In recent times, there has been a noticeable shift in the behavior of pandemic-era yacht owners who are now choosing to transition back to dry land. This shift comes on the heels of a surge in yacht sales brought about by the pandemic. According to Richard Allen, the chief operating officer of Simpson Marine, there has been a notable increase in brokerage activity for yacht sales in recent months.
Paolo Casani, the CEO of Camper & Nicholsons, highlighted that the yacht sales in 2021 were more than double those of 2019 on a global scale. Despite a slight decline in sales post-2021, the demand for new yacht builds remains strong. Casani emphasized the resilience of the industry and pointed out that there is still a gap between demand and supply, which may lead to price reductions in the future.
Yachting Scene in Asia
While some yacht owners in Asia are opting to trade up for larger vessels, others are embracing the boating lifestyle and expanding their yacht collections. The yachting market in Asia has been growing steadily, albeit at a slower pace than anticipated. Challenges such as cultural factors, lifestyle preferences, and infrastructural limitations have been cited as reasons for the slower growth in the region.
Allen highlighted the complex regulatory environment in Asia that poses challenges for the yachting industry, including disparate rules and regulations across different countries. High import taxes, reaching up to 40% in certain markets, and visa requirements for foreign boat crews are among the obstacles that need to be addressed. Allen emphasized the importance of lobbying efforts to streamline regulations and facilitate easier movement of boats within the region.
Industry Initiatives and Growth Projections
The International Council of Marine Industry Associations (ICOMIA) has been instrumental in addressing key issues faced by the industry, such as sustainable propulsion and the lack of marina infrastructure in high-potential countries like Indonesia, the Philippines, and Vietnam. Industry estimates suggest that the global marine leisure market will reach $46.5 billion by 2027, creating job opportunities and contributing to local economies through tourism revenue.
Newer ownership models are making yachting more accessible and affordable to a broader audience. Fractional ownership, where individuals purchase a share of a yacht, and subscription-based models are gaining popularity. Boat clubs, which offer members access to boats through monthly memberships, are becoming increasingly prevalent, mirroring trends seen in other entertainment sectors.
The yachting industry is experiencing shifts in ownership patterns, market dynamics, and regulatory landscapes. While challenges persist, such as regulatory hurdles in Asia and pricing fluctuations, the industry remains resilient and continues to evolve through innovative ownership models and advocacy efforts. With a promising outlook for growth and diversification, the yachting industry is poised to adapt to changing consumer preferences and market trends in the years to come.