View: Yacht industry in troubled waters?

November 18, 2008 by john
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Is the luxury superyachting industry sailing into troubled waters too?

I have read a couple of reports lately in UK papers about the pending doom and gloom for the worldwide superyacht industry. I disagree which what they say.

Here the Telegraph points at yacht ALIBELLA’s (a new 50m Benetti) price reduction: ...

Here the Guardian writes about general recession in the industry:

The articles point at a handful of ‘fire sales’ out of hundreds and thousands of yachts. Obviously these particular owners need some immediate cash and the worldwide credit and equities crises will affect individuals who own yachts.

Nevertheless, yacht building yards are filled up with orders around the world, many till 2011. New build yachts takes time to plan, build and launch. These companies have a good 3 years to find new orders. Essentially pre orders have ensured a very stable platform to bridge the current financial concerns. The luxury yacht building industry is therefore very lucky when compared to other industries.

Another reason that the luxury yacht industry will fare well is that there have always been far more demand for yachts than yachts available. Even if demand for yacht (to purchase or charter) falls in line with other industries around the world there may well still be enough demand to fulfill supply.

Here is an interesting opinion from someone in the sales/charter industry ( Peter Bennett, Managing Director, Blue Water Yachting ) which states where the industry at right now:

How badly do you think the yachting industry will be affected by the credit crunch and economic downturn?

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3 Comments - Share Your Thoughts

  1. turtle

    turtle on November 18, 2008

    The superyacht industry isn’t immune to the worldwide economic recession. There’s no way it could be because the people who purchase and charter private yachts are getting personally affected by the downturn. If they have less money then less money will filter into luxury discretionary products like yachts.

    Having said that, the industry has grown so quickly recently and it has been so busy that many people I know are looking forward to a breather.

    And as for crew jobs – there’s no problem there because the yachts are already built don’t have enough crew! A downturn may stem growth but that boats already launched aren’t going anywhere.

  2. chawo

    chawo on November 21, 2008

    I would have to agree with you turtle. Realistically there’s no way the luxury yachting industry could not be affected by what’s happening in the world. Sure – it’s a bit more immune than most other industries due to the surplus of demand in recent years but there’s a lot of boats with empty calendars. I think owners who are keen to charter will be offering some pretty good deals in 2009 so it’s the perfect time for charterers looking for a cheap deal.

  3. chawo

    chawo on November 26, 2008

    …In fact, for anyone looking for a good deal, this site seems to have pretty up to date listings of current specials on luxury yachts ...

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