Ocean World Marina Staff Meeting July, 2007 Phase I Pending further investigation Prepared by; Capt. Gabriel Emanuelli

Index Objective / Synopsis Introduction Competitive Analysis SWOT Analysis Marina Statistics / Benchmark – Comparison D. Rep. Local Marina’s Luperon Bay Ocean World: Strengths Ocean World: Weaknesses Cruising Route / Location Hurricane Map Other Considerations Target Markets Action Steps Marina Revenues - Goals Conclusion (Bottom Line)

Objective / Synopsis

Introduction

Competitive Analysis

SWOT Analysis

Marina Statistics / Benchmark – Comparison

D. Rep. Local Marina’s

Luperon Bay

Ocean World: Strengths

Ocean World: Weaknesses

Cruising Route / Location

Hurricane Map

Other Considerations

Target Markets

Action Steps

Marina Revenues - Goals

Conclusion (Bottom Line)

Objective Evaluate several aspects of the Marina looking for Marketing opportunities Competitive Analysis SWOT Analysis Identify areas of business opportunities Identify and suggest areas of Improvement

Evaluate several aspects of the Marina looking for Marketing opportunities

Competitive Analysis

SWOT Analysis

Identify areas of business opportunities

Identify and suggest areas of Improvement

Ocean World Marina features and services Dominican Republic is one of the growing economies in the Caribbean as well as an important market with an aggressive growth in the tourism industry at the Caribbean. Ocean World a full Size Marina is located 3 miles west of Puerto Plata, Dominican Republic. Its strategically location is positioned between the Florida / Bahamas route and the Puerto Rico / Eastern Caribbean Region. Introduction:

Competitive Analysis

Competitive Landscape Important statistics: (Benchmark – Comparison) 4,300 Marina’s in the US Only about 50 (1%) Operators own more than one Marina Avg. Marina has between 3-10 employee’s with larger Marina’s up to 100 Typical Marina has between 50-100 slips 10% on Avg. / slips dedicated for “Transient” (not on lease contract) Avg. Annual Revenues = $400k Average Revenue distribution: 45% Revenue is generated from Slip and storage rentals 10 % from “In-Transit” vessels 25% Revenue from Fuel sales 20% Maintenance 10% From Food & Provisions

Important statistics: (Benchmark – Comparison)

4,300 Marina’s in the US

Only about 50 (1%) Operators own more than one Marina

Avg. Marina has between 3-10 employee’s with larger Marina’s up to 100

Typical Marina has between 50-100 slips

10% on Avg. / slips dedicated for “Transient” (not on lease contract)

Avg. Annual Revenues = $400k

Average Revenue distribution:

45% Revenue is generated from Slip and storage rentals

10 % from “In-Transit” vessels

25% Revenue from Fuel sales

20% Maintenance

10% From Food & Provisions

MAP Competitive Landscape: Local Marina’s @ Understand each strength & Weakness / promote your strengths

Competitive Landscape 95% vessels are Sailboats Mostly Bay – Mooring Anchorage 100+ vessels Target > Mid-low ($) boater market / Dinghy dock / Bike rentals / Town access Free Internet – Wi-Fi zone North Coast location Clearing and immigrations offices Recognized Hurricane Hole = Longer stay’s Located about 40 miles from Pto. Plata Airport Luperon Bay Marina’s; Puerto Colon – Not open Atlantica – Not open Marina Luperon - Open Marina Puerto Blanco - Open

95% vessels are Sailboats

Mostly Bay – Mooring Anchorage 100+ vessels

Target > Mid-low ($) boater market / Dinghy dock / Bike rentals / Town access

Free Internet – Wi-Fi zone

North Coast location

Clearing and immigrations offices

Recognized Hurricane Hole = Longer stay’s

Located about 40 miles from Pto. Plata Airport

Marina’s;

Puerto Colon – Not open

Atlantica – Not open

Marina Luperon - Open

Marina Puerto Blanco - Open

O.W. Marina: Strenghts Immigration / Customs Laundry & shower facilities Duty Free Shop Food and Liquor store Car Rental services Location (in-transit vessels) Upscale Restaurant & Facility Park attractions Casino Club Show – entertainment Large Vessel Accommodations ( Up to 200’ + 12’-16’ depth) Phase I Pending further investigation

O.W. Marina: Strenghts

Immigration / Customs

Laundry & shower facilities

Duty Free Shop

Food and Liquor store

Car Rental services

Location (in-transit vessels)

Upscale Restaurant & Facility

Park attractions

Casino

Club Show – entertainment

Large Vessel Accommodations

( Up to 200’ + 12’-16’ depth)

Weaknesses: ( Challenges) Sea Currents / Wake rocking motion Vessel damage / impact repeat biz Docking comfort / line difficulty Crew comfort – safety a priority When selecting a Marina-Berth after Rough leg - passage Puerto Plata / Surrounding’s Not 5-star image No close attractions – yachts Bay’s, Islands, destinations of interest in close proximity Vs USVI, BVI, etc. Marina shortfalls Boat Yard / Maintenance options ALL Yachts require extensive maintenance, Specially under way. Parts, mechanics, similar Options may be important when selecting berth, Marina lay-over Location / limited customer base for wet-slips, Long-term lease Hurricane Season Most mega-yacht are Insurance “Restricted” from Area = resulting on lower traffic during season Phase I Pending further investigation

Weaknesses: ( Challenges)

Sea Currents / Wake rocking motion

Vessel damage / impact repeat biz

Docking comfort / line difficulty

Crew comfort – safety a priority

When selecting a Marina-Berth after

Rough leg - passage

Puerto Plata / Surrounding’s

Not 5-star image

No close attractions – yachts

Bay’s, Islands, destinations of

interest in close proximity Vs

USVI, BVI, etc.

Marina shortfalls

Boat Yard / Maintenance options

ALL Yachts require extensive maintenance,

Specially under way. Parts, mechanics, similar

Options may be important when selecting berth,

Marina lay-over

Location / limited customer base for wet-slips,

Long-term lease

Hurricane Season

Most mega-yacht are Insurance “Restricted” from

Area = resulting on lower traffic during season

Cruising Routes 250 NM @ Puerto Rico Marina’s / Considerable distance for Yacht guests to make trip towards Ocean World from Puerto Rico a Challenging task

35-Acre complex / 120 wet-slips / vessels up to 200’ LOA / Entrance depth 16’ average depth 12’ throughout / Dry Storage capacity for up to

Most mega-yacht are “Restricted” from zone during season = resulting on lower traffic / mostly enforced by Financing – Insurance agencies Season lasts 6 – months / 1 st . June through 30 November 50% of yearly “Revenue Projections” could be impacted What can be done? Worth exploring? Historical statistics? Dom. Rep. Favorable? Lower Risk zone? Marine Losses? Hurricane plan ? Including favorable “Hurricane Hole” – Luperon Bay? Worth study? Risk assessment - Re-evaluation Insurance industry? The Atlantic hurricane season is officially from 1 June to 30 November Competitive Landscape / SWOT / Threat Analysis

Most mega-yacht are “Restricted” from zone during season = resulting on lower traffic / mostly enforced by Financing – Insurance agencies

Season lasts 6 – months / 1 st . June through 30 November

50% of yearly “Revenue Projections” could be impacted

What can be done? Worth exploring? Historical statistics? Dom. Rep. Favorable? Lower Risk zone? Marine Losses?

Hurricane plan ? Including favorable “Hurricane Hole” – Luperon Bay?

Worth study? Risk assessment - Re-evaluation Insurance industry?

Competitive Landscape Transportation: Strength Air – accessibility / options Puerto Plata Airport Yacht Charter Co. / Offer option Start – ending point Gather / present Airline options Emergency / stop-over option Meet point option / crew – guests Worth considering? Presenting Yacht Charter businesses

Transportation: Strength

Air – accessibility / options

Puerto Plata Airport

Yacht Charter Co. / Offer option

Start – ending point

Gather / present Airline options

Emergency / stop-over option

Meet point option / crew – guests

Worth considering? Presenting

Yacht Charter businesses

 Full Service Marina : A full service Marina with good maintenance, boat yard, travel-lift facility may be of top priority for a Captain in the Marina (berth) selection.  Mechanics and Services : ALL Yachts require extensive maintenance, 90% Vessels Cruising through this “Zone” will at a minimum open their engine compartments to check engine-systems prior to resuming next leg-course.  Fish & Tackle Shop : important due to North coast / Atlantic fishing grounds  Fuel services : Fuel is one critical factor in maintaining costs / they compare fuel prices through all Course-route and determine best options for re-fueling. It is important to compare Marina fuel prices with Bahamas / Turks / Luperon and Samana to create a competitive offering. Competitive Landscape Additional Considerations:

 Full Service Marina : A full service Marina with good maintenance, boat yard, travel-lift facility may be of top priority for a Captain in the Marina (berth) selection.

 Mechanics and Services : ALL Yachts require extensive maintenance, 90% Vessels Cruising through this “Zone” will at a minimum open their engine compartments to check engine-systems prior to resuming next leg-course.

 Fish & Tackle Shop : important due to North coast / Atlantic fishing grounds

 Fuel services : Fuel is one critical factor in maintaining costs / they compare fuel prices through all Course-route and determine best options for re-fueling. It is important to compare Marina fuel prices with Bahamas / Turks / Luperon and Samana to create a competitive offering.

Yatch Owners : Keep in mind, most Mega Yacht owner’s are NOT aboard during this Cruising Zone as it is common they coordinate leisure time prior in the Bahamas and re-join new guests or owners meet vessels again once same one has reached the Virgin Islands. As a result 80% Mega Yachts cruising through area, are Crew Only on-board vessels . We need to motivate their visit to the facilities using the whole complex attractions not only the Marina. Preferred Destination / Surrounding’s Current Mega yacht (85’ +) destination of choice is the Virgin Islands (Peter Island – Bitter End in V.Gorda) / Lesser Antilles such as St.Barts / St.Marteen, Yacht Haven in St.Thomas newly inaugurated Mega-Yacht Marina Competitive Landscape Additional Considerations:

SWOT Analysis Competitive Landscape Competitive analysis is a critical action step (If not done already) Strengths Weaknesses Opportunities Threats

Competitive analysis is a critical action step (If not done already)

Strengths

Weaknesses

Opportunities

Threats

Target Markets Mega Yacht Owner’s (High end) Yacht Owners and their vessels choose their marina because they fall in love with the surroundings. The current facilities of Ocean Word provide a high end product that can fulfill this need. Casino, Park, Up-scale Restaurant, etc. Yacht Crew (Medium / low end) Captain’s – Crew only vessel’s, maintenance options a plus Groups / Team building / Special events (wedding’s, etc.) Excellent facilities for Group-events purposes Park, team building SAMPLE agenda can be developed (proposal) Must be developed together with hospitality – lodging hotels in area Sport-fishing “Tournaments” / Angler’s Target market Excellent location – venue for the sport 1 st . Class Fishing “Academy” should be considered Unique experience in attracting “Groups, special events venue” Push-Pull synergy with Fishing tournaments / exposure / marketing opportunities Introduce / support Local market (Santiago biz. Execs.) to Marina – sport (Dry-storage potential customers)

Mega Yacht Owner’s (High end)

Yacht Owners and their vessels choose their marina because they fall in love with the surroundings. The current facilities of Ocean Word provide a high end product that can fulfill this need.

Casino, Park, Up-scale Restaurant, etc.

Yacht Crew (Medium / low end)

Captain’s – Crew only vessel’s, maintenance options a plus

Groups / Team building / Special events (wedding’s, etc.)

Excellent facilities for Group-events purposes

Park, team building SAMPLE agenda can be developed (proposal)

Must be developed together with hospitality – lodging hotels in area

Sport-fishing “Tournaments” / Angler’s Target market

Excellent location – venue for the sport

1 st . Class Fishing “Academy” should be considered

Unique experience in attracting “Groups, special events venue”

Push-Pull synergy with Fishing tournaments / exposure / marketing opportunities

Introduce / support Local market (Santiago biz. Execs.) to Marina – sport (Dry-storage potential customers)

Action Steps

Market / 80% Locals – 20% Villa Owner’s Most dry-stack clientele different target market than luxury marina clientele Develop a plan to reduce impact on overall guests-Marina image Ocean World Marina may consider rules-regulations to ensure target clientele is attracted while discouraging other’s in a subtle professional manner, such as vessel conditions / year / length / membership- club ambiance, etc. Right of refusal clause in order to ensure above. Dry Stack Location-Distance! Current location-distance of dry stack facility towards drop point into dock-water is at a min. 10x farther any other Marina All dry stack operations DROP vessels to the ground from the fork-lift incurring in boat damage, insurance claims, customer dissatisfaction, etc. Open Fisherman’s boats prices have significantly increased on price ranging from $80k thousand US$ up to $400k thousand US$ for top of the line 40’+ Open Fisherman boats. Time consuming will be an operational challenge due to its distance, thus creating excessive waiting periods for boat owners due to distance, not to mention limited number of Fork-lifts to provide service 75% Fishing Enthusiast overall due to location (North Coast) 80% Male – 20% female mix / fishing anglers enthusiast Dry-Stack / Boat Storage Assumptions

Market / 80% Locals – 20% Villa Owner’s

Most dry-stack clientele different target market than luxury marina clientele

Develop a plan to reduce impact on overall guests-Marina image

Ocean World Marina may consider rules-regulations to ensure target clientele is attracted while discouraging other’s in a subtle professional manner, such as vessel conditions / year / length / membership- club ambiance, etc.

Right of refusal clause in order to ensure above.

Dry Stack Location-Distance! Current location-distance of dry stack facility towards drop point into dock-water is at a min. 10x farther any other Marina

All dry stack operations DROP vessels to the ground from the fork-lift incurring in boat damage, insurance claims, customer dissatisfaction, etc.

Open Fisherman’s boats prices have significantly increased on price ranging from $80k thousand US$ up to $400k thousand US$ for top of the line 40’+ Open Fisherman boats.

Time consuming will be an operational challenge due to its distance, thus creating excessive waiting periods for boat owners due to distance, not to mention limited number of Fork-lifts to provide service

75% Fishing Enthusiast overall due to location (North Coast)

80% Male – 20% female mix / fishing anglers enthusiast

Dry-Stack / Boat Storage Promoting an up-scale “Concierge” Service Program Guests can call by Phone to notify arrival to Marina Boat will be ready to go, on the water by the time they arrive to the Marina This will ad value and differentiate the services of the Ocean World Marina against its competitors Provide operational flexibility at no extra costs to Marina operator Most guests will arrive at similar “Peak” hours, thus this will avoid long waits Will allow to better “Secure” vessels for transport to from storage - water Push-Pull Strategic Partnerships Identify other well known brand dealership specializing in “Open Fisherman” Contender / Boston Whalers / Intrepid / Grady White / other Concierge Service: Action Steps

Promoting an up-scale “Concierge” Service Program

Guests can call by Phone to notify arrival to Marina

Boat will be ready to go, on the water by the time they arrive to the Marina

This will ad value and differentiate the services of the Ocean World Marina against its competitors

Provide operational flexibility at no extra costs to Marina operator

Most guests will arrive at similar “Peak” hours, thus this will avoid long waits

Will allow to better “Secure” vessels for transport to from storage - water

Push-Pull Strategic Partnerships

Identify other well known brand dealership specializing in “Open Fisherman” Contender / Boston Whalers / Intrepid / Grady White / other

Action Steps Marina / Wet-Slips Explore area’s to enhance or improve Crew comfort under current tidal waters conditions New Mooring-dock lines systems have been designed to allow for Vessel to simply tie to Dock closely and securely with a tracking system where dock-cleat moves up-down with the tide. Some examples of this systems are, Tideminders / www.sailorsams.com , Tide sliders @ www.tideslide.com / www.slidemoor.com This will reduce - eliminate most rocking, tidal water movement on vessels

Explore area’s to enhance or improve Crew comfort under current tidal waters conditions

New Mooring-dock lines systems have been designed to allow for Vessel to simply tie to Dock closely and securely with a tracking system where dock-cleat moves up-down with the tide.

Some examples of this systems are, Tideminders / www.sailorsams.com , Tide sliders @ www.tideslide.com / www.slidemoor.com

This will reduce - eliminate most rocking, tidal water movement on vessels

Sports-fishing yachts and Tournaments are an excellent target to support Marina strategies due to its North Coast (Atlantic depth) and fishing grounds Ocean World facility provides excellent Venue for such Tournaments Fish & Tackle Shop – supplies at premises important, believe already in progress Fishing Academy! Subcontracting / partnering with outside “Fishing Charter’s” can expedite initiative Quality / One of a Kind academy can generate “Global” recognition / attract Target Customers Excellent attraction for non-fishing enthusiast / Groups – conventions Marine Biology / “Research – Vessels” Push-pull cooperation opportunities? Benefits? Evaluate Pros-Cons. Marine (Dolphins) Humane image support – studies Use of Facilities / Base / Other revenues $, Groups – meetings - Exposure Action Steps Sports-Fisherman’s Paradise

Sports-fishing yachts and Tournaments are an excellent target to support Marina strategies due to its North Coast (Atlantic depth) and fishing grounds

Ocean World facility provides excellent Venue for such Tournaments

Fish & Tackle Shop – supplies at premises important, believe already in progress

Fishing Academy!

Subcontracting / partnering with outside “Fishing Charter’s” can expedite initiative

Quality / One of a Kind academy can generate “Global” recognition / attract Target Customers

Excellent attraction for non-fishing enthusiast / Groups – conventions

Marine Biology / “Research – Vessels”

Push-pull cooperation opportunities? Benefits? Evaluate Pros-Cons.

Marine (Dolphins) Humane image support – studies

Use of Facilities / Base / Other revenues $, Groups – meetings - Exposure

Key Initiatives Increase Sales : Reduce Cost / Expenses: Phase I Pending further investigation Other

Increase Sales :

Reduce Cost / Expenses:

Sales Initiatives Work SMART S pecific - What do you want to achieve? M easurable - must measure results A chievable - are the objectives achievable - attainable? R ealistic - Can you realistic achieve objectives with the resources you have? T ime - When do you want to achieve set objectives?

Work SMART

S pecific - What do you want to achieve?

M easurable - must measure results

A chievable - are the objectives achievable - attainable?

R ealistic - Can you realistic achieve objectives with the resources you have?

T ime - When do you want to achieve set objectives?

Marina Revenues $ < Current Goal > @ Explore current revenue Distribution / Profit margins, etc. Determine BEST Case / most Optimal distribution / GOAL >

Bottom Line! Understand Marina “Strengths / Weaknesses / Opportunities & Threats (SWOT) Understand your Competition / Identify & Promote your Competitive Advantages Increase Revenues / Net Income Monitor Marina Costs x Sales index / establish goals / monitor Out of the Box – Marketing / Explore NEW target markets Phase I Pending further investigation Prepared by; Capt. Gabriel Emanuelli

Understand Marina “Strengths / Weaknesses / Opportunities & Threats (SWOT)

Understand your Competition / Identify & Promote your Competitive Advantages

Increase Revenues / Net Income

Monitor Marina Costs x Sales index / establish goals / monitor

Out of the Box – Marketing / Explore NEW target markets