HomeMy WebLinkAboutsubmittal-Summary of Market AnalysisSubmitted into the public
record in connection with
item PZ.9 on 09-25-08
Priscilla A. Thompson
City Clerk
Summary of Market Analysis
The four basic components of Grove Harbour Marina and Caribbean
Marketplace ( wet slip marina, dry boat storage. boatyard and marketplace ) were
developed from our market analysis. This market analysis was conducted by
Harbour Management Group and by JGR and Associates. The analysis provides the
credibility for the basic use of the facility, the occupancy levels and the revenue
projections.
The demand exists for additional marine facilities in the Miami area. This
demand is specifically for in water storage, dry storage and service facilities for
boats. The overall recreational boating industry has recovered from its recession of
the late 1980's and early 1990's. Our local boating community has recovered from
the devastation of hurricane Andrew.
Boat sales have increased steadily in the last three years. Locally, the majority
1 of people that left boating after Hurricane Andrew have returned and many other
enthusiasts have chosen boating as a recreational sport: The tradition of a boater
upgrading from their existing boat to a larger one continues. These positive market
conditions and the fact that no additional wet slips or dry storage spaces have been
built in recent years, supports the need for additional boat storage facilities.
Even more specifically, demand for boat storage in locations with easy access
to non -speed restricted boating water are especially high since recent manatee speed
zones have been established in the upper part of Biscayne Bay. Occupancy in near
by boat storage facilities is at capacity, including the various yacht and sailing
clubs.
The demand for storage facilities is tied to the total boating population ( local
and transient ) in the area. Over the past several years, the number of boatyards has
decreased in Dade County as well as the number of work spaces. The development
of the wet and dry storage facilities for this project will add a total of around 250
additional boats to the boating population. The existing facility is being used as a
boatyard and it is even more critical that it remains one at this time.
The projected initial fees for boat storage, services and repairs are not higher
than those currently being charged in the existing market. The proposed facility
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Submitted into the public
• record in connection with
item PZ.9 on 09-25-08
Priscilla A. Thompson
City Clerk
will provide higher levels of service and have better physical characteristics than
other facilities in the market area. All data collected shows that a marina and
boatyard on the Dinner Key facility under proper management and vision will be an
asset to an area of the boating industry that is currently in need.
Since there are no facilities similar to the Caribbean Marketplace in the
Miami area we did not base our market analysis on comparables like those existing
for the marina and boatyard components. We based our analysis mostly on
generalities about the areas tourist industry and the market idea as an attraction for
local residents. Tourism is booming in south Florida. In 1995, 13.2 million people
visited Greater Miami and the Beaches. Of these almost 10 million stayed at least
one night. 1995 was a record year for south Florida tourism. We project 1996 to
be even better.
Our tourism is based on a healthy combination of international visitors from
such countries as Canada, Brazil, Venezuela and Germany and domestic visitors
mostly from the northeast and the Midwest. Our survey of travel professionals
clearly shows that an attraction like the Caribbean Marketplace should be of great
interest to both our international and domestic tourists. One thing that the travel
professionals consulted pointed out is that the Caribbean Marketplace has the
tremendous advantage of concentrating or centralizing a variety of national and
ethnic experiences in one location. This is excellent for the tour operators and for
visitors on very short stays in Miami like cruise ship passengers. Another thing
pointed out to us is the proximity of the Caribbean Marketplace to the City of
Miami Convention Center that is within easy walking distance. This is another plus
as far as visitors to our area and for South Florida residents using the Convention
Center facilities.
From the point of view of Miami residents there should be also similar
benefits in that one would find in the Caribbean Marketplace a concentration of
products, from different countries. Some products that will be attractive to local
residents are such things as fruits, vegetables, cigars, liquors, art, etc. The location
of the Caribbean Marketplace will greatly benefit from the proximity to center of
activity of Coconut Grove. This center of activity that on most nights is
overflowing with people is again within walking distance of the Caribbean
Marketplace. Our project will open the waterfront by creating a bay walk that will
essentially connect Monty's through this property to Peacock Park. This will create
a new center of entertainment and activity for Coconut Grove.