South starting from the Bahamas, through the Easter Caribbean to Martinique, to St. Luc ia, to St. Vincent, to Bequia, to the Grenadines, Grenada and finally down to Trinidad and Tobago. - 14 - Source: www.maps.com A yachting industry has developed on each Caribbean island. The region plays host to several types of yachting tourists: 1. Live-aboards – These are tourists who live and cruise year round aboard their boats. The average size of the vessel for these tourists is 35 – 50 feet. These tourists are typically an older, retired couple or family with small children. They are usually on a tight budget e.g. retirement savings or stock dividends; 2. Cruisers – These tourists cruise the Caribbean during the winter season on a budget that is less restrictive. They store the boat in the Caribbean during the off-season and return to North America or Europe. The average size of the vessel for these tourists is 35 – 55 feet; 3. Bareboat charter yachting tourists – These are persons who wish to sail on their own but have to charter a vessel. The average size of these vessels is 34 – 50 feet. Bareboat charter companies own/ lease yachts and are based in destinations which are closer to cruising grounds e.g. St. Vincent or the BVI; 4. Crewed charter yachting tourists – These tourists charter vessels where the owner or captain lives aboard the vessel year round, possibly with one to four crew members. The vessel is made available for vacation charter via charter brokers and the vessel is based in a destination that is near to a cruising ground, offers good air access (to accommodate charter clients), and offers relevant yacht services and facilities i.e. marina, provisioning, fuel. Examples of countries host to crewed charter yachts are Antigua and St. Maarten. The average size of the vessel is 50 – 90 feet; 5. Megayacht tourists – These tourists have excessive budgets e.g. one owner spent US$198,000 during a weeklong stay in the BVI - $100,000 on jewelry purchases, $25,000 on fuel, $10,000 on hotel expenses and $20,000 on spa treatments. The captain - 15 - lives aboard year round with 5 – 35 crew members. Again, the vessel is based in a location that can provide necessary services and suitable accommodation. However, the industry differs from island to island in terms of product offered and level of development. The main types of development can be described as follows, bearing in mind that many destinations offer a mix of products: • Cruising Destination; • Charter boat base; • Hurricane shelter/ storage; and • Repair. 1.3.1 Cruising destination The main reason that many venture to the Caribbean is the beautiful blue water and white sand beaches that these islands offer. For many islands, this is their main attraction for yachting tourists – beautiful, accessible bays that offer opportunities for snorkelling and diving, e.g. St. Vincent and the Grenadines, British Virgin Islands (BVI), the Bahamas. Typically, yachting tourists in these locations anchor or use a mooring rather than enter a marina, shop for supplies and come ashore to visit attractions. Yachting industry development in these countries is usually small-scale, i.e. moorings or small marina, restaurants, auxiliary services such as laundry, internet café, souvenir shops, tour operators, supermarkets, fuel, bakeries and dive shops. Source: TIDCO - 16 - 1.3.2 Charter boat base In many cases, an island’s proximity to a cruising ground makes it an ideal location for a charter base, e.g. St. Lucia, Grenada, BVI, Antigua and St. Maarten. Some of the larger charter operators in the Caribbean include the Moorings, Horizon Yacht Charters and Sun Sail. Table 2: Estimated Number of Charter Boats in Selected Caribbean Countries Country British Virgin Islands Grenada Martinique Saint Lucia St. Maarten St. Vincent and the Grenadines Trinidad and Tobago No. of Charter Boats 1000 + 44 750 + 42 148 85 0 Source: ECLAC 2004. “Yachting in the Eastern Caribbean: A Regional Overview.” Charter operators cater for the tourist who has elected to spend his/ her vacation sailing to a selected destination for one or two weeks, with or without a crew (can number as many as 25). The charter boats are serviced, provisioned, fuelled and crewed from the base which therefore necessitates the availability of all related support services, e.g. marinas, boatyards, hotels, restaurants, small repair services, air links, transport services, laundry, provisioning services, yacht management, as well as auxiliary services such as catering, car rental, customs brokers, internet cafes, business services and travel agents, to name a few. 1.3.3 Hurricane shelter/ storage From an insurance point of view, cruising the Caribbean can be an expensive business for the average sailor. Hurricane season poses its own special problems in terms of large deductibles and additional premiums to cover wind damage caused by ‘named storms’. In 1995, based on an analysis of storm tracks going back many years, insurance companies stipulated that normal policy provisions will apply to boats located outside of the ‘hurricane belt’ during the hurricane season. Trinidad, Venezuela and the south coast of Grenada lie below the southern boundary of the hurricane belt - 12’40’N - and as such these countries experienced a major boost in the growth of their yachting industries. For those that cruise for only part of the year, it is preferable to store their boats in the Caribbean rather than sail back to Europe or North America, to more easily resume their cruising itinerary. It follows that they will want to store their boats in a location that is less likely to be affected by hurricanes. Therefore the yachting industry in Trinidad and Venezuela, and more recently Grenada, has evolved to cater to this need, offering storage capacity. For example, Trinidad’s capacity for yacht storage is approximately 900 vessels while Grenada has increased capacity in the last three years to 350 vessels. - 17 - For those that live on aboard their yachts year-round, many choose to spend the hurricane season below the hurricane belt to meet the requirements of their insurance companies. Many opt for marinas in Trinidad and Venezuela while others choose to anchor in the bays of Grenada. Development in these hurricane shelter islands is centred around boatyards and marinas and, due to the yachtsman’s length of stay (2 - 6 months), many auxiliary businesses develop to cater to the visitors’ needs, e.g. restaurants, supermarkets, car rental, tour operators, bars, laundry, internet café, etc. 1.3.4 Repair Like a home or a car, yachts require annual maintenance, whether it is a ‘check-up’ or repair/ replacement work. Yachts require air-conditioning/ refrigeration repair, woodwork, engine repair, sail and canvas work, upholstery replacement, rigging work, metal fabrication, hull repair, painting, varnishing, vessel survey, electrical and electronic work, propeller alignment, cleaning, power washing and pest extermination. With their popularity as mega-yacht charter bases, Antigua and St. Maarten have developed a wide cadre of service repair providers. Trinidad has also developed into a repair base where many of the businesses are owned and operated by skilled tradesmen. In Trinidad’s case much of the repair work is done during the hurricane season when boats leave the Eastern Caribbean for ‘safer’ waters. In essence then, while there are many similarities between the islands, the yachting product varies throughout the Caribbean and the region as a whole caters to all the needs of the various types of yachting tourists. While all yachting destinations in the Caribbean offer a mix of the above activities, most destinations specialize in at least one or two of the above activities and their infrastructure reflect this. For example, with more than 1,000 charter vessels, the British Virgin Islands is the major charter base and cruising destination in the Caribbean. But several small repair services are also available and these services cater to the ongoing maintenance that the vessels require. Some vessels will also spend the hurricane season in the BVI. - 18 - Table 3: Yachting Products and Infrastructure offered by Selected Caribbean Countries Country Bahamas BVI St. Maarten Antigua Dominica St. Lucia St. Vincent Grenada Trinidad Activity Cruising destination Charter base Cruising destination Charter base Repairs Charter base Repairs Cruising destination Cruising destination Charter base Cruising destination Hurricane haven Repairs Hurricane haven Repairs Infrastructure 1000+ charter boats 8 superyacht marinas 7 marinas, 3 boatyards Nil 2 boatyards (355 yacht capacity) 7 boatyards (885 yacht capacity) 1.3.5 Recent Developments The Governments in the Caribbean are also making significant investments in the development of their yachting industries: (i) (ii) Cuba plans to increase the current infrastructure of 19 marinas with 696 slips 5 to 38 marinas with 6,422 slips by the year 2010 6 . In Carriacou, ground has been broken for a new US$2.5 million marina at Tyrrel Bay that will feature over 20 yacht berths, 40 condominiums and will include fuel, bars, restaurants and duty- free shops. 7 In Barbados, the US$36- million-plus Pierhead Development will be located on 11 acres of prime land in Bridgetown. The project will include a marina, restaurants, apartments, offices and a maritime musuem. 5 In St. Lucia, British developer Doubloon International has been contracted to rebuild and expand Discovery at Marigot Bay to accommodate 70 yachts and to be used as the Moorings base. Doubloon also plans to build a new full- service marina village that will include an fuel dock, dinghy park, 40 alongside and stern-to moorings and a 30-mooring buoy grid in the centre of the inner Marigot Bay area, expected to be completed by early 2005. 5 In St. Thomas, a new hotel, condominium and marina complex will be built on the site of the f rmer Ramada Yacht Haven Hotel, with a 2006 completion date. The o development will include a 160-slip marina, a 9,500 square- foot yacht club, a hotel and a convention center; (iii) (iv) (v) 5 6 2002 figures. Stone, Ron. 2002. Boat and Motor Dealer, December 2002 “International Trends in Marina Development.” Available online at: http://www.marinamanagement.com/articles/rs-12_02.html 7 December 2004 “Caribbean Compass” - 19 - (vi) At the end of 2004, the Port Authority of Jamaica (PAJ) acquired a state-of-the-art 100-ton travelift that has been installed at the Port Antonio Boat Yard. At a cost of US$500,000, the self-propelled travelift will service yachts up to 95 ft in length. The boat yard is the first of its kind in Jamaica and the surrounding area to service private yachts. William Tatham, the PAJ’s VP for Cruise Shipping and Marina Operations, says that this development is a part of the strategic plan to make Port Antonio a fullservice facility for the yachting community. “Port Antonio is now on par with traditional boat servicing destinations along the Eastern Seaboard of the US. Already there are 25 reservations for boats to be lifted into the boatyard, which can accommodate up to 50 vessels on stands. This is the only 100-ton travelift in this part of the Caribbean. The boatyard’s new equipment and the free-trade zone status ramps up its advantages, now being able to offer hull repairs, custom fitting and engine servicing. There is also the state-of-the-art fuelling facility. Hurricane Ivan caused damage to the more than 90% of the 650 yachts that were in Grenada during the storm. However, unlike the rest of the island’s tourism infrastructure, the infrastructure of the yachting sector has already begun to recover. All of the marinas have reopened at least partially for business, all the boats have been uprighted in each of the two boatyards, buildings are rapidly being repaired and the restaurants in marinas and boatyards are all reopened 8 . As St. Maarten has also done in times gone by, Grenada will rebound and continue to be a significant competitor in the Caribbean yachting industry. Grenada’s competitive advantage over the other islands to the North had been primarily due to its geographic location below 12 degrees North, the demarcation line drawn by insurance companies for the hurricane belt. Hurricane Ivan, being the first to hit Grenada in over 50 years, may have eroded this advantage to a large extent as yachting tourists and insurance companies reevaluate the destination’s suitability as a hurricane haven. If this is the case Trinidad and Tobago and Venezuela may become the only destinations providing a safe haven during the hurricane season. A representative from a major insurance company “Pantaenius” is quoted as saying “… My personal view is that the hurricane free zone will be further south next year. There will be pressure from underwriters to extend the date of the end of the hurricane season to 1 December.”9 The Government must however be aware that a low probability of having a hurricane in Trinidad and Tobago is not a zero probability, and appropriate measures should be put in place to prepare in the event that a hurricane does hit the country. 1.4 Economic Returns The observed trends of increasing allocation of time to leisure marine activity, increasing production of pleasure craft, as well as increasing scarcity of infrastructure begs the question of the costs and benefits associated with the further development of the yachting industry. There are a multitude of benefits to be derived from the development of the Yachting Industry including: 8 9 http://www.doyleguides.com/grenada_hurricane_page.htm “On the Wind: Ivan the Legacy” Yachting World November 2004. - 20 - v Direct Expenditure by Yachtsmen; v Revenue Generation; v Employment and job creation; Similar to the traditional tourism sector, the benefits derived from the yachting industry are as a direct result of the type of activity offered by the destination, the type of yachting tourist the destination attracts and the number of yachting tourists that the destination can accommodate/ attract. 1.4.1 Yachting Tourist Expenditures The yacht visitor can provide benefits in a non-traditional way that can bring greater benefit than other types of tourists although at first glance, it may seem that the yacht tourist will not provide economic benefit to an island. In fact, studies on the yachting sector in five islands found that the yachting industry contributed more to GDP than expenditure by cruise ship passengers. In Trinidad, the average daily expenditure by yachting tourists (US$35pppd 10 ) is marginally lower than that of the cruise ship passenger (US$40pppd). However, the average length of stay for the yachting passenger is longer than that of the cruise ship passenger, and as such the total yachting expenditure tends to be greater than that of the cruise ship passenger. On average cruise passengers visit a destination for 12 – 24 hours, terrestrial tourists visit for one to two weeks. The yachting tourist’s average length of stay in Trinidad is 98 days (See Table 5). In addition, yachting tourists visit more often than cruise ship passengers. The average daily spend does not include expenditure on yacht repair. The average 40ft yacht spends a minimum of TT$120,000 annually on repairs and upgrades. In 2000, over 3,000 yachts visited Trinidad. Retail sales for this year were estimated at TT$45M, an average of TT$15,000 per boat or 13% of their annual budget. In 2003, a YSATT survey found that 27% of those polled spent 10-30% of their annual budget in Trinidad. The expenditure of yachts this size is miniscule in comparison to that of la rger motor and super yachts that have annual budgets in excess of TT$300,000 for maintenance with a complete refit running to over TT$1M. It also stands to reason that the average daily spend is closely related to the level of infrastructure and the availability of services, i.e. the more there is to spend money on, the more money will be spent. In Table 4 below, Antigua and Trinidad both enjoy a higher daily average expenditure than St. Vincent. In both of these islands, the yachting industry is well developed and clustered in one general area (7 marinas, 3 boatyards and 8 marinas, 7 boatyards respectively) while in St. Vincent there are no major marinas and only 2 boatyards. 10 pppd – per person per day. - 21 - Table 4: Average Daily Expenditure of the Yacht Tourist in Selected Caribbe an Countries Country Average Daily Spend Antigua US$42 St. Vincent US$21 Trinidad US$35 Source: Yachting in Eastern Caribbean Development, UNECLAC While St. Vincent and the Grenadines is a charter base for four companies, without the facilities to properly host yachting tourists, the length of stay is markedly short (See Table 5). In both Antigua and St. Lucia where facilities and services such as marinas and restaurants are easily available, the yachting tourist is encouraged to stay longer and therefore spend more. St. Lucia is also the base for 2 charter companies while Antigua is the base for many of the megayachts that sail the Caribbean during the winter season. Trinidad and Grenada, as hurricane shelters, enjoy the longest length of stay, as yachts are stored or seek refuge during the six- month hurricane season. This extended stay is also an ideal time for major yacht repairs and both of these islands offer a wide range of yacht repair services. Table 5: Average Length of Stay of Yacht Tourists in Selected Caribbean Countries Country Days St. Vincent 5 Antigua 10.8 St. Lucia 15 Grenada 21 Trinidad 98 Source: Yachting in Eastern Caribbean Development, UNECLAC While the yachting industry can be clustered in specific areas such as Chaguaramas in Trinidad and English Harbour in Antigua, yachting tourists will often venture beyond the cluster as they seek to experience a destination’s offerings. As such, the economic benefits of this tourist will spread beyond the cluster to the more remote areas. For example, in Tobago while the traditional tourism product is based in the west of the island, yachts also visit locations such as Charlotteville, and Englishman’s Bay causing the economic benefits to be spread to the wider community. 1.4.2 Revenue Generation The yachting industry generates significant revenues through marinas, boatyards, other commercial enterprises and yachting events: (i) (ii) (iii) An economic survey conducted in 1999 in Australia found that 500 marinas earned approximately US$2 billion in revenues; Belgium has only 12 marinas and 3,500 boats along its North Sea coast, yet annually it generates more than US$6.75 million directly, plus US$3 million indirectly; Turkey’s 34 marinas generate nearly US$200 million in annual income. It is estimated that five to ten times that amount is generated in indirect income; - 22 - (iv) (v) The UK’s leisure marine industry was estimated to contribute US$1.7 billion to its GDP in 2002. An estimated 1,403 firms in operation in 2001, generated revenues of US$2.3 billion; The economic impact of La Source Grenada Sailing Festival held in late January to early February every year is estimated at US$296,000.00 and the annual Carriacou Regatta generates EC$63,000.00. ECLAC 2002 estimated the turnover for the St. Maarten Heineken Regatta to be US$250,000.00. 1.4.3 Employment and Job creation Marinas generate an average of 0.3 jobs per berth, this implies that a 200-berth marina could provide 60 jobs and a payroll in excess of US$1 million: • • • The 1999 survey in Australia also estimated that the 500 marinas paid approximately US$500 million in direct wages; Turkey’s 34 marinas employ 1,000 people; An estimated 21,642 persons were employed in the 1,403 firms which were in operation in the UK leisure marine industry in 2001; In the Caribbean, the type of yachting product that the destination offers influences the level of employment. Table 6: Estimated Direct Employment in the Yachting Industry in Selected Caribbean Countries for the year 2000 Country Persons Employed Antigua 838 St. Maarten 322 – 483 St. Lucia 350 – 575 St. Vincent 152 (boatyards and charters) Grenada 250 Trinidad 1,100 Source: Yachting in Eastern Caribbean Development, UNECLAC Once again, the level of development has a direct relation to the economic benefits of the industry. Countries such as St. Vincent and Grenada with low levels of infrastructural development have the lowest levels of employment. It should also be noted that the type of activities that the yachting tourist engages in lends to the development of small businesses. In Chaguaramas, more than 150 businesses cater to the yachting tourist, 90% of which are locally owned. These range from transport services to woodwork, engine, air-conditioning, painting, varnishing, rigging, electrical, restaurants, etc. Many of these businesses are small operations staffed by 2-5 persons. In Antigua, there is an “incredible depth and breadth of service to look after visiting yachts”11 . Some of the sideline and 11 The 2004 Superyacht Services Guide to the Caribbean, Andrew Blatter - 23 - guest attractions available include artists to create custom paintings, hand painted silks, handmade ocean inspirational pottery, local mahogany woodcarvings and custom ivory scrimshaw. In general, the economic contribution of the yachting sector in the Caribbean is significant. (See Table 7.) Table 7: Economic Contribution of the Yachting Industry in Selected Caribbean Countries for the year 200112 Country Employment No of yacht Yachting Cruise Ship visitors (US$m) (US$m) Antigua British Virgin Islands Grenada Martinique St. Maarten St. Vincent and the Grenadines St. Lucia Trinidad and Tobago 838 n.a. 250 n.a. 322 – 483 152 13 350 – 575 1,100 – 1,400 29,114 (1999) 131,070 n.a. 45,757 n.a. 75,763 (2000) 23,000 5,470 14 27.9 100 (1998) 13.4 7.9 54.6 9.0 27.9 23.3 9.0 9.6 (1998) 3.3 4.5 n.a. n.a. n.a. n.a. Source: Various ECLAC Yachting Industry Reports on Caribbean Countries 1.5 Impact of Yachting Industry The costs that can be associated with the yachting sector include environmental pollution of the waters due to improper solid waste and sewerage disposal, oil and fuel discharges, storm-water runoff and improper vessel maintenance, as well as degradation of reefs due to indiscriminate anchoring. Fortunately, best practices illustrate that these negative effects can all be controlled and managed effectively (See Chapter 3 – International Best Practices). Summary The yachting industry is in a state of growth internationally. With an increasing number of persons retiring early, and higher average incomes, there is an increasing amo unt of leisure time. Furthermore, a greater proportion of leisure time is now being spent in water-based activity. The growth of the industry is also evident by the growth in the production of pleasure craft and megayachts in particular. This increase in the number of recreational boats worldwide is creating additional strain on the existing infrastructure and the demand for marina space is increasing. The benefits of developing the yachting industry seem to outweigh the costs to a great extent and nations around the world are now investing significant amounts in additional infrastructure in an attempt to meet the increasing demand. Regionally, the islands offer various yachting products 12 Figures for Grenada, Martinique, St. Maarten and St. Lucia excludes charter incomes and expenditures by charter tourists. 13 Excludes the Grenadines 14 Estimate using 2 persons per boat. - 24 - including cruising destinations, charter boat bases, hurricane shelters/ storage and repair. However, changing weather patterns may cause an increasing number of yachts to come to Trinidad and Tobago for yacht repair and storage. - 25 - 2.0 2.1 The case of Trinidad and Tobago A Brief History The growth of the yachting industry in Trinidad and Tobago accelerated during the early 90’s due to the increase in small leisure craft (yacht) visitation15 to its shores. At the time, Venezuela was the major leisure marine (yachting) destination, however minor problems with taxation encouraged movement away from those shores towards Trinidad and the Chaguaramas ports. This exodus from Venezuela encouraged positive innovative vision in Trinidad and the first yacht haul-out facility was established in Chaguaramas in 1991 when Powerboats commissioned a 50-ton travel lift with a storage capacity for about 45 yachts on land. Yachtsmen, because of the safety provided during the hurricane season, considered Trinidad a prime location. The provision of superior workmanship provided a much-needed fillip to the Trinidad yachting industry. Figure 1: Number of Yachts Arrivals in Trinidad and Tobago 3,500 3,000 No. of yachts 2,500 2,000 1,500 1,000 500 0 19 91 19 94 19 97 19 99 20 02 19 90 19 92 19 93 19 95 19 96 19 98 20 00 20 01 20 03 20 04 Year Source: Customs and Excise Division Upon recognizing the growth of the yachting industry in the early 1990’s, the Government established a Committee 16 in March 1993, under the Ministry of Trade, Industry and Tourism to recommend solutions to constraints to the development of the visiting pleasure craft trade. The report of this committee was submitted to the Standing Committee on the Non-Oil Sector, an Advisory Committee to Cabinet. Cabinet, by Minute No. 17 of January 6 1994, agreed to several of the recommendations of the report, requesting that the decisions be implemented by the relevant Ministries as a matter of urgenc y, and that the relevant legislation be amended where necessary. Many of the recommendations which were agreed to remain outstanding to date: 15 16 The main nationalities of visitors are the USA, UK and Canada (Germany and South Africa - minority). This Committee comprised representatives from Customs, Immigration, the Maritime Services Division (Harbour Master), the Tourism Development Authority, the Chaguaramas Development Authority and the National Business Advisory Board. Representatives were also co-opted from the Police, Coast Guard, Town and Country Planning Division and the Institute of Marine Affairs. - 26 - o In order that visiting pleasure craft should not be required to make the onerous journey upwind to Scarborough to report to Customs and Immigration on arrival or departure, a private marina facility, which exists at Plymouth on the leeward side of the island, be used for the landing of pleasure crafts. o That Government assumes the responsibility to erect proper office facilities at the Plymouth landing facility for Customs and Immigration. In this regard, the Ministries of Finance and National Security should as a matter of urgent priority seek to have the necessary office facilities erected at this facility. o That after clearance on entry by Customs and Immigration, pleasure crafts be permitted to move freely in the waters of Trinidad and Tobago. However, such pleasure crafts should not be permitted to enter those areas designated as restricted areas by the Cabinet. In 1994 the industry was given further encouragement when Peake Yacht Services and Industrial Marine Services, invested in a 150-ton lift and a 70-ton lift respectively. This established them as major haul-out facilities as they were now catering to larger heavier yachts. As a result, there was a significant increase in yacht arrivals in the following year. The increase was also partly attributable to the devastating effects of Hurricane Luis in Simpson Bay in St. Maarten (1,500 yachts destroyed). Unfortunately, the growth experienced during the 90’s was not sustained. The reversed trend was initiated mainly due to the general decrease in tourist arrivals resulting from an unfavourable international climate. This was compounded by two major oil spills in the Chaguaramas area in September 2000 and again in December 2002. At least 200 boats were affected and damages were in excess of TT$1m, yet minimal compensation was provided to yachtsmen. In addition to the environmental pollution of the bays, the recent upsurge in crime, coupled with poor customer service, low quality of work and late repairs are increasingly creating a negative perception of the industry by yachtsmen, as most advertising is done by word of mouth. The private sector has since responded to the decline in yacht arrivals by converting their existing infrastructure, which was dedicated to the yachting industry to alternative uses. Due to these factors, Government intervention has now become critical in order to mitigate any further fallout. Over the years, there has been fleeting discussion related to the yachting sector. In the Medium Term Policy Framework 1997 – 1999, the Government stated that it will continue to focus on the development of tourism, including cruise tourism, with a view to establishing of home porting facilities, while the development of yachting and marina infrastructure will be enhanced. The leisure marine services have since been targeted for growth by various policy documents as well as national level support institutions including the Business Development Company (BDC) and TIDCO. In 1999, the Trade Development Institute (TDI) of Ireland conducted a study on Investment Promotion Strategy for Trinidad and Tobago, identifying the yachting sector as having significant potential for further development. In 2001, the Institute of Marine Affairs (IMA) conducted a Socio Economic Assessment of Yachting Activities in the Northwest - 27 - Peninsula of Trinidad and in December 2002, the Economic Commission for Latin America and the Caribbean (ECLAC) conducted a comprehensive study of the yachting industry in Trinidad. This year, the Yacht Services Association of Trinidad and Tobago (YSATT), in conjunction with similar organizations in Grenada, St. Lucia and Antigua and with the support of ECLAC, has embarked on a program to establish a regional private sector association. The program will be financed by a grant of Euro 47,000 from PROINVEST, of the European Commission. The regional association will essentially be responsible for making representations to the Caribbean Governments on training, environmentally sound marina and yachting development and most importantly, a regional marketing and promotion strategy. 2.2 Profile of the Yachting Industry of Trinidad and Tobago The yachting product in Trinidad differs greatly from the yachting product that exists in Tobago. Trinidad’s current industry is based primarily on two products – repairs and hurricane storage. Over the years this island has emerged as the largest yacht repair centre in the Caribbean. Figure 2 clearly illustrates that the majority of the yacht population is situated on land. For example, in the peak month of September there were more than 700 boats on land and only 256 in the water. Figure 2: Yacht Location in Trinidad 800 700 600 500 On Land 400 On Docks/Slips On Moorings Registered 300 200 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec - 28 - All yachting activity centers around some form of sheltered harbour. Sheltered harbours can occur naturally, around bays and headlands, or be man made. Man made harbours for sheltering smaller craft such as yachts are created by building out breakwaters from the shoreline or alternatively excavating channels into an inland basin or dredged waterway. The sustainability and growth of the yachting industry is therefore dependent upon access to waterfront areas, which can provide shelter for small craft. In such areas, it becomes safe to invest in long-term infrastructure such as docks, which provide the platform for economic activity to take place. The availability of coastal areas in Trinidad and Tobago which can cater for the development of small craft activity will now be reviewed. It should be noted that such activity can serve both recreational and as well as commercial small craft activity, such as fishing boats, once sufficient space and proper layouts are developed. The yachting industry in Trinidad is comprised of three main types of service providers: 1. Facilities such as boatyards and marinas; 2. Repair contractors; 3. Auxiliary services such as tours and transport providers, supermarkets, restaurants, etc. It is estimated that there are approximately 150 repair contractors ranging in size from 1-person operations to businesses with twenty or more employees. The ease of access to the industry has provided the opportunity for dozens of skilled workmen to own and operate their own business. For example, Derek Issacs of Triple Weld was employed from Servol, where he received basic welding training, to be trained by two foreign nationals on work permits. He has since opened his own business, hired two other trainees from Servol and has built a reputation for being one of the finest specialty welders in Chaguaramas. 2.2.1 Geographic characteristics of Trinidad Development of small craft harbour activity is almost entirely restricted to the west coast of Trinidad because of the exposed nature of the east, south and north coastlines. The bays along the north coast offer some sheltered anchorage, which is important for journeying of small craft between Trinidad and Tobago. The three bays utilized for short stopovers are Cyril Bay, East Maracas Bay and Las Cuevas. These are all limited anchorages with little potential for expansion of yachting activity. The west coast of Trinidad is bounded by the Gulf of Paria, which limits ocean swell activity. Because of this, the Gulf of Paria is a sheltered anchorage for large ships. This is not the case for smaller craft where westerly storms can cause substantial damage from the resulting wave activity. Such smaller vessels require headlands (deep bays) or man made harbours to provide shelter against these seasonal storms. The only naturally sheltered bays in Trinidad occur on the northwestern peninsula of Trinidad where promonotories exist. These bays are nevertheless limited in size and have competing usage. - 29 - All other locations along the Gulf of Paria’s coastline require the development of man made harbours for shelter of small craft. Possible facilities are more likely to be located around urbanized areas such as in Port of Spain or San Fernando. The northwestern peninsula, made up of Chaguaramas and the outlying islands has therefore naturally evolved into the center of yachting activity for Trinidad and it is recommended that what remains of the sheltered bodies of water be given priority for development within the yacht sector. The land availability in Chaguaramas is provided in Table 8 below. Table 8: Land Availability in Chaguaramas Size (acres) Current use 580 Yachting, recreation, other 520 Yachting, industrial, commercial fishing, recreation, other 80 400 110 200 1,890 Military, coast guard Coast guard, marina, shipping Recreation Recreation, weekend housing, other Area Carenage Bay Chaguaramas Bay Teteron Bay Pointe Gourde Scotland Bay Off shore islands Total Source: Chaguaramas Development Authority - 30 - Insert map of Chaguaramas here. Source: www.boatersenterprise.com - 31 - Within Chaguaramas, yachting activity is located mainly within Chaguaramas Bay and to a lesser extent in Williams Bay. Chaguaramas Bay has other competing activities including commercial ship ports and workboat activity for the oil and gas sector, as well as fishing and other recreational boating. Because of its commercial nature, this bay will continue to provide the bulk of the repair and storage activity within the yacht sector and any policy regarding land use by the Chaguaramas Development Authority and related government ministries should support further expansion with what limited space remains. Williams Bay and Pointe Gourde contain some relatively sheltered water frontage, which can provide for expansion of marinas to cater for more recreational type activity, away from the haul out yards, which form the core activity of nearby Chaguaramas Bay. Other bays within the western peninsula, which because of their sheltered nature can support yacht sector activity, include Scotland Bay, Teteron Bay and Chacachacare. Also, Turtle Bay on Monos Island is another such bay, though somewhat smaller in size. Of these, only Chacachacare remains available from competing usage. It should therefore be considered for such development, recognizing however that because of its remoteness a marina would need to be part of an integrated tourism development that should include hotel and resort activity. Port of Spain now serves mainly as a commercial harbour. Modern capital cities the world over which historically developed around a harbour are now redeveloping their waterfronts as a key part of its urban renewal plans. Within this context, city waterfronts have become a focal point for human activity and marinas have become part of this attraction. The Government of Trinidad and Tobago currently has plans to adopt a similar approach with its waterfront development project for Port of Spain, which includes the establishment of a marina. These plans should be fully endorsed. There are also plans for a waterfront development project as part of the renewal plan for San Fernando. With its more undeveloped coastline, San Fernando has the opportunity to develop the largest sheltered harbour in the Gulf of Paria, which can provide a major focus for all types of small craft activity. The opportunity to expand recreational boating for the local populace is dependent on such type of infrastructure. This can be integrated with boat building as a related activity as well as local fishing port and ferry activity, once adequate space planning is undertaken. A brief description of the other anchorages is provided in Box 1 below. - 32 - Box 1: Description of the Anchorages in Trinidad 1.5 The Anchorages 1.5.1 The Chaguaramas Area The coastline is about 42 miles with a number of sheltered bays that are used by yachtsmen. a) Welcome Bay This bay is at the corner of Carenage Bay and Point Gourde and is used by the Trinidad and Tobago Sailing Association (TTSA) and yachts at anchor. It is usually calm but for a rare southeast wind. The narrow beach along the road is also used for recreational bathing. b) Point Gourde On Point Gourde there are two anchorages. These are Masson Bay just south of Welcome Bay and Escondida Cove on the Chaguaramas Bay side. c) Chaguaramas Bay This bay is the hub of the Trinidad yachting sector and most yachting services are located here. Although designated as a port it has not yet been declared a harbour but there is a fair amount of commercial traffic (see also Figure 2.1). Chaguaramas Bay is also the designated port of entry for visiting yachts to Trinidad. d) Scotland Bay Although Scotland Bay is not an approved anchorage, its use is tolerated and it is popular with foreign and local yachtsmen alike. As the cruising guide reports it is often used as a last stop on the way to Tobago or Grenada. e) Gaspar Grande This island has a small marina that is mostly used by foreign yachts on a long-term mooring. It is a recreational destination for Trinidad residents. There is a small anchorage, Winns Bay, on the southern side of the island. This island also has a small hotel and some (holiday) houses. f) Monos Island Like Gaspar Grande this island is popular for (holiday) homes. It has two anchorages, Morris Bay and Grand Fond Bay. g) Chacachacare A former treatment centre for Hansen’s Disease, the island was abandoned when a cure became available. The island offers numerous anchorages in Chacachacare Bay and in La Tinta Bay on the west side of the island. 1.5.2 The Gulf of Paria Within the Gulf of Paria there are four locations that offer facilities to visiting yachts. a) Bayshore Between Chaguaramas and Port of Spain is the location of Trinidad and Tobago Yacht Club (TTYC) which offers a wellprotected marina. b) Port of Spain Port of Spain is mainly a commercial harbour and yachts have to clear in Chaguaramas before proceeding to the port. It is used during the carnival period when the other convenient anchorages are crowded. c) Pointe a Pierre There is a small yacht club located on the Petrotrin Refinery. d) San Fernando There is also a private yacht club in San Fernando. 1.5.3 The North Coast … Anchoring on the north coast requires prior permission from the Customs and Excise Department. The publication recognizes La Vache Bay, Maracas Bay, Las Cuevas and Grande Riviere as possible anchorages when there are no northern swells or northeast winds. - 33 - 2.2.2 Geographic characteristics of Tobago With its Caribbean blue waters and tourism attractions, Tobago can compete with Grenada and other islands for mainstream yachting tourism; once it commits to developing a sheltered waterfront suitably located for recreational activity. Scarborough is both unsheltered and on the windward (wrong) side of the island and a small craft harbour should be developed within the southwestern portion of the island. All other locations, including the bays along its northern coastline, are limited in space and too remote for access to general services. With further development in Tobago, a second hub could be developed in the north, perhaps at King’s Bay. Apart from the Bon Accord Lagoon, there is no substantial body of water, which provides natural shelter from year round weather conditions in Tobago. The lagoon is surrounded by the Buccoo reef system and has a limited channel access, which serves the local fishing boats and some day charter activity. Because of its environmentally sensitive nature, development within the lagoon area is limited and therefore other potential sites for locating a sheltered yacht harbour should be investigated. Because no other location possesses year round shelter, a man made harbour would be desirable and the feasibility for such a development should be undertaken to help develop Tobago into a yacht tourism destination. An analysis of possible sites in southwest Tobago is therefore needed. An appropriate development could incorporate both public and private sector participation to obtain a desirable product for Tobago. Box 2 provides a brief description of the anchorages in Tobago. - 34 - Box 2: Description of the Anchorages in Tobago 1.5.4 Tobago Doyle’s webpage states that Tobago is offstream as it is too far to sail in a day and too often there is a struggle against current and wind. However, it also states that Tobago is rich in anchorages, particularly Charlotteville and Anse Bateau on the eastern side of the island. In contrast the northern anchorages are susceptible to swells and strong north easterly winds. a) Scarborough Like Chaguaramas, Scarborough is a port of entry for yachts. Behind the seawall and the customs building is a well-protected anchorage for yachts. b) Store Bay This bay, just north of the airport is a popular anchorage. It is also the venue for events such as the Angostura Tobago Sail Week and the Great Race. c) Pigeon Point Pigeon Point is on the northern part of the same bay and edges the Buccoo Reef Marine Park. d) Bon Accord Lagoon This is considered the most protected anchorage in Tobago but as part of the Buccoo Reef Marine Park its use is restricted and only available during a hurricane. e) Buccoo Bay This is a well protected anchorage on the western side of the Buccoo Reef National Park. f) The North Coast Doyle identifies several anchorages on the north coast. These include Mt. Irvine Bay, Grafton Beach, Great Courland Bay, Castara Bay, Englishman’s Bay and Parlatuvier Bay. g) Man of War Bay/ Charlotteville Like Scarborough this is an official port of entry, and described by Doyle as a “spectacularly beautiful natural harbour.” h) East and south coast Just east of Speyside is Anse Bateau, considered the best anchorage on the east coast and the only place in Tobago that sells yacht fuel. Kings Bay is just east of Speyside and offers the last anchorage before Scarborough. Source: ECLAC 2002. “Trinidad and Tobago: The Yachting Sector” See Appendix I for a more detailed description of the Tobago yachting industry. - 35 - 2.2.3 Infrastructure The infrastructural development of the yachting sector has traditionally been driven by the private sector. At present, there are about 340 slips and land space for about 975 visiting yachts available. The table below summarizes the capacity of the main boatyards and marinas in the Chaguaramas area, however, many of these slips and yard space are used for pirogues and small powerboats. Table 9: Capacity of Boatyards and Marinas Establishment No of Travel Lift Yard Capacity Slips (Tons) (Boats) 0 n.a. n.a. 22 68 40 20 0 22 28 115 94 21 n.a. 200 60 n.a. 70 150 50 15 n.a. none n.a. 40 75 n.a. 180 350 255 32 n.a. n.a. Aikane Bayview Beach Resorts and Marina Crews Inn Coral Cove Humming Bird IMS Peake’s Powerboats TTSA TTYC Tropical Marine Source: Various Reports 2.2.4 Legislation and Incentives Trinidad and Tobago does not have any legislation pertaining strictly to the yachting industry, and this has created limitations fo r the sector’s development. Authorities are currently guided by the following legislation and incentives: § § § § § § § The Tourism Development Act No. 9 of 2000 The Corporate Tax Act The Shipping (Safety of Small Pleasure Vessels) Regulations 2003 under section 276 of the Shipping Act, No 24 of 1987 The Harbours Act No. 13 of 1880 The Shipping Marine Pollution Bill 2004 The Marpol Convention The London Convention - 36 - 2.2.4.1 The Tourism Development Act No. 9 of 2000 The Tourism Development Act allows for a tax exemption for a maximum of seven years on the profits from an approved tourism project. The Act places particular emphasis on various aspects of the leisure marine sector by stating that areas of activity to be undertaken by Tourism Ancillary facilities will be ma rinas, boatyards, dive operations, water sports, charter boats, cruise activities and tour operations by sea. There is also a fair degree of discretion since the act states (in Schedule 4) that: “Owing to the dynamic nature of the tourism industry, it is not possible to provide a comprehensive list of “tourism projects”. The National Tourism Development Agency will determine the validity of proposals for tourism projects that are not defined by Schedules 1 and 2.” There are various incentives, provided for individuals and businesses, which are designed to facilitate the development of the yachting industry. Yachting repair and other services including port and harbour services, docking, mooring and conservancy are VAT exempt, provided that the yachts and pleasure crafts are owned by persons who are neither citizens nor residents of Trinidad and Tobago at the time when the repairs and services are performed. Although not directly provided for the yachting sector, but to the tourism sector, of which yachting is considered to be a part, another incentive is the full exemption from Customs Duties of imports of machinery and raw materials in the tourism sector. Cabinet approval is however required and application for full exemption is made to the Permanent Secretary, Ministry of Finance. Additionally, under the Corporate Tax Act whereby yachting is classified as a “sporting event”, any company which promotes or sponsors yachting will be granted a tax17 allowance of 150% of the expenditure incurred, up to a maximum of TT$1,000,000.00. 18 Under the Income Tax Act, individuals are allowed a tax deduction of up to 25% on investment in the equity capital of an approved tourism project. Yachts are allowed up to three months in the waters of Trinidad and Tobago without any fees being levied by Customs and Immigration. However, they must clear in and out when traveling between Trinidad and Tobago. In addition, special permission must be obtained to anchor in any of the bays on the North Coast. The following fees apply to yacht tourists: CUSTOMS Overtime Arrival Overtime Departure Overtime Examination Fees in TT $$ 136.79 117.26 91.20 17 18 The rate of corporate tax is 30% (Finance Act 2002) effective January 1 2003. In the Finance Act No. 5 of 2004, this amount was increased from TT$450,000.00 which was in effect since January 2003. - 37 - New fees: Examination fees Monday to Friday, after 1600 Weekends and public holidays 106.58 142.12 Boarding fee Monday to Friday, after 1600 159.88 (paid on arrival) Weekends and public holidays Clearance fee Monday to Friday, after 1600 136.68 (paid on departure) Weekends and public holidays HARBOUR MASTER Fees in TT $$ Navigation Dues (upon entry) 50 for first month Navigation Dues 50/month (500/year max) 19 IMMIGRATION Overtime Extensions (Canada, UK, etc) Extensions (USA, others) AIRPORT AUTHORITY Departure Tax Fees in TT $$ 100 100/passport 150/passport (Visa Waiver) Fees in TT $$ 100/passenger 2.2.4.2 The Shipping (Safety of Small Pleasure Vessels) Regulations 2003 The guidelines set out in these regulations, under section 276 of the Shipping Act, No 24 of 1987, refer to Trinidad and Tobago pleasure vessels under 24 metres as well as other pleasure vessels whilst in Trinidad and Tobago waters. The vessel requirements are for both decked and open vessels in a range of vessels measurements and include particulars such as life jackets, life buoys, life rafts, emergenc y flares, VHF radios, bilge pumps, navigation lights, sound signals and first aid kits. Failure to abide by the regulations can result in a fine of up to TT$3,000.00 2.2.4.3 The Harbours Act No. 13 of 1880 Under the Harbours Act, the following regulations, among others, apply: § Vessels must fly the national flag while sailing in the waters of Trinidad and Tobago between the hours of sunrise and sunset or be liable to a fine of TT$40.00; § Vessels must anchor to prevent collision with other vessels, their cables and/or moorings or be liable to a fine of TT$400.00; § Vessels must anchor in areas designated by the Harbour Master or be liable to a fine of TT$400.00; 19 Navigation Dues are charged only while the boat is in water. - 38 - § § § Vessels are required to provide information to the Harbour Master upon request such as descriptio ns of passengers and cargo or be liable to a fine of TT$1,000.00; Clearing without a certificate is subject to a fine of TT$400.00; and The Police Service may control vessels within 45 metres of any landing place. 2.2.4.4 The Shipping Marine Pollution Bill 2004 Once this Bill is enacted, it would signify that Trinidad and Tobago has ratified the Marpol Convention (summarized below). It is hoped that the Bill would be reintroduced into Parliament before the present Parliamentary session ends in June 2005. 2.2.4.5 The Marpol Convention The International Convention for the Prevention of Marine Pollution from Ships (the Marpol Convention), drafted in 1973 and updated in 1978, is the main convention covering prevention of pollution of the marine environment by ships from operational or accidental causes. It covers pollution by oil, chemicals, harmful substances in packaged form, sewage and garbage in its six technical Annexes: Annex I Regulations for the Prevention of Pollution by Oil (entered into force in October 1983) Regulations for the Control of Pollution by Noxious Liquid Substances in Bulk (entered into force in October 1983) Prevention of Pollution by Harmful Substances Carried by Sea in Packaged Form (entered into force in July 1992) Prevention of Pollution by Sewage from Ships (entered into force in September 2003) Prevention of Pollution by Garbage from Ships (entered into force in December 1988) Prevention of Air Pollution from Ships (expected to enter into force in May 2005. Annex II Annex III Annex IV Annex V Annex VI By ratifying this convention, a country automatically adopts annexes I and II; the remaining annexes are optional. - 39 - 2.2.4.6 The London Convention The London Convention prohibits the dumping of certain hazardous materials and further requires a permit in advance for the dumping of certain identified materials and other wastes or matter. Contracting Parties are responsible for designating an authority to deal with permits, keep records, and monitor the condition of the sea. It should be noted that “dumping” was defined as “the deliberate disposal at sea of wastes or other matter from vessels, aircraft, platforms or other man- made structures, as well as the deliberate disposal of these vessels or platforms themselve s.” However, wastes derived from the exploration and exploitation of seabed mineral resources are excluded from the definition. 2.2.5 Training and Human Resource Development There are several local institutions that offer training in the marine sector in general: § TRAINMAR provides standard workshops and customized courses in several areas including the following: o Port Operations Training for Port Terminals; o Technical Training including Handling & Warehousing Hazardous Materials, International Maritime Dangerous Goods (IMDG) Amendment 31 Compliance; o Shipping Legislation & Documentation; o Customer Service Excellence; o Sales & Marketing; and o Management and Business Development; § § TRAINMAR has also indicated a willingness to provide specific on-demand workshops on yachting. The Caribbean Fisheries Training and Development Institute (CFTDI) in Chaguaramas offers training in seamanship, navigation, marine engine maintenance as well as outboard engine repair and maintenance. Regionally, the Maritime School of the West Indies, located in St. Maarten offers the following courses: • • • • Marine courses including Sailing Fundamentals, Basic and Advanced Coastal Navigation; Courses for professional yacht crew in association with the International Yachtmaster Training Inc (IYT); Technical courses including Yacht Maintenance, Marine Mechanics, Marine Electronics and Marine Electricity; Courses on Boat Building. - 40 - 2.2.6 Institutional Support for the Yachting Industry There are several public and private institutions that have played a significant role in the development of the yachting industry in Trinidad and Tobago and continue to have an impact on its growth. These include the following: 2.2.6.1 Public Institutions The Ministry of Finance Customs and Excise Division and Immigration Offices The Customs and Excise Division, a department under the Ministry of Finance is the official point of declaration of entry for yachts. The Customs Division and Immigration Department currently are based at the Crews Inn compound in Cha guaramas, both of which are supported financially by the private sector. In Tobago, yachtsmen can visit the Customs offices either in Scarborough or in Charlotteville. The Customs and Immigration offices are open 24 hours per day, seven days a week both in Chaguaramas and in Scarborough. Customs Office at Crews Inn Chaguaramas - 41 - The Ministry of Trade and Industry The Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO) TIDCO was established in 1993 to promote and market Trinidad and Tobago as a tourism and investment destination. The Industrial Promotion Division within TIDCO has monitored the yachting industry with regard to matters concerning the approval of investment facilities and incentives. The company has assigned an Investment Sector and Business Development Officer with primary responsibility for the leisure marine sector. In addition, since 1994, the Tourism Division has provided limited financial support for the publication of the annual Boaters’ Directory, which provides general guidelines to cruisers on visiting Trinidad and Tobago. TIDCO has also been involved in research for the preparation of an Industry Profile for the Leisure Marine Industry as well as for the Strategic Plan for the Development of Environmentally Friendly Boatyards and Marinas in Trinidad and Tobago. The Business Development Company (BDC) The Small Business Development Company was renamed the Business Development Company (BDC) in 2002 with a mandate of assisting small businesses to become large enterprises. The company also provides a range of business development services including trade assistance, financing, project management and consultancy services. The BDC has conducted research on the leisure marine industry and continues to show interest in accelerating the growth of the sector. The company has also identified the Chaguaramas area as one of the focal areas for support to micro enterprises and small business development. The Caribbean Industrial Research Institute (CARIRI) CARIRI is also involved in conducting Environmental Impact Assessments, in addition to environmental auditing, remediation, waste management, and environmental monitoring among other things. The Ministry of Public Utilities and the Environment The Institute of Marine Affairs (IMA) The IMA, established in 1976, has been involved in the conduct of research on the economic, technological, environmental, social and legal developments in marine affairs. The institute has done extensive environmental assessments of the yachting sector and coordinates several marine research networks throughout the Caribbean. The Institute is currently staffed with about 100 persons, 34 of which are professional staff. In January 2004, the IMA conducted a Public Education Oil Spill Seminar on the ways in which the effects of spills on the marine environment can be mitigated and on the National Oil Spill Contingency Plan (NOSCP). - 42 - The Environmental Management Authority (EMA) The EMA is a statutory body established in 1995 charged with the responsibility of developing a framework to protect the environment through pollution prevention and control. The Authority also provides legal services as well as information services related to the environment. The EMA conducts Environmental Impact Assessments, administers environmental education and public awareness programs and provides for the designation and protection of environmentally sensitive areas. The Authority is also jointly responsible for responding to emergency incidents and spills with other government agencies. The EMA obtains its financial resources from the Environment Trust Fund, which is financed in part by government appropriations, permit applications and fees and international grant and loan funds. The Ministry of Planning and Development Chaguaramas Development Authority (CDA) The CDA is a statutory organization established in 1972 responsible for granting leases for lands and buildings located in Chaguaramas. The organization is mandated to facilitate investments that are environmentally sensitive such as tourism, knowledge and marine-based industries. In 1998, the Government formulated a 10-year rehabilitation plan to increase effectiveness of the CDA in fulfilling its mandate. The CDA h a staff of approximately 130 persons including as some 60-odd daily paid workers and operates with a budget of approximately TT$10.4 million (revenue generated in 1998 – 76% of this figure was derived from rents). The Ministry of National Security The National Emergency Management Agency (NEMA) The National Emergency Management Agency was established in 1988 under the Ministry of National Security. NEMA is responsible for coordinating all activities related to disaster/ emergency preparedness, response and recovery including updating component plans for oil spills, hazardous materials spills and maritime disasters. This agency is also responsible for conducting education and training programmes for emergency management. The Trinidad and Tobago Coast Guard The main role of the Coast Guard in the yachting sector is the conduct of search and rescue missions and general patrolling of the Trinidad and Tobago waters. In 2001, the Coast Guard carried out 21 search and rescue missions on yachts in Trinidad and Tobago. - 43 - 2.2.6.2 Private Institutions The Yacht Services Association of Trinidad and Tobago (YSATT) YSATT is a private non-profit industry organization established in 1994 by the boat yards and marinas within the Western Peninsular of Trinidad. The organization provides various services for its 90-odd members 20 including promotion, information distribution, and acts as a mediator in conflicts between customers and suppliers. YSATT routinely collects and disseminates information on the industry, and has assisted TIDCO in industry surveys in 1995 and 1997. The association’s services have been extended to include a water taxi, which was launched in 2004. YSATT currently has a staff of two persons. YSATT Water Taxi at Chaguaramas The Trinidad and Tobago Yacht Club (TTYC) The TTYC is a private marina established in 1946 for local yacht and powerboat owners. However, it has since extended its services to include foreign yachtsmen. 20 September 2002 - 44 - The Trinidad and Tobago Sailing Association (TTSA) The TTSA was established in the 1970’s and caters for local and visiting yachtsmen both on land and at moorings. The main objectives of the TTSA are as follows: o To encourage and promote sailing by amateurs through the Trinidad and Tobago Youth Sailing School (adult and junior sailing programs as well as a dinghy program. ; o To organize yacht racing in Trinidad and Tobago; o To organize international and inter- island yacht racing. The TTSA has annually hosted the “Angostura Yachting World Regatta” commonly known as “Angostura Tobago Sail Week.” This event began as the “Tobago Sail Week” in 1982. Some 16 sailing races are held during the dry season, with each sponsored by a different company/ person. Boaters’ Enterprise Ltd This company has been involved in marketing and promotion of the yachting industry for the past several years. The company publishes and distributes “The Boaters’ Directory” annually21 , which provides information on the yacht service providers in the country as well as a mo nthly magazine “The Boca” which provides current information for yachtsmen in the country. The Boaters’ Enterprise has recently begun a poll rating the local yacht service providers. These publications are also available at http://www.boatersenterprise.com/ 21 Price as at July 2004 – TT$20.00 - 45 - 2.3 1 S.W.O.T. Analysis and Key Challenges in the Yachting Industry STRENGTHS Locational advantage: Below the hurricane belt DESCRIPTION From an insurance point of view, cruising the Caribbean can be an expensive business for the average sailor. Hurricane season poses it’s own special problems in terms of large deductibles and additional premiums to cover wind damage. But the powers that be in the marine insurance trade have handed a worthwhile option, and some peace of mind, to long-term cruisers. They have done this by stipulating that normal policy provisions will apply to boats located south of 12’40’N during hurricane season. Based on an analysis of storm tracks going back many years, this southern boundary of the maximum risk zone, the “hurricane belt,” was decided in late 1995. It is a fact that there are now far more boats in the Caribbean than can safely be sheltered in the traditional hurricane holes – the natural harbours that provide some protection from the worst of the seas, if not the winds, generated by these storms. The Caribbean is one of the most attractive cruising grounds in the world Being at the end of the chain makes Trinidad the perfect ‘drop off point’ at the end of a season of cruising for boat storage and repairs Part of the Caribbean Destination at the end of the chain of islands and the top of the southern hemisphere Twin islands offering variety of tourism products Warm currents 2 Country is developed relative to other Eastern Caribbean islands Well developed air links to N.A. and Europe Adequate communications network Tobago offers the white sand and blue water of many of the islands of the Eastern Caribbean while Trinidad offers ecotourism attractions Makes for easy access/ exit when leaving/ returning to boats in storage Internet access and availability of international telephone communications facilitates business transactions - 46 - STRENGTHS Complementary industries Skilled labour DESCRIPTION Many of the less frequently used services that are not available in Chaguaramas are available in the oil sector A relatively large pool of labour with marine repair skills is available in Trinidad Easy visa acquisition and proximity to their national mission makes yachtsmen feel more secure Highest concentration of embassies and consulates in the Caribbean Relatively stable political history Electrical outlets compatible with American boats. 3 Competitive yacht repair and refurbishing costs Concentration of boat repair services in one location Many American and Australian based power yachts encounter problems in the other Caribbean islands with the conversion of electricity. Costs compare favourably with the Eastern Caribbean making the destination more attractive Almost all services required for boat repair are available within 2 – 3 square miles, facilitating easy access. In many other locations repair services are scattered throughout the island. Cost of living in Trinidad compares favourably with the Eastern Caribbean due to currency value and economies of scale afforded by population size. Trinidad has more to offer than other Caribbean islands with regards to nightlife, range of restaurants, cultural activities, festivals, etc. Wide variety of personal and commercial goods easily available Well-stocked chandleries, e.g. more than 10,000 items in stock at Budget Marine Trinidad offers the cheapest fuel in the Southern Caribbean. This is especially attractive for mega-yachts whose average fuel bill can be in excess of US$30,000 In the drier islands of the Eastern Caribbean, water is an expensive commodity 4 5 Lower cost of living 6 Wide range of social activities 7 Wide range of shopping facilities/goods Availability of marine goods Competitive fuel prices 8 9 10 Cheap/ free water - 47 - 11 STRENGTHS Competitively priced/ good quality medical services Yacht- in-transit mechanism DESCRIPTION A wider range of services is available in Trinidad compared to the Eastern Caribbean. Cruisers are often of retirement age Marine supplies can be imported free of duty and VAT for use on intransit yachts therefore making items not readily available in Trinidad easily accessible Boats ranging in weight from 15 – 220 tons can be hauled in Trinidad. Largest commercial travel lift in the Caribbean 6 boatyards with a combined capacity of over 800 boats, offering a range of prices and amenities 13 14 Excellent haul-out facilities 15 Excellent long-term storage facilities 16 English-speaking country The majority of cruisers are from the US and the UK, generally feel more comfortable in English-speaking country Hospitality of host nation Genuine friendliness of the people makes yachtsmen more comfortable 17 Travel Lift at Caribbean Yacht Works. - 48 - 1 WEAKNESSES Commercial activity in Chaguaramas DESCRIPTION 24-hour activity at the 3 ports, 5 sufferance wharves, assorted support stations for interests in the oil industry and fishing trawlers/ pirogues clashes with the needs of the yachting industry, e.g. constant noise, derelict vessels moored in the bay, speeding with wake More than 200 vessels were damaged by each oil spill, in many cases with new paint jobs costing in excess of US$5,000. Culprits were not prosecuted and no compensation was provided in the last two instances. Clean- up efforts began almost 24 hours after the spill occurred in all 3 instances. Regular diesel contamination from unknown source/s causes damage to yachts without any action taken by the authorities. Incursions of large amounts of floating garbage almost daily during the rainy season. Each rain brings garbage down into the Gulf of Paria in the rivers. Tidal flow brings the garbage to Chaguaramas Bay and Harts Cut creating an unsightly mess. Rainfall levels in Trinidad are higher than on the northern coast of Venezuela and the Eastern Caribbean putting the destination at a competitive disadvantage for repair work such as painting and fibreglass repair. A mainly coral sea floor combined with deep troughs and discarded equipment from the American occupation make Chaguaramas Bay a very difficult bay in which to anchor. The current marinas cater mainly for yachts of 40 to 60 foot length with only a few berths capable of accommodating larger motor yachts. This places a restriction on the growth of the industry. Fuelling is only available at 2 of the 9 facilities in Trinidad. There are no fuelling facilities in Tobago. Structured training is not available to upgrade skills of existing workers to remain competitive or for new entrants or those interested in entering the industry 2 Major oil spills in 2000, 2002, 2004 3 4 Almost weekly occurrence of diesel spills in Chaguaramas Bay Land-based pollution 5 Lack of infrastructure to cope with excessive rain 6 Difficult holding in Chaguaramas Bay 7 Lack of berthing facilities for larger yachts 8 Fuelling is not available at all marinas Insufficient training 9 - 49 - 10 WEAKNESSES Work standards not utilized DESCRIPTION Work standards are not in place for the industry leading to lack of confidence in Trinidad product on the part of customers There is no control over quality of work 11 Inconsistency in quality of work Lack of professionalism of contractors 12 Many of the contractors that are the lifeblood of the industry are skilled workers who have never run a company. Business management skills are lacking, e.g. customer service, job scheduling, invoicing, using contracts As the industry has developed, labour costs have increased. Costs are still reasonable when compared to the Eastern Caribbean and US however, if quality is not reliable this advantage is eroded. As a new industry, some of the required skills are lacking. As a small industry much of the foreign expertise would wish to establish his or her own business rather than work for someone. A one- year work permit is not conducive to establishing a business. See above 13 Perception of high labour costs 14 Work permit procedure is difficult 15 Foreign investment is difficult due to the issue with work permits CDA institutional weakness - disincentive to investment Cumbersome arrival procedures 16 No clear land policy – Delayed response to investors for land use turns away investment. 17 Unlike many other destinations in which 1 form suffices for both Customs and Immigration procedures, Trinidad requires forms to be completed for Customs and 5 or more forms to be completed for Immigration making the arrival procedure lengthy and cumbersome. The discretion that Immigration and Customs officers utilize can make the arrival and departure procedure confusing for visiting yachts, i.e. requirements, decisions, length of stay can vary depending on the officer conducting the transaction 18 Inconsistency of applying Customs and Immigration procedures - 50 - 19 WEAKNESSES Perception of high crime rate DESCRIPTION While the violent crime that is currently afflicting the rest of Trinidad is not present in Chaguaramas, visiting yachtsmen are exposed to the problem by the daily newspapers, both within in Trinidad and on the Internet. Also, the crime that has occurred in Chaguaramas (thefts, robberies, vessel boardings) is reported on the yachtsman’s Daily Security broadcast. This broadcast reaches from Venezuela to the Bahamas to the Panama Canal. Chaguaramas is home to multiple users – oil industry workboats, commercial ships, fishing vessels, local pleasure craft and visiting yachts – yet there is no authority overseeing that all users are operating in a safe and secure manner. Problems abound re speeding, wake, crime, pollution, etc. Carenage Police station has been unable to respond in a timely manner to reports of criminal activity. There is little or no follow-up with the victim. Yachtsmen comply with the requirement to declare and relinquish firearms on arrival but encounter lengthy delays and great difficulty to retrieve their property for departure. Most other destinations that Trinidad competes with offer duty-free over-the-counter sales on marine supplies facilitated by a simple, user- friendly procedure, e.g. Grenada, Antigua, St. Maarten. It is not possible to register a yacht in Trinidad. 20 Lack of harbour control 21 Inadequate police response 22 Difficulty to retrieve firearms 23 Unavailability of overthe-counter duty- free marine supplies 24 Lack of legislation for yacht registration Lack of economic data on the yachting industry 25 The yachting industry is not captured in CSO’s data collection efforts therefore it is not possible to ascertain the indus try’s contribution to the national economy or to make informed decisions regarding investment, development, etc. Tobago’s coastline does not afford any natural sheltered harbours or bays which poses a challenge for marina or mooring field development, i.e. periodic swells, etc. make for uncomfortable anchoring 26 Tobago’s coastline not conducive to development - 51 - 27 WEAKNESSES Little promotion of the yachting sector DESCRIPTION Private sector promotion of individual services and facilities has been virtually the only form of promotion for the past 5 years. In a 2004 YSATT survey, 65% of those polled had heard of Trinidad from another yachtsman while 3% had heard of the destination from advertising. Marker buoys, beacons, cable buoys, channel markers etc. Visiting yachtsmen feel unsafe 28 Inoperable navigational aids Slow or no Coast Guard response to distress calls Lack of maintenance of available boats for harbour patrol 29 30 - 52 - 1 OPPORTUNITIES Government commitment to the development of the industry YSATT as an avenue for communication with the Government Development of Tobago as an exclusive site with appropriate pricing DESCRIPTION The industry has reached a point in its development where it will require government support in order to grow beyond its current level of activity YSATT represents the yachting industry and can act as a conduit for conveying the interests of the industry and the government’s intentions between both parties Tobago is virtually untouched as a yachting destination and therefore can be carefully developed to attract a high-end market in sustainable numbers 2 3 4 Recent European award Ecotourism products are attractive to the yachting to Tobago for ecotourism tourists Development of Chacachacare as a yachting haven Creation of a mega- yacht marina, preferably in Chaguaramas Trinidad’s natural advantages for yachting Abundance of locallygrown, competitively priced teak Spanish as a second official language Make the destination more attractive to the Spanishspeaking marker The island’s naturally sheltered bays make it an ideal location for an environmentally-suitable yacht facility development The addition of a mega- yacht marina would enhance the industry as this sub-sector is currently not being served by the destination 5 6 7 8 9 - 53 - 1 THREATS Foreign governments supporting their yachting industry Installation of 500-ton travel lift in St. Maarten Labour and job rates in Venezuelan yachting industry Incidents of piracy off Venezuelan coast DESCRIPTION Two boatyards capable of storing more than 300 boats were established in Grenada in the last 4 years facilitated by government support. Trinidad’s competitive advantage (largest commercial travel lift in the Caribbean) will be lost Currency value of the Bolivar dictates that job and labour rates are significantly cheaper in Venezuela 2 3 4 Trinidad is often a stopover point on the way to Venezuela. A reduction in visitation levels to Venezuela will have an impact on visitation levels in Trinidad. Yachtsmen awareness of crime levels in Trinidad has had an impact on visitation levels See 3 5 High levels of crime 6 Lower cost of living in Venezuela Development of the oil industry in Chaguaramas 7 Increases the level of workboat activity and has negative implications for availability of space for expansion for the yachting industry Waterfront space is extremely limited which has negative implications for future growth of the yachting industry Current maritime legislation is suited for large shipping vessels not yachts. No legislation exists to manage the yachting. The various activities in Chaguaramas Bay are not effectively managed creating user conflicts and hazardous conditions 8 Limited space to further develop the yachting industry Archaic marine laws 9 10 Poor harbour management 11 No traditional yachting industry so there is a steep learning curve Inflation and spiraling cost of labour 12 - 54 - 13 THREATS DESCRIPTION Existence of sub-standard labour Political disturbances Perception of pollution from boatyards and yachts (especially in Tobago) Chaguaramas Development Authority inertia Long term effects of Hurricane Ivan Trinidad may be perceived as an unstable destination Reduces public interest/support for the industry 14 15 16 The industry suffers from a lack of interest or action on the part of the CDA to provide the infrastructure required, etc. Hurricane Ivan’s unusual southerly path and the resulting destruction in Grenada (also considered within the hurricane belt) is most like to result in a reevaluation by insurance companies of the location of the belt and insurance premiums. So far, two major companies have indicated their intention to relocate the southern boundary of the belt to 9°N. This will have negative implications for Trinidad’s attractiveness as a storage location, a major component of the destination’s yachting product. While important for the local pleasure craft activity, there will be a negative impact if these proposed safety regulations are applied to visiting yachts 17 18 Introduction of small vessel safety regulations - 55 - 2.4 Economic Contribution of Industry Although the yachting industry in Trinidad and Tobago has shown tremendous potential for growth and revenue generation during the last decade, very little research has been done on the economic impact of the sector. The following table highlights the most recent main economic indicators available for the yachting industry in Trinidad and Tobago. Table 10: Economic Contribution of the Ya chting Industry in Trinidad and Tobago Key Performance Indicator Amount Year No of full time employees No of part time employees Average expenditure per vessel Estimated investment Contribution to GDP Inflows in foreign exchange earnings Revenue generated annually Value added Depreciation 1,100 145 US$17,800 TT$160m TT$130m TT$125m TT$123-154m TT$105m TT$3.708m 2002 1999 2001 p.a. 2001 p.a. p.a. 1999 The yachting industry in Tobago has been estimated to generate expenditure amounting to TT$5.8 million which is possibly greater than expenditures in the cruise ship industry. In addition to these macroeconomic indicators, there is evidence that the yachting industry generates revenue in several downstream industries and ancillary commercial activities including: Welders Upholsterers Woodworkers Sail Repairs Shrink Wrapping Chandlers Mechanics Electricians Plumbers Battery Repairs Varnishers Riggers Shipwrights Electronics Technicians Joiners Boilmakers (metal fabricators) Fitter Boat husbandry GRP fabricator Sail maker Waste Disposal Machinists Painters Security Car Rentals Travel Agencies Doctors Dentists Taxi Drivers Tour operators Hotels Restaurants/ Bars Supermarkets Souvenir shops Laundry Services Banking Services Entertainment More details are provided in Box 3. - 56 - Box 3: Indirect Economic Returns from The Yachting Industry in Trinidad and Tobago Outlined below are areas in which the direct sector contributes to government revenue: • Immigration and Custom fees - TT$100 per yacht/ per clearance and TT$50 per yacht/ per clearance for CARICOM vessels • Import duties on intermediate goods • Taxes on profits and personal income • Taxes on wages and salaries of employment in the sector (P AYE, NIS and Health Surcharge) • Value Added Tax (VAT) on goods and services Source: Lisa James. December 2001. A Socio Economic Assessment of Yachting Activities in the Northwest Peninsula of Trinidad. Working Document. Institute of Marine Affairs. Chaguaramas, Trinidad and Tobago. The main yachting event in Trinidad and Tobago is the Angostura Tobago Sail Week, which is held in May of each year. Based on an expenditure survey conducted by TIDCO and the Regatta Promoters in 2001, it is estimated that this event can generate revenues in excess of TT$2 million as each of the seventy-odd participating yachts spends approximately US$893 per day with an average of five days. The amount is even larger when the 40 to 50 spectator boats are included in the estimations. - 57 - 3.0 International Best Practices Having outlined the nature and outlook of the international and regional yachting industry, and described the industry in Trinidad and Tobago, it is instructive to examine what has been identified as best practices internationally, before making any recommendations towards the development of the industry locally. There are several key international best practices, which have been identified. These include: Voluntary programmes for certification for marinas to meet high standards; Measures for environmental protection including: o Sewerage and hazardous waste management; o Oil spill prevention and clean up policies; Aggressive marketing to promote the country as a yachting destination; Provision of adequate training facilities to expand the workforce in the yachting sector; Provision of incentives and supporting legislation to facilitate further growth of the industry; Emergency planning and disaster preparedness. - 3.1 Voluntary Programs for Certification for Marinas to meet high standards Voluntary programs have proven to be an effective mechanism for raising standards in the industry. They provide public relations mileage for boatyards and marinas that are involved in the programs and assurance to customers that their establishments maintain a certain standard of service. The Florida Clean Marina Program is one such program, which was developed in partnership with private and public entities in the marine industry. The program: (i) (ii) (iii) Offers training via the Internet for employees of the boatyards; Provides grant funding towards expenditure on preventing pollution; Provides information on areas such as: • Possibilities of sites for new and expanded marinas; • Environmentally sensitive marina design and maintenance; • Storm-water management; • Vessel maintenance and repair; • Petroleum distribution management; • Sewerage handling, waste contamination and disposal; • Marina management; and • Laws and regulations. Another such programme - the Blue Flag Campaign - is a well-recognized European standardization and certification programme for beaches and marinas, which voluntarily meet a host of criteria including predetermined standards of: established water quality, environmental management, safety, services, facilities, environmental education and awareness. Four - 58 - Caribbean countries have initiated a pilot phase of the Caribbean Blue Flag Campaign. The countries involved are: Jamaica (Port Antonio Marina, Port Antonio and four beaches), the Dominican Republic (1 beach), the Bahamas (Old Bahama Bay Marina and Port Lucaya Marina both in Grand Bahama) and Puerto Rico (four beaches). The programme is being implemented by the Caribbean Tourism Organization (CTO) and the Caribbean Alliance for Sustainable Tourism (CAST). The first Blue Flags in the Caribbean are expected to be raised by November 2004. 3.2 Measures for Environmental Protection Environmental degradation has been argued by many to be one of the most important areas of concern in the development of a yachting industry. However, this negative externality has been successfully managed in many jurisdictions with the implementation and monitoring of several measures to protect the environment. One such measure is the use of public and private moorings to prevent anchor damage. Public moorings can be made available subject to time limits and there can be legal restrictions for anchoring within a specified distance of the moorings. The Tortola government has installed approximately 2,000 moorings in high- use bays and anchorages. The moorings are operated by private enterprise and an annual royalty fee for use of the seabed of US$200 per mooring is repatriated. A daily fee of US$25 is collected by the operator from users of the mooring. With regard to non-point pollution originating from yachting establishments, the implementation of effective runoff control strategies can be considered, such as providing adequate buffer areas between the coast and upland facilities. The use of crushed gravel for surfacing purposes, or installing filter and wet ponds are two options. Tarpaulins can be used under any maintenance works thereby assisting with the clean up process and more importantly the prevention of seepage into surface waters. Collected materials are be disposed of in an appropriate manner. The cost of such measures can be met by adding a 1% environmental surcharge onto all work invoices, as is currently being done by Brewer Yacht Yards (20 boatyards in Northeast U.S.). - 59 - Sewerage and hazardous waste management are also of primary concern. Countries can adopt a zero-discharge policy, however this must be accompanied by adequate provision of alternative facilities and effective enforcement. Rhode Island has successfully designated a no-discharge zone for all of Narragansett Bay since 2000. Pump-out facilities have been installed in marinas around the bay and the state has expanded the sewerage handling and treatment as well as other water utility facilities in sensitive embayment watersheds to address sewerage management (Colt et al. 2000). In addition, private marinas in the United States are given the incentive to install boat sewerage pump-out stations via grants under the 1992 Federal Clean Vessel Act. In Antigua and Barbuda, guidelines stipulate that gray and black water tanks must be pumped out before entering and after leaving an anchorage and in the British Virgin Islands, yachts are prohibited from pumping out within 1,000 yards of the shoreline. Pumpout facility at Crews Inn Chaguaramas, Trinidad The use of a spill prevention and recovery plan is of utmost importance. Spill response equipment should be readily available and in acceptable condition. Certain yacht service providers, such as Brewer Yacht Yards in the United States, provides oil spill containment booms and pads at a cost of US$1,800 per facility. A draining and recycling programme for used oil filters has also been identified as a best practice. The Brewer Yacht Yards use oil burners, which were purchased at an average cost of US$5,000 for recycling used oil. - 60 - 3.3 Marketing and Promotion Due to the specific means of communication among yachting persons, targeted marketing is necessary, usually via yachting events, boat shows, yachting publications and the Internet. Many Caribbean countries have successfully attracted yachtsmen to their shores by hosting several sailing events throughout the year. In 2003, Grenada hosted six major sailing events, all annual events: Jan 31 Apr 19 - 20 Apr 17 - 21 Jul 4 - 6 Aug 2 - 4 Nov 3 - 4 Grenada Sailing Festival Gouyave Easter Regatta Grenada Round the Island Regatta Grenada Yacht Club Summer Regatta Carriacou Regatta Shipwrights and Friends Wooden Boat Regatta Antigua hosted the following events this year: Antigua Mega Yacht Challenge Apr 10 – 14, 2004 Antigua Classic Regatta Apr 15 – 20 2004 Antigua Sailing Week Apr 25 – May 1 2004 Antigua will also host the Antigua Charter Yacht Meeting in December 2004 featuring 118 charter yachts ranging in size from 50 to 190 feet. The event will also include a Marine Trade Show. The benefits to be accrued from hosting such events have been identified earlier. Government support for these events is invaluable, e.g. the St. Maarten Government plans to contribute US$50,000 towards the island’s first annual megayacht show “The St. Maarten Charter Yacht Exhibition” set for December 7 – 11 2004. 3.4 Training and Human Resource Development A key component of developing this industry is the provision of adequate training for the existing workforce in the sector as well as the expansion of the workforce. St. Maarten has one of the most successful yachting industries in the Caribbean, having taken advantage of the training opportunities provided in other countries through its liberal immigration policies. The country has since established a Maritime School for the West Indies (MSWI) in the year 2003 to meet the industry’s training demands. The MSWI currently offers courses in conjunction with the International Yachtmaster Training (IYT), which is fully approved by the UK Maritime and Coastguard Agency (MCA). The British Virgin Islands also offers training for individuals interested in the yachting industry at the H. Lavity Stout Community College 22 . The college offers majors in Maritime Studies and 22 http://www.h lscc.edu.vg/hlsccwebsite/LibraryRes.aspx - 61 - Marine Technology (with specialization in Marine Electronics or Yacht Maintenance) which allow successful graduates to test for qualifications of the United States Coast Guard (USCG) and the Royal Yachting Association (RYA). 3.5 Legislation and Incentives A major incentive, which facilitates the development of the yachting industry, is availability of duty free marine-related supplies for visiting yachts. The Government of Antigua and Barbuda for example, has provided a concession allowing duty free fuel to be available for yachts arriving to and leaving the country. Grenada provides a similiar incentive. Goods imported into Grenada for use by boats licensed to charter or hire are exempt from import duties, taxes and levies under the Yachting Act. In St. Lucia, yachts imported into the country are exempt from import duty and related taxes. There are however several pieces of legislation, which pertain to the yachting industry, which may make enforcement difficult. It is noteworthy that in 2000 Grenada promulgated its Yachting Act, which combines all regulations relevant to the yachting industry into a single piece of legislation (See Appendix IV). The Act specifically defines yachts, thus ensuring that yachts would not be subject to the same regulations as commercial ships. The Act requires that yachts being used for commercial activity must be licensed. A cruising permit fee is also applicable for foreign yachts. The legislation states that if a vessel arrives outside of the hours 8:00 a.m. to 4:00 p.m., it would not need to check in until after 8:00 a.m. In addition, persons are allowed to check out up to 24 hours before departure. In the case where the yacht intends to stay for under three days, he can check in and out upon arrival. Failure to comply with any of the provisions of the Act results in a fine of EC$10,000.00 or imprisonment for one year, and the vessel may also be impounded. The French islands have also used incentive legislation to stimulate further development of the leisure marine industry. The Pons Law (defiscalisation) allows for a 100% tax deduction for investment in boating related activities, effective July 1993. This incentive resulted in the establishment of several charter companies (Martinique serves as a base for approximately 16 charter companies with over 750 charter boats 23 , while Guadeloupe is host to 6 companies) and the importation of a large number of yachts. In addition, St. Maarten currently has more marine equipment suppliers than any of the other Caribbean countries. 23 ECLAC. 2004. “Yachting in the Eastern Caribbean: A Regional Overview.” - 62 - 3.6 Emergency planning and disaster preparedness As was clearly illustrated by the passage of Hurricane Ivan, disaster preparedness and emergency planning is key to mitigating the impact of natural disasters and accidents. The picture below which was taken after Hurricane Ivan in Grenada shows the level of havoc caused as many if not all of the yachts have fallen on their sides. The Florida Clean Marina Program recommends that boatyards preplan and train personnel to deal with all emergency situations. Source: http://reservationsbvi.com/Grenada/ivan_.html - 63 - 4.0 Strategy for the Development of the Industry The yachting industry has been declining for the past several years. This strategic plan seeks to outline recommendations for the development of the industry based on three phases or options. During the first phase, the action points will be geared towards reversing the decline in the industry. The recommendations listed under this “package” should be implemented as a matter of priority if the country does not want to loose its competitive edge. The second phase should follow the first. The recommendations listed for the second phase are geared towards facilitating accelerated growth in the industry. The objective of the second option is to take advantage of the developments that are already planned including the Port of Spain and San Fernando redevelopment projects. The third phase would include recommendations to facilitate long-term sustainability as well as expansion. The objective during this phase includes increased infrastructural development in Tobago as well as the repositioning of the country not only as a repair center, but also as a tourist or cruising destination. 4.1 Vision and Objectives of the Yachting Industry of Trinidad and Tobago Our vision for the yachting industry is for Trinidad and Tobago to be the premier destination for yacht repair services in the Caribbean and to be a must-see destination on a yachting tourist’s Southern Caribbean cruising schedule. The key objectives of the development of the Yachting Industry include the following: • An increase in the number of yacht arrivals; • An increase in the sectoral contribution to GDP; • An increase in the level of investment; • An increase in the number of small locally-owned businesses; • An increase in the level of employment of the industry. - 64 - There are several steps, which must be taken in order to achieve these objectives. The chart below illustrates: Provide adequate training facilities; Minimize and eliminate levels of pollution (oil and diesel spills); Create efficient and effective legislation and regulations; Improve infrastructure of the industry (electricity, water, fueling etc); Facilitate apprenticeship programs; Establish standards for workmanship and therefore raise the quality of work; Facilitate efficient administrative processes; Alter the perception of the industry both locally and abroad; Enhance Trinidad and Tobago as a destination with further development of the industry in Tobago; Increase competitiveness relative to other Caribbean islands; Increase revenues generated in yachting and other downstream industries - 65 - 4.2 Phase 1 - Maintain the Status Quo This first phase lists the action points necessary to reverse the decline observed in yacht arrivals over the last three years, and to maintain a rate of growth experienced in the decade before the decline. This phase would require most input by the Government with respect to institutional support and includes recommendations for the improvement in efficiency of operations by Government agencies such as Customs and Immigration, and the Police, improvement in enforcement of regulations as well as infrastructural works on roads etc. The phase would also entail training of the existing and potential workforce in order to increase the quality of workmanship and reverse the perception of low standards of labour. It is envisaged that implementation of these recommendations will maintain current employment and revenue levels and result in an average growth rate in yacht arrivals of 20% (similar to the average growth rate experienced during the 90’s due to customer satisfaction with consistency in application of regulations, quality of workmanship and service provided). The action points are listed below. - 66 - Phase 1 of Implementation Schedule – Action Points Recommendations FACILITATION Repair of navigational aids; Properly resourced (manpower, financial) maintenance program for navigational aids Annual economic impact assessment of the yachting industry – to include business establishment surveys and satisfaction surveys of the yachting tourists Several critical navigational aids are currently unserviceable; safety; comp liance with international treaties Unavailability of accurate data Ministry of Works and Transport 500,000 Immediate Issues Entity Cost (TT$) Time Central Statistical Office (CSO) TIDCO 50,000 Immediate TRAINING Implementation of an apprenticeship program Training costs; unavailability of labour; customer dissatisfaction Low skill levels available in industry; customer dissatisfaction Keep labour force updated with innovations in boat building and repair National Training Agency Ministry of Science, Technology and Tertiary Education Short term Development and imp lementation of a skills training and certification program for existing and prospective workers; possible location – University of Trinidad and Tobago, Chaguaramas campus Short term INSTITUTIONAL SUPPORT Appointment of an officer with primary responsibility and appropriate authority for yachting issues Longer rotation period for Immigration officers assigned to Chaguaramas (extension from 4 weeks to 3-6 months) Limited response from government agencies on yachting issues Inconsistent application of Immigration procedures; customer dissatisfaction with different enforcement by different officers Customer dissatisfaction with service provided; efficiency of service TIDCO, Tobago House of Assembly (THA) Immigration Department Immediate Immediate Training for Immigration and Customs officials (all levels) to sensitize these officers to the importance and the needs of the yachting industry, e.g. one-day session could be included in orientation program for new officers Address deficiencies in firearms procedures, e.g. firearms not returned in timely manner, procedure applied haphazardly Ministry of Tourism Immediate Customer dissatisfaction with service and procedures Ministry of National Security Immediate - 67 - Recommendations INSTITUTIONAL SUPPORT cont’d Uniform application of overtime charges, e.g. charges have been applied when boats enter Trinidad’s waters or when boats arrive in Chaguaramas Bay Issues Customer perception that they are being cheated or overcharged, dissatisfaction with inconsistency Entity Ministry of National Security, Ministry of Finance Ministry of National Security, Ministry of Finance Cost Time Immediate Revision of the requirements for yachts moving between Trinidad and Tobago, i.e. current requirements are onerous Implementation of VAT-free, over-the-counter sales utilizing existing mechanism (for local fishing boats) and recognised principle of yacht intransit Establishment of appropriate policy and allocation of appropriate resources to facilitate duty-free, over the counter sales to intransit yachts Introduction of a 24-hour harbour patrol with responsibility and authority to enforce safety and environmental regulations, fine or arrest offenders, clean-up of diesel spills, provide security Implementation of 24-hour police patrol of Chaguaramas peninsula Implementation of the National Oil Spill Contingency Plan Customer dissatisfaction with the ease of enjoyment of cruising activity Competitiveness of industry, growth of industry Immediate Immediate Competitiveness of industry, growth of industry Customer dissatisfaction with pollution, security and safety in the bay Crime rate, User conflicts Customer dissatisfaction with pollution in Chaguaramas Bay and lack of compensation in two major oil spills, growth of the industry Crime in T&T waters Customer dissatisfaction with police response Customer dissatisfaction with service Ministry of Finance Ministry of Works and Transport 500,000 Short term Immediate Ministry of National Security Ministry of Energy and Energy Industries Immediate Immediate Reestablishment of the Police Marine Unit Upgrade of Carenage Police Station, i.e. manpower, financial resources, facility Upgrade of Customs and Immigration facilities in Trinidad and Tobago Ministry of National Security Ministry of National Security Ministry of National Security, Ministry of Finance Immediate Immediate Short term - 68 - Recommendations INSTITUTIONAL SUPPORT cont’d Infrastructure improvement (paving of minor road, drainage, reliable supply of electricity and water) Issues Investor confidence, customer satisfaction Entity Ministry of Works & Transport; Ministry of Public Utilities Cost Time Short term ENVIRONMENTAL Utilization of tarpaulins under any maintenance works to assist with clean up and prevention of water pollution. Utilization of vacuum sanders for paint removal Upgrade and refurbishment of the existing sewage system Environmental degradation Private boatyards Immediate Environmental degradation Environmental protection Private boatyards Ministry of Public Utilities Private boatyards Short term Long term Use of Code of Conduct for the prevention of pollution from small ships in the marinas and anchorages Pollution from yachts Short term INVESTMENT, MARKETING AND PROMOTION Comprehensive local, regional and international promotional plan Decline in yacht arrivals; Lack of public awareness about the yachting industry and its contribution to the economy. TIDCO, YSATT, Ministry of Trade and Industry Immediate RESEARCH Establishment of best management practices with particular reference to rain, storm water, dust control and fuel dock operations Environmental preservation YSATT Short term LEGISLATION Revision of current legislation governing maritime activity to better cater to pleasure craft, to include shipping regulations, Immigration, Customs, Customer dissatisfaction with protection afforded by existing legal framework Limited development of the industry, low level of skills currently available, competitiveness of the industry Ministry of Legal Affairs Immediate Revision of the work permit regulations to allow investors with special skills to be granted work permits for an appropriate time period, i.e. more than one year to allow small business establishment Ministry of National Security Short term - 69 - Recommendations LEGISLATION cont’d Clearly defined and uniformly adhered to regulations that cater to the needs of the yachting industry for entrance and clearance formalities (including airport arrivals), crew members signing on/off yachts, collection of parcels from Customs Implementation of single clearance Immigration form for yachts (See Appendix III) Issues Inconsistent application of rules and regulations, customer dissatisfaction Entity Ministry of National Security, Ministry of Finance Ministry of National Security Cost Time Immediate User-unfriendly procedures; customer dissatisfaction with clearance procedures; competitiveness of destination Unattractiveness of the destination, customer dissatisfaction, Immediate Revision of the pet quarantine regulations to allow pets of yachting touris ts to come ashore or to have quarantine established in Chaguaramas. Ministry of Agriculture Immediate - 70 - 4.3 Phase 2 of Implementation Schedule The second phase builds on the foundation developed in the first phase. It lists the action points necessary to not only maintain the country’s competitive advantage with respect to being a repair center in the Caribbean, but to expand the market to include yachtsmen who visit countries for the tourist attractions and beauty of the surroundings. The waterfront redevelopment projects of Port of Spain and San Fernando provide opportunities for further expansion of the market beyond the borders of Chaguaramas. In San Fernando for example, the reclamation project will result in the relocation of the San Fernando Yacht Club to some ten miles out. Once the Government assumes the responsibility for continuous dredging, the private sector will embrace further development of infrastructure and facilities to expand the sector. This phase would be driven mainly by the private sector having taken advantage of the facilitation mechanisms provided by the Government in phase 1. It would entail expansion into the market providing charter operations, aggressive marketing of the islands as a premier yachting destination and close monitoring of the country’s competitiveness through benchmark studies. Implementation of these recommendations should result in an average growth rate of yacht arrivals exceeding 20% due to increased capacity in San Fernando and Port of Spain. It would also entail proper zoning of activities in coastal areas to minimize or eliminate user conflicts, and competition for space between yachting and industrial activity in Chaguaramas. The action points for this second phase are listed below. - 71 - Phase 2 of Implementation Schedule Recommendations FACILITATION Preparation and implementation of a zoning plan that determines appropriate anchorage zones and channels for all vessels in multi-use bays (Chaguaramas, Welcome and Scotland Bays in particular) Development of a comprehensive mooring buoy policy in response to zoning issues, which should be effectively communicated to all stakeholders; policy to address permission process, suggest suitable anchors and buoys. Development and implementation of an attractive crewed-charter policy to allow foreign-flagged vessels to pick-up/drop-off passengers in T&T Continuous dredging in San Fernando to facilitate expansion of San Fernando Yacht Club Removal of wrecks and derelict vessels in Chaguaramas Bay and Welcome Bay User conflicts; safety Ministry of Works and Transport Immediate Issues Entity Cost (TT$) Time Carrying capacity constraints of bays, safety Ministry of Works and Transport 2M Immediate Loss of business-related revenue; development of sub-sector of industry Build up of silt that prevents larger vessels from entering the harbour Dangerous and unsightly objects TIDCO Short term Ministry of Works and Transport Ministry of Works and Transport Ministry of National Security Short term Short term INSTITUTIONAL SUPPORT Introduction of the Tourism Oriented Police Service to improve the response of officers to tourists who are victims of crime, e.g. the importance of providing progress reports to victims Customer dissatisfaction with police response Short term ENVIRONMENTAL Publication of IMA’s 1998 study Negative public perception of environmental impact of yachts Environmental degradation Environmental protection Ministry of Trade and Industry YSATT, Private boatyards Environmental Management Authority (EMA) Short term Long term Adoption of Blue Flag program at boatyards and marinas Monitoring program for selected parameters on pollution and contamination - 72 - Recommendations INVESTMENT, MARKETING AND PROMOTION Comprehensive local, regional and international promotional plan Issues Entity Cost (TT$) Time Decline in yacht arrivals; Lack of public awareness about the yachting industry and its contribution to the economy. TIDCO, YSATT, Ministry of Trade and Industry Immediate RESEARCH Annual competitive analysis to include skilled labour rates, facilities, legislation, product Environmental impact assessments and carrying capacity studies for selected bays and anchorages such as Chacachacare, Scotland Bay, Tetron Bay, Welcome Bay, Store Bay, Charlotteville and Mt. Irvine Bay. Provision of funding to publish results Identification of sensitive ecological areas where anchoring should not be allowed in Trinidad and Tobago Competitiveness of the industry TIDCO Long term Environmental preservation, negative public perception EMA Long term Environmental preservation Water and land based pollution/contamination studies to establish trends to Environmental preservation establish trends for major parameters and pollution sources in sensitive bays and anchorages. Provision of funding to publish results Institute of Marine Affairs (IMA) IMA Short term LEGISLATION Draft and implementation of a Ya chting Act to provide legal framework for all aspects of the yachting industry, to include definition of yachts, movement of yachts within T&T waters, charter policy, stratified incentives for marina development (based on size of proposed facility) Archaic marine laws Ministry of Tourism 120,000 Short term 73 4.4 Phase 3 of Implementation Schedule The third phase lists possible action points that would facilitate long-term sustainability as well as expansion. The objective during this phase includes the implementation of a properly promoted CDA land use plan for the industry, increased infrastructural development in Tobago as well as the repositioning of the country not only as a repair center, but also as a tourist or cruising destination. Implementation of these recommendations should result in a significant increase in the number of businesses catering to the yachting industry and the establishment of yachting-specific commercial enterprises in Tobago. The action points for this third phase are listed below. - 74 - Phase 3 of Implementation Schedule Recommendations FACILITATION Development and implementation of a land and waterfront use plan for future development that specifically considers the needs of the yachting industry Development of Chachachare and establishment of a marina Constraints to the development of the industry Ministry of Planning and Development Ministry of Planning and Development and private sector Private Sector Tobago House of Assembly Short term Issues Entity Cost (TT$) Time Repositioning of country as tourist destination Long term Establish a private sector marine services association in Tobago Establish a policy for the creation of a marina facility in Tobago and commission a site selection survey for possible marina sites Yachting sector in Tobago does not have representation Lack of control of growth of the yachting industry in Tobago Medium term Short term INVESTMENT, MARKETING AND PROMOTION Comprehensive local, regional and international promotional plan Decline in yacht arrivals; Lack of public awareness about the yachting industry and its contribution to the economy. TIDCO, YSATT, Ministry of Trade and Industry Immediate - 75 - CONCLUSION The yachting industry in Trinidad and Tobago has been traditionally private sector driven and does not require significant investments from the Government. However, due to a reversal of the significant growth trend experienced during the 90’s caused by an absence of consistent regulations, decreasing work standards and environmental pollution, the Government must now act in its role as a facilitator to create an appropriate enabling environment for the private sector to continue and increase investments in the sector. This includes general infrastructural maintenance of the minor roads and sewage systems in Chaguaramas, provision of adequate training facilities for the industry as well as marketing and promotion in appropriate fora. The relevant authorities must be mindful that immediate action is necessary, especially in light of the increased demand following the recent Hurricane in Grenada, and even internationally with an increasing production of yachts and a lack of marina space. As Governments around the globe continue to invest in the development of their yachting industries, so too must Trinidad and Tobago if the country is to maintain competitiveness and maximize the benefits that can be derived from a thriving yachting industry. Photo: Courtesy Doyle - 76 - BIBLIOGRAPHY Barcant, Colin. 2001. The Yachting Industry in Trinidad and Tobago: an Emerging Industry Destined for Global Participation. Presentation. Bareuther, Carol. 2004. Southern Boating, June 2004 “Caribbean Marina Update” Boaters’ Directory Trinidad and Tobago 2004. Boaters Enterprise Limited. Trinidad. Colt, Ames, Timothy Tyrrell and Virginia Lee. April 2000. “Narragansett Bay Summit 2000 White Paper: Marine Recreation and Tourism in Narragansett Bay: Critical Values and Concerns” Economic Commission for Latin America and the Caribbean (ECLAC). 2004. “Yachting in the Eastern Caribbean: A Regional Overview.” LC/CAR/G.775. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2003. “The Yachting Sector Dominica.” LC/CAR/G.762. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2003. “Report of the Grenada National Yachting Consultation.” LC/CAR/G.735. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2002. “Martinique: The Yachting Sector.” LC/CAR/G.710. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2002. “St. Vincent and the Grenadines - The Yachting Sector.” LC/CAR/G.707. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2002. “St. Lucia - The Yachting Sector.” LC/CAR/G.706. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2002. “Antigua and Barbuda: The Yachting Sector.” LC/CAR/G.704. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. Industry Canada May 2001: Industry Sector Analysis “Pleasure Boat Industry – Australia.” http://strategis.gc.ca/epic/internet/inimir-ri.nsf/en/gr-78483e.html __________ August 2001: Industry Sector Analysis “Recreational Boat Market – Germany.” http://strategis.gc.ca/epic/internet/inimir-ri.nsf/en/gr-71923e.html __________ October 2001: Industry Sector Analysis “Recreational and Pleasure Boats – Spain.” http://strategis.gc.ca/epic/internet/inimir-ri.nsf/en/gr-81526e.html __________ November 2002: Industry Sector Analysis “Equipment and Supplies for the Pleasure Boat Industry – South Africa.” http://strategis.gc.ca/epic/internet/inimirri.nsf/en/gr112153e.html __________ March 2003: Industry Sector Analysis “The Pleasure Boat Market – France” http://strategis.gc.ca/epic/internet/inimir-ri.nsf/en/gr111429e.html __________ August 2003: Industry Sector Analysis “Recreational and Pleasure Boats Market – Italy.” http://strategis.gc.ca/epic/internet/inimirri.nsf/en/gr110245e.html Ishmael, Len. 2002. The Yachting Sector in the Eastern Caribbean: A Regional Overview. Presentation at UNECLAC Regio nal Yachting Meeting. Port of Spain: ECLAC, December 2002. James, Lisa. 2001. A Socio Economic Assessment of Yachting Activities in the Northwest Peninsula of Trinidad. Working Document. Chaguaramas, Trinidad and Tobago, Institute of Marine Affairs. December 2001. Lydecker, Ryck and Margaret Podlich. “ A Profile of Recreational Boating in the United States.” http://www.oceanservice.noaa.gov/websites/retir edsites/natdia_pdf/14boatus.pdf Mohammed, Sasha. “Special Report - Rise and Fall of the Yachting Industry.” February 8 2004, Port of Spain, Sunday Guardian. National Marine Manufacturers Association. 2003. “2003 Recreational Boating Statistical Abstract.” Available online: http://www.nmma.org/facts/boatingstats/2003/files/Abstract.pdf Petrovic, Clive and Everett O’Neal. 2001. “Ecotourism, Yachting and Local Entrepreneurs: A Case Study of the British Virgin Islands.” H. Lavity Stoutt Community College, Tortola, British Virgin Islands. Quildon, Leroy. 2002. “Sustainable Competitive Advantage in the Yacht Services Industry Cluster of Trinidad and Tobago.” Riley, N.T. 1998. “Draft Report on the Training Requirements of the Boat Building and Boat Repair Sectors in Trinidad and Tobago. The Commonwealth Secretariat, London. Stone, Ron. 2002. Boat and Motor Dealer, December 2002 “International Trends in Marina Development.” Available online at: http://www.marinamanagement.com/articles/rs-12_02.html __________. Marina Dock Ace, January/ February 2003 “Proving the Economic Importance of Marinas Benefits Facilities Worldwide.” Available at http://www.marinamanagement.com/articles/rs-2_03.html Trade Development Institute of Ireland Ltd. 1999. “Investment Promotion Strategy for Trinidad and Tobago.” Trinidad and Tobago Ministry of Enterprise Development and Foreign Affairs. “Enterprise Development Policy and Strategic Plan for Trinidad and Tobago 2001 - 2005: Forging a Competitive Economy Through Partnership.” Port of Spain, Ministry of Enterprise Development and Foreign Affairs. July 2001 Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO). 1995. “Trinidad and Tobago Yachting Industry Survey: Operation Splash. November 15, 1995 - December 16, 1995.” Port of Spain, Trinidad and Tobago. __________. 2001. Draft Report: The Training Needs of the Ship Building and Boat Repair Sectors of Trinidad and Tobago. TIDCO, Port of Spain. __________. “Development Strategy for the Pleasure Boating Industry – a TIDCO study” Port of Spain, Trinidad and Tobago. Trade Development Institute of Ireland (TDI) Ltd. Strategy for Trinidad and Tobago.” 1999. “Investment Promotion United States Maritime Administration. “U.S. Economic Growth and the Marine Transportation System: A White Paper sponsored by the Marine Transportation System National Advisory Council.” Washington, D.C. United States Maritime Administration December 2000. Yacht Services Association of Trinidad and Tobago (YSATT). 1997. “Report on the Visitor Satisfaction Survey on the Marine Industry conducted from November 15th to December 7th 1997.” YSATT, Chaguaramas, Trinidad and Tobago. __________. July 2002. Development Strategy for the Foreign Yacht Service Industry. Websites: http://www.boatersenterprise.com/ http://www.cariri.com http://www.chagdev.com/ http://www.dep.state.fl.us/ Caribbean Industrial Research Institute (CARIRI) Chaguaramas Development Authority Florida Department of Environmental Protection http://www.doyleguides.com/tobago.htm http://www.doyleguides.com/grenada_hurricane_page.htm http://www.ema.co.tt/ http://www.epa.gov/ http://www.ima.gov.tt/ http://www.imo.org/ http://www.nema.gov.tt/ http://www.tidco.co.tt/ The Environmental Management Authority The Environmental Protection Agency Institute of Marine Affairs The International Maritime Organization The National Emergency Management Agency Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO) http://www.trainmar-caribbean.org/ TRAINMAR http://www.ttsailing.org/ http://www.ysatt.org/ The Trinidad and Tobago Sailing Association YSATT APPENDIX I – TOBAGO SURVEY Ministry of Trade and Industry Economic Commission for Latin America and the Caribbean Tobago Yachting Acknowledgements We wish to thank officials at the Tobago House of Assembly, the private sector and NGO’s and the yachting community, for the time spent in providing information and generally in facilitating this study. Their help was invaluable to the understanding of issues and solutions. The report was prepared by La Shaun Prescott (Ministry of Trade and Industry), Colin Barcant (Consultant) and Erik Blommestein (Economic Commission for Latin America and the Caribbean). Photo credits: Trini com; Table of Contents Executive Summary ......................................................................................................................................................... i Chapter 1 Introduction and Objectives......................................................................................................................... 1 Chapter 2 Tobago Background...................................................................................................................................... 3 2.1 Social ............................................................................................................................................................ 3 2.2 Tourism........................................................................................................................................................ 3 2.3 Environment and Physical ........................................................................................................................ 4 2.4 Bays and anchorages.................................................................................................................................. 7 Chapter 3 Description of marine tourism.................................................................................................................... 9 3.1 Definitions ................................................................................................................................................... 9 3.2 Yachting within the Tobago context ....................................................................................................... 9 3.3 Visiting yachts........................................................................................................................................... 10 3.4 Seasonality................................................................................................................................................. 12 3.5 Push and pull factors ................................................................................................................................ 12 3.6 Events ......................................................................................................................................................... 13 3.7 Other forms of yachting .......................................................................................................................... 16 Chapter 4 Tobago yachting in the context of sustainable development............................................................... 19 4.1 Government institutions with interest in yachting.............................................................................. 19 4.2 Private sector entities............................................................................................................................... 21 4.3 Infrastructure ............................................................................................................................................. 21 Chapter 5 Economic Issues.......................................................................................................................................... 25 Chapter 6 Social Issues ................................................................................................................................................. 27 6.1 Employment .............................................................................................................................................. 27 6.2 Training and Human Resource Development...................................................................................... 27 6.3 Communities depending on yachting.................................................................................................... 27 Chapter 7 Environmental Issues.................................................................................................................................. 29 Chapter 8 Recommendations....................................................................................................................................... 35 Bibliography................................................................................................................................................................... 36 Websites:......................................................................................................................................................................... 37 Tables, Figures and Charts Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 3.1 Table 3.2 Table 3.4 Table 3.5 Table 5.1 Table 7.1 Figure 3.1 Chart 3.1 Tourist and cruise ship arrivals – Tobago Prevalent wind directions – Tobago Tobago Rainfall Tropical storms and hurricanes passing within 60nm from Tobago Yacht arrivals, Tobago, by yea and month of arrival Yacht arrivals by port of entry and previous port Daily expenditures per boat, 2001 Participation Tobago Game Fishing Tournament Estimated Yachting Expenditures, Tobago 2003 Waste Handling Policy Nationality of skippers, 2001 Organic links between components of marine based tourism and hotel and agricultural sectors i Executive Summary Yachting in Tobago has not developed in any formal manner and much of its growth happened after the emergence of Trinidad as a regional yachting service centre. The Tobagonian experience thus far has been one of minimal engagement with the sector. In this environment misconceptions abound and there is only a vague awareness of opportunities to turn the yachting experience into a positive one for Tobago. Nonetheless it is estimated that expenditures of the yachting sector amount to TT$ 5.8 million, which is possibly more than expenditures by cruise ship visitors. Development of Tobago’s tourism product will require putting to fullest use the benefits to be derived from sustainable use of its natural resources: from its people, its land and as well from its marine resources. Tobago has a lot more sea than it has land. Development of the marine tourism sector cannot be igno red. Marina type facilities are the conduits for economic development of all boating related tourism; and Tobago will have to address the infrastructural needs of this sector in order to derive its potential benefits for Tobagonians. Overcoming negative perceptions of the yachting sector will be achieved by overcoming indifference to the basic requirements for it to operate within; be it in the provision of proper landing docks or convenient clearance requirements. Toting fuel and water by hand does not attract a better paying market. The introduction of anchorage management to limit impacts, be it through moorings or demarcation buoys, will be a positive sustainable step once it is done in tandem with the creation of a yachting facility on the island to ge nerate suitable economic activity. An analysis of arrival figures for Tobago indicates that except for the annual events, on average there are less than 50 yachts in Tobago’s waters on a continuous basis. Total combined capacity of the fifteen different anchorages being used throughout Tobago suggests that not much more than 100 yachts could remain comfortably at anchor in Tobago’s waters at any point in time. This is a relatively small density given the widespread distribution of these anchorages and also in comparison to other yacht destinations in the Caribbean. It is therefore expected that any appreciable increase to this number which would contribute to the growth of yachting into a positive economic activity for Tobago will need to occur through the creation of purpose built marinas for the clustering of yacht based activity. Tobago is charting its own course for its tourism product. This will require conscious choices and well thought out programs for development of the various tourism niches available to it. Yachting can become a plus for Tobago by development of the tourism aspect of yachting, distinct and apart from the Trinidad product, yet benefiting from its proximity to it. The first step will be the commitment to learn more about it. ii Recommendations 1) Establish a policy for the creation of marina type facilities in Tobago as a strategy to help address growth and management of the sector; particularly towards mitigation of wider environmental stress through containment & concentration of sector activity. Establish as a priority at least one such facility for the south west part of Tobago to be designated as a port of entry. 2) Commission a site selection survey for possible marina sites utilising coastal site analysis methodologies, community inputs, yacht industry knowledge and land use evaluation. Provide recommendations based on a cost/ benefit evaluation. 3) Develop a zoning policy for anchorage which can help address user conflicts and environmental issues in the various bays. Measures to be examined could range from as simple as establishing minimum distances from shorelines to implementation and management of moorings. 4) Conduct an audit of the existing information systems and streamline information requirements for management informatio n and control of the sector. Simplify procedures and paperwork wherever possible. 5) Encourage representation of the local charter boat sector at an official level to provide a balancing voice for the yacht sector within tourism forums. 6) Consider specific incentives to target private sector investment for appropriate development of the sector. 7) Encourage a revival of the bumboat activities by promoting sponsorship of an annual sailing event such as a sailing festival from village to village as takes place every year in Martinique. 8) Provide an opportunity for THA’s decision makers to visit various yachting venues and events in the Caribbean which will expose opportunities and models for appropriate development of the yacht sector within Tobago. 1 Chapter 1: Introduction and Objectives The Government of Trinidad and Tobago (GOTT) established a Standing Committee on Business Development in May 2003. The objective of that committee was to develop a suitable climate for investment and to identify priority industry areas in the non-energy sector for development. One of the industries targeted for development was the yachting industry and a separate Yachting Industry Team (YIT) was established in February 2004. In the last few years, studies on yachting have been carried out by the Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO), the Institute of Marine Affairs (IMA) and most recently by the Economic Commission for Latin America and the Caribbean (ECLAC). The results of the latter study were presented in Tobago at the Tobago Plantations, which was organized by the Tobago House of Assembly (THA) in 2003. The ECLAC study was discussed in detail at a national consultation at Pier 1 in Chaguaramas that was organized by the Ministry of Tourism in October 2003. Most of the studies did concentrate on the Chaguaramas area and, for a number of reasons - lack of data amongst the more significant ones, little attention was paid to Tobago. It is noted however, that the Planning Department of the THA undertook a study in 1995 that was entitled “A Critical Review of Yachting Activity in Tobago.” The THA Planning Department updated this information when a new review was initiated in 2004, producing a document entitled “Review of Yachting Industry in Tobago ” (THA 2004). Prior to that, the Institute of Marine Affairs (IMA) carried out a case study on the Establishment of a Marina/ Small Craft Harbour in Southwest Tobago (IMA, 1991). Also in 1993 Cabinet approved a number of measures to facilitate yachting some of which pertained to Tobago. The government has stated its commitment to help strengthen the yachting sector in Trinidad and Tobago. There is at present however, no policy document which distinguishes between the needs of the sector between those of Tobago from that of Trinidad. The Tobago study diverges from the earlier yachting Trinidad focused studies as the product in Tobago is very much different from that of the semi- industrialized Trinidad yachting sector. Therefore it will instead focus on managing the impacts of existing yachting on the island and on options for a managed low impact development as a third component of the islands’ tourism product. The study will also built on the marine tradition of Tobago itself as traditionally the island has held, and participated in regional events such as the Carriacou Regatta, races of the traditional, locally built work boats or bum boats as they are called in Tobago. This study therefore focuses on all aspects of yachting activity in Tobago, drawing primarily from the inputs of stakeholders taken during the Tobago survey as well as from the recent THA review on yachting by its Planning Department. Recommendations in response to those various inputs are made both in terms of policy formation and in direct response to proposals for specific areas of implementation. 2 Objectives This document has been prepared as a position paper for the purpose of informing the decision making process related to policy issues for development and management of the Yacht Sector in Tobago. The main objective of the study is to provide information to assist the Tobago House of Assembly and the people of Tobago in their deliberations on the costs and benefits of managing the islands' yachting sector. 3 Chapter 2: Tobago Background 2.1 Social According to the 2000 census Tobago had a population of 54,000 people, almost equally divided among the sexes, and most of whom (about 70 percent) live in the Western part. Population growth from 1990 to 2000 stood at 11.28%. Estimates of the incidence of poverty vary and range from 17 to 26 percent. Unemployment appears to be less than in Trinidad at 6.9 % out of an estimated labour force of 23,200 (21,500 employed and 1,600 employed) people in 1999. At a social level, Tobago is large ly community based. Because of the main mountain ridge which dominates the middle and north part of Tobago, together with the bay type coastline in these parts, many of these communities are centered around coastal villages where fishing and agriculture ha ve been the traditional mainstays. The southwest part of Tobago, with its more open topography has lent itself to wider economic activity and mixed-use settlement. Throughout Tobago, the Tobagonian relationship to the seashore is close spiritually, physically and socially. 2.2 Tourism Unlike Trinidad, Tobago is little industrialized and its two main economic activities are tourism and agriculture/fisheries. Within the island there are two components of tourism. One group comprises the inbound tourists, arriving either at the Crown Point airport in Tobago or at Piarco in Trinidad, the other group consists of Trinidad residents who spend more than 24 hours in Tobago. In addition there are visits by cruise ship visitors with cruise ships using the cruise ship pier/dock at Scarborough or by the smaller Windjammer Cruises that anchor off Charlotteville. The tourism product envisioned for Tobago relies heavily on the natural environment and culture of its people. This points to smaller scale tourism activity as being a key, though not exclusive, component of its future growth. It would be within this overall framework that yachting would be developed. The available data on visitor arrivals only include overseas arrivals at Crown Point airport. Therefore Trinidad residents and those overseas arrivals arriving via Piarco Airport are not included. This is a major omission that severely underestimates tourist arrivals and expenditures in Tobago. The table 2.1 shows visitor and cruise ship arrivals in Tobago. Table 2.1 - Tourist and cruise ship arrivals - Tobago Year Tourist Arrivals Cruise ship visitors 2000 49194 21860 2001 30952 10776 2002 39355 10513 2003 56143 15913 2003 Jan - June 27316 2004 Jan - June 31895 Source: CSO 4 Tourist arrivals began to decline in 2001 as a consequence of a poor economic performance in the USA and the EU. The drop in demand following the 9/11 event strengthened this decline and while a recovery began in 2002, it was not until February 2003 that arrivals in Tobago surpassed the arrivals of the same month in 2000. Since then tourist arrivals have shown strong growth with arrivals of the first six months in 2004 stood 16.7 percent of the corresponding period in 20031 . While the above data refer to Crown Point overseas arrivals only, it seems reasonable that a similar pattern can be discerned for those arriving through Piarco airport. However no such inference can be made for Trinidad residents. The fisheries sector comprises of 255 fishing vessels, mostly pirogues of less than 9m LOA and powered by gasoline engines of 45 to 75 hp although heavier engines from 125 to 150 hp are also found. There are about 20 landing sites of which 12 have some level of amenities. The major exports are flying fish fillets (this fishery has developed over the last 10 to 15 years), dolphin fish, king fish and tuna. The industry supports 4 fish processing plants. (FAO, based on national data). 2.3 Environment and Physical Tobago with 300 square kilometers is the smaller of the twin island state of Trinidad and Tobago. Socially and culturally linked to the Caribbean, the islands are bio-geographically linked to South America, as both islands were former parts of the South American landmass. Tobago has been separated longer, since the early Pleistocene. The island of Tobago has a central mountain mass that reaches an elevation of 550 m above sea level2 . Tobago is subdivided into two physiographic regions. The main ridge, comprised of metamorphic and volcanic rocks, occupies the northern third of the island, with the highest elevation of 550 m. The coastal plan is flat and coralline and occupies the southern two-thirds of the island (FAO, Aquastat database) 2.3.1 Climate Tobago has a tropical climate with an annual temperature range of 26 to 30o C. Temperatures in Tobago are somewhat lower than in Trinidad with a marked decline of about 4o C in the Main Ridge area. (FAO, Aquastat database) Tobago is influenced by the trade winds with the prevalent directions form north north east to south south east as is shown in Table 2.2 1 2 The impact of hurricane Ivan on Tobago may have slowed this growth somewhat. FAO Forestry Trinidad and Tobago country profile. 5 Table 2.2 Prevalent wind directions Tobago Source: BHP Billiton The mean annual rainfall is 1 900 mm for Tobago. According to a study conducted in 1998, available surface water resources were estimated at 136 million m3 /year for Tobago. (FAO Aquastat database). A distinct rainy season runs from May/June to November/ December as is illustrated in Table 2.3 below. Table 2.3 Tobago Rainfall Source: BHP Billiton 6 While Tobago is generally considered to be below the hurricane belt the probability of a tropical storm or hurricane is not zero as the passage of hurricane Flora (1963) and recently Ivan has shown. Table 2.4 below shows tropical storms and hurricanes passing within 60 nautical miles from Tobago (11.5 N and 60.83 W) since 1856. Nonetheless the island is considered south of the named windstorm exclusion area as designated by many yachting insurance companies. Table 2.4 Tropical storms and hurricanes passing within 60 nm from Tobago Name Date Classification NN 13-8-1856 Hurricane 1 NN 22-9-1877 Hurricane 1 NN 2-9-1878 Hurricane 1 NN 6-10-1892 Hurricane 1 NN 27-11-1896 Tropical storm NN 3-8-1928 Tropical storm NN 17-8-1933 Tropical storm NN 10-8-1938 Tropical storm Anna 20-7-1961 Tropical storm Flora 30-9-1963 Hurricane 3 Alma 14-8-1974 Tropical storm Cora 11-8-1978 Tropical storm Joan 14-10-1988 Tropical storm Arthur 25-7-1990 Tropical storm Bret 7-8-1993 Tropical storm Joyce 1-10-2000 Tropical storm Earl 2004 Tropical storm Ivan 7-9-2004 Hurricane 3 Source: Storm Carib 2.3.2 Marine environment The marine environment forms a major part of Tobago’s economic resources. This wider economic zone has historically provided fishery resources for the island and more recently interest in the hydrocarbon energy sector has arisen. The nearshore and coastal zones characterized by blue seas, beaches, reefs and wetlands provide a natural environment for recreational and tourism activity. According to the IMA State of the Marine Environment (IMA, 1999) waves are from the east with a shift to the northeast during December and January. Waves are generally higher during the winter season. The marine waters of Trinidad and Tobago are influenced by the Orinoco River but Tobago less so than Trinidad. The coral reef formation in Northeast Tobago are more alike to those of the wider Caribbean, while in Buccoo reef the formations are influenced by salinity reduction, reduction in light and sedimentation from the Orinoco and are consequently less rich in species diversity (Kenny, 1997). However, Reefs at Risk, considers all reefs under high or very high risk (Burke and Maidens, 2004), with coastal developments, land based sources of 7 pollution and artisinal fishing pressure - as opposed to marine based sources of pollution - as the major threats. Tobago has two fringe areas of mangroves, at Kilgwyn (12 ha.) and Bon Accord (10 ha) but there are smaller wetlands at the mouth of the Goldsborough and Hillsborough rivers and in Lambeau/Petit Trou, Louis D’Or, Minister Bay and Studley Park ((Kenny, IMA, BHP Billiton) The BHP Billiton study recognizes that over the years land use changes have caused losses in the area of wetlands. Of the wetlands, Bon Accord is particularly important since the area also serves as a hurricane shelter. 2.4 2.4.1 Bays and anchorages Scarborough Scarborough is the main port of the island. The facility between the breakwater and the custom offices has been built to accommodate fishing vessels, yachts and the coast guard. For sailing yachts the location of the port as a port of entry is somewhat less than suitable because of the ports windward location in relation to yachts entering the island on a leeward approach from the west (that is yachts arriving from Trinidad). Sailing from Crown Point to Scarborough, against current and wind can easily take three hours for a nine nautical mile distance. Also Scarborough is expanding its cruise ship jetty to accommodate larger cruise ships. The implications of this expansion, particularly in view of the International Ship and Port Facility Security regulations have not been evaluated but are likely to have implications on maritime traffic between the seawall and the customs building when cruise ships are in port. Therefore Scarborough, because of its location and limited availability for safe anchorage, is not a suitable port of entry for yachts. 2.4.2 Charlotteville The other official port of entry is Charlotteville. Unlike Scarborough it is also a popular anchorage. 2.4.3 Other bays and anchorages Tobago’s coastline, while widely distributed with attractive bays, is nonetheless restricted in terms of sheltered waters. Most of the accepted anchorages are located along the leeward coastline, which is generally sheltered from the prevailing easterly trade winds. Nevertheless all of Tobago’s bays are susceptible to changing weather conditions, with the popular north side anchorages being exposed to swell activity during the winter months (November to April), while the summer months though generally calm, are susceptible to tropical storm & hurricane swell activity. Thus there are no true year round sheltered harbours for small craft in Tobago. The only sheltered body of water in Tobago is in within the Bon Accord Lagoon. This by virtue of lying within the Buccoo Reef system; which because of its environmental sensitivity is only supposed to be used by small craft as a ‘hurricane hole’ in storm conditions. The only yacht type vessels 8 utilizing the lagoon presently are the day charter operators for loading supplies and paying guests. Source: 9 Chapter 3: Description of marine tourism 3.1 Definitions "Marine-based tourism is defined as those recreational activities that primarily use the marine resource.” “A yacht is a seaworthy vessel of not less than 5 metres in length propelled by motor or sail, categorized as private or charter vessels and used primarily for pleasure.” “A cruising or live aboard yacht is used typically by its owner for various periods of time.” “A bareboat yacht is a yacht rented without a paid full- time crew for a fixed period of time.” “A crewed charter boat is a yacht rented for a fixed period of time whereby the crew is responsible for all aspects of the sailing experience.” “A super or mega yacht is a yacht over 30 metres.” At times the boundaries between the larger yachts and small cruise ships, particularly those special purpose vessels such as dive charter boats or the sailing of “traditional” vessels, may be blurred. An upper limit therefore for a yacht would be a vessel that does not fall under the IMO definitions under SOLAS or ISPS. Vessels that comply with those definitions would be considered cruise ships.” “A marina is a facility providing berthing facilities, including moorings, for a minimum of 10 yachts and offers bathroom, shower and change facilities and receptacles for the disposal of waste.” “A boatyard facility provides a lifting capability of a minimum of 10 tonnes and land storage and services to marine craft.” 3.2 Yachting within the Tobago context The yachting sector forms part of Tobago’s marine-based tourism. It is worthwhile to identify what the yachting sector encompasses in the Tobago context so that the analysis and recommendations behind this study are clearly understood by all stakeholders. Marine-based tourism is that segment of tourism wherein the primary activity or experience is provided in and by the marine environment. In some cases this activity may be the determining reason for a visitor coming to Tobago (Destination arrivals, such as specific diving or sport fishing visits), while in others it provides a component to the overall tourism product. The yachting sector, for the purposes of this study, encompasses all activities utilizing vessels, which carry some form of accommodation facilities aboard, whether they are operated for day tours or for residing onboard. These vessels are typically larger and heavy enough to 10 prevent being hauled out manually, with inboard engines and other specialized gear installed aboard. This categorization of the yacht sector is useful since all the vessels associated with these cross section of activities, due to their size and type, have common infrastructure requirements for their safe and proper operation; and it is in the future development of common infrastructure to support these activities, that controlled growth and management can best be exercised. The yachting sector in Tobago therefore includes the following identifiable segments: Foreign and local private cruising yachts, both motor & sail, using Tobago’s waters; Locally operated charter boats, motor & sail, used mainly for sportfishing & day tripping excursions along the coastline; Event related tourism utilizing such types of vessels: Fishing tournaments & Sailing regattas. The matrix below shows the key features of marine based tourism. Marine Based Tourism Activities in Tobago THE YACHT SECTOR Offshore Zone & Embayments Fish & Sea Wind & Sea Anchorages Anchoring / Mooring Sail & Motor Yachts (Ditto) X Beachfront & Nearshore Zone Natural Resource Activity/Experience Beach & shallow waters Seabathing Wind & Waves Reefs & Dive Sites Reefs Ledges & Wrecks Diving Skidoing Surfing Snorkeling Beach sailing Windsurfing Dinghy Sailing Kiteboarding PWC Beachcats Bumboats Yachting Hobiecat Surfboard Sailboard Kiteboard (Ditto) X X Glass Bottom Boats (Ditto) Game Fishing Day Chartering Tournaments Regattas Sportfisher Boats Flybridge boats X Sail & Power Racing Yachts Speedboats Multihull Vehicle The person Dive Boats Example/Type of Craft Destination Tourism Pirogue X 3.3 Visiting yachts Table 3.1 below shows the arrival data for yachts in Tobago. It must be noted that arrivals by Trinidad and Tobago residents and foreign yachts arriving from Trinidad are excluded; hence the actual number of yachts arriving in Tobago is higher than the data indicate. 11 Altogether the existing data may seriously underestimate the actual yacht arrivals in the island. This shortcoming is partly addressed by data from the Immigration Office in Scarborough, which are shown in table 2.2 below. Note however that there are differences in yacht arrivals from foreign ports as compared with those compiled by the Custom and Excise Division. From Table 3.2 below we note that there is little difference in the number of foreign port arrivals between Scarborough and Charlotteville. Arrivals in Tobago fluctuate more than comparable arrivals in Trinidad. While Trinidad observed steady growth until November 2000 and steady decline thereafter, arrivals in Tobago show a more erratic pattern. It is noted that Tobago observed its highest number of arrivals in 2001, a year that was followed by an eighteen percent drop in arrivals for 2002. Unlike Trinidad the following year showed positive growth in 2003, much akin to developments in the rest of the Eastern Caribbean. However, in contrast to the upsurge in tourism in general and yachting in particular, 2004 arrivals for the period from January to September are more than thirty percent lower than for the corresponding period in 2003. Table 3.1 Yacht arrivals Tobago by year and month of arrival 1997 January February March April May June July August September October November December Total 70 55 58 45 65 56 47 43 39 27 37 67 609 1998 72 87 71 35 96 44 61 50 36 26 39 85 702 1999 91 68 56 54 85 50 38 65 38 37 64 82 728 2000 52 58 85 35 99 34 62 60 34 42 37 87 685 2001 82 73 73 42 94 34 54 52 28 54 60 91 737 2002 52 70 70 50 107 30 43 59 20 19 21 66 607 2003 82 81 35 45 60 28 58 49 26 35 35 98 632 2004 67 46 55 32 31 18 36 29 9 Source: YSATT, based on Customs and Excise data. From the table below it can be distilled that about 29 % of the Tobago foreign yacht arrivals came from Trinidad from September 2003 to August 2004. 12 Table 3.2 Yacht arrivals by port of entry and previous port Sep 10 9 14 0 2003 Oct Nov 16 17 8 15 0 17 22 0 Dec 37 13 58 46 Jan 35 16 38 0 Feb 38 11 24 0 Mar 29 13 21 0 2004 Apr May 18 41 2 16 0 10 19 0 Jun 7 15 11 0 Jul 14 9 23 0 Aug 11 14 18 44 Totals 273 137 279 90 779 Charlotteville, Scarborough From Sep – Dec 03:13 Jan – Sep 04: Scarborough, From Foreign Ports Scarborough, From Trinidad Charlotteville, From Foreign Ports Charlotteville, From Trinidad (Chag) SUMMARY % ARRIVALS FROM FOREIGN PORTS: 71% % ARRIVALS FROM TRINIDAD PORTS: 29% Source: Immigration office, Scarborough 3.4 Seasonality The period December to May appears to be the high season in Tobago with around 60 percent of the yachts arriving during that period. This pattern is more alike those of the Eastern Caribbean and somewhat contrary to the pattern observed for Trinidad. On the other hand seasonality in Tobago is not as pronounced as in some of the other Easter Caribbean countries like, for example Antigua. A spike in arrivals consistently occurs in May of every year in line with the Tobago Sail Week. 3.5 Pull • • • • • • Push • • • • • Relatively undiscovered Mostly favorable reports from visiting yachtsmen (e.g. article in Compass, other webbased commentaries Low crime rate Blue water Lower cost of living than most Eastern Caribbean islands South of the hurricane belt Push and pull factors Lack of basic infrastructure Lack of services Negative perceptions by Tobagonians Cumbersome immigration procedures Scarborough not suitable as a port of entry 13 3.6 Events Another yachting sector activity, which is part of event tourism, manifests itself through two major internationally established events and a number of smaller activities. The two major international events are the Tobago Game Fishing tournament that started in 1981 and the Angostura Sail Week that began in 1980. Both events now form part of the established tourism calendar and have been widely supported for the benefits accruing to the island. 3.6.1 Angostura Tobago Sail Week Held in Tobago in May the Angostura regatta follows the Antiguan Sailing Week. In addition to racing and cruising categories the regatta also has specific events for live aboard’s and charter boats. In 2002, the event drew 76 participating y achts (14 racing, 13 cruising nonspinnaker, 30 charter class and 8 in the comfort cruising class) and around 40 to 50 spectator boats. As shown in table 3.3 participation has dropped particularly in the charter class since 2002. This is perhaps as a result of loosing the connection with Yachting World and a drop of interest in chartering yachts from the Moorings. Table 3.3 Class and number of boats participating Angostura Sailing Week Class 2000 2001 2002 2003 Racing 18 13 14 12 Cruising and racing 17 24 24 21 cruising Charter 17 28 30 19 Comfort cruising 6 8 8 5 Total Source: Regatta Promoters Ltd 58 73 76 57 2004 10 19 10 3 41 The charter class is drawn from bareboat yachts from other locations such as St. Lucia, St. Vincent and the Grenadines, and Grenada or even as far as Martinique 3 . In fact charter boat companies such as the Moorings do advertise special packages to participate in the regatta. With a mainly European oriented marketing strategy the impact can be seen in the distribution of skippers by nationality. 3 For example, in 2002 the Moorings was offering one week Tobago/Tobago charters starting at £ 860 per person (6 people per boat) or two week charters from Grenada or Martinique at £ 912 and £ 1171 per person respectively. These charges did include flights, entry fees and support, but not race insurance, racing fees. 14 Figure 3.1 Nationality of skippers, 2001 T&T Caribbean North America Europe South Africa Source: Regatta Promoters Ltd. A 2001 expenditure survey by TIDCO and Regatta Promoters estimated expenditures at US$ 893 per boat per day. With an estimated stay of 5 days, this implies expenditure per boat of US$ 4,464 for the event. With 73 boats participating that year the estimated expenditures amount to US$ 326,000 or slightly over TT$ 2 million. It is interesting to note the distribution of this expenditure, which is shown in table 3.4 below. Table 3.4 Daily expenditures per boat, 2001 US $ Expenditure item Expenditure Accommodation 300 Food 375 Entertainment 150 Transport 45 Fees and taxes 16 Yacht services 7 Total Note: 8 crew per boat Source: Regatta Promoters Ltd 893 15 The above estimate points to an average expenditure per person per day of about US$110, which does not seem to be outrageous. This, however may include charter fees which would not benefit Tobago As can been seen from the table most expenditures are not yachting related and, apart from possible charter fees, would contribute directly to the Tobago economy. There is little doubt that expenditures will have dropped since 2001 mostly because of the drop in charter participants. The last two surveys conducted under the aegis of TIDCO were somewhat less than successful. This is of concern because of the drop in participation rates and there remains little insight in the reasons why participation has dropped. Consideration needs to be given to request CSO to conduct such surveys as they have the manpower and the experience to conduct surveys efficiently. 3.6.2 Great Race The Great Race, a race from Trinidad to Tobago, is being held the weekend before Independence Day4 . Typically the race has around 20 boats that partake in the event. Apart from the 40 to 50 participants the event draws family members and friends who typically stay for the weekend. Participation is mostly local boats with ad hoc representation from US or Caribbean based powerboats. The lack of foreign participation limits expansion of the race. Caribbean participation is limited because most of the islands do not have the type of racing boats, while participation by US boats is limited because of the great race is held parallel to the US racing schedule. Efforts have been made to have the Great Race recognized as a US recognized racing event or possible shifting of the date as not to conflict with the US racing schedule. At an estimated expenditure of US$ 130 per day per group the total expenditures amount to around US$ 15,600 to US$ 19,500 being spent in Tobago, for accommodation, food, car rental and other local non- fuel expenses. The major constraint is the lack of a fuel dock. Around two thirds of the boats use ordinary gasoline while the others use C-12 or C-14 as fuel, and the fuel is being barged in and boats are fuelled in the lagoon. Altogether it is estimated that some 4,500 liters of fuel is being sold. 3.6.3 Fishing tournaments The Tobago Game Fishing tournament was established in 1981 and for most of the 1980’s and 1990’s participation numbered between 37 and 54 boats. Since 2000 this has dropped to a low of 24 boats in 2001 but the tournament seems to have undergone a slight recovery since that date. Since the middle of the nineties a tag and release rule was established and now most marlin is now being tagged. 4 The race used to be held on the Discovery Day weekend (and coincided with the Great Fete. Since the pronouncement of Emancipation Day the race is held according to above schedule. 16 Table 3.5 Participation Tobago Game Fishing Tournament 2000 2001 No. of boats 36 24 No of anglers 181 117 Fished landed (lbs) 3347 1221 No marlin tagged 21 15 Source: Trinidad and Tobago Game Fishing Association 2002 26 135 5143 33 2003 32 167 3603 22 2004 33 171 2468 26 In 2004 there were 33 boats. Fuel sales alone amounted to 20,000 liters of diesel and 3,000 liters of gasoline. Fuel sales amounted to TT$ 55,000 diesel and TT$ 8,520 for gasoline. Fuelling took place in Bon Accord Lagoon, and one day in Scarborough. 3.6.4 Other From 24 June to 3 July 2005 Tobago will host the North American Optimist Dinghy Championship. This event with an expected participation of about 200 sailors and boats will attract participants from across North, Central and South America. The championship will offer Tobago an excellent opportunity to promote the island as a sailing destination. 3.7 3.7.1 Other forms of yachting Day charters Day charter operators offering coastal excursions which fall into the yacht classification number four at present in Tobago; based at Pigeon Point, Bon Accord Lagoon and Mt. Irvine. Three of these vessels being operated are of the catamaran ‘twin hull’ type (2 sail and 1 motor) designed to be more stable and carry a larger group of passengers; in one case up to forty, while the fourth is a speed boat. These operators offer full day all- inclusive excursions up the north side coast or exclusive day trips or the shorter evening trip for family or corporate groups. Rates for the day trip are around US$ 75 per adult. 3.7.2 Sportfishing The waters around Tobago have year round billfish stocks. Tag and release is proving to be a high- income component of marine based tourism and charter guests stay in hotels thereby strengthening the link with the hotel sector. Although billfish are available on a year round basis the optimum season runs from November to April in line with the flying fish season. To some extent, sportfishing in Tobago has acquired a destination attraction, as is certainly the case for diving tourism. One established operator attributes at least 50 % of his clientele to pre-bookings sold through specialist tour operators and referrals. There are about six game fishing operators in Tobago operating up to ten boats of the cabin/flying bridge type. 17 Additionally there are numerous smaller boats operating throughout the island, which offer fishing as a tourism activity. Also some boats based in Trinidad do offer charters to Tobago. Presently, Tobagonian game fishing operators are based mainly in Bon Accord Lagoon, Scarborough, Mt. Irvine and Speyside. Smaller pirogue type operators are more widespread through the island. Game fishing is a highly developed tourism activity in many parts of the Caribbean and charter fees range from US$ 600 to US$ 850 a day, which does not include accommodation. 3.7.3 Chartering While Tobago is not quite on the crewed or bare boat charter agenda, there are occasions that Tobago is either used as a temporary destination (for example during the Angostura racing week) or as a starting destination for crewed charter boats5 . However it is not known how often such charters take place or what the impacts are on the island. In the medium term there may be scope for a limited Tobago based charter operation, possible for one week combined with a one-week hotel vacation in either Tobago or Trinidad. Tobago would derive similar costs and benefits of charter boat operations based in Tobago as from the hotel tourism sector since the accommodation component, albeit mobile is based on the island. Also Wind Dancer, a crewed dive charter is said to be based in Tobago for the 2004 summer season6 and possibly longer. 3.7.4 Organic linkages between the different marine based tourism components and fisheries Apart from yachting or leisure marine, the marine sector also includes fisheries and other small craft. Many of the required services will equally not only bene fit yachting or leisure marine but the whole marine sector. For example, the availability of an environmentally sound fuel dock would benefit everybody and likely reduce hydrocarbon pollution. Similarly availability of small engine repair, refrigeration and small chandlery services would be required by all components. Chart 3.1 below shows some of the organic links between the various components of marine based tourism and the hotel and agricultural sector. 5 See for example http://www.caribbean-sun.com/Yacht/tobago_yacht_cruise.htm http://www.usdivetravel.com/V-TOBAGO-WindDancer.htm 6 18 Chart 3.1 Tourism Agriculture and Fisheries Hotels and Restaurants client Marine-based Tourism Cruise ships increased employment improved occupancy rates increased earnings Marine-based attractions - glass bottom - diving - day charters - sport fishing - wind surfing Yachting Events Similar to hotel tourism accept accommodation - bum boats - angostura - sport fishing - Great race Limited expenditure links with few marinebased attractions Reinforce hotel product Many participants will use hotels Fisheries Shared need for common services e.g. Fuel facilities e.g. passenger transfer e.g. Docks/piers unloading 19 Chapter 4: Tobago yachting in the context of sustainable development 4.1 Government institutions with interest in yachting Within Tobago, various stakeholders with explicit interest in the yacht sector exist. Amongst others in the public sector, these would include the THA, Customs and Immigration, the Department of Fisheries and Marine Resources and the Division of Works & Infrastructure. NGO’s are represented by Environment Tobago and the Buccoo Reef Trust. There is no private/business sector organization representing yacht sector interests in Tobago. It is fair to state that all public interest groups represented in Tobago are presently concerned with the control aspects of yachting in Tobago with little effort being paid to development issues for the sector. It is arguably the case that only when sufficient interest is created in the development of economic interests in the yacht sector (as defined earlier) within Tobago, that sufficie nt effort will be made towards resolution of the broader range of issues now holding interest. One specific issue identified for management of the Tobago yacht sector is the obtaining of proper information concerning the presence of yachts in Tobago; specifically the knowledge of how many and which yachts may be in Tobago’s waters at any point in time. An analysis of carrying capacity of the different anchorages being used throughout Tobago suggests that there are seldom more than 100 yachts in Tobago’s waters at any point in time. This is a relatively small number given the widespread distribution of these anchorages and also in comparison to other yacht destinations in the Caribbean. Any moves at introducing anchorage restrictions in some of these areas will reduce this number. It is therefore expected that any significant increase to this number, which could contribute to the growth of yachting into a positive economic activity in Tobago, will need to occur through the creation of purpose built marinas for the clustering of yacht based activity. 4.1.1 The Tobago House of Assembly The Tobago House of Assembly (THA) has, compared to other regions of Trinidad and Tobago, a large extent of self- governance and is the agency with primary responsibility for tourism, fisheries and natural resources. The Fisheries department is responsible for management of fisheries as well as the Buccoo Reef Marine Park. 4.1.2 Immigration and Customs Clearance procedures into and out of Tobago by foreign yachts are the same as for Trinidad; with the same forms being applicable. It is felt by some that inaccuracies may exist for data on yachts arriving into Tobago. Inaccuracy tends to arise in that yachts clearing from foreign Ports are governed by strictly enforceable Customs & Immigration laws, presumably receiving a high degree of compliance, whereas those entering Tobago from Trinidad waters are governed by regulations & practices which are not adhered to as strongly. There is evidence of differing interpretation amongst public officers on what actual procedures apply for the case of 20 entering from Trinidad; this effectively reduces compliance. Generally however, foreign yachts in their own self interest will follow the guidelines as they often will be clearing out from Tobago for a foreign port after coming up from Trinidad and would then want all the entry papers to be made available in Tobago. This can only happen once prior clearance is made in Trinidad so that original clearance papers are forwarded on. Surveys as well as written reports from yachtsmen visiting Tobago, ranks the experience of entering into Tobago as one of its real negatives, with paperwork and clearance requirements unparalleled to the rest of the Caribbean. Additionally, information for yachts entering Tobago and guidelines for yachting in general is not conveniently posted at the various ports and anchorages in Tobago. Such type of information becomes more regularly updated and available at facilities where yachts congregate and an active management interest exists. A yachtsman will put up with a certain amount of bureaucracy in order to attend to the needs of his vessel, which is often the main reason for going to Trinidad. This is much less the case once the reason for his visit is a tourism experience. Tobago is a tourism destination and streamlining of paperwork is a typical start up issue for any tourism product. Trinidad’s indifference to changing outmoded paperwork and coming in line with the rest of Caribbean practice is not in Tobago’s interests for suitable development of the sector. A better paying tourist (sic. yachtsman) will avoid undeveloped product destinations, which in turn winds up with the lower end of the paying market. Presently, there are two ports of entry for yachts in Tobago. Scarborough in the south east of the island and Charlotteville in the north. Scarborough, because of its location and limited availability for safe anchorage, is not a suitable port of entry for yachts. This is the case particularly because of its windward location in relation to yachts entering the island on a leeward approach from the west. Establishing port entry facilities in the south west of the island will provide a platform for growth and management of the industry. Apart from creating a more user-friendly approach into Tobago, it will go a long way towards obtaining compliance with entry procedures; it would also remove the need for Charlotteville as an entry point for yachts. All yachts would then proceed to one point of entry and departure, consolidating all management and information relating to yachts in Tobago. It is not a coincidence that throughout the Caribbean, all ports of entry for yachts are located on the leeward coastline; which is not the case for Scarborough. Additionally, once a yacht has cleared into these countries, it is not required to check into Customs or Immigration in order to move around the island’s waters. In the case of Grenada, upon entry a cruising permit is issued for a fee. This can be considered for Tobago. It is n onetheless recommended that all yachts including those coming from Trinidad, once they have cleared into Tobago, be free to move around Tobago’s waters until they are ready to depart. There are no practical advantages in having yachts check into different ports along the nation’s coastline unless the objective is to discourage them from coming in the first place. 21 In reflection of the above Cabinet decided i.e. in 1994 that: • • • • A new harmonized single form for use by the Customs, Immigration and the Harbour Master be adopted; That special regulations for the reporting of pleasure crafts be introduced under the Customs, Immigration and Harbour Acts (chapters 78:01, 18.01 and 50.06 respectively); That a private marina facility that exists at Plymouth on the leeward side of the island be used for the landing of pleasure craft; That Government assumes the responsibility to erect proper office facilities at the Plymouth landing facility for Customs and Immigration. To date these decisions have not as yet been implemented. 4.2 4.2.1 Private sector entities YSATT The Yacht Services Association of Trinidad and Tobago (YSATT) has its office in Chaguaramas, Trinidad. The organization was established to facilitate the development of the yachting industry in Chaguaramas and consequently YSATT focuses on issues relevant to that area. A similar organization does not exist in Tobago. This is similar to the situation that prevailed in the past in many of the Eastern Caribbean islands. In most of the islands a private sector association has now been established with advocacy, public awareness, liaison with government entities and promotion as major objectives. The formation of a private sector Tobago marine services association is highly recommended. In Tobago the focus of a private sector association would be different and be more focused on the promotion of environmentally sound development of recreational yachting. Also a private sector association in Tobago could have a wider marine based tourism basis and possibly inc lude the day charters, the glass bottom boats, sports fishing and dive boats plus the service establishments. Clearly the Tobago association and YSATT would have a range of issues, many dealing with the unitary state, in common. Such issues would include immigration and customs, crime, taxation and incentives, promotion. With respect to other issues such as the promotion of events, no anchoring zones, liaison with the THA would differ. 4.3 Infrastructure The yachting tourism sector in Tobago, except for the locally operated charter boat and event tourism activity, is not operating within a sustainable development framework from the Tobagonian standpoint. This is evidenced by the low level of services being provided to visiting foreign yachts, by individua ls or companies residing in Tobago. This situation, combined with 22 the environmental concerns related to reef damage and sewage pollution in community bathing areas, has called into question the benefits versus costs of visiting yachts to Tobago. Within the Tobago context this is understandable; since yacht activity cannot exist in a sustainable, far less planned framework unless infrastructure suitable for the development of the sector is created. At present, it simply does not exist in Tobago. Like most ‘sectors’, properly conceived and designed infrastructure is the backbone for a healthy existence, since it is there where standards are set, for both the providers and users of services. Facilities in Tobago for the servicing of small craft such as fishing boats thus far take the form of jetties, usually emanating from a beachfront. The only man made harbour for small craft is at Scarborough which has a breakwater with a concrete pier immediately behind. The pier, generally referred to as ‘the fish port’, houses the Coastguard station and also accommodates the tying up of local fishing boats, including some sport fishing types. The pier, like most other public jetties in Tobago which have been constructed mainly for fishing activity, has a very high freeboard (typically 7-8 ft above sea level) to cater for storm surge activity which could potentially be destructive to the structure. On the other hand, most local fishing boats, like yachts themselves, carry a low freeboard (2- 4 ft.) and as a result the jetties have been largely underutilized because they are not ‘user friendly’. They are not safe for tying up alongside and difficult to load onto. Actual usage has been different from what was originally intended. The privately built pier at Plymouth is similarly disutilised and stands in a complete state of abandonment. Facilities being built for small craft (fishing boats and yacht type vessels) must cater for the type of human activity that goes with it as well as for safe berthing of the boats themselves; all designed within the context of a dynamic marine environment which is site specific. Future facilities must take account of these issues. 23 There is no facility for direct fueling from a pump in Tobago. Current practice for moving fuel and other stores aboard yachts is by manually handling containers, sometimes with a small boat as a transport tender. Customers for day charter yacht operations are sometimes transferred to and from shore by these means. Suitable dockage for safe and convenient loading of stores and persons is a necessary prerequisite for proper development of the sector. The role that waterfront facilities play in the development and proper management of small craft operations is pivotal and cannot be understated. These facilities, where docks and marinas are located to provide berthing for all manner of small craft, are the conduits around which the entire marine recreational industry operates. Marina facilities serve as a platform for the following: 1. Port clearance, which when needed provides convenient shoreside access to vessels for boarding & inspection purposes; 2. Safe berthing of vessels from most weather conditions; 3. Fueling & watering of vessels in environmentally manageable conditions; 4. Convenient and workable access for routine vessel maintenance; 5. Safe and convenient embarking/disembarking of crew, guests & paying customers; 6. Centralised and convenient means for communication of information; be it for regulations, sensitization of issues or promotion of landside services offered by the community. 24 Upon this functional infrastructure, are built the opportunities to maximize the benefits to the local community as well as promote proper management of the sector. The following types of benefits arise: − Clustering of vessels creates a sufficient concentration of needs to create new service providers, which would otherwise not exist. An example: Marine mechanics appear in the marina, instead of relying on Trinidad as much. Vastly improved safety and security of the vessel encourages visiting owners to spend less time in undeveloped anchorages and spend more time ashore knowing their vessel is safely berthed. More landside services are consumed and conflicts in anchorages are reduced. Marinas also attract a more paying customer and there develops an upward shift in the economic profile of the visiting yachtsman. Opportunity to increase carrying capacity, improving economies of scale, while containing the environmental stress through a managed location. A forum for local persons to become exposed to maritime culture is created; ultimately providing opportunities for young persons to develop a new skill and livelihood. A village waterfront atmosphere with an international flavour provides a new experience for locals to enjoy. − − − − 25 Chapter 5: Economic Issues An evaluation of the economic impact is hampered by a lack of information on the actual number of visiting yachts, on the average length of stay and on average expenditures. YSATT in its ongoing expenditure survey estimated that 45% of the visiting yachts spent between US$ 100 and 300 per week on living expenses7 , 32 percent spends between 301 and 700 US $ per week and 16 percent spend over US$ 700 per week. If we make a conservative estimate (that is we use the US$ 700 as upper limit) we obtain an average expenditure of US$ 330 per yacht. Because the above only covers entertainment, tours, restaurants, living expenses and marina fees and Tobago is somewhat more expensive than Trinidad a crude approximation of yachting expenses would be US$ 330 per yacht a week. With an average complement of 2.1 persons per yacht the US$ 330 per week approximates a daily expenditure of about US$ 22 per person per day. Anecdotal evidence indicates that a yacht stays about 2 weeks in Tobago. Based on the above assumptions a first estimate for the year 2003 would be a total of US $ 417,120. However the above does not include local and foreign yachts arriving from Trinidad. Based on the immigration data from table 2.xyz it can be inferred that in 2003 30 percent of the yachts came from Trinidad. Therefore a correction of the earlier estimate to allow for foreign yacht arrivals from Trinidad would then be a total of US$ 542,100 per year. To this total we need to add the impact of the events, in particular the Angostura Sailing Week and the Tobago Game Fishing Tournament. Based on the 2001 survey it is estimated that the Angostura Sailing Week generated US$ 254,000 in expenditures in 2003. The Game Fishing Association estimates that each boat participating in the Game Fishing Tournament spends between US$500 and US$ 1000 on fuel and supplies. Because anglers stay in hotels it is estimated that the 167 anglers spend US$ 100 per person per day. Therefore the estimated expenditure of the Game Fishing Tournament would be US$ 116,000 to US$ 130,000. Other related events, such as the Great Race, Great Fete and Heritage Week or the Charlotteville Fishing Tournament also attract local and visiting yachts and generate yachting expenditures. Apart from the estimate for the Great Race no estimates are available. Table 5.1 below summarizes the yachting expenditures in 2003. Table 5.1 - Estimated Yachting Expenditures Tobago 2003 US $ 000's Item Expenditures Cruisers and live a boards 542 Angostura Sailing Week 254 Tobago Game Fishing Tournament 123 Great Race 20 Total 939 Source: ECLAC, based on mission data Total expenditures are estimated at US$ 739,000 or around 5.8 million TT dollars. 7 hence these expenses do not include repairs. 26 The above results remain tentative and are at best a first approximate of the order of magnitude. Compared with the rest of the region they are low which is not surprising in view of the limited investment and limited support yachting tourism has received in Tobago. But how does the above estimate compare to another niche in tourism namely that of cruise ships? In 2003 Tobago received 15,913 cruise ship visitors. Cruise ship visitor expenditures in Trinidad and Tobago are low and have been estimated by TIDCO at around US$ 41 per visitor in Trinidad. Applying this to Tobago would give us an estimate of not quite US $ 653,0008 , which is of a similar order of magnitude as the yachting expenditures if not smaller. The above, albeit tentative, observation is surprising since the yachting sector has not received the recognition, promotion and investment that the cruise ship sector has received. There are several possible explanations for this. Lack of visibility of yachting tourists leads to a lack of awareness by the public and private sector in Tobago. At any point in time the number of cruisers on the island is small and dispersed. Nonetheless, visitors on yachts stay in Tobago for a varying amount of time and usually for at least two weeks, anchoring in different parts of the island and visiting ashore. While ashore, they avail themselves of the various restaurants, supermarkets, internet cafes etc. Nature tours are usually popular and sightseeing by car rental or public transportation will be chosen according to the pocket. However because of their limited number the impact of the y achting expenditures is diluted and disappears in those of hotel tourists and the population at large. In addition the yachting sector does not have a dedicated and outspoken constituency like taxi drivers and others with the cruise ship industry. Yachting tourists at the market Source: Eggington 8 This estimate excludes crew and port expenses. 27 Chapter 6: Social Issues 6.1 Employment While there are individuals in various parts of the island who are known for providing services to visiting yachtsmen, usually outsourcing and local expediting being the main service, there are little or no enterprises in Tobago operating mainly for the purpose of servicing the yachting sector; and in particular visiting yachtsmen and their boats. Therefore direct employment is limited to the day charter and sport fishing boats. Indirect employment is more substantial but because of the diffused character of yachting tourist expenditures data are not available. 6.2 Training and Human Resource Development A recent report by the National Training Agency (National Training Agency, 2003) observed that, within the tourism and hospitality sector, there remains “a problem of a very laid back attitude and poor work ethics. The report continues; “There is also still not a clear distinction between service and servitude and so many persons shy away from working in the tourism and hospitality sector”. The same report indicated that customer service orientation, honesty and punctuality were the three highest ranking attitudes required by all employers. While that observation applies to all surveyed establishments, it may to point to potential conflicts. Despite the above, less than half of the interviewed establishments had a staff- training plan, while of those that half only had training whenever deemed necessary and less than half considered it as an ongoing process. The Tobago campus of the Trinidad and Tobago Hospitality and Tourism Institute primarily conducts training in tourism related subjects. Other tertiary and technical training is provided by YTEPP, NESC, UWI, COSTAATT and private institutions. 6.3 Communities depending on yachting Conflicts Because many of these bays being utilised for yachting activity are centered around coastal villages, the impact of their presence has been made upon the communities and in many cases have been of a negative nature. For some of these communities, the negatives have outweighed the positives. Almost all the issues cited concern yachts at anchor. They include conflict with local boats and seining activity, discharge of fecal waste and reef damage. 28 A summary table of the main features and issues connected to yachting is shown for the Bays being utilised in varying degrees for yachting type activity. TOBAGO BAYS & ANCHORAGES UTILISED BY YACHTS USER & ENVIRONMENTAL MATRIX Anchorages & Environmental Issues/Conflicting Usage No. Bays & Anchorages Space Issues Local Boats Seining Reefs Waste Fecal Solid Existing Jetty X X X X X X X X X X X X X X X X X X X X X Facilities & Carrying Capacity Estimated Max. Public No. Facilities Yachts X X X X X 4 12 6 15 2 6 8 9 5 20 2 4 4 97 of yachts reported 1. Scarborough (Port Entry-South) 2. Store Bay 3. Pigeon Point 4. Bon Accord Lagoon 5. Buccoo Bay 6. Mt. Irvine Bay 7. Stone Haven Bay/Grafton 8. Great Courland Bay/Plymouth 9. Castara Bay 10. Englishman’s Bay 11. Parlatuvier Bay 12. Charlotteville (Port Entry-North) 13. Anse Bateau/Blue Waters 14. Speyside 15. King’s Bay X X X X X X X X X X X X X X X X X X X X X X X X X X X X X 9 X X X X Total Carrying Capacity 29 Chapter 7: Environmental Issues Throughout Tobago, the question of yachts polluting the marine environment has been raised as a matter of concern. The main areas of concern have been: i) ii) Anchoring in environmentally sensitive areas, mainly reefs. Environmental degradation due to faecal discharge within the bathing areas and shorelines of the island. While the disposal of solid waste has also been cited, this generally is not an issue so long as reasonable access to solid waste disposal bins exists at designated landing facilities. Evidence of anchor damage to reefs from yachts exists, where the anchor chain becomes entangled as the tidal movement sweeps the anchor rode around the sea bed. This occurrence can be greatly reduced if proper knowledge of the reef layout is available. Efforts by Tobago’s NGO’s, notably Buccoo Reef Trust and Environment Tobago in conjunction with the Department of Fisheries & Marine Resources have introduced a Reef Demarcation Buoy system to address specifically this issue. These have been set up at Store Bay and Mt. Irvine with plans to extend all the way up to Charlotteville & Speyside. This initiative is to be commended. Sewage Liquid waste, particularly sewage, by yachts is a highly emotional issue in many countries and Tobago is no exception. Whether contamination by yachts is factual or not it is the perception that counts and needs to be addressed. A recent report by Environment Tobago states: "The problem of sewage pollution from other small coastal communities will however remain a critical issue with implications for human health, tourism and coastal fisheries. There is an urgent need for the development of approaches to reducing sewage pollution from small coastal communities where factors indicate that expensive, centralized sewage treatment systems may not be a feasible option9 ." Tobago is served by a number of privately-owned and government sewage treatment plants and by septic tanks and soak aways. Not all of the treatment plants are operating at satisfactory standards, nor are necessarily all the septic tanks and soak aways well maintained (Ecoengineering, 1998). Contamination of beaches by sewage is not a new issue in Tobago. Several IMA studies conducted in the 1980’s indicate fecal coliform pollution in some of the bays. For example a report by Norman (1984) indicates that several beaches suffered pollution levels exceeding the then international standards. 9 Kuempel and Kamau, (2000) 30 MARPOL In a number of written and oral presentations in Tobago, reference has been made to Annex IV for the Prevention of Pollution by Sewage from Ships of MARPOL 73/78 of the International Maritime Organization (IMO). However these regulations do not apply Source: IMO Trinidad and Tobago has ratified annex IV of MARPOL 73/78.. However, the enabling legislation, which is stricter than the regulations of annex IV and includes regulations for yachts, has not been enacted as yet. While the THA’s Planning Department has identified other land-based sources of marine pollution from sewerage and wastewater, the relative environmental impact of these sources in comparison to yachts at the various bays is unknown. Nevertheless, it cannot be denied that the visibility of yachts as single source polluters versus land based groundwater seepage, which goes largely unnoticed, brings the issue of health impacts to the fore in people’s mind. This was the common issue raised by persons from different sectors interviewed during the Tobago field survey. Proposals to address this issue have taken various forms, all with the goal of eliminating yacht based sewage entering Tobago’s nearshore waters. They include the following: − − − − − Mandating all yacht’s entering Tobago’s waters to have a holding tank; and disposing 8 km offshore as necessary. Introducing two pump out barges to service the north and south of the island. Introducing land based pump outs at designated public docks. Restricting anchorage (mooring) to certain designated areas where environmental impact would be minimized. The development of land based facilities/marinas, which can provide for the collection and disposal of all waste. It should be stated clearly that the issue of ‘eliminating’ waste discharge from live aboard yachts is a complex one. Informed decision- making must therefore be guided by scientific information wherever available together with industry knowledge so that realistic objectives can be best achieved. Some background to yachts and pump out facilities is necessary. Holding tanks for yachts to dispose of their liquid waste is still not in widespread usage. Only in the United States are holding tanks mandatory and there the legislation was supported by federal and state funded programs under the Clean Vessel Act that provided subsidies and promotional education. In the United States, most fueling docks in marinas serve as pump out stations and their availability is like gas stations along roadways; where convenience of access ensures high compliance. Pump out facilities in the Caribbean practically do not exist. So much so that many US built yachts traveling in international waters, including the Caribbean, convert their holding tanks to water storage because of the unavailability of pump out facilities. One facility in Trinidad has a fixed pump out installed, which because it is not located at a transient dock (like for fueling) is hardly utilized because of difficult berthing access. 31 Additionally, most holding tanks for yachts have a capacity for only several days normal usage before they become full. Even if a boat has a holding tank, the practicality of moving out to sea to discharge offshore every couple of days is not realistic. Portable pumpout barges have proven to be feasible in only a few of the larger boat harbours where there is a heavy concentration of boats to warrant the operational expense. Similarly, land based pumpout costs are usually offset by a profit center dock like fueling, where the convenience of an attendant and a ‘user friendly’ designed dock encourages coming alongside. Industry surveys of the international marina industry show that the most effective way of reducing waste discharge from yachts is by having well placed highly attractive restrooms (showers & toilets) and convenient pumpout facilities at dockside. These only occur at properly managed marina facilities. Shower & toilet facilities aboard a yacht are usually very cramped (closet type space) and the close convenience of spacious clean facilities ashore always helps to ensure high usage. Beyond this, some yachts will still choose to remain at anchor while others preferring a marina’s convenience will still be drawn to an anchorage from time to time for a short stay. So while proper facilities such as a marina will reduce the anchorage demand, where yachts are anchored the problem of waste discharge remains. In light of the foregoing, it is proposed that an anchorage zoning policy be developed instead of a ‘holding tank’ policy for controlling the effects from yacht discharge, since the latter option does not reflect realities of the infrastructural framework required or the context that yachts operate within the Caribbean. 32 To develop a zoning policy at anchorages will require evaluation of the local community’s inputs together with particular facts of the location. Such considerations for evaluation would include the following: Proximity of anchorage to bathing areas. This could determine a minimum distance from shore for anchorage 10 . Knowledge of bay current circulation. Though a dynamic variable, this could influence where boats should anchor to minimise impact. Impact relative to other pollution entering the local marine environment from other sources. Establish a carrying capacity for the anchorage. Restricting anchoring to a maximum number of yachts for certain anchorages, though somewhat subjective, establishes a precedent for acceptable environmental impact and can be viewed as a practical compromise instead of outright prohibition. - - - Should it be decided that a policy of anchorage controls be established for certain areas of Tobago’s waters, these and other relevant facts can help guide the decision making process. Though limited work has been done in some areas, specific surveys should be conducted by a suitably qualified body for those anchorages where restrictions are being considered, to help establish objectively the relative impacts of the various factors for each location. Finally, a model for anchorage zoning can be developed around moorings for yachts to tie onto. There are several successful models in the Caribbean, some of which help to achieve objectives similar to the Tobago context; one such example worth examining is the Soufrière Marine Park in St. Lucia which is operated by the Soufrière Marine Management Authority. Solid Waste Management Table 7.1: Waste handling policy Waste Type Recyclables Glass Paper Waste Container Type Carib glass eco bin Poly bag – shredded Method of removal Comment/ Disposal method Remove/replace bin Remove bag Recycled at Carib Glassworks Recycled at various paper recyclers 10 This is practiced in Martinique and Guadeloupe. It also avoids other multiple user conflicts. On the other hand it has been reported that the water quality at Grande Anse Beach in Grenada did not improve when a no anchoring policy was established. 33 Steel/Iron Solid waste Wood Organic waste Box Liquid hazardous waste Waste oils Others Solid hazardous waste Filters -- -- Company externally -- may sell General container -do-doTank/drum Drum General bin -do-do Suction Drum removal -High temp incineration High temp incineration, drum disposal High temp incineration Batteries Plastics/paint cans Oily rags Fluorescent bulbs light Fixed drum with poly bag and cover Na General container Fixed drum/ poly bag and cover Unbroken in box or wrapped in card board Poly bag removal Na General bin Poly bag removal Box removal Recycle into new batteries No systems in Trinidad for plastics/paint cans High temp incineration Cement encapsulation prior to bury in specific landfill Source: IMS Fuel Tobago has no fuel dock and all pleasure and fishing vessels are fuelled through other means. This is unsatisfactory as this practice increases the risk of pollution by petroleum products. Best Management Practices for Environmentally Sound Fuel Docks • Use automatic shutoffs on fuel lines and at hose nozzles to reduce fuel loss; Remove (or do not install) oldstyle fuel nozzle Source: EPA Buoys The Buccoo Reef Trust and the Department of Marine Resources and Fisheries of the THA have recently begun a programme of placing no-anchoring buoys in selected bays and anchorages. Anecdotic reports from the 2004 Angostura regatta indicate that the placing of no- anchoring buoys was successful in that the yachts did abide with the restrictions, as there were no reports of yachts anchoring in the restricted areas. • Mooring buoys Apart from the buoys that indicate no anchoring areas, the THA may also consider the placement of suitable mooring buoys in selected areas to contain capacity, suitable means either 34 Helix or Halas, buoys depending on the substrate, because engine blocks or cement may cause more damage. Zoning Because the product for Tobago is very different from the Trinidad, e.g. Chaguaramas, product the island may need more strict management and zoning requirements. These do not only stem from environmental reasons but also to avoid potential user conflicts between yachts and the local population (particularly fishermen) and with other marine tourism activities. These management issues could include no anchoring zones, restrictions on diving, spear fishing and or recreational fishing or other measure that may differ from bay to bay. Safety and Security Hurricane shelters While Tobago is considered to be at Southern edge of the hurricane belt the risk of a tropical storm or a hurricane passing within 65 miles of the island is not zero, as the recent passage of hurricane Ivan showed in September 2004. Therefore the identification and management of “hurricane” shelters remains important, not only for visiting yachts but also for fishing vessels and Tobago based day charter and dive boats. The Bon Accord lagoon is the premier hurricane shelter in Tobago. It is located in the national park and anchoring is only permitted during a tropical storm or hurricane warning. During the passage of hurricane Ivan it was reported that a crewed dive charter boat remained at Man of War Bay in Charlotteville and did not discharge its passengers to a land based location. This is a less than acceptable practice as a similar occurrence during hurricane Iris in Belize caused the capsizing of the vessel Wave Dancer and the loss of 22 lives11 . Navigational Aids It has reported that many buoys and beacons are missing. Included are markers near Scarborough, the cable buoys in Store Bay, Buccoo. 11 NEMO, 2001. 35 Chapter 8: Recommendations Institutional Establish a private sector marine services association Establish a dedicated yachting liaison officer within the THA Strengthen the coast guard presence 1) Establish a policy for the creation of yacht based marina facilities in Tobago as a strategy to help address growth and management of the sector; particularly towards mitigation of wider environmental stress through containment & concentration of sector activity. Establish as a priority at least one such facility for the south west part of Tobago to be designated as a port of entry; and possibly a future one in the north of the island. 2) Commission a site selection survey for possible marina sites utilising coastal site analysis methodologies, community inputs, yacht industry knowledge and land use evaluation. Provide recommendations based on a cost/benefit evaluation. 3) Develop an anchorage policy towards control of impacts from waste discharge on yachts, which will establish guidelines for evaluating on a bay by bay basis, selective restriction on anchorage areas. 4) Conduct an audit of the existing information systems and streamline information requirements for management information and control of the sector. 5) Establish a core yacht sector team for Tobago (keep it small!) with representation from public sector, NGO & industry who will take on board all other divisional & community inputs and technical evaluations before finalising recommendations to the THA executive council. 6) Consider appropriate policy/ incentives to target private sector investment for planned development of the sector. 36 Bibliography Doyle, Chris and Fisher, Jeff. 2001. Cruising Guide to Trinidad and Tobago plus Barbados. Chris Doyle Publishing, Florida. BHP Billiton, 2003. Atlas of Environmentally Sensitive Areas. Volume III: Tobago Coast. Port of Spain. Blommestein (editor), 2004. Yachting in the Eastern Caribbean. ECLAC LC/CAR/R.75. ECLAC, Port of Spain. Burke, Lauretta and Maidens, Jonathan, 2004. Reefs at Risk in the Caribbean. World Resources Institute, Washington DC. Dunn, Leith L., 2002. Tobago: The Situation of Children in the Worst Forms of Child Labour in a Tourism Economy. A Rapid Assessment. ILO, Port of Spain. ECLAC, 2003. Dominica. The Yachting Sector. LC/CAR/G.762. ECLAC, Port of Spain. ECLAC, 2002. Trinidad and Tobago: The Yachting Sector. LC/CAR/G.711. ECLAC, Port of Spain Ecoengineering Consultants, 1998. Pollution Inventory Study for Trinidad and Tobago. UNDP/EMA. Port of Spain. Eggington, Margo, undated. Time out in Tobago. Caribbean Compass, Bequia, St. Vincent and the Grenadines. EMA, undated. National Biodiversity Strategy & Action Plan. EMA, Port of Spain. FAO, 2000. Aquastat database. http://www.fao.org/ag/agl/aglw/aquastat/countries/trinidad_tob/index.stm. Rome, Italy. IMA, 2004. A Guide to Beaches and Bays of Trinidad and Tobago. IMA, Chaguaramas. IMA, 1999. State of the Marine Environment. IMA, Chaguaramas. IMA, 1991 Case study. The establishment of a marina/small craft harbour in Southwest Tobago. IMA. Chaguaramas Kenny, Julian. Comeau Paul and Katwaru Leslie-Ann, 1997. A Survey of Biological Diversity Trinidad and Tobago. UNDP, Port of Spain. Kuempel, Carissa and Akili, Kamau. 2000. Tobago Wastewater Disposal System Improvement Program Pilot Project: Charlotteville, Tobago Collette River. Environment Tobago. National Training Agency, 2002. Labour Market Survey report No2. Tobago. May – July, 2002. NTA, Chaguanas. National Training Agency, 2003. Employers Survey No3. Tobago. February – June 2003. NTA, Chaguanas. NEMO, 2001. Fourth Report on Assessment of Damages Due to Hurricane Iris. Belmopan, Belize. Norman, Peter E., 1984. Sewage Pollution of the Coastal Waters of Trinidad and Tobago. IMA, Chaguaramas. THA, 2004. Review of the Yachting Industry in Tobago. THA, Scarborough Tobago News, 2004. No-Anchor-Zones to protect Tobago's Coral Reefs. Tobago News. YSATT, undated. Environmental Guidelines for Marinas and Boatyards for Trinidad and Tobago. Chaguaramas. 37 Websites: ECLAC: FAO IMA Stormcarib http://www.eclacpos.org http://www.fao.org http://www.ima.gov.tt. http://www.stormcarib.com APPENDIX II: Persons Consulted Mr. Kamau Akili Director/ Vice-President Environment Tobago Representative Customs and Excise Division Representative Coral Cove Marina Hotel Limited Director – International Trade and Economic Relations Division Ministry of Foreign Affairs Representative Ministry of Labour and Small and Micro Enterprise Development Marketing and Public Relations Assistant Chaguaramas Development Association (CDA) Assistant Divisional Fire Officer - Fire Service Division Trinidad and Tobago Fire Service Mr. Gordon Adams Mr. Conrad Aleong Ms. Razia Ali Ms. Arti Badaisee Ms. Pettal Baird Mr. Kenrick Bethelmy Mr. Brendan Braithwaite Research Assistant Ministry of Planning and Development Mr. Selwyn Brooks Principal Caribbean Fisheries Training Development Institute (CFTDI) Fisheries Officer Department of Marine Resources and Fisheries Tobago House of Assembly Quality Assurance – Co-ordinator University of Trinidad and Tobago Minister of Tourism Ministry of Tourism Managing Director Boaters’ Enterprise Ltd. Director - TRAINMAR Centre TRAINMAR Inter-Regional Programme Mr. Erol Caesar Mr. Vishnu Chanckan Senator the Honourable Howard Chin Lee Mr. Jack Dausend Ms. Anne De Souza i Mr. Marc De Verteuil Representative Pilots Association Yachtsperson s/v Blue Marine Representative Environmental Management Authority Tobago Terminal Manager Trinidad and Tobago National Petroleum Market Company Ltd. VAT Office Inland Revenue Division Customs Officer Customs and Excise Division, Scarborough Solicitor General Office of the Attorney General Chief Immigration Officer Immigration Department Senior Customs Officer Customs and Excise Division, Scarborough Director Tropical Marine Limited Officer – Management Committee Trinidad and Tobago Sailing Association Chief Secretary Tobago House of Assembly (THA) Bucco Reef Trust Immigration Officer - Officer in Charge Immigration Department, Scarborough Director Bucco Reef Trus t Mrs. Lynn Fulks Mr. Shawn Garcia Mr. Gerard Gift Mr. Kenny Gobin Mr. Herbert Holder Ms. Petal John Mr. Ken Kalloo Mr. Nazin Khan Mr. John Lanser Mr. Mark Loe Mr. Orville London Mr. Barry Lovelace Mr. Karran Maharaj Mr. Gerry Mc. Farlane ii Mrs. Jane Peake President Yacht Services Association of Trinidad and Tobago (YSATT) Manager – Business, Sector and Legal Services Trinidad and Tobago Chamber of Industry and Commerce The University of the West Indies Ms. Sonji Pierre-Chase Mr. Leroy Quildon Mr. Raghunanan Ripchand Research Specialist Ministry of Science, Technology and Tertiary Education Standards Development Specialist National Training Agency Corporate Communications Manager National Entrepreneurship Development Co. Ltd. (NEDCO) Representative Ministry of Education Ms. Elenor Rampersad Mrs. Sandrine Rattan Mr. Emerson Regault Mr. Kenneth Richardson Terminal Manager Port Terminals, Scarborough Ms. Liselle Roberts Junior Legal Officer Ministry of Legal Affairs Representative Caribbean Industrial Research Institute (CARIRI) Yachtsman Zingano Representative Bucco Reef Trust Representative Ministry of National Security Tourism Advisor I Ministry of Tourism Programme Director Maritime Institute University of Trinidad and Tobago Ms. Marie Siew Mr. Jeremy Shaw Ms. Faranhaz Solomon Mr. Stephen Sookram Ms. Sharon Stanley Mr. Colin Stephenson iii Mr. Donald Stollmeyer Dr. Debra Thomas Chief Executive Officer Power Boats Mutual Facilities Ltd. Assistant Director Town and Country Planning Environment Tobago Lieutenant Commander Trinidad and Tobago Coast Guard Ms. Pat Turpin Mr. Gregory Walcott Commander Weekes Francis Representative Ministry of Works and Transport Business Consultant Venture Capital Incentive Programme Advisor to the Chief Secretary Tobago House of Assembly (THA) Deputy Director Maritime Services Division Registration Clerk/ Training Officer Caribbean Fisheries Training Development Institute (CFTDI) Mr. Eugene Williams Mr. Oswald Williams Ms. Linda Wiltshire Mr. Nigel Wint iv Appendix III IMMIGRATION REGULATIONS REPUBLIC OF TRINIDAD AND TOBAGO ARRIVAL/DEPARTURE DECLARATION FOR MARINE PLEASURE CRAFTS Port of Chaguaramas Name of Craft: …………………… Time Boarded:……………………… Description of Craft: …………………………………………………………………………………………………. Country of Registry: ……………………………… Gross Tonnage: ………………….. Master’s Name: …………………………………… ……………………………….………… Master’s Per. Add. & Tel. Contact ……………….. ………………………. Country arrived from: ……………………………. …………………… Date of Registry: ………………………..……… Net Tonnage: ……………………... Owner’s Name: Owner’s Per. Add. & Tel Contact List last three (3) other Ports of Call: Date & Time of Arrival ………………………………. Registration #: ……………… ……………………………………………………………………………………………………………………… … Length of Stay ……………………… ……………………… Intended date & time of Departure Intended Marina & Place of Mooring ………………………………………………………………………………… Purpose of Visit: Vacation ……………………………… Repairs Storage Other State the Number of Crew including Master and list each name below: ………………. Family Name Action Taken Given Name Nationality Place / D.O.B. Passport No. Occupation …………………… ………………... ………………. ………………. ……………… ..…………… …….. i …………………… ………………… ….…………… .……….…….. ……………… …………….. ..…… …………………… .………………… ………………. ………………. ……………… .……………. .……. …………………… …………………. ………………. ………………. ……………… .…………… …….. …………………… …………………. .……………… ……………… ………………. ……………… ……. …………………… ………………….. .. …………….. ………………. .………….…… ……………… ……. State the Number of Passengers and List each name below: ………………… Family Name Given Names Nationality Place / D.O.B. Passport No. Occupation Action Taken ……………… ……………..… …………. ………….…… ……………… ……………. ………………. ……………… ……………… ………….. ………………. Number of Stowaways: ……………… ……………… …………… ……………… I hereby certify that the above mentioned information is true and correct ..………………………………….. Signature of Master ……………………………………. Stamp of Immigration Officer and Signature FOR OFFICIAL USE ONLY OVERTIME CHARGES IMMIGRATION SERVICE RECEIPT NO. BOARDING CLEARANCE CREW SIGN ON AND OFF DATE TIME AMOUNT ii ……………………………………………….. SIGNATURE OF IMMIGRATION OFFICER NAMES OF CREW SIGNED ON AND DATE AND DATE Departure Report NAMES OF CREW SIGNED OFF This vessel was granted Clearance at…………………………on……………………………… for………………… (Time) (Date) (Next Port of Call) with the following on Board: Crew ……………………………………………… Passengers Embarking …………………………… Passengers Intransit ……………………………… Cleared at………………………………………… (Port) ……………………………… … Immigration Officer iii Appendix IV COPY OF GRENADA YACHTING ACT 2000 i GRENADA YACHTING ACT, 1998 ARRANGEMENT OF SECTIONS PART I PRELIMINARY 1. Definitions PART II COMMERCIAL LICENCE AND CRUISE PERMIT 2. 3. 4. 5. 6. 7. Commercial yachts to be licensed Duration of licence Responsibility of owner Revocation etc. of licence Register Cruising permit PART III PROCEDURE ON ARRIVAL AND DEPARTURE OF YACHTS 8. 9. 10. 11. Procedure on arrival of yachts Arrival report Departure report Offences PART IV MISCELLANEOUS 12. 13. 14. 15. 16. Marine Parks Fees Penalties Compounding offences Commencement ii GRENADA YACHTING ACT, 1998 1. In this Part, ‘arrival” means the anchoring, berthing or mooring of a pleasure craft within the limits of a port and “arrive” and cognate expressions shall be construed accordingly; “commercial yacht” means any yacht offered for hire, for payment or for reward, with or without crew, for the conveyance of passengers for a period of time; “director” means the Director of Maritime Affairs appointed for the purposes of section 4 of the Shipping Act, 1994; “cruising” includes stopping in any part of the territorial seas of Grenada but does not include mere passage through the territorial seas of Grenada; “foreign based yacht” means any yacht registered or licensed under the Shipping Act, 1994; “home based yacht” means any yacht registered in Grenada; home ported in Grenada; kept in Grenada when not in operation; and having its charters originating in Grenada; “master” means the person on board a vessel under whose command or subject to whose personal direction it has arrived or is intended to arrive as a yacht; “minister” means the minister responsible for shipping; “owner” means any individual, partnership, limited liability company or other body corporate which had title to the yacht; “Proper officer” means any officer who has a legal obligation to exact the performance of or to perform the act referred to: “Territorial sea” means the territorial sea of Grenada as defined in Section 5 of the Territorial Sea and Maritime Boundaries Act; iii GRENADA YACHTING ACT, 1998 “yacht” means any vessel which is used for recreational purposes and which either; (i) exceeds twenty feet in length overall and is primarily powered by sail, or (ii) exceeds thirty- five feet in length overall and is primarily powered other than by sail. PART II COMMERCIAL LICENCE AND CRUISE PERMIT 2. (1) Subject to subsection (2), no person may offer for hire, for payment or for reward, any unlicenced commercial yacht for use in the territorial sea whether such yacht is foreign based or home based, or being the owner of any such yacht or the agent of such owner, give or offer to give or hire, for payment or reward, any such vessel to any other person for use in the territorial sea without first obtaining a license. (2) A foreign based yacht may make a maximum of seven charter pick-ups originating within Grenada within any period of twelve months without having to obtain a licence. (3) An application for a licence shall be made by the owner or the operator of the yacht to the director in the prescribed form. (4) At the time of making the initial application the form shall be accompanied by: (a) (b) a business plan out lining the proposed operation; details of the number of persons to be employed on a permanent or seasonal basis; details as to how the operation is to be financed; copies of yacht registration documents and insurance certificate. (c) (d) iv GRENADA YACHTING ACT, 1998 (5) Where an application is made to the Director in accordance with subsection (2), the Director may approve or disapprove the application. (6) Where the Director: (a) (b) approve an application, he shall issue a licence; or disapproves an application, he shall within a period of fourteen days after receipt of such application, notify the applicant of such disapproval. (7) Any person who is aggrieved by a decision of the Director may within seven days of receipt of notification of such decisio n, appeal in writing to the Minister, whose decision shall be final. 3. (1) A licence granted under section 2 shall be: (a) (b) an annual licence valid for twelve months from the date of issue; or a temporary licence for a specified cruise. (2) An annual licence shall remain valid until it is revoked or cancelled, and a temporary licence for a specified cruise shall be valid only for the cruise, for which it is granted, unless the licence is extended by the Director. (3) A licence granted under section 2 may contain such conditions as the Director may think it fit to impose with respect to the yacht and the cruise which it may undertake, and such conditions may be imposed so as to apply to the yacht wherever it may be or while in such waters or on such cruise as may be specified. (4) Upon the payment by the applicant of an appropriate fee, the Director may issue a licence and a licence pennant or other proof of registration to the applicant. (5) A licence granted under this Act is not transferable. 4. The owner or operator of any licenced yacht is responsible for ensuring that the licence is carried on the yacht and is available for inspection by the proper officer. (1) A licence granted under this Act may be modified, suspended, revoked or cancelled by the Director but no such licence shall be modified, suspended, revoked or cancelled unless the licensee has been given an opportunity of making representations against such modification, suspension, revocation or cancellation. 5. v GRENADA YACHTING ACT, 1998 (2) Where a licence granted under this Act is revoked or cancelled or otherwise ceases to be valid, the licensee shall, within sixty days after such revocation, cancellation or cessation, return it or cause it to be returned to the Director. 6. 7. The Director shall maintain a register of yachts licenced to operate within the territorial sea. (1) No person shall cruise on a yacht, other than a Grenadian yacht; without a cruising permit issued by the Comptroller of Customs in respect of such yacht. (2) Every yacht, other than a Grenadian yacht or a yacht in respect of which there is in effect a commercial licence granted pursuant to section 8, shall pay a cruising permit fee at the rate prescribed and for such period as the Minister may be order prescribe. (a) The cruising permit fee shall be paid by the master to the proper officer upon arrival in Grenada; (b) (c) Any fee for the extension of a cruising permit shall be paid to the proper officer; The master shall produce the cruising permit tot he proper officer on demand. PART III PROCEDURE ON ARRIVAL AND DEPARTURE OF YACHTS 8. (1) The master of a yacht shall cause a yellow flag (the signal flag for “Q” in the International Code of Signals) to be flown on that yacht at all times between its arrival in Grenada from outside Grenada and the making of arrival report of that yacht in accordance with this Act. (2) Until an arrival report has been made no person shall move the yacht or unload or remove anything therefrom, except herein otherwise provided for, without the authority of the proper officer; but nothing in this Act shall affect the provision of any regulations made under the powers conferred by the enactments relating to public health in Grenada or any part thereof with respect to a ya cht being a vessel within the meaning of those regulations. vi GRENADA YACHTING ACT, 1998 9. (1) The procedure for making arrival report of a yacht shall be that: (a) The master, or a person acting on his behalf, shall notify the arrival of that yacht to the proper officer, and (b) The master shall deliver to the proper officer such form, duly completed, as the Minister may direct for that purpose. (2) The master, or person acting on his behalf shall notify the arrival of a yacht with two hours of its arrival, except that if the vessel arrives between 16.00 hours and 08.00 hours, its arrival need not be notified until 08.00 hours; (3) The procedure for making arrival report in cases where the proper officer boards that yacht before notification of its arrival shall be limited to that prescribed in paragraph 1 (b) above. 10. (1) before departure the master or owner of the yacht shall, save as permitted by the Minister, made departure report in such form and manner and containing such particulars as the Minister may direct. (2) A departure report shall be made up to twenty- four hours before departure. (3) The master may make a departure report at the time of arrival provided that the master intends to depart within seventy-two hours of arrival. 11. A person who fails or refuses to comply with any requirement of the Part commits an offence. PART IV MISCELLANEOUS 12. (1) The Minister may be order designate any area of the internal waters (a) (b) a marine part (editorial comment or “Marine Management Area”), and an approval anchorage (editorial comment : or local harbour area). (2) For purposes of this section “internal waters” means the internal waters of Grenada as defined in section 6 of the Territorial Sea and Maritime Boundaries Act. vii GRENADA YACHTING ACT, 1998 13. All fees collected pursuant to or for the purposes of this Act shall be paid into the Consolidated Fund. (1) A person who contravenes any of the provisions of this Act is guilty of an offence and shall be liable on summary conviction to a fine of ten thousand dollars or a term of imprisonment for twelve months. (2) A Magistrate may, in addition to any fine imposed under subsection (1), order the vessel in respect of which the offence was committed to be impounded and placed in the custody of the Commissioner of Police until the fine is paid and the yacht is licensed. 14. 15. (1) The Director may compound any offence committed by a person under this Act, but no such offence shall be compounded where such person had contravened the provisions of this Act on two previous occasions. (2) Any offence which is compounded under this section shall include payment of the full licence for the period the yacht has been in the territorial sea and a penalty of not less than one half the prescribed fine. 16. This Act shall come into operation on such date as the Minister appoints by notice. viii APPENDIX V: Literature Review The team reviewed all available studies pertinent to the yachting industry in Trinidad and Tobago including24 : § Economic Commission for Latin America and the Caribbean (ECLAC). 2002. “Trinidad and Tobago - The Yachting Sector.” LC/CAR/G.711. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. Quildon, Leroy. 2002. “Sustainable Competitive A dvantage in the Yacht Services Industry Cluster of Trinidad and Tobago.” Thesis. The University of the West Indies, St. Augustine Trinidad and Tobago. Yacht Services Association of Trinidad and Tobago (YSATT). 2002. Development Strategy for the Foreign Yacht Service Industry. YSATT, Chaguaramas, Trinidad and Tobago. James, Lisa. 2001. “A Socio-Economic Assessment of Yachting Activities in the Northwest Peninsula of Trinidad.” Institute of Marine Affairs (IMA), Chaguaramas, Trinidad and Tobago. Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO). 2001. Draft Report: The Training Needs of the Ship Building and Boat Repair Sectors of Trinidad and Tobago. TIDCO, Port of Spain. Trade Development Institute of Ireland (TDI) Ltd. 1999. “Investment Promotion Strategy for Trinidad and Tobago.” Riley, N.T. 1998. “Draft Report on the Training Requirements of the Boat Building and Boat Repair Sectors in Trinidad and Tobago. The Commonwealth Secretariat, London. Yacht Services Association of Trinidad and Tobago (YSATT). 1997. “Report on the Visitor Satisfaction Survey on the Marine Industry conducted from November 15th to December 7th 1997.” YSATT, Chaguaramas, Trinidad and Tobago. Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO). 1995. “Trinidad and Tobago Yachting Industry Survey: Operation Splash. November 15, 1995 December 16, 1995.” Port of Spain, Trinidad and Tobago. § § § § § § § § Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO). “Development Strategy for the Pleasure Boating Industry – a TIDCO study” Port of Spain, Trinidad and Tobago. Literature on other Caribbean countries were also reviewed including: § 24 Confidential Reports are not included. i § Economic Commission for Latin America and the Caribbean (ECLAC). 2004. “Yachting in the Eastern Caribbean: A Regional Overview.” LC/CAR/G.775. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2003. “The Yachting Sector Dominica.” LC/CAR/G.762. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2003. “Report of the Grenada National Yachting Consultation.” LC/CAR/G.735. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2002. “Martinique: The Yachting Sector.” LC/CAR/G.710. Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. ECLAC § § § § __________ 2002. “St. Vincent and the Grenadines - The Yachting Sector.” LC/CAR/G.707. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2002. “St. Lucia - The Yachting Sector.” LC/CAR/G.706. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. __________ 2002. “Antigua and Barbuda: The Yachting Sector.” LC/CAR/G.704. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. Petrovic, Clive and Everett O’Neal. 2001. “Ecotourism, Yachting and Local Entrepreneurs: A Case Study of the British Virgin Islands.” H. Lavity Stoutt Community College, Tortola, British Virgin Islands. § § § A summary of the findings in the main reports is provided below. It should be noted that several of these studies included a SWOT analysis. The situation in Trinidad and Tobago has not varied since these reports were published and as this information is included in the main report, it would not be repeated here. Economic Commission for Latin America and the Caribbean (ECLAC). 2002. “Trinidad and Tobago - The Yachting Sector.” L C/CAR/G.711. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. It is estimated that the yachting industry generates at least TT$130 – 150 million in revenues and contributes over TT$99 million in value added. The industry is not subject to the same levels of seasonality as experienced in the other Caribbean islands mainly due to its location under the hurricane belt. The main recommendations in this report are listed below: • • A training institute at which individuals could receive certification in marine trades should be created and financed; Foreign entrepreneurs should be given sufficient time to develop, operate and benefit from investments made in the local yachting industry; ii • • • A single Immigration form should be introduced. Customs and Immigration must clearly establish and adhere to the rules and procedures governing arriving and departing yachts; Specific/ qualified chandlers should be allowed to stock goods at duty and tax-free prices for over the counter sales to foreign yachts; A habour patrol should be introduced to facilitate the reduction of crime. The Chaguaramas Development Authority should also instigate regular and random road checks at the gateway to Chaguaramas; The CDA should consult with YSATT on the provision of suitable waterfront property where possible to encourage the growth of the yachting industry; Infrastructure should be improved by the relevant authorities; The Institute of Marine Affairs or the University of the West Indies should conduct an assessment or evaluation of all past pollution/contamination studies and try to establish trends for the major parameters. Additionally, the IMA should be requested to identify sensitive ecological areas where anchoring should not be allowed; YSATT should take the initiative to establish best management practices with particular reference to storm water, dust control and fuel desk operations; The national oil response strategy and subsequent penalties for such pollution should be revised to ensure that the country’s environmental treasures be safeguarded; A zoning plan for Chaguaramas Bay and Welcome Bay with particular reference to the waters should be prepared with some urgency; The provisions of the Harbour Act should be implemented and a ha rbour master for the Chaguaramas area should be appointed; The role and functioning of the CDA and those agencies responsible for marine management should be evaluated. It may consider the possibility of establishing a new private/public sector management company along the lines of Point Lisas for that area of Chaguaramas that is currently zoned for light industrial development (from about the former heliport to the military base) and the adjoining waters; TIDCO should collaborate with YSATT to develop a promotional plan that includes a generic advertisement for placement in various trade publications, a brochure to be used in tradeshows and an educational campaign to be run in Trinidad and Tobago to raise awareness about the yacht services sector and its contribution to the economy. • • • • • • • • • iii Quildon, Leroy. 2002. “Sustainable Competitive Advantage in the Yacht Services Industry Cluster of Trinidad and Tobago.” Thesis. The University of the West Indies, St. Augustine Trinidad and Tobago. The study sought to identify the factors that impacted on the long run sustainable competitive advantage of the yacht services industry including: - The negative impact of the environment; - The need for research; - Product positioning; - An aggressive marketing program; - Government policy that is facilitative of the yachting industry; - Fiscal incentives; - Training; - Infrastructure development; - Security; and - Linkages; The study provided some economic indicators related to the industry: - Investment is in excess of TT$100 m; - Each vessel is estimated to contribute an average of US$17,800 annually to the economy; - Government revenue, including personal income tax, corporate tax and value added tax totaled TT$5.5 m annually; - Income accruing to the Government from tenancy is in excess of TT$1.5 m annually. The following recommendations were made: - The country needs to be branded as a one-stop-shop for yacht services in regional and international markets; - Yacht services’ providers need to measure consumer satisfaction at more regular intervals and strengthen relationships with their customers. The study concluded that proactive intervention is critical for ensuring the long run sustainable competitive advantage in the industry. Yacht Services Association of Trinidad and Tobago (YSATT). 2002. Development Strategy for the Foreign Yacht Service Industry. YSATT, Chaguaramas, Trinidad and Tobago. The study gave a brief background on the growth of the yachting industry in Trinidad and Tobago and listed several reasons why the country is considered to be an attractive yachting destination. However, it noted that the growth of the industry is being hampered due to several reasons: • • • • Poor quality of workmanship; Impediments to foreign investment in the industry; Inconsistent customs and immigration procedures; Lack of infrastructure, environmental and waterway management. iv Several suggestions were made to remedy the situation including training, greater facilitation for foreign investors, use of a single immigration form, the introduction of a harbour control, and the enactment of the Harbours Bill. James, Lisa. 2001. “A Socio-Economic Assessment of Yachting Activities in the Northwest Peninsula of Trinidad.” Institute of Marine Affairs (IMA), Chaguaramas, Trinidad and Tobago. This study was the first to measure the economic contribution of the yachting industry in Trinidad and Tobago. The study showed that the majority of yachtsmen originated from the United States (46%), followed by the United Kingdom (19%), Europe (17%), South Africa, Canada, Australia and the West Indies. Over one third of the persons interviewed indicated that their length of stay is between 7 to 12 months. Only 42% of the yachts had holdng tanks. 70% of the yachtsmen indicated that they were willing to use pollution control measures, and 50% indicated that they were willing to pay for these measures. The average monthly visitor expenditure was estimated at US$1,700.00. The study concluded that the sustained development of the industry would require appropriate planning. The recommendations made included the following: • • • • • The development of a code of conduct; The development of programs and projects to encourage sectoral linkages; Further research to eleiminate data gaps; Intense and continuous training for the industry; and A coastal zone management plan for the Chaguaramas area. v Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO). 2001. Draft Report: The Training Needs of the Ship Building and Boat Repair Sectors of Trinidad and Tobago. TIDCO, Port of Spain. This report identified some of the problems facing the industry with regard to training: • • • • • • • • • • Lack of professionalism in the keeping of appointments and meeting promised delivery dates; Training deficiencies in each of the following crafts: Fiberglass, Welding, Administration, Marine Electrical, Marine Electronics, Marine Mechanics, Painting, Woodwork, Rigging, Plumbing, Marine Awareness and Etiquette; Day labour rates are extremely high in proportion to the quality of the services rendered; Pricing is inconsistent; Shortage of adequately skilled and experienced labour; Lazy workforce; Insensitivity to the marine environment; General industry unawareness of marine safety; Insufficient managerial experience by some contractors; Immigration officers are uncooperative. The report made two main recommendations including the need to upgrade the competencies of the workforce as a primary concern and the need to explore alternative approaches to the longer-term training issues outlined in the Riley Report including: • • Utilization of existing facilities and resources; and Planning and development of entirely new facilities. Trade Development Institute of Ireland (TDI) Ltd. 1999. “Investment Promotion Strategy for Trinidad and Tobago.” A survey carried out by TIDCO and YSATT in 1997 estimated that an average amount of US$17,800.00 is spent per yacht. The key factors for the successful development of the Industry with respect to the Leisure Marine Sector are as follows: • A comprehensive strategy needs to be developed for the leisure marine sector, which sets out qualitative and quantitative targets for the industry and the actions required to achieve them along with investment needs. This should be drawn up in consultation with industry; A more structural approach to the provision of skills and training is required, supported by both the public and private sectors; Policies that call for infrastructural development in the Chaguaramas Bay area, with particular attention to transportation routes, water supply and sewerage disposal management are required; • • vi • • • • • The legislative infrastructure for enacting and enforcing a ‘Best Management Procedures’ policy for the industry is necessary; Amendment of the existing legislation on quarantine procedures and of the existing legislation on procedures for the storing of firearms for arriving pleasure craft is required; The cost base must be closely monitored and benchmarked with competing locations on a regular basis; Consideration should be given to extending fiscal i centives that are presently available to n hotels e.g. VAT, depreciation, to marina/boatyards in a controlled way; Consideration should also be given to extending incentives for the importation of replacement goods duty free to the chandleries in the indus try. Riley, N.T. 1998. “Draft Report on the Training Requirements of the Boat Building and Boat Repair Sectors in Trinidad and Tobago. The Commonwealth Secretariat, London. This study identified the training requirements of the boat building and repair industry of Trinidad and Tobago. The marinas that provide repair services either have independent subcontractors on site, or they employ in-house labour. The problems that have been identified include: • • • • Level of workmanship and organization of services is unacceptable; Middle management do not have adequate training or experience necessary; There is a shortage of adequately skilled and experienced labour; and There is a lack of training and education at the artisinal level. The study made recommendations to address these problems including: • • • • • • • Employment of expatriate counterparts; Training and practical support for middle management; Extension courses for subcontractors and foremen in organizational methods, theoretical subjects and practical skills; Theoretical and practical courses for workmen; An apprenticeship program where the apprentice obtains theoretical and practical knowledge on a concurrent basis over a period of about four years; Provision of training courses in the first half of the year when personnel can be released from work to attend the prescribed courses; Provision of certification for successful completion of courses. The study also provided details on the structure and outlines of the courses proposed. vii Yacht Services Association of Trinidad and Tobago (YSATT). 1997. “Report on the Visitor Satisfaction Survey on the Marine Industry conducted from November 15th to December 7th 1997.” YSATT, Chaguaramas, Trinidad and Tobago. The main findings of this visitor satisfaction survey were as follows: § 38% of the respondents suggested that improvements should be made to address the substandard labour, while 12% suggested duty- free purchases should be allowed at chandleries; § The fact that the country lies in the hurricane safe zone was of significant importance; The recommendations made include: § A training programme for existing and new workers along with a certification standard; § Competitor analysis on the facilities and prices offered elsewhere; § Formulation of policy to address harbour pollution. Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO). 1995. “Trinidad and Tobago Yachting Industry Survey: Operation Splash. November 15, 1995 December 16, 1995.” Port of Spain, Trinidad and Tobago. The main findings of this visitor satisfaction survey were as follows: § 45% of the visitors were from the United States, 13% from Europe and 11% from Canada and the UK each; § The visitors are nearly all male, retired or self-employed; § Most of the visitors get information on the country from previous visits or word of mouth; § “Friendliness of the people” was cited as being very important. viii Tourism and Industrial Development Company of Trinidad and Tobago (TIDCO). “Development Strategy for the Pleasure Boating Industry – a TIDCO study” Port of Spain, Trinidad and Tobago. The following recommendations were made: • • • • • • • • • • Explore the feasibility of pursuing the market for large yacht cruisers; Introduce concessions for boating to take advantage of the existing concessions for sports; Facilitate the growth of intransit businesses through a review of the present system by representatives of Customs and Excise, TIDCO and YSATT; Grant work permits to allow proper transfer of technology through hands-on-training and/or volunteer training; Analyze which ancillary services of the yachting industry benefit from tax concessions; Implement a comprehensive training and sensitizing program for Customs and Immigration officers for assignment to Chaguaramas; Lengthen the rotations for Customs officers from six months to one year to allow them to adjust and function effectively as the industry demands; Develop a regulatory framework with clear delineation of responsibility for enforcement of environmental controls on visiting and domestic yachts for sewage pump out; Enact legislation to ensure sewage discharge is prohibited within 8km of the shore; Monitor water quality around marinas and boatyards to contain pollution manageable levels. Economic Commission for Latin America and the Caribbean (ECLAC). 2004. “Yachting in the Eastern Caribbean: A Regional Overview.” LC/CAR/G.775. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. The yachting industry is only now being recognized as an integral part of the tourism product in the Caribbean region. The USVI is the only territory in the region with legislation that requires yachts to use holding tanks and pump out facilities. Strengths - Close geographic location of the islands in the Caribbean facilitates easy sailing between islands; Weaknesses - Improper waste disposal; - Pollution from marinas and boatyards; - Lack of technical skills and economic size to allow for recycling; - Lack of data and information; - Crimes committed against yachting tourists and crimes committed by yachting tourists (including non-clearance of vessels resulting in loss of Government revenue, smuggling of weapons, liquor and drugs, insurance fraud, theft and robbery; - Environmental degradation of the coastline has negative impact on the yachting industry; - No regional private sector body representative of the yachting industry; - Lack of collaboration among the islands. ix Threats - St. Maarten and Antigua are other service centers which are also popular winter destinations; - User conflicts between fishermen and yachts; - User conflicts between dive boat operators and yachts; - Damage to coral reefs from anchors; - Illegal fishing and collecting of marine organisms; - ISPS, which is intended to increase security at ports. Recommendations - Expatriate counterparts who are skilled in yard management, should be employed on a one-to-one basis immediately to lift the level of middle management and to train present incumbents; - Extension courses in small business management and quality control should be provided to increase the level of skills of middle management, subcontractors and foremen; - A system of part-time training should be introduced immediately to lift the skills of the trades people working in the industry and those coming into the industry over the next few years; - A four- year apprentice scheme should be introduced within the next two years to attract school leavers into the industry and to train them in the various trades; - The short-term courses should be given on a part-time basis using a combination of day release and evening study; - The courses should be arranged to provide vertical articulation from trade to foreman to middle manager; - Certification should be provided for the successful completion of individual models of study and for blocks of courses completed; - Subcontractors should be certified to practice only in those areas and to the attainable level that their expertise permits; - A time limit should be placed on the completion of the prescribed courses for the present incumbents at all levels in the sector to ensure the elevation of trade skills and management practices is sector wide; - Workshops should be provided for the artisanal sector to expose it to current practices in small boat construction; - Forming strategic alliances among the Caribbean islands and marketing them as one product; - A regional private sector marine trade organization, as well as national marine trade organizations should be established; - Educational awareness programs; - Address data and information issues; - Establish a code of conduct for marina and charter boat operators; - Government marine-based tourism focal points should be established; - A standing committee on marine-based tourism should be established within the Caribbean Tourism Organization. Economic Commission for Latin America and the Caribbean (ECLAC). 2003. “The Yachting Sector Dominica.” LC/CAR/G.762. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. x It is estimated that yachting contributes US$3 – 5 million to the Dominican economy. At Between 50 – 100 people obtain at least half of their income from the yachting sector. There are no yachting specific events in Dominica. There are also no boatyards in Dominica. The average length of stay for yachts is one week or less in Dominica. Weaknesses - Incidence of crime against yachtsmen; - Unclear customs procedures; - Little to no visibility in the market; - Restrictive policies to access marine attractions; - Lack of service facilities such as moorings, dinghy docks etc; - Lack of ancillary services such as fuel and water docks, laundromats, internet cafes etc; - Unsightly appearance and sense of neglect of the most yacht friendly anchorage ie. wrecks etc; - No yachting specific events; - User conflicts in areas zoned as marine reserves. Problems - Unclear customs and immigration procedures and the coastal clearance certificate; - Dilapidated nature of Portsmouth (central yachting port); - Lack of data and information on the sector; - Lack of easy access to duty free fuel and yachting spares; - Lack of visibility in the market; - Lack of ownership; - Lack of infrastructure; - Crime. Recommendations - Develop yachting as an addition to Dominica’s tourism product and consistent with government’s policy of small- scale community tourism; - Double yachting revenues/ expenditures within next 3-5 years while maintaining general tourism objectives; - Develop ancillary services e.g. Chandleries- establish efficient duty free/ consumption tax free system of transient yachts; establish open warehouse system for yachting spares; - Implement a two-week minimum stay for yachtsmen; - Remove the duties and consumption tax on the importation of yachts; - Establish a duty free fuel depot; - Institution building: • Establish a Yachting Sector Standing Committee for one year • Establish a private sector marine trade association • Establish a yachting officer within suitable government division • Improvement of data availability - Marketing and Promotion: • Increase the visibility of Dominica as a yachting destination • Establish a web site dedicated to yachting • Improve internal communication with yachtsmen • Ensure that web sites and publications are bilingual xi - • Use the VHF to let visiting yachts know what is happening and what is available Develop infrastructure: • Placement of over 100 moorings • Placement and maintenance of navigational aids • Provide facilities for solid waste and oily waste disposal • Ensure the availability of water • Construct fuel docks and instill environmentally sound fuel delivery practices Economic Commission for Latin America and the Caribbean (ECLAC). 2003. “Report of the Grenada National Yachting Consultation.” LC/CAR/G.735. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. Yachting contributed an estimated EC$36 million to the economy versus cruise ship tourism of EC$7 million. The sector provides direct employment to 250 people. There are presently 7 marinas/boat yards and there are proposals to construct 4 - 5 more. Strengths - Government willingness to support the Yachting Sector (recognize the economic impacts of the industry); - The country has a Marine culture - tradition of boat building and regattas. Weaknesses - Prohibition of anchoring at the Grand Anse beach. Problems - Environmental issues, in particular the management of waste oil and junk, domestic wastes, anchor damage, boat wastes; - Risks to health and resources by failure to use the proper equipment or the use of materials (such as TBT containing paint) that are banned in, for example, the United States; - Lack of product and quality standards for the yacht ing industry; - Weaknesses in hurricane protection and emergency plans for marinas and boatyards; - An inadequate enabling investment environment whereby the existing legal instruments provide for allowances for the importation of yachts, marinas with a hotel component but not for marinas or boatyards; - The small membership base of the Marine and Yachting Association of Grenada (MAYAG), the lack of linkages between the Grenada Board of Tourism and MAYAG and the lack of an institutional structure or plan to market the country as a yachting destination; - Shortcomings in planning, research, regulation and monitoring; - Accounting for goods sold in bonded facilities, duty exemption for imported yachts, delays in clearing ships’ stores, who pays for overtime and the 72 hours window for clearance; - Lack of critical skills and training; - The undeveloped berthing and visitor infrastructure in Carriacou; a lack of mega yacht facilities; a poorly managed visitor database, limited capacity for managing marine resources and an inadequate system of moorings for environmentally sensitive anchorages. xii Recommendations - The development of an improved enabling environment for investment in yachting; - The establishment of effective mechanisms for public/private sector consultation; - Improved data management; - Expansion of the workforce of MAYAG; - Customer service training for customs and immigration officers; - Disaster mitigation and emergency planning for the yachting sector; - Policy guidelines on trading from live-aboard yachts; - A needs assessment on skills and training requirements for the sector; - Clear but firm procedures for environmental impact assessment (EIA) and audits to ensure environmental protection and the private sector to lead initiatives on environment and industry standards; - Protect coral reefs, pristine waters and other heritage resources on which yachting depends; - Disposal and recycling of waste oil; - Determining saturation points of yachts in anchorages. xiii Economic Commission for Latin America and the Caribbean (ECLAC). 2002. “Martinique: The Yachting Sector.” LC/CAR/G.710. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. The 45,757 yacht visitors in 2001 contributed US$7.8 million to direct tourist expenditure versus tourist expenditure from cruise ships of US$4.5 million. The average stay for yachts is two weeks in Martinique. There are 120 anchorages in this country. The country has benefited from the Pons Law (1986), which is essentially a defiscalisation, which allows for a tax deduction for investment in boating related activities. This resulted in a large number of yachts being imported into the island and many charter companies were created. The country is also a leading yacht repair center. Strengths - Excellent infrastructure at marinas and several anchorages; - Defiscalisation has encouraged significant investment in charter companies and auxiliary services for the yachting industry; - Nearly every bay has a government built dock; - Accessibility and capability for efficient yacht repairs; - As a department of France it has a stable political climate; - Central location facilitating ease of travel to other islands; - Tropical climate that attracts European visitors; - Good nautical information and guides; - International airport with eight daily flights to and from Europe; Martinique has all the amenities of first world countries whilst being located in a developing region. Weaknesses - Lack of adequate training for the local human resource base; - Lack of a centralized body to serve as a liaison entity between maritime agencies and tourism agencies; - Strong user conflicts between the fishermen and the yachtsmen in the best anchorages; - There is no local ownership as all waterfront property is owned by the State; - All marinas are managed under the following concepts: municipal operation, mixed private and public and leased by public administration. Economic Commission for Latin America and the Caribbean (ECLAC). 2002. “St. Vincent and the Grenadines - The Yachting Sector.” LC/CAR/G.707. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. There are three major charter companies in St. Vincent and two small companies in Bequia. The country has about 19 good anchorages. The yachting sector employs some 110 persons permanently and an additional 42 on a part-time or temporary basis. The sector contributes some US$8 – 10 million in yacht expenditure. The yachting industry in St. Vincent has been in existence for at least two decades with 1,622 yachts being reported as far back as 1980. There are about 85 charter yachts based in the country. xiv Strengths - Multiple islands within a short distance from one another; - Abundant safe anchorages. Weaknesses - Inadequate regulation of yacht moorings; - Inadequate facilities for solid waste disposal; - Unavailability of facilities for liquid waste disposal; - Unavailability of water at several anchorages; - Unavailability of fuel and power at certain docks; - Limited resources and inadequate training of the Coast Guard; - Avoidance of clearing customs and immigration by yachts; - The yachting industry does not have an association of its own. Recommendations - Improve data collection of the yachting sector; - Determine the carrying capacity for selected anchorages and zoning plans; - Develop a policy for and install permanent moorings, with appropriate management; - Improve waste management practices and license “boat buoys” that collect garbage; - Intensify public awareness and introduce training programmes to reduce or eliminate harassment by licensing and controlling “boat buoys”, vendors and others selling a product or service to yachts; - Proceed with the establishment of the Tourism Police as soon as possible; - Establish a Coast Guard presence in the southern Grenadines and increase their resources; - Establish additional ports of entry; - Improve or expand services and facilities at selected anchorages or docks; - Develop yachting policy in consultation with the private sector; - Increase local share of charter business; - Reduce loss of income due to avoidance of clearance; - Improve air access to St. Vincent and the Grenadines; - Develop better facilities for repairing and servicing yachts; - Train more local young people to sail to increase the supply of potential employees; - Review customs procedures to allow smooth and effective processing for yacht clearances; - Develop and promote the Regattas as important national festivals. xv Economic Commission for Latin America and the Caribbean (ECLAC). 2002. “St. Lucia - The Yachting Sector.” LC/CAR/G.706. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. The yachting sector in St. Lucia contributed an estimated US$48.2 million to GDP in the year 2000 and yachting-related jobs are estimated at 450. Yachting activity began in the country in 1976. Sixty per cent of the yachts that visit St. Lucia are cruisers, twenty per cent are live-aboards and the remaining twenty are local or charter based operations. The country has only two major marinas, but boasts of hosting an international rally – the Atlantic Rally for Cruisers (ARC) in December each year. Strengths - Marigot Bay, which is one of the most scenic harbours in the Caribbean; - The Soufriere Marine Management Area (SMMA) – association that manages and co-ordinates the activities of the fishermen, hoteliers, dive operators and yacht operators; - International charter company – the Moorings operate out of St. Lucia; - International rally – ARC. Weaknesses - Lack of proper oil disposal systems; - Lack of skilled labour; - Lack of mooring facilities; - Negative perceptions of yachting; - Inadequate infrastructure to handle human waste; - Lack of quick response law enforcement; - Lack of on-site Customs and Immigration facilities at Soufriere. Recommendations - Training for Immigration officers; - Introduction of a Yachting Act; - Improvements in collection of yachting data; - Assignment of a port officer, customs officer and immigration officer at Soufriere; - Implementation of an effective waste disposal system; - Installation of mooring facilities at selected bays; - Assistance to small entrepreneurs in the yachting industry; - Reduction of import duties on yachts and spare parts to 2%; - Implementation of the Ship Act to encourage yachts to register in the country; - Provision of training for industry workers; - Provision of facilities for solid and liquid waste disposal at marinas and ports; - Placement of marine buoys and jetties in selected areas; - Formation of a Marine Trade Association; - Greater marketing and public awareness for the yachting sector. Economic Commission for Latin America and the Caribbean (ECLAC). 2002. “Antigua and Barbuda: The Yachting Sector.” LC/CAR/G.704. ECLAC Subregional Headquarters for the Caribbean, Port of Spain, Trinidad and Tobago. xvi The yachting industry is estimated to contribute in excess of EC$75 million to the economy annually and employment (direct and indirect) is estimated at 838 persons. The total yachting expenditure was estimated in 1999 at EC$36.29 million. There are 391 marina berths in the country, 184 being capable of accommodating mega yachts. There are about eight crewed term charter yachts based in Antigua and Barbuda year round. The rates for these boats range from US$4,000 per week (50 ft sailing yacht) to US$450,000 per week (150 ft yacht). The day charter yachts cost between US$30 to US$100 per person, including food and drinks. There are about ten of these based on the island. The country hosts such yachting events as the Antigua Sailing Week, the Charter Boat Show and the Antigua Classic Regatta. Weaknesses - The Antigua Marine Trades Association (AMTA) is currently inactive; - Low level of public awareness of the socio-economic importance of the yachting sector; - Lack of data; - Seasonality of the yachting industry; - Limited options for training and human resource deve lopment linked to career opportunities in the yachting industry; - Visitor safety and security; - Small size of locally based crewed and bareboat term charter yacht fleets; - Concentration of yachting infrastructure and services in tow main areas; - Perception of Antigua and Barbuda as a regional yachting center but not a destination for cruising. Threats - Competition from neighbouring islands namely St. Maarten; Recommendations - The Government should work with the business community to establish a clear policy agenda for the development of the sector and provide a strong expression of support for the agreed direction to be taken by the industry; - Revival of the AMTA to champion the interests of the industry; - The AMTA should recruit a capable executive director and establish collaborative links with the Ministry of Tourism and Environment, the Antigua Hotel and Tourist Association and other relevant agencies; - A Marine Industry Taskforce (MIT) for HRD to assist with the identification of training needs and relevant training institutions and seek to expose persons to various career development opportunities available in the yachting industry; - Streamline bureaucratic procedures related to customs, immigration and security procedures; - A more obvious police presence and quicker response to acts of crime and improved lighting; - Procedural changes for GDP accounting to ensure that contributions to the yachting industry are taken into account; - Increase the maximum national haul-out capacity from the present 120 tons to about 300 tons; - Decentralization of yachting infrastructure to allow for development of the industry in other areas; - Improvements in navigational aids – marker buoys in particular; - Develop a destination marketing strategy for the industry including the use of Antigua Sail Week (ASW) and the annual boat show; xvii - Establish research capacity at the Ministry of Tourism and Environment to monitor yachting trends in the region and worldwide; Computerization of yacht clearance procedures to allow for easy and up-to-date processing of data; Expansion of training opportunities in marine trade skills at the Antigua State College; Promotion of training for local restaurant owners and managers; Promotion of skills and pubic relations training for freelance workers; Encourage the use of treatment plants by marinas and the installation of wastewater pump-out facilities, providing incentives where necessary; Create clear policies and related guidelines for removal and disposal of sludge from large yachts; Establishment of effective water quality testing and dredging impact monitoring capacity within responsible agencies; Create strategies to achieve all year vibrancy in the yachting sector. Petrovic, Clive and Everett O’Neal. 2001. “Ecotourism, Yachting and Local Entrepreneurs: A Case Study of the British Virgin Islands.” H. Lavity Stoutt Community College, Tortola, British Virgin Islands. The environment is a main determinant for selection of destinations for the yacht tourist, and as such, it is important for public-private partnership in the regulation of the yachting industry to benefit all stakeholders. These regulations should address issues such as the locations of yacht services, the types of permitted activities and control of the impacts on the infrastructure and the society. As yachting tourists generally tend to be dispersed compared to mass tourism, there should be little conflict with indigenous cultures and a negligible impact on society although the economic contribution is substantial. Yachting is seen as “a vehicle for economic development that empowers the population” as profits tend to remain in the communities. Entry into the industry does not need huge investments. The Government assisted in the development of the yachting industry in the British Virgin Islands through the provision of necessary infrastructure and fiscal incentives. xviii