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Boaters Make Waves in National Economy |
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Written by Jocelyn Cooper
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 Recreational boaters are bolstering the Canadian economy, according to a 2006 study released in January of this year, but with the current economic climate and boat prices in the U.S. dropping lower and lower, they’ll have to be careful about where they’re spending their money.
The summary report, produced by Discover Boating Canada, an organization that promotes the benefits of boating in order to increase participation and interest, found that recreational boaters pumped a grand total of $26.8 billion into the national economy in 2006.
B.C., responsible for $3.3 billion of that, made a huge impact on boat manufacturing as the second highest contributing region to the industry that year—trailing only Quebec—and accounting for $277 million in revenue. Between 2001 and 2006, profitability of the recreational marine manufacturing sector increased at an annual rate of 2.6 percent, which was four times the growth rate for all manufacturing, market wide. Such growth is due, in large part, to the newly retired—and soon to be retired—baby boomers, who have created a brand new market of boat buyers. More than 60,000 new recreational boats were purchased in Canada in 2006, and the report notes that eight percent of Canadians who do not currently own boats say they plan to buy one “in the next three years.”
However, although the manufacturing industry appears to be booming, the increased value of the Canadian dollar has caused the total revenue earned through exports of recreational boats and engines to plunge $559 million from 2002 to 2006.
“Obviously boats are less expensive in the United States now, so Canadian retailers are in direct competition with those in the U.S.,” said Greg Horne, president of the B.C. Yacht Brokers Association. “I would say the market value of Canadian boats has declined 20–30 percent in the last year and a half, [indicating that] Canadian consumers are bypassing the local market and delving into the U.S. to obtain a good buy.”
With the dollars more or less at par now, Canadian retailers have their work cut out for them as they attempt to stay competitive so that Canadian consumers won’t venture south looking for deals.
To view the Economic Impact of Recreational Boating in Canada: 2006 Summary Report, visit www.cmma.ca/cmma/home.cfm. For more information about Discover Boating Canada, visit www.discoverboating.ca.
—Jocelyn Cooper
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