2. About the San Diego Superyacht Association Officially founded in April of 2008 by a group of 16 prominent local marine businesses to better enable San Diego to accommodate the growing Superyacht Industry. Our Mission Statement: To promote San Diego as a world-class Superyacht destination and provide a conduit to marine services and suppliers. www.sdsuperyacht.org

3. Superyacht Facts etc For the purposes of this study superyachts are defined as 80’+ Current numbers suggest that there are 7000 yachts over 80’ cruising the worlds oceans. Since 1997 the world’s superyacht fleet has nearly doubled The industry rule of thumb is the annual operating expense of yachts is 10% of the vessels value. 10% of the world’s superyachts have visited San Diego waters On average boatyard and marina expenditures amount to 1/3 of the overall cost of operating a superyacht The average annual operating expense for a 164’ yacht is $4-$4.5m The SDSA estimates that 1300 jobs are involved with supporting the superyacht industry in San Diego www.sdsuperyacht.org

4. Economic Impact of Superyachts in San Diego Boatyards –Maintenance of a yacht Maintenace budget for a 135’ yachts averages $400-$500K per year. –Growth The yards surveyed showed nominal growth from 2006-2007 and shot up to an average of 60% growth from 2007-2008. –Facility improvements The Marine Group invested considerable capex into their facility including upgrading of their lift capacity in 2007. Marinas –Average Slip fees $30 per foot per month. –Average marina stay in 2004 35 days. The average marina stay in San Diego in 2008 was 75 days or 114% growth since 2004. –San Diego has 150 slips and 8 med ties for superyachts. –Shelter Island Marina has seen 235% growth in superyacht business since 2000. Shelter Island Marina The largest superyacht to have a yard period in San Diego was 301’ MY Tatoosh Golden Fleet spent $46m on new build and refit in San Diego in 1994

5. Economic Impact of Superyachts in San Diego Marine Suppliers and General Services Products –Fuel, cleaning supplies, deck equipment, electronics, canvas, carpets, hardware. Crew Placement –Crew salaries on a 135’ vessel run between $400- $600K per annum –Recruiting and crew placement expenses on a 135’ yacht can run between $20-$35K per annum Non Marine Businesses Provisioning − $500k per annum for owner’s food and beverage 135’ superyacht. Products − Food, beverages, flowers, linens, uniforms, travel, medical expenses, toiletries, transportation. Crew spending trending − Crew members spend on average up to $2000 per person per month while in port. The average 150’ yacht sails with 10 crew and can spend $20,000 per month which flows into non-marine businesses. − Crew spend money in restaurants, bars, retail, transportation, hotels and leisure activities. C2C saw 111% growth from 2006-2007 and 53% growth from 2007-2008.

6. Future Opportunities For San Diego: The Superyacht Market Grow superyacht traffic –World class events Sporting Film Philanthropic –Expanded charter opportunities Loosening of regulations –Diverse cruising grounds Alaska Panama Mexico –Facilities Embarcadero mooring Marinas Yards San Diego

7. Future Opportunities For San Diego The Superyacht Market Technology transfer –As technology is developed for commercial and military purposes transfer this technology to yachting market Greening of yachts –Leading the green movement –wind, solar and hybrid marine technology Establishing San Diego as the world’s premier refit center –Drawing yachts to San Diego for major refits MY Ice & MY Tigre D’Or San Diego MY Leander and 10 others, Antibes