I disagree, Steve...
"Monkey fur" was all the rage in the '80s...but not since then. It collects dirt, odors...nothing much but carpet shampoo can be used to clean it...which are all the reasons why he wants to replace it!
I'd peel it off, then sand the surface smooth and install vinyl wall covering--the kind that's like old fashioned "oil cloth," available from any good paint and wallcovering store....I bought it, along with everything else I needed, from Sherwin-Williams...who also provided instructions to do it right. Go with a heavily textured off white that has flecks of a neutral tan or even navy or whatever color goes with the boat in it to give it some "depth"...it'll make the boat seem bigger and also update it. And, will be easy to keep clean.