The Baja California central coast of the Sea of Cortez can start a smaller scale marina The northern Sea of Cortez will not see any significant additional marina development The Central Mainland marina supply could expand if resort and tourism development

N o r t h w e s t M e x i c o M a r i n a M a r k e t A n a l y s i s i - 9 resort industry. However, any marina development in the Cabo del Este area will need to be preceded by substantial investment in basic infrastructure.

4. The La Paz area marina supply will expand dramatically if Costa Baja and Los Muertos are

developed. These projects will provide access to new market segments, and will move La Paz into a new market position

5. The Baja California central coast of the Sea of Cortez can start a smaller scale marina

development program, together with improvement of natural anchorages, in a few key locations to support gradual growth of tourism in the area. The basic investments are in place in Puerto Escondido; the other locations could follow if a master plan were prepared for the area.

6. The northern Sea of Cortez will not see any significant additional marina development

because of its isolation, weather, tides, and the current RV park development patterns. This will remain an area for trailered boats.

7. The Central Mainland marina supply could expand if resort and tourism development

strengthens. Recent trends, however, suggest a slowdown in boating activity in this area.

8. The Mazatlan area is well positioned to expand its marina inventory in concert with the

continued growth of its tourism base. The major issue is site availability. N o r t h w e s t M e x i c o M a r i n a M a r k e t A n a l y s i s 1

I. INTRODUCTION

A. PURPOSE OF STUDY

This report summarizes an analysis of the market potential for the development of new marinas in Northwest Mexico through 2015. The analysis has been prepared for the Packard Foundation by EDAW, Inc.

B. APPROACH

Essentially, our approach has been to understand the key operational assumptions that will define demand for new marina development in each of the recreational boating areas in Northwest Mexico. We have conducted significant independent field research in Mexico and the United States to discuss site-specific market factors and crosscheck third party data. Our first step was to review the key factors affecting the development of each of the existing major marinas in Northwest Mexico, to identify the eight recreational boating areas in the region, to summarize the character of each area, and to compare the existing marina inventories in Northwest Mexico and the western United States. Our second step was to assess the strength of current demand for marinas in Northwest Mexico by analyzing occupancy and slip rates trends in marinas in the region during the past few years, arrivals of boats in Northwest Mexico during the past several years, and growth in registrations of larger boats in the western United States during the past several years. The third step was to project demand for new marina development in Northwest Mexico through 2015 by projecting boat registrations in the western United States during the period, defining the amount of potential demand the region can capture, and by calculating the numbers of boats that will use marinas in the region annually during the period. As a final step, we recommended the locations that will be most appropriate for development of new marinas in the region by projecting patterns of marina growth based on climate, natural features, access, and nautical tourism infrastructure in the different areas within the region. The goal of the recommendations is to use public and private investment capital efficiently and effectively in the development of marinas.

C. ORGANIZATION OF REPORT

The report is organized into five sections as follows:

1. Introduction

This section of the report summarizes the purpose of the study and the approach, outlines the organization of the report, and describes the assumptions and limiting conditions. N o r t h w e s t M e x i c o M a r i n a M a r k e t A n a l y s i s 2

2. Existing Marina Supply in Northwest Mexico and Western United States

This section of the report reviews the historical development of the marina inventory in Northwest Mexico, defines the eight recreational boating areas in the region, summarizes the character of nautical tourism in each area, describes the existing marina inventory in Northwest Mexico, and discusses the existing marina inventory in the western United States.

3. Existing Marina Demand in Northwest Mexico and Western United States

This section of the report assesses the existing marina demand in Northwest Mexico by analyzing occupancy and slip rates trends in existing marinas in Northwest Mexico during recent years, arrivals of boats in Northwest Mexico during recent years, and growth in boat registrations in the western United States.

4. Projected Marina Demand in Northwest Mexico: 2001-2015