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Something to Brag About
2010-10-01 14:11
The choice of yachts and destinations has never been greater, writes yachting correspondent David Newburne
A wealthy yacht owner recently told me that it is now fashionable amongst his set to boast about how little they spend on a flight with a low-cost carrier. More than that, green credentials mean they can give up their private jets without being perceived as broke; yet the Cayenne remains just about acceptable if they have a country house, shoot, ski or have small children who need to travel in safety. In the same way, it is absolutely acceptable – de rigueur even - to brag about the size of the discount they got on a yacht charter. It’s going to take time for the industry to recover if that remains the fashion, but now, it seems, is the time to start haggling.
There are now 1200 yachts listed for charter on MYBAnet: the yachting equivalent of the travel agents database. All the yachts listed must have a central agent who manages the bookings, be commercially registered for charter and have qualified, uniformed crew and insurance. These are the minimum standards and most yachts on MYBAnet are regularly inspected and must comply with all international regulations. But what you get more from a good charter yacht is service, better standards than the best hotels, better trained staff than a private jet: just better everything. That means constant personal attention, world-class cuisine, painstaking, no-compromise attention to every detail from the quality of the construction, the materials, the sound and the air onboard.
1200 yachts is a lot – that is a quarter of the super yacht fleet actively marketed for charter and an increase of 35% since 2007. The increase is partly due to the financial advantages of owning a yacht in commercial use – no VAT on purchase, VAT-free fuel and supplies – and the contribution of charter revenue to the yacht’s annual running costs. Whilst buy-to-let is not accepted by yacht financers, charter is surely a feature that has been factored into the huge decision to buy a yacht by recent buyers.
So, whilst yacht owners are struggling with the difficult decision as to whether they can afford their yachts and whether charter income will help them do so, charterers can now start thinking about winter sun and a greater selection of yachts, destinations and prices.
Especially now that the snow is gone, Christmas and the holiday period are over, and people in the Northern hemisphere are looking for a respite from the weather, charterers can consider destinations beyond the Caribbean or Mediterranean: the world is now available with a fleet of yachts based or cruising in some of the most fascinating and remote places. The advantage of a charter yacht is being able to explore these areas without any compromise, in luxury or security.
Polynesia, Tahiti, Bora Bora, Australia and New Zealand are all perfect winter destinations and now there are both sail and motor yachts over 40m and between €80,000 and €175,000 per week to choose from.
South America - which has rarely been well-served with quality charter yachts - has the explorer yacht Atmosphere cruising Patagonia with two support helicopters. At less than $200,000 for 28 passengers this is an exciting location for the adventurous.
So what is the situation for the poorer yacht owners? Well, firstly few of them are poor but many have felt the pinch. If jets have to go, then so do the yachts: both employees and the press are quick to point out the size and value of the Chairman’s toys when jobs are being cut. This may explain the lower profile of yachting’s newest aficionados last year: the Russians. The industry would like them back but, the truth is, it will have to learn to live with greater supply than demand for both new boats and charter.
And taking the time to reflect maybe the best thing for everyone; if Hummers and Handbags were the symbols of pre-Lehman collapse era, then sensible yachts and responsible cruising will be the basis for the new decade.
The yacht owner I met has discovered chartering large sailboats is not only just as fun, but sailing adds a new dimension “and the fuel bill is negligible!” Most of all he can tell his friends that the boat cost €150,000 for a 54m sailboat – rather than €250,000 for a power boat, the flights were 50% discounted this winter and the fuel was 20% of the equivalent motor yacht. Now that’s something to brag about.
FALLING DEMAND AND THE BIGGEST EVER FLEET OF YACHTS FOR SALE AND CHARTER MEANS NOW IS THE TIME TO BUY OR CHARTER THE YACHT OF YOUR DREAMS.
David Newburne