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Big boats lead to big money for marinas

Extra-large yachts can bring thousands of dollars to the cities where they drop anchor.

By Christina Silva, Times Staff Writer
Published February 18, 2008

The Port of St. Petersburg wants to attract more yachts like this 280-footer, which could earn the city $20,000 in docking fees.
	[Scott Keeler | Times]

To yacht broker Tom George, the Honda Grand Prix of St. Petersburg means one thing: boats, big ones, and lots of them.

The race attracts dozens of uber-wealthy yachtsmen eager to strike nautical poses and glimpse the racetrack without ever having to step on dry land. To meet the demand, George and other mega-yacht brokers arranged to have a private floating dock set up near the track with slips starting at the discount price of $5,000 per boat.

And he isn't the only one trying to cash in on big yachts.

Yacht clubs and marinas across Tampa Bay are hoping to profit by creating bigger slips and fancier docks, and are revamping their electrical systems to accommodate these jumbos.

"These boats are like their own cities," said George, who is based in Clearwater. "They need fuel, groceries. They bring in a lot of money."

For evidence, look no further than the 280-foot yacht docked at the Port of St. Petersburg.

It looks like a small cruise ship, but it's a cow - a cash cow.

If the boat stays for two months, the city could earn more than $20,000 in docking fees, said Walt Miller, manager of the marina and port for the city.

The money-making potential is so good, officials are considering turning the port into a mega-yacht marina, he said.

"We are very interested in accommodating larger vessels," he said. "It brings people downtown and it is good revenue for the port."

A growing industry

The Harborage Marina in downtown St. Petersburg is also making a play for the big vessels. Right now, the marina can only dock one 150-foot boat at a time, but a new dock, scheduled to open next year, could accommodate up to eight.

"We have had a lot of inquiries for mega-yachts wanting transient service and permanent dockage," said Russell Thompson, general manager of the Harborage. "We want to continue to draw people to this coast and this will do that."

Catering to the affluent might seem counterintuitive in today's lackluster economy, but in fact, mega-yachts are the fastest-growing segment of the boat market, said Ellen Hopkins, spokeswoman for the National Marine Manufacturers Association.

"People who are buying those boats are not going to have their discretionary income impacted by an economic downturn the way someone who might be looking for a boat in a 26-foot range will," she said. "A lot of people like to buy them as a second home."

A mega-yacht refers to any yacht, sail or power, measuring more than 100 feet. In 2006, there were 179 boats larger than 100 feet registered in the United States, compared with 160 in 2005. But these numbers only represent a fraction of the mega-yacht market, because owners tend to register their vessels offshore for tax reasons, Hopkins said.

Many of the colossal cruisers in Tampa Bay are overflow ships from Fort Lauderdale, where a demand for residential waterfront property has contributed to a shortage of oversized-yacht slips.

To capitalize on this growing demand, Tampa Bay will need more that just bigger marinas, said Frank Herhold, executive director of the Marine Industries Association of South Florida.

"You just don't hang out a sign that says 'mega-yachts welcome,' " he said. "Mega-yacht owners are kind of clannish. They consider past experience, they consider new facilities, they consider whether a community is mega-yacht friendly."

Clearing out space

Traditionally, too-small slips, shallow coastal waters and limited electrical systems have made most Tampa Bay marinas inaccessible to mega-yachts. And if a marina can accommodate a mega-yacht owner, there usually isn't enough space for his or her rich friends, too.

That's the case at the Pasadena Yacht & Country Club in Gulfport, where boats up to 140 feet are more than welcome, if they come solo.

"We would like to have them come in whenever," said David Christ, dock master for club. "There is just such a draw when you have huge boats like that. You just walk around and look at it and you are in awe. ... But we don't really have the space to accommodate more than one at a time."

The Clearwater Municipal Marina has space for four 120-foot boats, but the marina can't provide the 200 amps of power most mega-yachts need to plug in, said Beverly Buysse, assistant harbor master. Big boats must use their own generators.

That could soon change. The marina hopes to update its electrical system in the near future, Buysse said.

"If you can get more of these boats in here, that's only a good thing," she said.

Cristina Silva can be reached at 727 893-8846 or csilva@sptimes.com.

[Last modified February 19, 2008, 16:15:00]