Courtesy of Dr.Ruben
hoppenstein
Yachting contributes
$80 million in spin off income to the island
each year. Here, $2 billion dollars of yachts
moor at the Yacht Club Isle de Sol where a
new luxury hotel/condo will open 2009. |
Mega yachts are a recession-proof
business. As both the quantity and size of yachts
increase, their owners are constantly seeking more
exotic locations that can cater to their every whim.
The yachting industry generates $80
million dollars of spin-off income to the island
and it affects nearly every sector of the economy,
from the food and supplies needed to re-supply yachts
to the dollars paid to restaurants, shops and clubs.
Approximately 400-500 yachts frequent the island
during the season and that number grows every year.
The last few years have brought an
influx of capital to the sector. New marinas have
been built and old ones have been expanded as the
island vies for the coveted title of the Caribbean’s
mega yachting hub. Its strategy is working as all
of the marinas are currently sold out.
The Dutch side of Sint Maarten has
10 marinas including: Bobby’s Marina, Captain
Oliver’s Marina, Dock Maarten, Island Water
World, Lagoon Marina, Palapa Marina, Portofino Marina,
Simpson Bay Marina, The Yacht Club Isle de Sol,
and The Yacht Club Port de Plaisance. On the French
side, there are three marinas: Marina Fort Louis,
Port de Lonvilliers and Port La Royale,
Known as "Mr. Marina", Jeff Boyd, executive
vice president of Island Global Yachting/ Sint Maarten
(IGY), and his team have been instrumental in developing
the sector that has become one of the island’s
major economic growth engines, the marinas.
Boyd, also President of the Sint
Maarten Marine Trades Association, credits his success
on Sint Maarten to the group of people that he works
with. "They are like family."
Boyd first came to Sint Maarten/Saint
Martin in 1990 to run the service department and
the boat yard at Island Water World. He left in
1994 and came back in 1999 to reopen Port de Plaisance.
He also formed Caribbean Marine Management and Consulting
(CMMC) with local people and began building the
foundation for further marina development. In 2004,
CMMC merged with Island Global Yachting, part of
the Island Capital Group in New York.
In 2001, Boyd was asked to build
Port de Plaisance North. A $10 million dollar investment,
the marina is capable of handling 60 yachts, 40
of which can be mega yachts.
Completed in a record seven months,
it is now home to the Sint Maarten Charter Yacht
Exhibition.
In 2002, Dr. Ruben Hoppenstein, owner of the Isle
de Sol property, asked Boyd to build him a $12 million
dollar, 45 slip mega yacht marina.
"It became apparent that in
building these marinas, if Sint Maarten was to continue
to grow, the biggest limiting factor was the bridge
(at Simpson Bay)," stated Boyd.
At the time, Michael Ferrier was
a Commissioner in the Island Government. Owner of
Napa Auto, Truck and Marine Parts and one of the
founders of the Sint Maarten Hospitality and Tourism
Association (SHTA), he served only one term before
he returned to the private sector. Amongst his varied
portfolios, he oversaw the Simpson Bay Lagoon Authority,
and Traffic and Public Transportation.
Having seen the island through a
slump, due to the institution of a turnover tax
and a series of yearly hurricanes, he saw the growth
of the mega yacht industry as an economic possibility
for the island. It could bring high end tourist
dollars and labor diversification.
Working together, Ferrier and Boyd convinced the
island government and the public that it was a necessary
project. "The biggest challenge was coordinating
all of the sections of government that would be
affected by the project," said Ferrier.
In 2002, the bridge cost $2.3 million
dollars to widen and was financed with soft loans
from the Dutch government. Built at the same time
as the Isle de Sol Marina, the two projects were
completed days apart. Finished in exactly 5 months
and 22 days, the marina nearly reached 100 percent
occupancy before it opened.
"If Ferrier hadn’t gotten
the bridge widened, we would not have the growth
that we have today," said Boyd. He smiles as
he remembers that one of the casinos had a running
bet against him and his team completing the projects
on time.
The Yacht Club Isle de Sol marina
set the standard in the Caribbean for high speed
fueling, offloading nearly10,000 gallons per hour.
Some mega yachts take up to 150,000 gallons of fuel.
Mega yachts, like Limitless and Tatoosh, two of
the world’s largest mega yachts, are regular
customers. "Without Michael Ferrier, we wouldn’t
have done it," said Hoppenstein.
Another of the marina’s very
important features is the facility for the captain
and crew. They have their own club house, complete
with pool, tennis court, lounge, business center
and other amenities. Keeping the crew happy means
that they will encourage their owners to return.
That plan seems to be working; Yacht Club Isle de
Sol and all of Boyd’s surrounding marinas are
sold out.
"We have seen business come to the island.
It has brought back the quality tourism that we
had lost," stated Ferrier.
New shipyard
being built
Ferrier was also instrumental in getting the approvals
for the mega yacht shipyard that is currently being
built by Boyd and his team. Scheduled to be completed
in February or March 2007, the $16 million dollar
project will be the Caribbean’s largest shipyard
and the only one able to haul out 230 foot yachts,
weighing up to 820 tons.
The project will enable yachts to
stay in Sint Maarten for service instead of having
to travel to Fort Lauderdale or Europe. With the
duty free status of the island, parts will be cheaper.
The availability of numerous skilled tradesmen on
the island is also a plus.
According to Brian Deher, manager,
Development Services Island Global Yachting/Sint
Maarten (IGY), it will provide maintenance services
from pressure washing to a complete overhaul. IGY
will not provide all of the services, but will act
as the landlord and allow other companies to come
and perform warranty work. The facility will also
be able to service military boats.
"We have the best of both worlds, we have the
yachts in season and then we have them in the off
season," stated Ferrier.
Dock Maarten
and the Giga Yacht
Deher and his family have been in the real estate
business for many years. Deher is wearing two hats,
one as manager of development services for IGY and
one as manager for his family’s new project,
the Dock Maarten marina.
Projected to be the only marina that
can accommodate the giga or ultra yacht larger than
300 feet, its slip will be 629 feet long. Its length
will enable 6 ultra yachts or 33 normal yachts to
dock.
The closest marina to Saint Barths, it will cater
to a high end, sophisticated clientele with specialty
shops, exclusive restaurants and a spa. While the
new board walk project will connect through their
property, Dock Maarten’s focus will be the
high end cruise ship passenger and the client from
Simpson Bay Lagoon.
IGY will take a minority position
in the Dock Maarten marina facility and will over
see the development, brand and manage it. The investment
is just under $20 million dollars and the surrounding
luxurious real estate project is slated to be $30
million.
"It is a dynamic and cosmopolitan
island and there is always something going on here,"
said Deher.
Bobby’s
Marina
Sir Robert Velazquez, better known as "Bobby"
owns Bobby’s Marina and the water taxi company.
For 20 years, he has supplied U.S. government aircraft,
destroyers and the coast guard. Coming from a sea
faring family, it was natural that he would go into
the business.
Bobby, Koop, the company that is
to build the new Princess Juliana International
Airport, and another investor have partner-built
a $100 million dollar project including a 400 ton
ship lift in the Cole Bay area, a 30 slip mega yacht
marina and 112 condominiums that will sell for between
$400,000 - $1 million dollars. The project involves
replacing the wooden docks with cement ones, changing
the canal, installing 50 retail spaces and a gym.
Other IGY projects
Currently managing the Yacht Club Isle de Sol, Yacht
Club Port de Plaisance, Portofino Marina, building
the new Simpson Bay shipyard and working on Dock
Maarten, Boyd and his team now travel the world
doing consulting. One of IGY’s projects currently
includes the 42,000 slips it is building in marinas
in Dubai.
In Sint Maarten, IGY is also involved
in Orient Express’ new Cupecoy Yacht Club.
It has designed and will build and manage the marina
facility.
"Island time is a myth for people
on vacation. My team and I probably work more hours
than anybody on Wall Street!" said Boyd.
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St. Maarten
