The 2008 crisis dealt a heavy blow on the yachting market. Speculators who built yachts for a quick resale, remained with a large number of “stock” on hand. The shipyard began to go bankrupt. The price tags on the yachts fell by half. Such a drop after years of explosive growth was a surprise – only now, many yacht companies started to get out of deep losses.
While business aviation has been able to recover quickly, the rise of the global economy, alas, has not supported the yacht market, which until recently had been shrinking from year to year. Again, the reason was the closure of the industry. Rich people have long built itself all that only could fantasize – why do they need a new one? For example, a family of German entrepreneurs Hartanov ordered seven mega-yachts, but stopped back in 2002 on a 97-foot Carinthia VII. American billionaire Dennis Washington yacht owned by nine, but his last boat was the 100 metre Attessa IV, commissioned in 2010.
Over the last decade the number of families with a fortune of more than €30 million worldwide has increased more than 2.5 times. This is evidenced by research company Wealth-X. During this same time, the number of transactions for the sale of yachts increased by less than 10%. A fraction of the cost of yachting in the structure of expenditures of the wealthy at all declined by almost 65%. One of the reasons was the closure of the industry, its reluctance to offer products for the more “simple” for customers.
There are other factors. For example, the Asian market, the number of rich people which is growing at a faster pace, soon I will take sailing in its European or American scale because of the banal lack of infrastructure. At the same time more and more people prefer not to buy a new boat, and ordered the Charter already existing – the secondary fleet is large and can satisfy a variety of tastes. In the end, build a yacht for himself is not that interesting.
A new generation of ultra-rich, in turn, is not taken for yacht stops the complexity of their construction, which in recent years has only increased. When ordering plane (in spite of their higher cost) people understand that in the end, in the construction of new yachts the answer is not always obvious. To get an adequate result, not only to study existing models and to pay the shipyard. Still need to collect to assemble a team of designers, managers, lawyers, and engineers and work with them over three years to achieve a result.
Regulation in the market is much more complex – in terms of safety standards and tax rules. For example, if the owner wants to take the boat in Charter to offset some of the costs of its operation, it actually needs to remove it from yourself and pay yourself every time he wants her to swim. All this is not conducive to the growth of investment attractiveness of yachting.
So, buying 50-foot yacht for €10 million, the new owner will pay more than €2 million a year for the service and receives an average of €600 000-700 000 Charter income, if he wants to swim it in the summer. He would sell her – on average, five years – he will receive about €7 million, of which a minimum of €2 million has already been spent to cover the maintenance costs. That kind of math scares people away from buying the yacht, forcing him to choose a more simple and advantageous Charter. In the end, the market is held for some 300 families who are willing to spend more to get something individual.
Take, for example, a man who has the ability to shoot a 60-foot 2-3 weeks in the summer. If he wants to build a yacht, his budget will probably allow you to order shipyard boat length of about 40 meters. But if he’s going to look to the secondary market, you can buy a yacht in the order of 50-55 meters. It is obvious that when such arithmetic people often choose in favor of the construction.
We will talk separately about the lack of a yachting infrastructure in Asia. More and more people in the region can afford a yacht. But they are faced with the fact that there are no ports, marinas and finally recreation on the yacht. But changes for the better there and they are visible – however, to change the situation will take years. A Chinese group of companies owned Ferreti Weichai Group is one of the largest shipyards. British manufacturer Sunseeker bought by Chinese Wanda Group and broker with Camper & Nicholsons – Lai Sun Group.
Unfortunately, the model of ownership of assets, well tested from a private aircraft, do not survive in yachting is not just a mode of transportation, but also comfortable. What to do in this crisis is an open question. However, sooner or later will help the new technology. However, think about it a few. In the end, the sites of many manufacturers appeared only after the crisis of 2008, when it was necessary as-that to raise sales.
It is worth noting that the market for yachts with length 90 metres and above today, by contrast, feels more alive than ever. For the year was sold 110m Jubilee, 107-metre Ulysses, was launched more than ten yachts longer than 100 meters for customers from the USA, Russia and the Middle East. But what will happen to the boats in the segment from 35 to 70 meters, which is associated with “mass” yachting – the big question in today’s dynamics.