Yachts are Flying High Again!!

Miami in February is the much sought after destination for luxury boat lovers. Indeed, two major boat shows have the Americas Gateway as their operations theater: the Miami Boat Show and the Yacht Miami Beach Show. Difference between one and the other is focus. The Miami Beach event focuses on leases while the Miami Boat show on sales. But both have experienced significant growth in their earnings since 2014.

From combined business of about $597M they have consistently raised their earnings to almost double them this year. Riding on the head winds of increasing numbers of millionaires in Asia and the Americas super yacht builders and leasing agents have seen their business flourish. The average price tag for a super yacht week rent is $86,000 plus filling the tank which represents year another $ 40,000. About 900 weeks are sold in Miami.

The world market for this type of vehicles has recently been picking up. Total sales of super yachts (those over 78 feet long ) has reached about 600 units this year. This represents a sizable increase vis-à-vis 2014 when only 221 super yachts saw the light. Super Yacht demand pumping up basically from China, Russia and the United States seeks growingly luxurious units with full connectivity and entertainment platforms. The great beneficiaries of the bountiful crop are basically Great Britain and Italy that together furnish about 70% of the world super yacht supply.

Most recently Italy’s Fincantieri launched a superyacht that boasts six swimming pools and a helicopter landing pad. And together with this infrastructure come the ancillary services that are essential for a yacht to brave the oceans. These services include legal counsel; insurance; brokerage; housekeeping; gourmet cooking; hairdressers; personal trainers and masseuses. Ballpark estimates for the value of these services place the annual revenue figure at US $ 250M.

Industry watchers predict a consistent grow for super yacht demand of about 7% per annum over the next decade. They rest their case on the increasing consolidation of luxury hubs throughout the world. The Maldives; The Caribbean; The Galapagos Islands; the Seychelles Islands and The Dalmatian Coast successfully compete today with the Mediterranean. And as the world rich become increasingly interested in nature and in a clean environment other destinations will sprout to serve as ideal destinations to super yachts that have been designed to allow owners or renters to enjoy breathtaking landscapes and sceneries within the exclusive world of uber luxury.