Used boat sales push Australia’s marine industry higher

Far from struggling with the fallout of the COVID-19 pandemic, the latest state of the boating nation report shows that for many corners of the marine industry, the coronavirus has helped rather than hindered earnings.

According to the survey, the Australian marine industry’s turnover hit $8.835 billion in 2020-21 as second-hand boat sales – not new ones – continued to boom in the wake of the COVID-19 pandemic.

The data shows there are now around half a million more Australians with boat licences than there were in the 2019-20 financial year, with numbers now sitting at 2.5 million, or the equivalent of one in every 10 people.

Used boat sales held steady at 14 per cent of the marine industry earnings pie last financial year, the same level that it held when it leapt 4.0 per cent higher in 2019-20 as the COVID-19 pandemic took hold.

In terms of sheer numbers, Queensland continues to be the boating capital of Australia with around 272,000 vessels, a 3.0 per cent gain over the previous 12 months. Things were a bit slower in NSW where the fleet grew 1.7 per cent to 240,000, and in Victoria, it grew 2.0 per cent to 202,000. Tasmania (31,000), South Australia (59,000) and Western Australia (101,000) all held steady.

The survey claims that Australia now has 925,000 registered boats – and the same number again of paddle craft, stand-up paddleboards and sailing dinghies – up 10,000 on the number estimated a year earlier.

Overall, 85 per cent of the Australian fleet is comprised of boats less than 6.0 metres in length, while three out of every four are estimated to be more than 10 years old. Two-thirds of the fleet is made from alloy, and a third is fibreglass.

New boat registrations also hit a record 18,000 in 2020-21, up 8000 on the previous year that was a five-year low for the industry.

Once again, the largest growth sector was in new jet ski sales, which grew by 5000 compared with the previous year to swell the national jet ski fleet to an estimated 85,000 craft.

The number of people holding a licence in Queensland and South Australia grew 1.7 per cent to 956,000 and 293,000 respectively, in NSW by 2.7 per cent to 519,000, in Victoria by 3.6 per cent to 435,000, in WA by 5.3 per cent to 276,000, while in Tasmania the number of licences fell by 2.9 per cent to 68,000.

In good news for the industry, the value of industry turnover grew 11 per cent, or $880 million, compared with 2019-20.

Sectors of the industry gaining ground in the last year were engine sales (up 0.5 per cent to 4.0 per cent), retail and wholesale (up 5.0 per cent to 10 per cent), boatbuilding (up 0.5 per cent to 8.0 per cent), and mooring and marina services (up 3.5 per cent to 15 per cent).

However, sectors falling compared with the previous financial year include tourism (down 3 per cent to 11 per cent) and new boat sales (down 2.0 per cent to 16 per cent) – the former as sweeping lockdowns and interstate travel bans bit hard, and the latter as interruptions to the supply of imports emptied new-boat showrooms.

The effect of the extended pandemic has also hurt small businesses, with the annual survey showing the biggest reduction in marine industry companies among those with between six to 10 workers, with numbers down 4.0 per cent to 20 per cent.

On the flip side, the growth in companies with more than 50 workers – up 1.0 per cent to 8.0 per cent – shows Australia still has a vibrant manufacturing industry.