Jun 21, 2008

International Market Update - SuperYachts going STRONG !

US economy slow-down?...global recession??...inflation rising and markets down in India???...surely looks like a bad picture for the luxury industry, and even worse for guys selling hot yachts!


BUT surprise surprise...you wouldn't believe if we told you that there have been more superyachts ordered last year than ever...and the trend is rising at approx 20% per annum!

Rumours of a shake-out in the bullet-proof superyacht industry were mooted at the Global Superyacht Forum.

STATS

The latest Superyachting Index shows that the top end of the yachting market is still holding firm – not showing any signs of depletion currently.

The index, which is compiled by The Luxury Institute and Camper & Nicholsons International – the yacht broker and charter company – found that new orders for yachts over 130 feet are up 18% in 2008. There were 254 new orders for yachts longer than 130-feet last year, up from 134 in 2005.



The report also puts into perspective the astounding growth rate over the past decade for jumbo yachts. In 1997, there were just 241 yachts of 80-feet or more under construction around the world. Last year, there were 916 such boats being built.

The average price for motoryachts longer than 100 feet was US $10.3 million in 2007. The average price for sailing yachts of the same length was US $9 million (although, to the dismay of traditionalists, sailing yachts now make up a tiny fraction of the large yacht market).

STAFFING IS THE MAIN PROBLEM

Ironically, the biggest constraint to the industry’s growth isn’t the economy — it’s staffing. The report says that about 25,000 crewmembers are necessary for today’s fleet of superyachts, but only about 15,000 currently work aboard yachts. Shortages of captains and engineers, it notes, are especially acute.


All of this sounds encouraging. And the superyacht market likely won’t face the same crash it experienced in previous downturns, since it’s so global. Just a decade ago, the vast majority of big boats were being purchased by Americans and Europeans. Now, Russian, Indian and Middle Eastern buyers are fueling the market.

U.S. SLOWDOWN JUST AROUND THE CORNER

A brief review of with several yacht brokers would lead us to believe the market – at least in the U.S. – is poised for a slowdown. A year ago, buyers could order a new boat knowing that, in the worst case, they could flip it for a quick profit. Now they’re more hesitant.


“With the American market especially, people are waiting for more certainty in financial markets before make a big decision,” said Jonathen Beckett, CEO of Burgess.

INDIA...

Having a full-fledged superyacht market in India may not be a distant dream for some, but as per current socio-economic trends a safe estimated growth of 60% per annum is emminent.

2 comments:

Anonymous said...

Quick question where are you pulling your data. Do you have a source?

Paul Hyde said...

@anonymous

Hi !

It is appreciated that you have bought to fore a mention about our source for the valuable information we put on the blog.

With regards to this post, the facts and stats conveyed are through authentic sources such as 'The Luxury Institute and Camper & Nicholsons International', and reconfirmation by our team with experts in the industry and network.

All information available through us in from the best relevant sources, and verified.

Rest assured, our readers get quality information - and we strive in provding them the same.

Team GIIRA