The key findings from the report show that total tourism activity associated with leisure boating supports up to 68,000 tourism jobs in the UK, of which 10% are supported by expenditure from overseas visitors. In addition, overseas tourists are estimated to account for about £200m of the total leisure boating related tourism spending of up to £2.2bn and that approximately 30 million day visits and up to 16 million overnight trips involving leisure boating activities are undertaken each year.

The report also outlines the total economic benefit of the leisure marine industry to the UK economy, saying it brings around 30,000 jobs in up to 5,000 businesses, offers a yield of £230m per year in tax revenues, produces annual net exports of between £150m and £230m a year, makes significant contributions to economic development in the South West, with high levels of leisure boating activity and related industry in the South East, the Midlands and East of England and that there is still significant potential to develop the industry in North West and Wales.

The report states that there are 450,000 - 500,000 boats in the UK and that, based on 2004 figures, between 6-7% of the adult population (about four million) participate in leisure boating activities.

Confidence higher

The half yearly industry trends indicate that confidence levels for the next six months are higher than in the first half of 2005, when they had dipped.

This may bode well for the industry for 2006 although the industry remains cautious, says the BMF.

Responses to the bi-annual survey of member companies showed: 48% said that outlook for the industry was good or excellent; 34% state that quality of earnings has increased and 49% expected to see an increase in export orders.

It's clear, says the BMF, that a number of challenges are facing the industry and that these challenges are regarded as potential barriers to growth.

The report concludes the constraint on provision of moorings and marinas is holding back growth in the domestic market for leisure boats and related services and that changes to the UK planning regime, and the implementation of the Water Framework Directive, are both areas with potential to add costs to running a marine business.

"What this report shows is how important our sector is as part of the continued success of the British tourism industry, " said John Clarke, chief executive of the BMF.

"We welcome the decision announced in the Pre-Budget Report that the government is minded to apply for an extension to apply to keep the derogation on red diesel for our industry and we will work with government to win the argument now in Brussels. But this is not the only threat to our industry.