MARINE 15 Gold Coast, May 4 th Emerging Markets South and Central America Jose Luis Fayos jlfayos@gmanagement.net
Summary Introduction Marinas across the Caribbean and America Central Marinas across the Pacific Colombia Brasil Chile Argentina 2 7 8 9 12 16 17 1 / 8
Population by market 2,500 Population (Millions) 2,201 2,000 1,500 1,579 1,000 500-309 34 502 382 589 890 Source: NMMA 2 / 8
Population share by boat ownership share Comparison of Population to Boat Ownership 60.0% 54.5% 50.0% 40.0% 33.9% 30.0% 20.0% 10.0% 0.0% 4.8% 0.5% 7.1% 17.6% 7.7% 5.9% 1.0% 9.1% 13.7% 3.2% 4.8% 9.6% 24.3% 2.2% Percent of Population Percent of Boats Source: NMMA 3 / 8
Estimated new boat and engine sales per market Estimated New Boat/Engine Sales in U.S. $ (Billions) $8.0 $7.0 $7.6 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $2.1 $1.0 $1.0 $1.0 $2.0 $0.5 $- Source: NMMA 4 / 8
Total boating business America (without USA) Total business employees in America (without USA) 1,110 240 3,848 Boat Builders 43,400 Boat Builders Engine Dealers 18,000 Engine Dealers 24,531 29,729 Equipment / Accessory Manufacturers Service Providers 169,640 310,860 79,820 Equipment / Accessory Manufacturers Service Providers Source: NMMA 5 / 8
Strengths Weeknesses Both regions are forecast to grow their economies in next 5 years about 4% Rise in HNWI and UHNWI in both South and Central America in recent years. Protectionist market mainly in Brasil and Argentina. High import duties in South America Opportunities Threats Grow Boating campaigns are undergoing in Brazil and expected in Colombia as well Skilled and prepared marine dealers with knowledge gained in USA Cuba is expected to be a new market in the short future Political instability in some countries 6 / 8
Marinas across the Caribbean and America central 621 facilities and 32.000 moorings 87% Caribbean 13% Pacific 70% of total moorings are in marinas Average size 50 to 100 berths America Central less facilities but bigger size Anchorage Marina Pier 7 / 8
Marinas across the Pacific 547 facilities and 150.000 moorings Cortes Sea Nautical Plan (Mexico) influenced by the USA demand Costa Rica (4 new marinas) Panama (3 new marinas) Ecuador (3 new marinas) New marinas Marina Pier 8 / 8
Colombia 7.400 boats registered (6.100 Caribbean) 70% of the boats registered are below 8 meters length (24 ) Only 15% of the boats are over 10 meters lenght (33 ) Main hub Cartagena de Indias Hurricane season (June to November) affects the boating business 9 / 8
Colombia Positives: Politically stable (no more drug problems) Marinas being built but need private investment Government Emphasis on Nautical Tourism Emerging Cartagena Boat Show Negative: No real middle class A lot of paperwork for leisure boats travelling around the coast High exit and entry port fees Some local builders GRP day cruisers (up to 40ft) outboard powered 10 / 8
Colombia New marinas The national plan considers 21 new marinas 4.100 4.400 new moorings 11 / 8
Brasil 12 / 8
Brasil Challenges Companies manufacturing boats are constrained by high tax schemes High taxes for boat buyers No legal framework about the environmetal regulation, and about the process of granting licence to new marinas Extremly high import duties 13 / 8
Brasil Boat Shows RIO DE JANEIRO BOAT SHOW March 26-31 Over 100 exhibitors 23.000 m2 30.000 visitants SAO PAULO BOAT SHOW September 25-30 2014 Dates for 2015 to be determinate 100 exhibitors 40.000 m2 43.000 visitants 14 / 8
Brasil Main Marinas in Brasil BR MARINAS, the biggest marina s network in Brasil Dry storage is becoming popular 15 / 8
Chile The government has launched initiatives promoting construction of public marinas across the country by 2020 83.850 km of navigable coastline plus 11.191 km2 of lakes Patagonia is the boating hotspot 63 registered shipyards, mainly for the fishing industry, and ferries. Main marine dealers: Alwoplast builds catamarans 20-30 meters (66-100 ft) Pronautica: Sea Ray and Bayliner Sportbas: cobalt Barco: Jeanneau Mares Chile: Bavaria, Dufuor, Gand soleil Oceanic Chile: Beneteau 16 / 8
Argentina Source: ICOMIA Statistics Book 17 / 8
Argentina Monetary devaluation policies High interest rates High import duties Difficult financial scenarios, boats with a retail price exceeding US$220,000 pay VAT, and imported model pay a 20% import tax added to the bill Buenos Aires Boat Show is back in 2015, in 2014 was cancelled 18 / 8
Units Argentina BOAT REGISTRATIONS 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Series1 YEAR 19 / 8
Argentina Dry storage increase 20 / 8
Thank you very much Jose Luis Fayos Global Management Marine Consultants jlfayos@gmanagement.net