Any Chance of change?
Y
ou cannot be a success in the Middle East if
you are not both adaptive and embracing
of change. This is no less apparent than
now, writing in the aftermath of the 43rd
UAE National Day, a reminder of how the courage,
devotion and belief among both rulers and followers of
the UAE have created a modern nation at an unrivalled
pace. But there is also a difference between change and
development – not all change is for the better.
I remember back in 2006 when the only way to get
a berth was substantial key money, and developers
responded with a string of new marinas opening up,
from the expansion of Dubai Marina to new marinas in
Yas, Al Bandar, Al Bateen, Emirates Palace, Ghantoot,
the Palm, Festival City and Al Hamra. And now, not
even a decade later, we are again in the same position
where the expansion of the leisure marine industry is
again being leashed. But in contrast to the heady days
of the “noughties” and the bold press releases of the
UAE as the next ‘Riviera’, now the public focus seems
to have forgotten this dream, and is in fact contracting,
with Festival City on the way to being a page of history,
and berthing on the creek again being reduced.
Admittedly there are publicized plans for an expansion
to Pavilion Marina at Jumeirah Beach Hotel, another
superyacht dock in Mina Seyahi, and the new Palazzo
Versace basin is also coming online, but are these high
profile developments going to really address the issues
preventing growth and, literal, maintenance of the
existing industry?
While we get used to brokers excusing poor sales
due to lack of berths, the operational challenges were
felt by those yachts visiting the UAE for the F1 in
November, and finding no warm welcome in Dubai
on leaving Abu Dhabi. One of my transient clients on
a demo boat was even looking to have a mini press
launch (i.e. additional revenue / coverage for a marina),
and no one was interested. Whether too much hassle
or not hungry enough for business, the result was that
this yacht builder decided to push into Qatar instead as
there was nowhere for them to go.
Of course many cities and waterfront communities
are restricted in their ability to develop yachting
facilities – the French Riviera being a prime example- but that is an established and mature environment
which has also already maximized its waterfront for
yachting destinations. The UAE certainly does not have
such geographical and environmental restrictions,
and is currently massively undersupplying its
potential yachting market share. But the bigger long
term problem I envisage is the complete disharmony
regarding the leisure yachting sector. While master
developers on the real estate sector applaud the
planned communities that include ‘mixed-use
developments’ of shops, garages, mosques, leisure
and community facilities, etc to serve the needs of the
core market residents of the houses it is developing for,
the same macro mentality does not seem to be carried
across to marina development. While there are many
international standards that claim what an ideal marina
are, the basic necessities any boat owner requires are
access to protected berthing, utility (water/electricity/
pump out) provision, slipway for launching, parking,
and boat maintenance facility. Not even going into
the luxuries of a club house, tertiary services or trailer
parking. But governing it all should be an integrated,
service-based entity that understands the needs and
provisions of leisure boating, from fishing to sailing to
charter, and establishes and enforces internationally-
accepted regulations for its safety. A tall order maybe?
Not really considering the amazing regulatory and
construction challenges that have been overcome to
allow other industries to bloom.
Only when there is a change of leadership in those
defining the leisure marine sector in terms of regulation
and strategic long-term planning will the UAE be able
to break away from the glass ceiling that constantly
holds back both yacht sales and industry expansion.
Is it possible? Of course. But it will only happen when
the true restriction of the industry is felt financially
and personally by local investors as well as the expat
protagonist. The French broke the “Le roi est mort,
vive le roi” cycle, so it is certainly possible for such
freedom to also be implemented to break the chains on
marine expansion, but will it happen? Nothing to lose
one’s head over I guess.Marina manager Marine Matters Captain Toby Haws
Why do we keep banging our heads against the glass ceiling, every time the
industry starts to get going? Does anyone really care?1818