AIMEX -

GULF BOATING CONFERENCE PROVIDES INSIGHT TO MIDDLE EAST MARKET  

12 March 2010

A group of AIMEX members attended the 6^th annual Gulf Boating Conference which looked at the current and future trends in the Gulf Yachting Industry. The conference opened with a key note address from Donald Starkey world renown and award winning yacht designer who is now based in Dubai.  Starkey mentioned how his business had slowed down in the last 18 months with 4 major contracts being cancelled due to the GFC however he believed that emerging markets such as India were now starting to bear fruit and he was concentrating on these emerging markets.  This also seemed to be a theme from several other speakers who felt that with the established economies struggling still from the GFC it was important to look at markets that had been overlooked in the past either due to size, lack of infrastructure or the difficulties in dealing in certain countries. The two countries that kept being mentioned as places to target were India and South Korea.  It was also noted that whilst Dubai and Kuwait have slowed down other Emirates are still going strong i.e. Oman, Qatar, Abu Dhabi, Bahrain

Erwin Bamps COO from Gulf Craft also gave an excellent insight into the situation in the Middle East stating that many thought the GFC would miss the UAE with most of the businesses ignoring the whole idea of an economy in crisis.  When it did happen it turned people into desperate sellers thus plummeting prices and creating a lot of fear and uncertainty in the market.  This fear and uncertainty still exists although Bamps felt there was some light at the end of the tunnel.  He believed the old way of selling and the old way customers made buying decisions was gone forever. The process now is longer and requires a lot more focus on servicing the customer, adding value and providing solutions. The other issue he felt that had become very obvious was that buyers do not know what is a good deal in the market.  No matter what the offer due to the lack of confidence in the market the customers are fearful of any risk and always cautious.  Customers want more value for money; they want more features, the latest technology, additional services and a very personalized approach.  Now is the time when dealers and the boat builders must go beyond the call of duty- it is all about creating trust in the brand-it is important to understand that a strong brand is nothing without a strong company behind it.  It is about a total experience for the company.

Another point raised by Bamps was that the average age of the boat buyer had gone up with buyers then wanting more comfort and ease of use as opposed to speed and style.

Looking to the future Bamps felt that there was sun on the horizon but the pie was definitely smaller and would require new strategies and new focus to make sure you get your share.

The conference ended with a series of workshops looking at the current market, the trends in manufacturing and the trends and situation with regard to marina development. The new CEO of Art Marine, Constantinos Constantinou, Andrew Wagner form Al Massaood and Mike Derrett were involved also in a panel discussion.

AIMEX CEO MaryAnne Edwards said “the conference was definitely worthwhile for the AIMEX group who felt this broader understanding was useful going into the second day of the show. The networking at the conference was also valuable with key managers from many of the major international boat builders present.  The strong Australian presence at the conference was also noted with many attendees arranging to visit the Australian pavilion.