Yacht Market Returns to Pre-Pandemic Levels, Balancing Shifts and Opportunities
The global yacht industry is navigating a post-pandemic landscape, witnessing a return to pre-pandemic trends while adjusting to evolving market dynamics.
Surge in Yacht Ownership and Subsequent Sell-Offs
Fuelled by the pandemic, yacht sales skyrocketed, drawing new enthusiasts to the yachting lifestyle. However, as restrictions eased and travel resumed, some pandemic-era yacht owners have opted to part ways with their vessels. “We saw a massive spike in yacht sales during the pandemic,” explains Richard Allen, COO of Simpson Marine. “Now, many of those owners are looking to sell their boats after two years of use.”
Pre-Owned Market Prices Fluctuate
With an influx of used yachts hitting the market, prices have dropped slightly from their pandemic-era highs. However, Paolo Casani, CEO of Camper & Nicholsons, notes that “prices are still quite high due to the persisting supply and demand imbalance.” Amidst the broader market shift, he emphasizes that the demand for new builds remains robust.
Asia’s Growing Yacht Scene
Asia, a region of burgeoning wealth, is considered a promising market for yacht growth. While the pace has been slower than anticipated, Casani and Allen acknowledge the market’s potential. However, challenges such as varying regulations, complex visa requirements, and high import taxes hinder progress. “We need to simplify the process of moving boats between countries and make it easier to import them,” suggests Allen.
Innovative Ownership Models Emerge
The yachting industry is embracing new ownership models to increase accessibility. Syndicated ownership, where multiple individuals purchase a share of a yacht, is gaining popularity, particularly in Australia. Additionally, subscription models, akin to those used in the entertainment industry, provide flexible access to yachting without the commitment of traditional ownership.
Beyond Ownership: Economic and Social Impacts
The yachting industry encompasses various sectors, from boat manufacturers to maintenance providers, creating countless jobs and stimulating local economies. “This industry provides employment for thousands of individuals and can significantly benefit countries that embrace it,” says Allen.
Future Outlook
Despite the market’s ongoing adjustment, the yachting industry remains optimistic. Simpson Marine projects a global marine leisure market valuation of .5 billion by 2027, driven by job creation, tourism revenue, and new ownership models. These innovative approaches are expanding the yachting horizon, making it more accessible and appealing to a wider range of individuals.
Data sourced from: cnbc.com
