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Yachtsman Dan Grove has forgone his annual boat trip to Nantucket, Mass., this year, opting instead to cruise to closer locations such as St. Michaels on the Eastern Shore.

The Annapolis man is among an increasing number of boaters cutting back their water time this summer as the price of fuel sold at marinas has soared to nearly $5 a gallon. With fewer boaters, the overall boating industry in Maryland ñ from retail stores to dealers ñ is also facing a severe downturn.

On a recent Friday afternoon at Annapolis Yacht Basin near Pusser's Caribbean Grill, Grove filled only 300 gallons of his boat's 1,300-gallon tank. Still, at $4.81 per gallon, compared with $3.88 at a nearby land gas station, Grove's bill totaled about $1,140. Had he topped off the tanks, he would have dropped $6,253.

"In normal years, we would be boating seven times as much," Grove said.

Boat sales are "extremely poor" this year, according to a recent report from RBC Capital Markets of New York. Nearly 35 percent of dealers are seeing new boat sales decline by more than 30 percent, according to the company's survey of 250 U.S. dealers.

In Maryland, that trend is reflected in fewer watercraft registrations in recent years. In 2007, there were 205,838 registered watercraft, a decline of 3,922 boats from 2004, according to the Maryland Department of Natural Resources.

Yachts, yes;

smaller boats, no

At Annapolis Landing Marina on Spa Creek downtown, fuel sales have fallen by close to 15 percent from last summer, said dock master Doug Smith. He said smaller motorboats especially are absent from the waters this year.

"People with mid- to bigger-sized boats are out on the water just as frequently," Smith said. "It's the smaller, fishing-type boats you don't see as many of. ... The people with the 50-foot yachts have more disposable income."

Across the creek on Compromise Street, Fawcett Boat Supplies co-owner Stephen Ripley said that while foot traffic at the shop has been on par with years past, boaters have simply been spending less since the spring. For now, Ripley is focusing on controlling expenses such as payroll while increasing the prices of some products and anticipating a turnaround next year.

"Boat users are feeling it in two ways - in gas prices and in products," Ripley said. "We've definitely seen things slow down this summer. Ö We really started seeing a big drop-off in demand. People are reluctant to make big purchases."

Sales of some Fawcett products have plummeted as much as 30 percent.

Fawcett, which caters to owners of larger sleep-on boats 30 feet or longer, has been selling fewer luxury items such as onboard grills and fancy kitchen accessories and is instead moving parts and supplies for repairs or necessities. Fawcett's customers view their boat as a second home, Ripley said, and "are more conservative" with expensive upgrades when money is tight.

Like many dealers and retailers in the state, Ripley remains optimistic that the industry will bounce back with the economy.

"People are drawn to the water," Ripley said. "The industry might be hurting, but people still love the water and will keep coming."

Fuel prices run higher at marina stations because they pay higher insurance premiums for being on the water, are open fewer months of the year and have fewer customers than gas stations on land, said Kevin Little, national sales director for marine sales with Mansfield Fuel Supply of Gainesville, Ga.

"Historically, marina consultants Ö try to achieve a 20 [percent] to 25 percent markup over on-land gas stations to cover costs." Little said. "With today's market, that's not possible."

ëBoat sales definitely down'

Boat dealers throughout Maryland are shouldering a larger inventory that is becoming outdated as newer models are introduced. Like dockmasters, dealers blame rising energy prices and sagging consumer confidence as the primary reasons for the weakness, but are also concerned about the financing market.

"Boat sales are definitely down in Maryland," said Susan Zellers, executive director of the Marine Trades Association of Maryland, and dealers are hungry for other revenue-generating ideas. One dealer started carrying cigars to pump up profits, she said.

At the association's September meeting, members are scheduled to discuss money-producing ideas for marinas and boat sales, such as encouraging boaters to picnic on the water.

"Marinas are getting creative with their slip holders," Zellers said. "The name of the game is to keep people boating. The last thing we want to see is people not using their boats. We're worried everyone will grab their golf clubs and head to the country club because it's cheaper."