Superyacht industry discusses future in Monaco forum

Posted on

The Yacht Club de Monaco, under the “La Belle Classe Superyachts” banner, held its fifth economic symposium, where industry leaders discussed a lagging yacht market, but a thriving megayacht sector.

More than 45 professionals from across the luxury yachting supply chain attended the dinner-debate to discuss the economy of the yachting world.

Representatives of boatyards, brokers, designers, captains, bankers, maritime experts, lawyers, port directors and show organizers attended the event, which allows for open discussion.

“All agreed the yachting industry is still hampered by problems linked to the financial and economic crisis,” a yacht club statement said.

Olivier Blanchet, of BNP Paribas, told attendees that there was an average drop of 30 percent in the price of secondhand yachts between 2011 and 2012, particularly in the 24- to 35-meter market (roughly 79 to 114 feet).

Demand for funds to finance yachts remains steady, although more than two-thirds of acquisitions are still made without a request for funding, Blanchet told guests.

The crisis has, however, revealed how surprisingly healthy the megayacht sector is (yachts 80-plus meters, or 262 feet).

New builds got bigger and bigger in 2011 and 2012, Blanchet said.

“Some 25 to 30 boats of 100 meters [328 feet] are already sailing,” Blanchet said at the meeting. “A few projects for 160-plus meters are in the process of being built.”

That translates to roughly 525 feet.

Worldwide, there are estimated to be about 82,000 ultra-high net worth individuals whose fortune exceeds 50 million euros, or about $67 million. About 1,226 of those are billionaires; 480 are in the United States, and China has the second-most, at 147.

Those billionaires are younger, with 20 percent of the top 100 under the age of 50. Therefore megayacht designers should keep younger families in mind when creating new products, Blanchet said.

“Compared to those of their fathers who became owners relatively late in life, the yachts of these new owners often have to meet the needs of an extended family with children,” Blanchet said in his speech.

Camper & Nicholson COO Laurent Perignon told attendees that the current climate is not a crisis, but a return to normal.

“Obviously we are not seeing a return to the crazy years of 2003-2008, but now it is the reality of yachting in general,” he said.

“The market has changed. It is the reality of the market; we will have to resize and reformulate our companies,” said Marc Ovanessian, administrative and finance director at ITM.

The next La Belle Classe environmental symposium will take place on March 26.

Click here for the full release.

Welcome to TradeOnlyToday’s premium content! To continue reading, please register now, for access to 10 free stories per month. Or subscribe, for unlimited access to all TradeOnlyToday content!

Click here to Register ... it's free!

Basic subscription: Registered members get free access to 10 premium content stories each month!

Not a member yet? Click here to Register!

Already a member? Click here to Login!

Subscribe ... for unlimited access!

Individual subscription: $29 for unlimited site access for one year.

Small Business subscription: $140 for unlimited site access for up to 10 members of a company for one year.

Corporate subscription: $300 for unlimited site access for all members of a company for one year.

You may close this dialog after seconds.

Comments

One comment on “Superyacht industry discusses future in Monaco forum

  1. Dan O'Brien

    It’s a shame that the market for us lower class types has dried up. I think the Super Yacht owners are very much in need of a smaller tax burden as well.

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments Policy.

Vote Today

Did 2014 meet your sales expectations?

View Results

Loading ... Loading ...

Search Boats for Sale

Length
Year
Price

Login to Trade Only Today

Lost Password