Tue. Nov 5th, 2024
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A trip out to the reef could soon become more expensive as tourist operators weigh up whether to pass on the cost of escalating marine insurance premiums.

Marinas lining Australia’s north are considered at risk of natural disasters such as cyclones and are being hit with insurance hikes to house recreational boats and charter businesses.

In the north Queensland coastal city of Townsville, Breakwater Marina holds about 350 boats worth tens of millions of dollars, including businesses catering for popular whale watching, sailing and reef experiences.

Marina general manager Scott Marshall said he had no choice but to raise berth rents to cover insurance costs and hoped it would not lead to an exodus of boat owners.

“If we stay on this trajectory, we will be at a really critical point for people that own boats here, people that own businesses and people who rely on marinas,” Mr Marshall said.

A man looks at the camera. He is standing at a marina.
Scott Marshall says the implications are already being felt across the sector.(ABC North Queensland: Jason Katsaras)

“Whether you’re a mum and dad boat owner or you’re a commercial charter operator, you’ve got overheads, and if those overheads become excessive, you’re going to seek waters elsewhere or close.”

Breakwater Marina paid $50,000 in insurance in 2016, but a 335 per cent rise in the past seven years means it now pays about $217,500 annually.

Berth rents have increased from $2,993 per six months in 2015 to $3,764 and are expected to keep rising.

“We’re talking about regional communities,” Mr Marshall said.

“You pull out a significant property like a marina and all of its economic gains and social benefits, you’re talking big problems — the whole local economy will suffer.”

A birds eye view picture of a small boat in a secluded beach on Magnetic island, swimmers float around the boat in clear water.

Owners at Aquascene Magnetic Island say operational costs for marine tourism could deter customers.(Supplied: Ralph Waldo Emerson)

Customers wear costs

Off the coast of Townsville, Adam and Steph Hinks own a tour company based at Magnetic Island Marina, taking visitors out to the Great Barrier Reef.

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