University of Wisconsin 34th National Course and Conference Docks and Marinas 2008 October 15, 2008, Madison, Wisconsin FUNDAMENTAL TRUTHS ABOUT MARINAS PAST, PRESENT & FUTURE COMMON SENSE RULES OF THUMB Conanicut Marina Jamestown, RI Neil W. Ross Neil Ross Consultants 138 White Horn Dr, Kingston, Rhode Island 02881 401-782-2116, neilross@cox.net Neil Ross, Fundamental Truths about Marinas, Past, Present & Future -- -- page 1 INTRODUCTION Working with the marina industry across the United States and in seventeen other nations, I have walked the docks of hundreds of marinas and talked with several thousand business owners and managers. Over four decades, I have seen and learned much that is unique but also common among them. This presentation highlights many widespread aspects of the marina business that I believe make good common sense and useful rules of thumb about marinas. Common sense, based on a strict construction of the term, consists of what people in common would agree on: that which they "sense" (in common) as their common natural understanding. Most commonly, the phrase is used to refer to beliefs or propositions that — in their opinion — most people would consider prudent and of sound judgment, without dependence upon esoteric knowledge or study or research, but based upon what they see as knowledge held by people "in common". Thus, "common sense" (in this view) equates to the knowledge and experience which most people have, or which the person using the term believes that they do or should have. A rule of thumb is a principle with broad application that is not intended to be strictly accurate or reliable for every situation. It is an easily learned and easily applied procedure for approximately calculating or recalling some value, or for making some determination. Source: Wikipedia • • • • • Not all apply everywhere, but can be considered anywhere. Generally, most will work more often than not. The best are easy to understand and apply. Everyone will find some that will be new and many that are useful. Always remember to use your own common sense when planning or managing a marina. Marina Rules of Thumb Contributors o George Bassett, CMM, Nantucket Boat Basin, Nantucket, MA o Tom Cox, CMM, Constitution Marina, Boston, MA o Jim Frye, CMM, Association of Marine Industries, and Westrec Marinas, Warrenton, VA o Larry Halgren, Aqua Marine Partners, and Vertical Yacht Club Storage, Bellingham, WA o Fred Hunt, Frederic G. Hunt, P.E., Columbus, OH o Dave Irish, Irish Boat Shops, Charlevoix, MI o Dennis Kissman, Marina Management Services, Boca Raton, FL o Bill Munger, CMM, Conanicut Marina, Jamestown, RI o Dan Natchez, Daniel S. Natchez and Associates, Mamaroneck, NY o Neil Ross, Neil Ross Consultants, Kingston, RI o Pam Rubinoff, University of Rhode Island, Narragansett, RI o Bruce Tobiasson, P.E., Waterfront Design Associates, MA o C. Allen Wortley, P.E., University of Wisconsin, Madison, WI The marina items listed in this paper come from my own experiences and many generously contributed by twelve colleagues, most of who have been speakers and participants in past University of Wisconsin Docks & Marina courses. • • The contributor of each is named. All the concepts in this paper I agree with. Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 2 MARINA ECONOMICS With the current recession much in our thoughts and concerns, I decided to begin this presentation focusing on the economy. Recession Impacts – The current 2007-08+ recession is showing similar economic patterns in the marina and boating industry that were observed in four past recessions of 1973-75, 1980-82, 1990-91, and 2001-03. Let’s look at what we’ve seen before. • Marinas and boatyards are economically the most stable part of the boating industry. • They are the last to feel the recession’s effects and the first to recover. • The majority of marinas survive recessions with the same owners, whereas many boat dealers and manufacturers fail. • Even in recessions, most boats remain in use. The last 2001-03 recession saw 99.2% of the boats remained in use; with the largest ones kept in marinas. • Annual growth in US boat registration drops1 o 1980-82 recession growth went from 4.2% to 1.0% o 1990-91 recession growth went from 4.0% to 0.6% o 2001-03 recession growth went negative from 1.0% to –1.0% • During tough times, most owners will continue using their boat, but spend more time at dock, cruise nearer to homeport, cut fuel consumption, make necessary repairs, and postpone buying new boats. • Marinas with multi-profit centers do better than those primarily with dockage income. • Marine fuel service declines while boat repair service increases. • Dockominium sales sink, and slip owners lose major investment capital. • Less well-maintained and run marinas are hurt the most and may not survive, or • get bought out for redevelopment, often including some dockage. Better-managed marinas lose the fewest customers, pick up ones relocating from other less well-managed facilities, and are often the first to return to waiting lists. Neil Ross, RI Marinas are good businesses for local economies. • Employ local workers who spend income in the community, • Pay property, sales, and income taxes, • Place few demands on local tax expenditures (e.g., schools, services, hospital, new roads), • Import money into economy. Neil Ross, RI Marinas are great economic generators: • Good employers with better than average wages. • Marina guests patronize and spend significant dollars everywhere nearby boosting employment, barber shop, gift shop, restaurants, hardware stores, coffee shops, grocery store, area boatyards, hair dressers, real estate (sales & rental), kayak rentals, flower shops, drug store, air port, rental cars, airport shuttle, taxies, plus much more. Bill Munger, RI Nantucket Boat Basin and its customers annually added approximately $80 to $100 million into the island economy, according to the Chamber of Commerce Chairmen in 2000. George Bassett, MA Boater spending impacts the community well beyond the marina. The best mix of “passive” income (from storage both wet and dry, leases, etc.) and “active” income (those profit centers with a cost of sales like retail, service and fuel that are dependant on boaters using the boat) is one where the majority of income is passive. A good passive/active ratio is at least 60/40 and better at 70/30. Jim Frye, VA 1 Statistic source: National Marine Manufacturers Association, Chicago, IL Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 3 A marina can be an attraction to the neighborhood, and therefore may increase adjacent land development and values. This should be a specific consideration, since this may become a positive or detrimental secondary impact. Pam Rubinoff, RI Boating costs keep rising. However, the golden fleet (rich) will always be able to own and use boats. Neil Ross, RI Understand what the boat market needs, and put in as many profit centers as are practical. Bruce Tobiasson, MA Demand for marina slips is finite, related to wealth in the area and desirability of waters served. Build it and they will come does not often apply. Low, below-cost rates do not assure occupancy. Dave Irish, MI Dockominium – not as good as they look in theory. Many do not ever sell out all/most slips, but end up co-owned with many slip owners. “Worst business decision I ever made.” Anonymous marina owner, MA Keeping good customers is cheaper than recruiting new ones. Neil Ross, RI Marinas have two economic windows of opportunity: the water window and the land window. A well-planned marina will take advantage of both and serve a wider customer base beyond the boater. This represents good economics for the marina owner and the community in general. Dennis Kissman, FL Use the national on-line boating economic impact model and show the local authority how to use it. (www.marinaeconomics.com) Larry Halgren, WA Marina slips are still being rented by the ancient historic method used for centuries by seaport harbormasters = Price per linear foot/ meter measured length over all (loa), bow to stern. Consider using more realistic, alternative methods that are based on actual long-term costs of occupied space: • Charge by area used by each boat in square foot/meter (slip length x width) given that boats have grown longer and wider. • Where dredging cost is a factor for deeper vessels and those with keels, charge by cubic volume foot/meter (depth x area). Neil Ross, RI MARINA SITING & DESIGN Price dockage as a commodity, but priced locally. Charge the price that will generate 95% seasonal occupancy at a specific marina. Another market only a few miles away may price at half or twice as much. Dave Irish, MI Do not assume that your marina needs to sell fuel. Boaters will travel to get fuel. Low volume fueling stations are big money losers. Dave Irish, MI Location, location, location still is the best key to marina success. It must be located on a wellprotected waterway that opens to large water bodies suitable for recreational boating. The marina must also be easily accessible to large population centers where people live. For the marina to become an effective, efficient business, it must first be well designed by experienced marina professional engineers and built with products that will give a long service life. MARINA SITE LOCATION They’re not making more coastal land. This is generally true, however some few places have added waterfront land at great cost. Venetian canal developments are found in Europe, Florida, and Dominican Republic. The United Arab Emirates has created new islands for homes and boats. Neil Ross, RI Marinas are water-dependent uses that can only operate at the shore and thus should get Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 4 land use priority. Water-enhanced uses gain value from being beside the water but do not need to be there. Common examples are hotels, condominium apartments and restaurants, that could be located inland. Water-independent uses are those that gain neither value nor benefit from a waterfront location, such as a parking lot, furniture store, or McDonalds that all should be located inland. Neil Ross, RI Look at existing developed areas (called greyfields) before new areas are used. It is not only the environment of where the marina is, but what other areas are you opening up to access that need to be considered and managed appropriately. Pam Rubinoff, RI Convert under utilized or abandoned sites to marinas, including urban commercial waterfronts, industrial brownfields, military bases, shipyards, fishing ports, ferry terminals, and lakes behind dams. Neil Ross, RI Always have a diver inspect the bottom for debris materials thrown over the side by boaters. Yes, they do make many deposits into the Davie Jones storage locker. Larry Halgren, WA Good up front planning, professional engineering, and quality docks/equipment save time and money later. Neil Ross, RI Deep water in a marina has extra expenses, such as needing longer piles and anchoring systems. Bruce Tobiasson, MA A common design error is to make the fairways to narrow to allow easy and safe boat entrance and exit of slips. Bruce Tobiasson, MA Marina developers often do not give enough credit to calculating marina costs. Keep the cost of upland development from being writtenoff onto the marina, if you want the marina to succeed. Slip income is usually not enough to support landside uses. Bruce Tobiasson, MA Any marina market study must look out a minimum of 50-mile radius or more. Bruce Tobiasson, MA Easy land access to the marina is necessary for it to succeed. Bruce Tobiasson, MA It may be less costly to berth large megayachts near the shore. The cost is very high to run thick electric cable and other utilities (including fuel, water, pumpout) to pier ends. Traditionally the largest boats/yachts were placed out at the end of the piers, but today it is changing. Many owners like to show off their boats near to people walking by and to be seen aboard. Bruce Tobiasson, MA WIND, WATER & WAVES Consider wind and wave environment. These are often under appreciated by marina owners. Bruce Tobiasson, MA Water comes in many forms that must be considered before designing the marina: • Liquid, solid ice, steam vapor, falling rain, heavy snow, sweat drops • Calm, storm waves, massive tsunami, long seche lake waves, boat wake, tidal, flowing river current, floods, drought • Chemically salty, fresh, potable, clean, clear, polluted, colored. Allen Wortley, WI Marinas need the same wave protection as marshes do to prosper. • Wave/wind forces are often underestimated, resulting in structural damage to docks and boats, and unhappy boaters. • Often ignored are boat wakes and reflection within the marina basin. Neil Ross, RI Protection is a must. Go the extra mile – do the research, do the engineering – then listen to them! Bill Munger, RI If the site has a potential for wave damage to your marina always hire a professional to do a wind, wave, and current analysis. Larry Halgren, WA Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 5 As boats get bigger, so does their wind profile. In strong winds, large boats put enormous structural pressure on dock and piles. Dock design must factor in storm wind loads. Bruce Tobiasson, MA Without good wind, wave, and ice protection, no marina business can survive. Neil Ross, RI • • • • • • If winter ice is a problem, contact Professor C. Allen Wortley, University of Wisconsin. MARINA DESIGN Design engineers must always visit the site to see the bigger picture. A drawing, chart, or photos from the developer or owner will never show all of the things you could miss by not being able to see in person. Larry Halgren, WA Marinas are site specific. Each situation is different and needs different designs. Daniel Natchez, NY Build to what the market demands, and not to the developer’s perception of what boating should be like. Dennis Kissman, FL Design to your boating market for today’s customers and those who will use the marina over the next 25+ years. What you build now should be able to work for boaters in 25 to 40 years, if well designed. Neil Ross, RI Define and design the facility for its prime use depending on location and market. • Marina - boat storage, slips, moorings, access to water, limited services • Boatyard – maintenance and repair services to boats, engines, and equipment; no storage • Full service marina - combination marina storage and boatyard services • Dry stack marina - vertical rack storage • Dry land marina - boats stored on stand, cradle, or trailer • Mooring basin - single or multiple boat anchorage Homeport marina – where boats cruising out of to other places, and returning to Residential marina - liveaboard, houseboat Destination marina - transient visitor dockage usually in tourist area Stopover marina - overnight transient layover stop while cruising to another place Seasonal marina - slip rental by boating season Year-round marina - slip rental month to month Neil Ross, RI Consider the purpose of the marina before designing. Are the docks and boats to enhance the value and esthetics of a landside development? Is it to be a full-service marina that provides boat maintenance, repair, and storage services, or a homeport marina? These will affect the costs and economics of the business. Bruce Tobiasson, MA The smallest slip sizes in most new and upgrading coastal marinas today are 40’+. Anything less will not be fully used. When I started working with marinas in the early 1970s the average size boat was 25 to 30’ long. Neil Ross, RI Marina fuel storage tanks, in or above ground, must be located for easy access by delivery trucks year round. Bruce Tobiasson, MA Design the marina to allow fire truck access to the entire marina and for firemen with equipment out onto all the docks. Fire fighting can be difficult when piers and docks are very long or obstructed. Bruce Tobiasson, MA I have found the rectangle to be the most practical and efficient design for a marina basin. Dennis Kissman, FL Great effort should be placed on buying a dock system, usually floating, that is good looking, safe, and will last along time. Current designs are good for at least 40 years. Much different than early days when 10 years life was hoped for. Fred Hunt, OH Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 6 Consider narrow mooring fingers for your marina, either new or in a rebuild. This is a space saving northern European design. Our experience is that US boaters accept them, at least to a certain extent. Dave Irish, MI Boats continue to get bigger, wider, and demand more electricity every year. Jim Frye, VA General automobile parking ratio is one car space per two boat slips (0.5 car/boat berth). Most boats are unused most days of the boating season without any cars parked. Busiest parking demand will be mid-afternoon on weekends during great boating weather. The very few peak parking days will be on national holidays and special events, and even then less than half the boats will be used. Parking is often over estimated by government permit agencies who want more car parking spaces than are needed. However, since land is so valuable, owners do not want to waste extra space for empty parking lots. (Restaurants, public fishing piers, and nautical shops may need additional parking spaces in addition to those just for the marina.) Locate parking off the waterfront and let people use the area along the bulkhead. Neil Ross, RI MARINA DREDGING Dredging – avoid it if possible. Wherever a hole is dug in the sea floor, nature will work endlessly, slowly, to fill it in again. Dredging once usually means maintenance dredging will be needed in the future. Never use the term dredge spoils, instead use dredge materials or soils. The word spoils implies contamination, spoils public perception of the marina-dredging project, that can lead to costly studies and delays. Neil Ross, RI If you are buying a marina, always have a hydrographic study performed to be sure the water is as deep as the owner is telling you it is. Larry Halgren, WA Generally, the marina does not need more than 10-12 feet/3-4 m depths. Many megayachts only draw about 4’/1.2 m depth. The exceptions are deep keel sailboats and super large mega-yachts. Bruce Tobiasson, MA New or re-habilitated marinas never are dredged deep enough. Dredge deeper from the start, by far the most economical time it can ever be done. If you think you need 6', dredge initially to 10'. I have made this mistake more than once. Dave Irish, MI Advanced maintenance dredging - The additional depth and/or width specified to be dredged beyond the project channel dimensions for the purpose of reducing overall maintenance costs by decreasing the frequency of dredging. US Army Corps of Engineers http://chl.erdc.usace.army.mil/glossary A quick and sure exit from the marina business comes from failure to maintain adequate water depth. Nothing is more important, or often harder to do. Dave Irish, MI Do a pre-construction and post-dredging hydrographic survey of the bottom. Use a chain dragline after dredging to locate any newly uncovered obstructions, such as old pile stubs and rocks that boats could hit at low water. Bruce Tobiasson, MA Determine where any silt comes from and the estimated the rate of deposit before dredging. Bruce Tobiasson, MA Understand that there may be a narrow window of time (one or a few months annually) when government will permit dredging because of environmental concerns. Bruce Tobiasson, MA The cost of dredging is based on the number of cubic yards/meters of material dug out. These costs can add up quickly. Most contractors will over dredge to be sure to get to the permitted depth. Where you are going to dispose/deposit the dredged soils can radically raise costs. Bruce Tobiasson, MA Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 7 Fred Hunt, OH Reuse dredge soil materials whenever possible. Neil Ross, RI MARINA PLANNING Planning must be based on results of a good market demand study. Bruce Tobiasson, MA The main purpose of having a marina is to have a safe place to park your boat. All the flowers, buildings, restrooms, etc. are there to support the parking spaces for boats. Fred Hunt, OH Marinas need to multi-task with several different profit centers, such as boat hauling, maintenance, land storage, retail sales, etc. Bruce Tobiasson, MA A good marina design engineer will help educate the owner/developer by asking the right questions before making any plans. Bruce Tobiasson, MA Plan for increases in boat size and services. In the future, marinas will be totally involved with the issues of sustainability. Allen Wortley, WI A dock buyer must know what they want and write or receive from the builder a good set of specifications with specific requirements. At one time specifications merely called for certain sizing and materials. Today’s best specifications call for certain performances that can be easily checked by the buyer. Typically, this would include deflections at the ends of fingers. Fred Hunt, OH In addition to performances, certain qualities of materials have become standard particularly with floatation, including: • Minimum thickness of float encasements, • Maximum absorption of water in the foam, and • Actual tank testing results for listed buoyancy. The buyer must specify what they want and expect to get, or they will have to accept anything that the dock builder gives them. Let the marina dock buyer beware, especially from the small, less experienced builder. Fred Hunt, OH If there are strong objectors to proposed expansion, they often come from neighboring people and businesses within sight of the marina. It helps to be a good neighbor and to meet with them well before proposals go public. Nothing fires up a public hearing more than upset neighbors who first learned about a marina proposal in the newspaper. Neil Ross, RI MARINA COST Buying a marina at an overpriced cost is a sure way to lose money and the business. No marina has enough income potential to pay off super inflated prices (plus property taxes) often associated with waterfront land. Neil Ross, RI If you must build a new marina, dredge it, and add a breakwater, the cost of all three will probably fail the business. • The first owner builds the essential infrastructure, and then goes bust. • The second owner buys it below cost, finishes construction, adds improvements, and fails. • The third owner buys the marina at a low, distressed price, and has a better chance to make a profit. Anonymous marina owner, RI The best dock systems often come from companies who have been in business the longest and have built the most docks. Dock builders have more than one design - the old good, better, and best. The better the dock system, the more it costs. Fred Hunt, OH You will always be "shocked" by the cost of up-dating your marina electrical system, and your existing system will always fail to meet electrical code in some way. Dave Irish, MI Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 8 The cost of the materials to build a marina is pretty much the same, no matter where you are and what the market rates are that you’ll be able to charge. It is best to develop properties in strong rental markets. Jim Frye, VA First class marinas can charge first class marina rates; don’t scrimp on quality construction and amenities. Jim Frye, VA MARINA ENVIRONMENT Since the 1990s, the most critical issue facing both new marina development and existing operations has been the environment. When the environmental awareness movement gained momentum in the 1970s, the large, heavy volume point-source polluters were the main regulatory targets, including big industry, smokestack factories, and failing municipal sewage treatment plants. In the mid-1980s the environmental regulatory programs got up to planning speed, and down shifted focus to stormwater runoff and smaller scale non-point polluters. Marinas and boating were targeted as highly visible polluters. Yet, the boating industry in general didn’t want to get involved and feared having to make changes that would put them out of business. As pressure mounted in the 1990s, the marina industry was the first to react. Slowly at first, the top marina owners realized resistance was futile and began proactive improvements to clean up. By the end of the 20th Century, and more so in this decade, marinas have embraced the clean water philosophy and began taking positive action with its Clean Marina and Clean Boating programs. Marinas have discovered that going clean is good for business and attracts better customers. Boaters have a closeness to nature that makes them appreciate keeping the waters unpolluted and environment clean. People are reacting positively to the clean boating movement. Boaters have become better stewards of, and strong advocates for clean water quality. Green vs. clean bottom line - Green colored water usually is so polluted that algae grows out of control. What we really want is clean water, not over fertilized green water. The US EPA, Fish & Wildlife Service, and most states have agreed on achieving clean water goals through clean marinas and clean boating programs. Let the earth be green, but keep the water clean. Neil Ross, RI Environmental impacts from marinas and boats are very small, but real. • Pollution is a byproduct of human activity; nature does not pollute, only people does. • Harmful impacts can include damage from toxic chemicals, turbidity, smothering, over heating, low oxygen (anoxia), noxious fumes, litter, and mechanical crushing. • Pollution often can be easily prevented, controlled, and cleaned up at reasonable or low costs. • Impacts can also be positive; some examples are the creation of artificial fishing reefs beneath the docks, on piles, and bulkhead materials, and shading that attracts fish. • Clean water is essential to good boating and profitable marina business. Neil Ross, RI Marina operators are stewards of the environment. They are the ones managing the interface between the land and water, and in many cases mitigating the impacts that are coming from upstream flow into the marina’s water. Jim Frye, VA A well-designed marina can actually enhance the water front environment. Jim Frye, VA Always have a plan to present to the permit agencies that is reasonable, can be scaled back, and includes something for the public benefit. The latter usually is added when the agency has done the first or second push back of your proposal. Larry Halgren, WA Environmental concerns and regulations can become over bearing and nearly impossible to live with. Bruce Tobiasson, MA Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 9 Always make the environment better when you are done than when you started. Larry Halgren, WA Objectors will use environmental issues as arguments against marina development or changes. NIMBY (Not In My Back Yard) is often the real root cause for objection, but not a valid argument; environment is. Always prepare a good environmental assessment study before formerly going public with the design permit application Neil Ross, RI Involve your boating customers and staff in environmental education about the marina, and how they can play a key role in it’s protection. Lead by owner/manager example, and train your staff to do the same thing. Larry Halgren, WA Marinas that are managed properly will have a very positive impact on the environment – more fish, more birds & wildlife, and likely more vegetation & green than from previous uses. Bill Munger, RI Provide free pumpouts for regular customers. Locate the pumpout so the service is very convenient or it won’t be used much. The fuel dock is an excellent location for pumping out for smaller boats. Give pumpouts to all boats 45’ and longer in slips piped for this service. Staff does the pumpout; customers just do not want to; and the tips are big. Neil Ross, RI It is time for the United States to adopt nationwide no-discharge, as has been done in Canada. The Great Lakes and New England states are leading the way. Let’s finally eliminate boat sewage discharge in all waters of the nation. Neil Ross, RI Boaters all want to recycle trash just provide the containers. Provide clearly marked recycle bins throughout the marina for glass, metal, plastic, paper. George Bassett, MA Empty trash containers frequently, and always before they overflow. Use containers that have lids to keep birds and wind from scattering litter. Neil Ross, RI Boating is good clean fun. Lets keep it that way. National Clean Boating Campaign slogan MARINA MANAGEMENT Good marinas, well sited and built, only can become successful businesses when they have effective, trained management teams that educate their staff and cater to customer service. Managers must have good written guidelines, emergency, and environmental contingency plans, and provide wet/dry storage of boats. Years ago managers were focused on caring for boats, giving good repair service, and keeping docks floating and charging a low price. They did good work on boats, and tolerated customers. Today’s market is service oriented for boating families. Marina success is more art than science. Marinas are in the hospitality business that must focus on servicing people who own and use boats. Neil Ross, RI Every marina is site specific. Determine what you can do better than anyone else and concentrate on where you can have the most control. Tom Cox, MA Education and training is essential for great management. Hire an International Marina Institute professionally Certified Marina Manager (CMM), become one yourself, or have your top manager work toward receiving CMM professional recognition. Neil Ross, RI Always improve yourself, your staff, and your facility. Tom Cox, MA Hire GREAT employees, pay them well, and TRAIN them before the season starts. I bring all staff in two weeks before kick-off to make sure they are trained and ready. George Bassett, MA Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 10 Marinas are in the hospitality business and our customers have many choices for their recreational dollars. Treat your customers well. Tom Cox, MA Management by walking around is always a top priority. Make an effort to walk the docks each and every day -twice a day on the weekends- just to talk to customers and address any issues that may come up and keep the lines of communication open. Tom Cox, MA Customer service is not very expensive and can increase income and satisfaction. Send staff to meet and guide each boat into its slip. Bruce Tobiasson, MA HOSPITALITY is the name of the game. Listen to their complaints thoroughly before answering; then correct or take positive action. George Bassett, MA Develop a Mission Statement with your staff, make sure they are part of the process, and “own” the document. Tom Cox, MA Two mission statements to LIVE by: • Create memorable experiences by exceeding expectations. • Show good S.P.I.R.I.T. o S = Smile, o P = Positive Attitude o I = Initiate eye contact o R = Remember the guest name (important) o I = In a crisp and clean uniform o T = Teamwork. George Bassett, MA Teach your employees to call your customers by their first name. Set your point-of-sale software to instantly bring up a persons name when you enter a slip number, boat name, or some other reference point. Larry Halgren, WA Always remember to give the customer his favorite slip back year after year. Anticipate their needs. George Bassett, MA No one should ever “retire” into the marina business. Jim Frye, VA Provide a good Concierge Service, especially in destination marinas. Give staff assistance on and off the docks, including the fuel dock, pumpout, immaculate bathrooms, clean shower facilities, rubbish removal, and reservations for restaurants, theaters, and car rentals. George Bassett, MA Management must make every effort to maintain a friendly environment. • Yes, we Can! • How can we help you! • Do it right the first time. • Credit the billing hiccups with a smile. • Your guests expect 5-star hotel environment and service – aim high. • Refer to customers as marina “guests” and treat them as such. Bill Munger, RI Boaters expect more than just a place to dock their boat in a marina; the marina has become a social gathering place. There is a catch here though, most of the marketing of additional amenities are targeted to the condo dock and rack market, such as clubhouses and pools, tennis etc. In reality, these people have better facilities at their homes than the marina can offer, and will rarely use the marina facilities. The average boater uses these types of amenities. It gives them a higher social status, something they typically do not have at home, or an alternative place to enjoy these amenities. Dennis Kissman, FL Educate your customer. Every boat that arrives gets a Marina Welcome Bag filled with goodies, maps, and all the rules for recycling, pumpout, environment, and town maps. VIP packages go to the big boats and returning guests. Hand written thank you notes go to select customers, while all new customers get letters before they arrive. Managers should not hide; customers want to see you. Make rounds every day throughout the marina to say hello, meet, and greet all boaters. George Bassett, MA Know your customer. Boat owners are the captain of their vessel, regardless of size or type. Never place them in a compromising position Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 11 when operating their boat in your marina. Know their limitations on boat handling. Dennis Kissman, FL Great managers can administer the business while entertaining the customers. Jim Frye, VA Customer service – Not lip service. Teach every employee how to be an ambassador and to champion the cause for knock your socks off customer service. Happy customers will be willing to put up with a lot of things, including higher moorage fees, and they will also tell all there boating friends how great your facility is. Larry Halgren, WA Professional management often yields a better marina experience, and a more profitable one as well. Jim Frye, VA A great transient visitor service is to provide quick, timely check in and check out. Greet every arriving boat at slip-side, assist with lines and power hook ups. Provide check-in onboard their boat using their credit card and get a signature. In ten minutes their vacation starts. Customers do not have to check out as we have all their information, and will mail them a bill copy. Keep in mind Nantucket Boat Basin is 70% Transient, 30% seasonal. In the boating season we change over an average of 40 boats per day; that is 40 leaving and 40 coming; so it is actually handling or servicing 80 boats on a daily basis. Sometimes we get upwards of 60 coming and 60 going per day. George Bassett, MA We like some liveaboard boaters for giving extra security measures. In addition, I trade off one off-season slip to one guy who cleans the heads all winter! We have three winterized bathrooms for use. George Bassett, MA No matter what your position is in the marina organization, be observant of your surroundings and take responsibility. When something is not right do not ignore it. Either correct it immediately if you can, or bring it to the attention of someone that can. For example: • Litter; if you see trash, you own it then take care of it. • If you see a loose or frayed dock line on a customer’s boat, take care of it. Dennis Kissman, FL Have a solid License Agreement for customers and outside venders, update it frequently, and stick to it. Tom Cox, MA Select and train good employees. Each employee represents you and your company and usually gives the first impression to the guest, so make it positive the first time. George Bassett, MA Good practices and rules are great, but you need full buy-in from management and training of employees. Pam Rubinoff, RI Know when to fire a terrible employee, and don’t ever think it will get any better than it is today. Larry Halgren, WA MARINA SOCIAL VALUES Boating is a social activity that involves safely using a vessel on water bodies. Boats are the means to many ends, e.g. cruising to interesting places, fishing for fun or food, racing competitively, taking the family with friends to deserted islands, swimming in clean water away from crowds, sleeping aboard a weekend cottage that floats and moves, and more. Recreation is to escape from routine life, work, and everyday demands for time to recreate oneself. In the process of boating, people gain important unique benefits of recreation, relaxation, challenge, thrills, escape, pride, therapy, and time to think alone. We tend to think of recreational boating as a 20th Century invention, but it is not. Court documents in a Maine legal case, circa 1640, found that the public has a right to access tidal shores for purposes of harvesting seaweed, Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 12 fishing, and recreational boating. While I find it hard to imagine Puritans and early settlers having any fun time, the court decided it important enough to rule that people can get shore access for recreational boating. Beyond benefits to individuals, boating gives wider social values that can help many communities and millions of citizens. Marinas are the gateways to the water and thus the key to positive social values. There is a natural basic need for people to get back to the sea. People get many benefits from being in, on, or just seeing water. Water is interesting, relaxing, exciting, challenging, therapeutic, and natural to people. Bruce Tobiasson, MA Mankind needs leisure. Water access is essential for mankind, be it seeing, smelling, fishing, sailing, ice skating, swimming, diving, and on and on. Leisure! Allen Wortley, WI Enhance the access – you are the gate keeper – make it nice & friendly. Do the very best you can with what you have. Bill Munger, RI Marinas are the hourglass of boating access. Like the narrow neck of the hourglass, people with boats go out onto waterways and return back through marinas. As marina capacity increases, more people get boating access, but if it shrinks, so do the number of boaters and guests decrease. Neil Ross, RI Marinas are gateways to the nation’s waterways and marina operators play host to the boating experience. Jim Frye, VA I believe very strongly in public access. Every boater in the marina provides opportunities for the public to enjoy the marina and nearby boating waters. Larry Halgren, WA The average boat takes out 30 or more people, one or more times per year. Multiply the number of boats in a marina by 30 for an estimate of the total number of people who go out on boats from that facility. Example: 250 boats = 7,500 people. Often marina owners and government agencies do not understand and only count the number of boats as mistakenly representing access numbers. Neil Ross, RI Provide activities or playground equipment for kids to have fun as well and to get them away from the parents so they have a break as well. Larry Halgren, WA Think of how the marina can link into the community needs for public access. For example, how can the marina help accommodate for local livelihoods and artesianal fisheries. Pam Rubinoff, RI Emphasize the social value - that marinas provide access by members of the public to the public waters. As launch ramps do for the public who own trailerable boats, so do mooring fields and docks also provide public access for bigger boat users. Dave Irish, MI Marinas... an important part of your waterfront. Marinas... communities of families and friends. Marinas... gateways to recreational boating. Marinas... access to a variety of recreational activities. Marinas... providers of a variety of important services. Marinas... stewards of the environment for future generations. Marinas... partners with governments across the country. Marinas... forces of economic growth and stability Marinas... employment opportunities for local citizens. Marinas... an important part of your waterfront community! 2008 National Marina Day https://www.marinaassociation.org/nmd/ Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 13 BOATS & BOATERS Who goes boating? Nearly every segment of society goes boating on a wide variety of craft, ranging from small kayaks to mega yachts, fast speedboats to slow sailboats, sport fishing boats to wind surfers, canoes to wakeboards. They go on lakes, oceans, rivers, bays, and ponds. Fresh and salt water is really a matter of location and taste. Males have traditionally dominated boat ownership, but more and more women are buyers. Age is not a determiner of who uses boats. Small children float rubber boats in the bathtub. As they grow, kids play with toy sailboats at the beach, and then later drive radio-controlled motorboats on a pond. Scouts master the rowboat and canoe. Many teens take sailing courses and learn to solo. Older teens drive dad’s outboard boat. As we mature and earn salaries, we buy trailered boats, gradually upgrading to ever bigger boats. Then in our elderly years, we go back to smaller, easier to use boats. One need not be rich to own a large boat (mega yachts are an exception). A study of southern New England boat owners found that many people who could afford large yachts, instead owned small boats. Relatively lowincome people owned bigger boats than expected. Statistically there was no direct relationship between income and boat size. The diversity of the types of people who go boating is huge. Bruce Tobiasson, MA People like to own boats. However, as cost of ownership increases, multiple owner boats (partnering or fractional ownership) is increasing, while renting and chartering boats will grow. Neil Ross, RI Boating is an expensive hobby that can be hard to justify on an economic basis. Nevertheless, the social values of being aboard the boat make the cost worth the time and experience for people. Many just enjoy puttering around their boats, while others enjoy the challenge of a good regatta race, fishing, cruising, and even riding quietly at anchor. Bruce Tobiasson, MA Boating isn’t easy or cheap; it’s hard work and requires a significant commitment of time and resources. Jim Frye, VA If boat owners ever compared the total annual cost of ownership to the actual number of days used per year, they would be aghast. This is especially true for sport anglers on the basis of cost per pound of fish caught, Anonymous marina owner in 1969, MA No boat can enter or leave a slip without an audience watching. If you want a good laugh, go to a launch ramp to watch what happens there. Anonymous marina manager When operating a boat, always remember that go fast things happen fast --- go slow things don’t happen! This applies also to using a forklift, car, airplane, lawn mower --- you get the point. Larry Halgren, WA Beginning boaters can have difficulty. (Professionals can too occasionally.) Help them. Make them look good. Bill Munger, RI Better boater education is needed to teach owners to handle their own boats. Most boat owners never learn to drive or sail their boat very well. They get little or no boat handling training from boat dealers, that consequently results in frustration, fear of use, scared families, boat damage, some injuries, gradual decreasing boat use, eventually quitting the sport, and selling the boat at a loss. Neil Ross, RI Marinas are the best places to train people how to operate boats. Offer a Boating Pro service and profit center, like golf pro, ski pro, scuba pro, that gives hands-on training in the owners boat, by a paid, licensed, professional captain. Neil Ross, RI Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 14 Linking with local non-profit educational groups for mutual assistance can make a great opportunity for public outreach. Use boater education as a way to engage in larger environmental and social issues surrounding the marina environment in the region. This can include working on policies related to fishing, boating, and marine protected areas and issues. Pam Rubinoff, RI The first year of experience operating a boat becomes the owner’s baseline for how crowded the waterway is. Neil Ross, RI Boaters are a fickle group that may come and go with the breeze. Jim Frye, VA The boat is no longer just a boat. For many owners it is their palace on the water. Bruce Tobiasson, MA Most of the boating goes on at the dock. Jim Frye, VA Most boats sit empty and unused most days of the boating season/year. Neil Ross, RI Don't forget who owns the marina. Seasonal renters will colonize THEIR slip and resist your governance of their use. Be prepared to fire an unsatisfactory customer. Dave Irish, MI Be certain to provide a space for boaters to work (includes tinkering) on their boat. It is often the most important part of their boating experience. Jim Frye, VA Some seasonal slip renters actively prefer to have their boat moored in a working boatyard environment instead of a quiet marina-only location. Dave Irish, MI A boat can be a source of pride or frustration. Often a good marina operator can influence which result. Jim Frye, VA WHAT’S AHEAD FOR MARINAS? MARINAS ARE CHANGING A business fact of life is that every marina is in a continual state of being rebuilt. Older marinas, when doing major repairs over time, will be near totally rebuilt just to keep up with new market demands, safety, and environmental standards. Almost all new and rebuilt marinas will have their smallest slips starting 45’ to 50’ length and above. This size change will push smaller boats off the water, decrease availability to the less affluent, and reduce the total number of boats kept in any marina that cannot expand its water use area. SHORESIDE LAND COMPETITION Sky rocketing coastal land values in most states are making marinas less competitive for new land purchase when faced with condominium development that typically can pay the highest price. Positive note: The current recession, however, may bring redevelopment pressure and coastal land prices down, temporarily. Older marinas and boatyards are more likely to be bought out for land redevelopment. As the second and third generation of family owned marinas approach retirement over the next 10-20 years, will a fourth generation take over, or sell to the highest offer? I predict a loss of many small, older marinas for conversion into primarily non-boating uses, resulting in significantly less boating capacity, unless government regulatory agencies do something different to protect water-dependent marinas. WHERE WILL ALL NEW BOATS GO? As boat slip size increases, fewer boats can be berthed in the same size marina basin. If the number of marinas decrease and limited new Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 15 marina capacity is forecast, how can boating grow significantly? Possible answers include: • Increase the number and size of public launch ramps, • Dry stack/rack storage of small trailerable boats 25 to 40’, • Dry land storage for boats 40’ to 70’+ on trailers or special racks. GROWING MINORITY BOATING Afro-American blacks have long been an important but small segment of some urban boating markets. Increasing numbers of them are buying greater numbers of boats. Women will become a much larger part of the boat owning and using public, but probably will not reach 50% for several decades, if ever. Hispanics/Latinos are the new and expanding national market for boating and marinas well beyond the southern Border States. In response, the BoatUS Foundation has four Spanish language brochures designed to bring safety and environmental boating messages to the fastest growing minority in the country. They recognize that Spanish is now the second most common language in the US and on boats. Other immigrant groups, such as Southeast Asians, Koreans, Africans, and others will eventually want to fully participate in American way of life that can include boating and fishing. In 30 to 50 years, the boat owning population will look more like the general population, instead of primarily those of white European descent. Renting boats by the day, week, or month can become as common as renting a car in Florida or other tourist destinations, A newer option is to partner with others in a group purchase of a vessel (called fractional ownership). This is similar to time-sharing a condo apartment. Partnering can significantly cut the upfront and annual cost to each family. In both renting and time-sharing, the annual costs are significantly less than owning, while per use day costs are greater. In the real world of boating, most boats sit empty and unused most days during the boating season. Nevertheless, just as each American has a love for owning a car, we also like owning my boat. Future cost realities, with limited entry boating, may well force many current and future boaters to reconsider the wisdom of owning a high cost boat that may only be used a few days per year. Many millions of people never own a boat, but they do go boating aboard a charter fishing boat, harbor cruise, ferry, charter boat, or least expensive of all, a friend’s boat. It is estimated that one third of the US population goes boating each year, but most do not own the vessel. They are very much part of the hidden boating market. ARE MARINAS GOING TO SURVIVE? Some will close, but not many. In fact, the vast majority of marinas, particularly full service ones, are the most solid part of the boating industry. While marinas are generally not great profit generators, their income is reasonably steady even in recessions, and they have proven stable through the tough years. NON-OWNED BOAT OPTIONS Today the vast majority of boats are user owned. However with increasing cost of buying, maintaining, storing, and operating boats, in an industry facing greater waterfront space competition, escalating regulatory costs, slowing growth, less slip room for small boats, there are other options for future boaters. “I would predict that every marina that exists today will have had at least one more remodel before 2034. We will continue to have problems with dredging, and the few remaining sites will become extremely difficult to develop into floating marinas. We have seen a unique concept being applied here in the Northwest and that is storing really large boats, from 30 to 70 on shore on large gravel parking lots with ramps Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 16 they back up to for the owners to go up and down stairs to access the boat while dry land boating. This has also had a large impact on boat sales with brokers now opting to keep boats hauled out so the prospective buyer can see the entire boat and when he is ready for a sea trial they launch the boat in about 15 minutes on special self propelled hydraulic submersible trailers on a large boat ramp.” Larry Halgren, WA MARINA FUTURE IS BRIGHT I believe recreation boating will always be a fun part of our lives, it will continue changing, be subject to wide economic ups and downs, and have escalating costs. Boating is so important to public recreation that it will never go out of business. However, it will likely cost much, much more to enjoy. Where there is boating, there will always be marinas. Marina history clearly shows that technology, services, costs, and management keeps improving, and that will continue. However, one constant is that marinas are the prime gateways to boating waterways. Marinas are vital to our economy, society, recreation, and they are good businesses now and in the future. FINAL THANKS Congratulations to the University of Wisconsin-Madison and it’s Professor C. Allen Wortley for helping to spread marina professional technology worldwide. Several thousand marina professionals have learned new approaches to old problems here. Many marina experts first met in Madison and later collaborated to create new concepts, studies, programs, and improved technology that made marinas better. As a result, many millions of boaters have benefited globally and the marina industry is more sophisticated and stronger thanks to The University of Wisconsin’s well organized and very effective Department of Engineering Professional Development. JOB WELL DONE! My very special personal appreciation to Al Wortley. It has been a pleasure and honor to be part of this fun process since 1976, sharing it with you and the many marina friends and colleagues you’ve brought to Madison. Al, you have been a valued collaborator, helpful educator, encouraging colleague, and great friend. Thanks. Neil Ross 2008 Neil Ross, Fundamental Truths About Marinas, Past, Present & Future -- -- page 17