Direct, Indirect and Induced financial impact: US $495 million
Added value: US $237 million
Jobs Created: 4,769
Accounts for 16.3% of the island’s GDP!
The yachting and maritime sector is a vital pillar of Sint Maarten’s economy, showcasing how strategic investment in infrastructure can fuel sustained growth. Over the past four decades, the island has transformed into a premier hub for yachts, superyachts, and maritime services, attracting global attention and generating significant economic benefits. From the government’s pivotal dredging of the Simpson Bay Lagoon and the installation of the iconic Simpson Bay Bridge to the flourishing private investments in marinas and boatyards, the sector’s development reflects the power of collaboration between public and private stakeholders. This economic Impact study of the sector, as announced by Minister of Tourism, Economic Affairs, Transport, and Telecommunication (TEATT), Grisha Heyliger-Marten, delves into the economic impact, opportunities, and challenges within Sint Maarten’s marine industry, offering a comprehensive analysis of how targeted investment continues to drive growth and innovation.
On Wednesday, December 11 Minister of Tourism, Economic Affairs, Transport, and Telecommunication (TEATT), Grisha Heyliger-Marten, unveiled the findings of the latest Yachting and Maritime Sector Economic Impact Study. Conducted by EcoSustainAbility and Acorn Tourism Consulting, the study was a collaborative effort between the Ministry of TEATT, Port St. Maarten, and the Sint Maarten Marine Trades Association.
The study provides a comprehensive analysis of the economic contributions of the yachting and maritime sector, utilizing modern methodologies and data collection techniques that enhance the accuracy of the findings. According to the Minister the study will be available for download on the government’s website. The in-depth study is 115 pages.
Economic Contributions
The study estimates that Sint Maarten’s yachting and maritime sector contributes 16.3% to the nation’s Gross Domestic Product (GDP). Direct expenditures from visiting yachts generate a total industry turnover multiplier of 2.05, meaning every dollar spent directly by visitors stimulates an additional $1.05 in economic activity.
The sector supports 4,769 jobs, accounting for direct, indirect, and induced employment. For every $1 million in direct expenditure, approximately 19.74 jobs are created.
Key Findings
Room Night Generation: Yachting activities contribute an estimated 202,000 room nights, driven by superyacht crews, motor yacht crews, day-charter visitors, ferry passengers, and international regatta participants, including those from the renowned Heineken Regatta.
Economic Ripple Effects: Indirect activities linked to the yachting sector account for 5.2% of GDP, requiring $157.4 million in additional output and creating 1,215 indirect jobs. Induced impacts add another 3.1% of GDP through local consumption, supporting 784 jobs.
Comparative Context
The study follows previous economic analyses from 2002 and 2012, which identified yachting’s contributions as $54.61 million and $140 million USD, respectively. However, the current study incorporates more rigorous data collection, such as detailed expenditure surveys of visiting yachts and service providers, yielding more precise insights.
Environmental Impacts
This study has not undertaken any review of the environmental impacts of the yachting and maritime sector. However, it is noted that there has been little littoral habitat disturbance of the current marine infrastructure with no significant loss of mangrove, coral reef or seagrass habitat as a direct result of the marinas etc.
Obviously the 1970’s opening of entrance channels (at Simpson Bay and Sandy Ground) into the Simpson Bay lagoon has affected the tidal regime and water exchange. There are water quality challenges in the lagoon however these would appear to mostly be storm and wastewater entering the lagoon from landside developments rather than from yachting. A pump out facility for anchored yachts and those in marinas would serve to mitigate any potential water quality impact from effluent disposal from yachts.
The increase of yachting facilities such as marinas, boatyards and dredged channels and anchorages will need understanding of environmental impacts which can identify mitigation strategies for identified impacts, which may include offsets such as habitat restoration.
Carrying Capacity
The physical carrying capacity for yachting is largely determined by marinas and suitable anchoring space. In the peak season marinas have almost total occupancy and the lagoon and Simpson Bay anchorages are approaching “full”. As such it is reasonable to state that the physical carrying capacity for superyacht and yacht visitors will soon be reached if growth continues.
NOTE: in many seasonal destinations carrying capacity can be increased by extending the visitor season and promoting out of season and shoulder events and “deals”. Unfortunately, the hurricane season limits the ability for extending the visitation period. The construction of further marina capacity would alleviate this.
Tourism and Maritime Synergy
Minister Heyliger-Marten emphasized the interconnectedness of tourism and maritime activities:
“This study underscores the yachting and maritime sector’s crucial role in Sint Maarten’s economy, not just as a driver of GDP but as a vital pillar of our tourism ecosystem.”
With 395,053 stay-over visitors recorded in 2023, the yachting sector’s 395,815 crew and passenger days rival the island’s traditional tourism metrics, cementing its significance.
The Ministry of TEATT aims to leverage these findings to further develop and sustain the sector through enhanced infrastructure, targeted marketing, and policy initiatives.
Sint Maarten’s marine industry has become a cornerstone of the island’s economic growth, thanks to decades of strategic public and private investment in marine infrastructure. From its humble beginnings with pioneers like Sir Bobby Velasquez to modern developments such as Dock Maarten and Blue Pearl Marina, the island’s yachting and maritime sector has flourished alongside its expanding facilities.
A pivotal moment in the sector’s development came with the government’s transformative investment in dredging the Simpson Bay Lagoon entrance and installing the Simpson Bay Bridge. This effort also led to the creation of “Snoopy Island,” a landmark that reshaped the island’s maritime accessibility. Complementary investments in facilities like FKG, Lagoonies, Island Water World, and Budget Marine established the Lagoon-side character that now defines Sint Maarten’s yachting hub.
Today, 15 marinas and three boatyards stand as pillars of the island’s marine industry, representing significant private capital investment. These facilities not only support the needs of motor yachts, sailboats, and superyachts but also drive substantial economic benefits across the local economy. As marine infrastructure enhances services and creates employment opportunities, local businesses, including restaurants, retailers, and suppliers, experience an amplified economic ripple effect.
A Legacy of Growth through Investment
The economic impact of both public and private investment in yachting and maritime infrastructure is clear. Over the past four decades, these efforts have created a robust ecosystem that supports steady economic growth. “Infrastructure investment is among the most powerful and scalable levers of economic growth, with both a long- and short-term impact. Over the longer term, infrastructure drives economic productivity year after year to the tune of 20 to 50 cents on every original dollar invested,” stated the ACEG (2016).
SWOT Analysis of Sint Maarten’s Marine Industry
Trends:
Yachts, including superyachts, are increasing in size.
Multihulls are growing in popularity, and onboard systems are becoming more complex.
Strengths:
Natural anchorages in the bay and lagoon.
Well-developed marina and boatyard facilities.
A diverse range of yacht suppliers and services.
Duty-free status and excellent international air links.
Weaknesses:
Challenges in recruiting, training, and retaining skilled workers.
Increasing competitive pressure on local suppliers.
Limitations due to the depth of the lagoon and width of the Simpson Bay Bridge.
Sovereign risk and entry formalities for yachts.
Opportunities:
Streamlining visas for specialist marine staff.
Establishing marine trade pathways and career opportunities.
Upgrading entry formalities, facilities, and charges.
Expanding superyacht berths and multihull facilities.
Threats:
Security concerns.
Adverse weather conditions.
Global economic fluctuations and navigational channel limitations.
Future Investments for Sustainable Growth
The study concludes that the yachting and maritime industry’s success has been built on the foundation of past capital investments. To sustain and amplify this growth, further investment in infrastructure is essential. Both government-led and public-private partnerships are needed to address emerging challenges and capitalize on opportunities. From upgrading the Simpson Bay Bridge and lagoon channels to creating superyacht-friendly facilities, timely investments will drive Sint Maarten’s marine industry to new heights.
Source: The Peoples Tribune https://www.thepeoplestribunesxm.com
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