Lee Marine was Phuket’s first luxury yacht broker nearly 18 years ago, and is still going from strength to strength as Thailand becomes and increasingly busy yachting destination. As the company plans expansion and relocation, Jeni Bone celebrates Lee Marine’s history, as well as it’s exciting future.
Joshua Lee recalls his epiphany, the exact moment when he decided to relocate to Thailand and start selling boats.
“I sailed my 35-foot boat to Phuket with two buddies and I saw the most amazing islands, beaches, dive sites, weather, people and food. I knew more people would want to come here to visit. I hadn’t even reached Phuket before it dawned on me.
“The one thing that struck me though, as I berthed in Phuket, was the lack of professional marine services. I was shocked. And when I went to try and sell my boat, I couldn’t find a yacht brokerage. We started the first one in 1998, and now there are around 15.”
At just 23 years old, Lee moved from Brisbane and set up shop on the Boat Lagoon Marina, complete with signage, uniforms and sales collateral. Lee Marine was the first slick, Western operation in Phuket.
“People were in thongs and casual wear and we came and opened an office like you would see on a marina in Australia. They all thought we were mad, but we have persevered and proved our vision was right – and worth the effort!”
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Martin Holmes, general manager at Lee Marine, joined Joshua a few months after he opened the doors on Lee Marine, and was also captivated by Thailand and all it offered. “We could see the potential,” he says. “I suppose we were the pioneers.”
The odds were against them. “We sold the first new boat in Thailand, and that was at a time when there was a 211 percent sales tax on new boats,” continues Holmes. “Back then, people thought it would be impossible. But now, I’m speaking to you from the deck of a Custom Line 112 at the marina that we have just sold and are now managing for a client.”
It was exciting in those first heady years – hard work, but big gains, according to Holmes. “Phuket is a natural place for boating. It’s beautiful! Every day we realise we’re blessed to be working here.”
It’s not all Mai Tais and soaking up the sun, although Holmes does admit to enjoying plenty of time on the water and the odd game of golf, all in the name of business.
“It’s part of the job – one of the best parts. The weather’s always hot. Either hot and wet or hot and dry. Yes, we do have permatans! But we work as hard or harder than dealers in traditional markets because we have to. We have to get up early and make things happen.”
Based at the Boat Lagoon Marina for the past 17 years, Lee says the time has come to move.
“We have exciting plans to move both our sales and service offices to new locations in the much larger and more modern Ao Po Grand Marina and the newly redeveloped Yacht Haven Marina, hopefully by the end of the year. We have been 17 years in one place. We want to move where there is a bigger concentration of larger boats and deep-water access. It’s a good move for us as it keeps us close to customers.
“Both of these marinas have much better facilities, in particular for larger yachts. With no tidal restrictions for vessels, new clubhouses and stunning views of the sea and islands, they each have far-reaching expansion possibilities, so the future is there.“
According to Lee, the move will take place towards the end of 2014.
The business has found substantial success with the Ferretti Group marques, particularly Ferretti and Pershing, and it is also the representative for Riviera, Jeanneau, Riva, Custom Line and the range of expedition vessels from Cantiere Delle Marche.
“Ferretti and Pershing have really struck a chord,” explains Holmes. “There’s the Italian reputation, and they are a grade above their competition in terms of design and engineering. Norberto Ferretti lived on a Ferretti 68. They are made to go to sea, not sit in the marina. They are practical, strong, fast, with a high level of finishing and a higher amount of displacement. In all, a very high quality boat.
“I must say, the popularity of the Pershing range took us by surprise. Usually, an owner has a villa in Phuket, and they buy a Pershing 80 or 92 as a day boat to blast out to the islands. There’s a lot of tourism in Phuket and these people want to get there first, secure the best mooring, and go out further, past the most popular spots to more remote areas.”
The glorious location is a massive drawcard for boat ownership in Phuket. “We have good weather all year round,” Holmes reiterates. “We’re not in the typhoon belt so our season really is 12 months of the year. People want to get on their Ferretti and spend longer periods out. There are not that many marinas yet, so boats need to be reliable and well equipped.”
The Lee Marine sales team consists of five professionals, each with a background in marine.
“We feel this is perfect considering the second-hand inventory we carry of over 150 boats for sale,” says Lee.
“But the heart of Lee Marine has always been the administration and service team, which currently operates at 10 people in total.”
For his part, British-born Holmes joined Lee Marine from working with SunSail in Turkey, France and Greece. “I came to Thailand to work for SunSail, met Josh, became friends and joined Lee Marine. We work well together. It’s a fantastic team! Most people have been with the company for 10 to 15 years. They are loyal, love the work and we are all boaties.”
Thais, says Holmes, have an affinity with the water. “Phuket is an idyllic island in the tropics, and we used to sell sailing yachts to people about to take a world trip. Two years ago, piracy put a stop to that. Now it’s all about motor yachts. In recent years, Phuket has become a motor yacht haven. It’s not unusual to see a few 70-metre yachts cruise in.”
Lee Marine is perfectly accustomed to tailoring a yacht to suit local conditions. “We have hardtops, sunshades, all the accessories and air-conditioning. In Thailand, the fun stops when the AC stops!”
The dealership has healthy sales figures and an enviable bottom line, with an average sales rate of 60 units per year, 10 new and 50 second-hand.
The key to Lee Marine’s success, as Holmes alluded to, is service. “There is plenty of choice here. But people want a strong dealer, somebody who knows the place, who has the contacts. We work very hard on post-sale service, bespoke services and management. Customers buy the whole package. We’re here to follow up with warranty, crew, haul-out, refit, to accompany the owners to Europe, familiarise them with their boat, and supply training for owners and crew if they need that.”
The Phuket and Thai market has unique demands. “This region is home to very distinct owners,” says Holmes. “Some want to be hands-on and drive their boat, others want a crew and just want to enjoy the day out. We’ve found owners of Ferretti Group boats are experienced and like to be hands-on.”
One massive change in the past 17 years, observes Holmes, is the improvement in the calibre and professionalism of local crew. “You can get excellent Thai crew here,” he asserts. “Almost any boat from 40-foot up could have a permanent crew looking after it. They keep it immaculate. We know very experienced, reliable captains that can manage the expectations of the owners. We have invested 10 years in working with these guys and teaching them to operate complex motor yachts. They’ve risen to the challenge. And this makes ownership more pleasant for our owners.”
Locally, growth is fuelled by an increasing appetite for boating, as tourism and foreign investment also rise.
“Consider that Phuket now has around six million tourists a year, and a large percentage of them will want to travel to an island, do a snorkelling day trip or a dive adventure,” explains Lee. “This has led to rapid growth in marina development and day trip boats and ferries to accommodate the demand. High-end boat sales have increased along with the growing numbers of expats deciding to live in Phuket and the surrounding islands.”
The Thai government has lent its support to the burgeoning industry. “The government made the bold step of reducing import duty on boats from 211 percent to seven percent in 2007. This had been the biggest obstacle to growth and it has proven to be a very good move! Great for us!”
Certain other challenges, while not insurmountable, have proven to be barriers to smooth sailing in the past decade or so. “There was the 1997 financial crisis, the SARS and bird flu crises, which deterred tourists, a coup, airport closure, and of course, the 2004 tsunami which hit Phuket and destroyed property and lives.”
Another issue is a dearth of berths. “We are running out of berths, like Hong Kong, so more marinas will be required going forward.”
With the rise in popularity of the region and its sublime cruising grounds, competition is increasing.
“There is a lot of growth potential, which attracts new dealers. Some come and go. I think they expect it to be easier than it is,” observes Holmes. “But we have nearly two decades of experience, so we’ve developed a reputation for delivering a complete service. We spend most of our time working. There’s the odd game of golf, but we’re not spending all day on the beach!”
The future looks extremely healthy for this band of boating pioneers. Lee Marine was a founding exhibitor at PIMEX (the region’s premier boating event, held annually at the Royal Phuket Marina on Phuket’s east coast) in 2003, and is its largest each year. They are supported by their Italian manufacturers with subsidies and frequently, visiting VIPs from HQ.
“The Ferretti Group is very focused on Asia-Pacific now,” says Holmes. “Back in the day, nobody thought of coming to the tropical wilds, when the whole world was centred around Europe. But that has shifted now. They are very supportive and have established a senior management team in Hong Kong. We visit regularly and have daily contact. They attend all the Asian boat shows and provide sales support so as to keep the brands strong in the market.”
Nearly two decades of determination and hard work have paid off. “Boats are growing in number and in size, which proves to us our focus is correct,” states Holmes.
Lee echoes the sentiment. “We have an exciting future ahead of us, and are predicting 2014 to be one of our best years yet!”