Soundings Trade Only Magazine

BOAT INSURANCE FRAUD ON THE RISE p. 38

® Inside: Parker Boats plans to open a new location in Daytona Beach, Fla. in the midst of what the owner concedes is a very soft market. p. 49

THE BOATING BUSINESS NEWSPAPER VOL. XLV, NO. ⁴ OCTOBER 2007

$5.00

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Hawaii faces a crisis

of dilapidated docks

State hikes boating fees as the first step

toward funding $300M in needed repairs By Lisa Knapp

Work begins on installation of a new finger pier at Waia’nae Small Boat harbor on the island of Oahu in Hawaii.

Waia’nae Boat Harbor on the island of Oahu, Hawaii, has replaced all 17 of its finger piers with brand new concrete docks in the last five years, as well as repairing seven boat launch ramps for the harbor’s large trailer boat contingency.

Its former fixed concrete docks were

constructed in 1982. They are actually the youngest of Hawaii’s dilapidated, cracking docks, all in dire need of repair because of decades of neglect.

But the state’s Division of Boating and Ocean Recreation, which runs the small-boat harbors, barely generates enough revenue each year to meet operating expenses. Close to $300 million in

continued on Page 46

Bigger the boat, better the business
A franchising

Yacht Council broker data show larger powercraft are selling well

revolution?

By Beth Rosenberg / Staff Writer

According to data from YachtCouncil.org’s multiple listing system, there’s been a significant increase in the sale of yachts during the first half of 2007 compared to the first half of 2006.

b.rosenberg@tradeonlytoday.com

Some data suggests that sales of yachts, especially those larger than 70 feet, are skyrocketing, despite a market that has been weakened by economic uncertainty, high fuel prices and the housing slump.

Signs of life
in the market
p. 110

The total dollars of motor yachts larger than 70 feet sold during the first six months of 2007 increased 21 percent over the same six-month period in 2006. Motoryachts smaller than 70 feet enjoyed a 9-percent increase in total dollars during the same period, according to YachtCouncil.org.

Through July of this year, $1.2 billion in sales of boats 70 feet and above were reported, compared with $992.5 million in sales for the same period of 2006.

For boats smaller than 70 feet, $496.8 million in sales were reported for January through July 2007, compared with $453.2 million in the same period a year ago.

OVER 70 FEET

UNDER 70 FEET

“Our members have reported significant sales activity in the past 12 months and are poised to reach a new high before the end of 2007. We’ve always set the bar for the larger yachts, and we’re especially pleased to see unprecedented growth for boats 20-69 feet,” said Barb Tierney, vice president of YachtCouncil.org, in a statement.

Tierney said she was surprised by the data, as she had expected to see flat sales or a marginal increase.

“I was pleased, and kind of surprised, when I started running numbers out of the raw data, that actually there was sub-

continued on Page 20

By Melanie Winters / Associate Editor

m.winters@tradeonlytoday.com

Passport Marine introduced a franchise program it says will revolutionize the marine industry.

The St. Petersburg, Fla.-based dealer, broker and service company is transforming itself into a national distributor of boats. CEO Jim Dillon has already signed exclusive agreements with Egg Harbor Group and Sessa Marine. From now on, any dealer selling those brands must work with Passport instead of the manufacturer.

The company plans to unite its own six retail stores with dealer and broker franchisees throughout the country, creating a national brand and establishing an innovative business model within the marine industry.