Since the late 1960's and early 1970's, and the start of tourism and
package holidays, Spain has been transformed into one of the leading
European economies, with a diversified market covering both the
manufacturing and service sectors. Between 1961 and 1973, the so called
years of development, the Spanish economy grew at 7% a year with a per
capita income of $500 per year. After joining the EU in 1986, Spain once
again had one of the world's fastest growing economies, with annual
growth averaging 4.1% in the period between 1986 and 1991, compared with
an EU average of 3%. Likewise, foreign trade grew from $23.8 billon in
1975, to $52.5 billion by 1980, and to $143 billion by 1990. Today, the
economy of Spain is the fifth largest in Europe, accounting for around
9% of EU output. Income, at 78% of the EU average, is among the lowest
in the EU, although it is well ahead of Ireland, Portugal and Greece.
Spain's main trading partners are France, Germany and Italy for exports,
and Germany, France and Italy for imports.
Spain's most important
industries include tourism, chemicals and petrochemicals, heavy
industry, and food and beverages. Spain is also Europe's fourth largest
manufacturing country after Germany France and Italy. The principle
growth areas include tourism, insurance, property development,
electronics and financial services. Tourism is one of Spain's most
important industries, especially in Andalucia, earning approx. 4% of GDP
and employing some 10% of the workforce, both directly and indirectly.
With over 5,000 kms of coastline, and a unique blend of almost perfect
year round weather and Mediterranean lifestyle, Spain has become a Mecca
for holidaymakers and boating enthusiasts alike. With the advent of the
low cost airlines, a weekend trip to Spain has now become the norm for
many European travellers, and the huge Eastern coast, all 750 miles of
it, is still home to more British boats than anywhere else in the
Mediterranean. Whilst the booming economy and influx of foreign visitors
in the seventies and eighties certainly caused it own unique problems,
the development of smart marina complexes such as Sotogrande, and the
hosting of the 2007 Americas Cup in Valencia, are undoubtedly attracting
the boating enthusiasts back in huge numbers. Increasingly, many of
these enthusiasts are also buying second homes, either as a holiday home
to enjoy their boat on trips to Spain, or indeed to retire. In terms of
demographics, the generation of buyers termed the 'baby boomers'
(currently 42 - 58 years old), is now due to retire within the next 10
years. With considerable wealth, which has been built on property,
business interests and inheritance, they have little desire to see these
assets taxed on death. This trend is now being seen throughout Europe,
and in a cultural change, this age group is retiring earlier, spending
more of its wealth, and in general enjoying life to the full.
In
the UK, this exodus which was once a small trickle has now become a
torrent. Increasingly wealthy, and healthy, individuals are moving
abroad, encouraged by the media and low cost travel, in order to enjoy a
more relaxed and enjoyable life in the sun. With global demand for
recreational boats estimated to reach $24 billion by 2006, projected
growth of annual sales worldwide of 7%, and with Europe experiencing the
highest growth in the last five years, there seems little to stop the
European market growing and expanding further in the next few years.
Owning and maintaining a boat in Spain is becoming easier, cheaper, and
considerably more enjoyable than the UK. With the advent of cheap
flights, more scheduled services, and new infrastructure, it is easier
and quicker to reach the Spanish coast and be on the water, than it is
for an owner in the Midlands to reach his boat in Southampton. The
Spanish coastline is divided into six Costas - the Costa del Sol is the
most southerly, followed by the Costa Calida, Costa Blanca, Costa del
Azahar, Costa Dorada and the most northerly, the Costa Brava. The
atmosphere on Spain's coastline varies enormously from Costa to Costa
and from marina to marina. From the small and beautiful Cabopino to the
glitzy Puerto Banus, where yachts are squeezed in purely to be admired
by the less well off passers by!
Major cities such as Valencia,
Almeria, Malaga and Barcelona offer marina facilities right at their
centre, an option that is becoming more popular as many cities are being
turned into world class destinations. Valencia in particular is
beginning to rival Barcelona, as the impending America's cup has drawn
billions of euros of investment into the area. Marinas and boating
facilities on both sides of Valencia such as Denia, and areas to the
south of the city, are feeling the benefits. The islands of the
Balearics cover a tiny fraction of the Mediterranean, yet are perhaps
one of its most popular cruising areas, and as such are the most densely
populated with boats. In recent years Mallorca has shed its night club
image, and a huge marketing campaign has pushed the relatively unknown
and more beautiful aspects of the island. A recent article in the
Majorca Daily Bulletin outlined the amount of money being invested in
property and yachts on the island by UK city traders. With bonuses in
excess of 1m euros, these buyers not only want a house, but a yacht to
match. This, like elsewhere, has led to unprecedented demand for mooring
space. Whether boat owners want a quiet laid back marina, or one with a
busy night life, the one thing they all have in common is a lack of
adequate berths, both in size and availability. The shortage of berths
in the Mediterranean is getting worse. There are currently an estimated
160,000 boats waiting for a long term space and skippers lucky enough to
have one are sitting tight. Only recently, a report commissioned by the
Spanish Government concluded that in 2005, a total of 2,300 yachts will
be looking for berths in Andalucia alone, and by the year 2020 that
this figure would leap to over 5,000 yachts in just this one area. The
report concludes: The demand from the nautical sector of the
tourism market, on the Costa del Sol alone, is reaching unprecedented
figures, which can only be remedied by a dramatic upgrading of
facilities. Indeed the 11 ports on the coast, which cater for yachts,
only have 4,200 mooring points between them. Figures issued by the Costa
del Sol Tourist Authority suggest the Costa's ports would need to
increase by 300% the number of available mooring spaces just to satisfy
current requirements.
The
Director-General of the Costa del Sol Tourism, Ana Gomez said "We are
lacking many mooring points and because of this waiting lists are
tremendous. She went on to explain that due to the marinas being at
saturation there was little benefit to be had from marketing and
promotion. Nearly 60% of owners were tourists predominantly from
Germany, France and the UK. With the lack of
availability, prices of berths have risen dramatically, along with the
annual rentals demanded by owners. This has compounded the problem, as
investors are now moving into the market with the prospect of long term
capital growth, coupled with excellent rental returns of between 8% and
15%. Berth prices vary enormously and depend on several factors,
including the size (length and width), location (both of the marina, and
position within the marina itself), and the length of lease remaining.
In general they start at 50,000 euros approx. and go to several million
for the very biggest. As an example there is currently a 20m berth in
Sotogrande for sale at 600,000 euros - a similar size berth in Puerto
Banus would sell for well over a million (if one were available!) When a
new marina is established, it is leased to the port operator by the
Government for a fixed period. These periods are normally between 30 and
50 years. The berths are then bought and sold on a leasehold basis
only.
Gradually over time, the length of the lease left on a berth
becomes shorter depending on the date the original lease was granted to
the port operator. Typically berths will have leases remaining of
between 15 and 25 years. Naturally in a brand new marina, the berth
would have a full term lease. Each berth will have its own escritura,
essentially a land title document, which is signed and witnessed by a
notary in any sale or purchase. Each berth is defined by its size and a
reference number on the port authority plan. Berths are always quoted in
length and width ie. (8m x 3m).The bigger the boat, the wider the berth
has to be! Berths are bought and sold by brokers. The largest of these
is Genus Marine Leisure, who has been working in Spain for nearly 20
years. The prices for any particular berth are dictated by supply and
demand, and with so much experience, Genus know all the marinas
intimately and can therefore price their berths to sell at sensible
market prices. If it is considered that the owner is asking too much,
the berth sale is refused. In some marinas it is only possible to buy
the berth, but not to rent it out to someone else (this was a condition
of the original lease to the port authority).
We can supply a list
of these (if required). In these marinas boat owners can only use the
berth themselves. Sailing conditions in the Mediterranean are virtually
perfect, as there are no tides to cause problems either in sailing
conditions or in entry or exit to marinas. In the UK (as elsewhere)
trips have to be planned extremely carefully to ensure that the boat can
both leave and enter the port with the tide. This can mean waiting for
hours for the correct conditions - something that never happens in the
Med! In the UK, boating is restricted to the summer months (3 at best) -
more and more owners are now moving abroad to have access to 12 months
of sailing in warm and calm water. Motor boat enthusiasts tend to berth
around the Costa del Sol marinas for two reasons. Firstly the diesel in
Gibraltar is substantially cheaper than in Spain. Secondly the weather
conditions are smoother and calmer. (The Costa de La Luz facing the
Atlantic is noted for its windy conditions and attracts the windsurfers)
Sailing enthusiasts tend to berth further North, towards the Balearics,
as there is generally more wind, and therefore better sailing
conditions. In Spain, as elsewhere throughout Europe, there is an
extremely strong environmental lobby which has grown in strength in the
last decade, particularly with the election of Green MEP's to Brussels.
Throughout
the world, environmentally sensitive areas are being protected and
designated as areas of outstanding natural beauty or as nature reserves.
The argument for building more berths has never been stronger, but
neither have the environmental pressures on an already developed
coastline. The Spanish Costas, and particularly the Coast del Sol, have
been warned of impending environmental catastrophe if development is not
brought under control. The Government is an extremely awkward position,
since eco tourism is destined to be a major growth market in the next
decade. However it is also acutely aware of the lack of facilities and
berths for boat owners and operators. Plans for new marinas are
constantly proposed, but generally drag on for many years through
lengthy planning and lobbying meetings. Motor boats in particular are
not considered to be environmentally friendly. Accidental fuel discharge
and emptying of tanks in port (accidental or otherwise) do not help.
Whilst
the Green lobby is fighting to prevent further marina development, the
availability of berths becomes more acute. In Italy recently, a new law
has been introduced banning motor boats from coming within 200m of the
coastline, making it illegal to anchor in rocky inlets and coves. All of
this helps to push prices of berths even higher. Berths that were
selling for 10,000 to 20,000 euros a few years ago, are now changing
hands for 80,000 to 100,000 euros. This trend can only continue with the
lack of new marinas being built. As a specialist marine financial
services company Marinablu offers a unique facility with our Spanish
banking partners to provide berth finance, tied directly to the berth
itself. This facility is only available via ourselves. This allows our
clients ( whether boat owners or investors ) to raise capital against
the berth itself. Existing owners are also able to release equity from
their berths to buy a bigger boat or simply to re-invest in another
berth.
Article Source: http://EzineArticles.com/406334
