Ocean dreams

Harsh global economic conditions have affected even super yacht owners, putting luxury marina projects in jeopardy. But that has done nothing to dent the confidence of Michael Horrigan of Island Global Yachting (igy) who tells Diana Milne why boats are still big business in the Middle East.

Given that he is in charge of developing the Middle East's most luxurious marinas, you'd be forgiven for thinking Michael Horrigan was a sailing man. Not so, he tells me as we sit in the sunshine overlooking IGY's most recently completed project, Festival Marina, in Dubai. In fact, enjoying a cold drink on deck is about as far as Horrigan's enjoyment of sailing goes.

"I'm more of the cold beer on the deck looking out at the boats type rather than the down there with a rope in my hand running up the sail type," he admits, adding "I was brought into the company not because of my affinity with the boating lifestyle but because my experience of working in hospitality, in architectural and urban planning roles."

While Horrigan may not be familiar with the workings of a main sail, his background in hospitality has been a crucial factor in his success as CEO for IGY in the Middle East and Europe. The company's aim is to create, then manage the world's most luxurious marinas and to date its portfolio includes developments in the Americas, the Caribbean, the Mediterranean, and of course the Middle East where it has four projects: Al Seef Marina, Anchor Marina, Dubai Maritime City and Festival Marina.

Feeling the pinch

Back in August the company issued a press release stating ambitious targets to build 20,000 berths in Dubai over the next five years and to create 1500 jobs in the emirate. It's a claim no company would make in today's economic climate and I ask Horrigan whether the downturn being experienced in the GCC has forced IGY to adjust its forecasts: "I don't think the numbers in 2009 will be anything like what we projected in the middle of 2008," he says of IGY's August 2008 published targets.

"It's not so much the demand that will be affected," he says. "It's not like you can decide you'll stop mooring your boat.  But the constraints on funding for new projects to get the construction projects underway is limited right around the world at the moment and all of the new projects coming on line rely on project funding."

He goes on to say however that the long waiting lists for marina berths at IGY's latest Dubai project, Anchor Marina at Nakheel's Palm Jumeirah, are indicative of the strength of demand for such developments in the region: "We're heavily oversubscribed. We have three times the amount of people ready to commit for the berths as we have berths available. So the demand is incredibly high. We're not seeing any reduction at all in the larger boat market. It's as strong as ever and the market demographically doesn't seem to be as affected as you might think from the economic conditions. The small to mid-sized boats  could be affected but the waiting list in the Middle East for good marina berths is so high that it will be a while before we even absorb that waiting list, let alone worry about a growth in the demand."

Service matters

This demand is driven not just by the shortage of marina berthing space in the region, but by the level of service and amenities that IGY provides, says Horrigan. It aims to provide service to its customers along the same lines as those they would receive at a five star hotel: "Our company motto is 'arriving is just the beginning' so our approach is that from the minute you arrive in your car from then on it's just a great experience. There's a valet service for the cars, assistance in moving out to the boats. You can order meals on the boats and have them delivered - it's just really creating something that doesn't exist anywhere else in the world. I think the important thing for us about Anchor marina is that it's really creating a new benchmark in the industry in Dubai and in the region as a whole."

He bases his confidence in demand at the marina on the success of IGY's other global projects. The company's portfolio boasts some of the world's finest marina facilities, including the Montauk Yacht Club in Long Island New York and Marina Cabo San Lucas in Mexico. It has 11 marinas in the Caribbean including the prestigious Rodney Bay Marina in St Lucia. Upcoming projects include the Yacht Haven Grande in Anguilla which is set to open later this year, and Beef Island Marina in Tortola. In Europe it is focusing on Eastern Europe and in 2008 announced the launch of the Mandalina Mega-yacht Marina in Croatia - the country's first mega-yacht marina in the coastal town of Sibenik. "In 2008 there was a very strong expansion for us in the Eastern Mediterranean," explains Horrigan, whose office in Dubai also oversees the company's European operations. "We've very involved in the growth of Mediterranean facilities in Croatia, Turkey and Greece."

Going forwards

His primary focus for 2009, however, is the Middle East where he plans to expand outside the UAE to the take advantage of lucrative opportunities in neighbouring GCC countries. "We've heavily involved in Middle East sectors such as Bahrain, Oman, Qatar and places like that. We're also in discussions in India," he goes on to reveal. "So I think 2009 will be more about this region because Europe is reasonably well established for now."

Another reason why IGY must strengthen its focus on the Middle East this year is that the market is becoming increasingly competitive in the region, with several other developers having announced marina developments as part of other real estate projects. Aldar, for instance, has announced plans to build around 3500 yacht berths in 14 marinas across the UAE. Meanwhile, in 2008 Emaar opened the Dubai Marina Yacht Club at the Dubai Marina and work is underway by Abu Dhabi National Exhibitions Company (ADNEC) on the emirate's new Marina Zone. Horrigan is so confident in IGY's ability to beat the competition that says he believes boat owners based at rival marinas will want to shift to IGY's facilities: "Because of the way other marinas are configured and the facilities that are provided I think there will be a lot of people that will want to move their boats to Anchor Marina. Trying to move your boat around the congested narrow manoeuvring areas can be difficult. Anchor is going to be a nicer place to be and a nicer place to move and manoeuvre around."

Horrigan also says he is sure that Anchor Marina's location will give it the edge. The development will be the first marina on the Palm Jumeirah and will feature two clubhouses, one on Anchor Marina East and the other on Anchor Marina West and high tech specifications such as LED illumination, underwater lighting, wireless internet connections and concierge services.

"I think the marina's positioning on the Palm Jumeirah gives it an advantages over and above its facilities alone. It's in an amazing location with the wonderful villas on one side and the marina apartment towers on the other. And in technical terms it's a fantastic place to have your boat."

The location of the marina allows IGY to target not just boating enthusiasts but those, like Horrigan himself, who just enjoy the lifestyle.  This creates strong demand for residential properties and means that retail and food and beverage outlets generate high levels of revenue. Alongside the Anchor Marina will be Marina Residences, the six residential towers facing the marina with access to a private promenade, which are being marketed alongside Anchor Marina: "The value of residential villas and apartments are definitely higher when associated with marina facilities because of the whole marine lifestyle that comes with them. Equally, you find that rental in retail shops and revenue through food and beverage outlets is reciprocally higher in that marina lifestyle environment. There's a huge number of people that just enjoy getting down onto the concourse to wander around amongst the boats, to do a bit of shopping."

It is the lifestyle offered by its marina projects that Horrigan hopes will see IGY through the stormy seas of the credit crunch. He may not be able to sail a boat but his business acumen and huge confidence in the success of the project will ensure the company pulls out all the stops to stay on course.