JOHN GALLAGHER

Tiki boats could be start of untapped business opportunity on Detroit River

John Gallagher
Detroit Free Press

There's a new kind of watercraft turning up this summer on the Detroit River and Lake St. Clair.

It's the tiki boats operated by a new venture called Aloha Tiki Tours. Based at Sinbad's marina on the Detroit shoreline opposite Belle Isle and also in St. Clair Shores, the tiki boats have proved immediately popular among those seeking a different kind of party outing.

Beyond the immediate tiki experience, the odd little watercraft hint at the possibilities of many more floating entrepreneurial ventures to come. The Detroit River, even though hailed by many as the city's greatest asset, shows surprisingly few of the private entrepreneurial ventures common in many shoreline cities, from water taxis to seaplane rides.

John Moylan, a General Motors marketing worker who co-founded Aloha Tiki Tours with his wife, Callie, said the opportunity exists for many more ventures on the river and lake.

"I think any kind of tiki boats or anything that gets people out here I think changes it all," he said. "We would love to see something like the water taxis because that means giving people the opportunity to come down here and over to Belle Isle that they may not have."

A so-called tiki boat operated by the new startup firm Aloha Tiki Tours.

Aloha's tiki boats are essentially floating platforms powered by a 30-horsepower outboard motor. They carry up to six passengers and a captain. Like a tiki bar on shore, the boats feature a Polynesian-themed decor. Rails around the edges keep even the most exuberant partygoers safely out of the river. 

More:Detroit can't cherry-pick statistics, ignore inconvenient facts

More:Atwater Beach opening soon, extending Detroit's network of family friendly public spaces

A fleet of tiki boats operated by Aloha Tiki Tours shown on the Detroit River in undated 2019 photo.

Bachelorette parties were the first to sign up for the cruises once the Moylans started to promote their venture on social media earlier this year. Once word got around, team events and corporate outings soon become popular, too. A two-hour cruise costs $300 per boat on weekends and $250 during the week.

The Moylans partner with the owners of Detroit Cycle Boat, which operates slightly larger vessels for similar outings.

A busy river getting busier?

Make no mistake, the Detroit River and Lake St. Clair already rank among the most heavily trafficked waterways anywhere. Craft ranging from freighters to fishing skiffs ply these waters. Marinas, launch ramps and private boat clubs dot the shoreline up and down the riverfront. Sailboat racing remains an active sport several days a week.

But the Aloha Tiki Tours suggest an even greater use of the Detroit River and Lake St. Clair by entrepreneurs launching new waterborne ventures. The unique experience of seeing Detroit from the water is something that most residents of southeast Michigan have probably yet to experience.

Some of that has been growing in recent years, thanks to the new kayak and paddleboard rentals around Belle Isle. Dinner and cocktail cruises also are standard fare on larger vessels like the Infinity and Detroit Princess that can carry dozens of passengers.

John Moylan, co-founder of Aloha Tiki Tours, in an Aug. 19, 2019 photo.

But there's room for a lot more.

"There's not too many people that actually explore the riverfront down here," Moylan said. "I don't know if people are scared to come down here just because they don't know what to expect. But once they come here they're like, 'Oh my gosh! The Detroit River!' "

Plenty of setbacks, too

The river, of course, explains why Detroit is here in the first place. French entrepreneurs founded the settlement in 1701, seeing its strategic importance as a central spot on the Great Lakes. For centuries, waterborne commerce proved central to life in Detroit.

But in many ways, life on the water has diminished over the years. To cite just one example: The famed Boblo boats long ago sailed into history, and the only one still in Detroit, the old SS Ste. Claire, caught fire last year at its mooring along the east riverfront and faces extensive — and expensive — repairs.

The river community has seen fresh setbacks this season, too. Flooding by high water led to cancellation of more than a dozen weddings at the Detroit Boat Club building on Belle Isle. Detroit's canal district on the far east side deployed sandbags to keep high water out of houses there.

And the historic Edison Boat Club, which has operated on the river for decades as a benefit for employees of DTE Energy, is closing at the end of this season. The closing will displace dozens of boats docked there. DTE is abolishing the club as part of the transfer of most of the surrounding site to Fiat Chrysler Automobiles for use as a parking lot for new vehicles produced nearby.

Then, too, the talk of launching a water taxi business on the Detroit River has been heard on and off for years. The Detroit Wayne County Port Authority said recently it may finally issue a request for proposals for potential water-taxi operators soon. But it remains to be seen whether the idea floats.

One bright spot, though: The Port Authority reports that a couple dozen Great Lakes cruise ships have docked or plan to dock this year in Detroit. That's up from few or none for many years. It's another boost to tourism in the greater downtown.

Entrepreneurial challenges, too

The river's swift current, heavy freighter traffic, and homeland security concerns along the international border with Canada could all hinder potential new ventures.

Tiki boats operated by the new startup venture Aloha Tiki Tours have proven popular for bachelorette parties and corporate outings.

Entrepreneurs like the Moylans who hope to profit on the river face their own set of challenges. They have to raise the capital and overcome all the obstacles that dot the lives of entrepreneurs.

Bringing tiki boats to the Detroit River took an investment of a few hundred thousand dollars to buy the craft, get certified by the U.S. Coast Guard and State of Michigan, hiring crew to serve as captains for each boat, and so forth.

Unexpected challenges included this season's high water, which overtopped the docks where the tikis are kept. Moylan said they had to add new planking to raise the level of the dock just to get to boats.

"Just like any other business you have to take some risks and take out loans and roll the dice," he said.

What's needed for growth

So what will it take to generate more people living, working and playing along the Detroit River?

As Moylan says, part of it is just exposure. The more southeast Michigan residents see that an outing afloat is easy and affordable, the more we'll see bachelorette parties and corporate team-building events.

More:$125M super yacht reportedly owned by an English billionaire is cruising the Great Lakes

The continuing buildout of the Detroit RiverWalk will no doubt popularize the river even more. In a few weeks, the Detroit Riverfront Conservancy plans to open Atwater Beach, the newest stop along the east riverfront's network of recreational sites. Planning and design continues for the 22-acre Ralph C. Wilson Jr. Centennial Park on the west riverfront, due to open in a few years.

The more popular these riverside venues grow, the more that entrepreneurs will come up with ideas to offer river-related goods and services.

Growing metro Detroit's entrepreneurial ecosystem will help, too. In recent years, metro Detroit has developed an array of business incubators, pitch competitions and other aids for entrepreneurs. That ecosystem needs to expand ever more widely so couples like the Moylans can gain the skills and confidence they need to launch their new ventures.

But more to come

Despite the risks and challenges, Moylan counts this first season a rousing success. His six craft are fully booked on Saturdays and busy most of the other days of the week. He and his partners already are planning to expand next season. He hopes the venture will turn a profit by next year.

And that could mean new awareness of the magnificent Detroit River and the possibilities for public use of the region's greatest natural asset.

"I knew that once we brought these tikis up here, that would cause people to change their perceptions of the Detroit River," he said. "I think any kind of tiki boats or anything that gets people out here I think changes it all."

Call it going with the flow.

 Contact John Gallagher:313-222-5173 or gallagher@freepress.com.Follow him on Twitter@jgallagherfreep. Read more on business and sign up for our business newsletter.