After facing one of the worst crises in the history of tourism and travel, parts of the yacht market have thrived as business rapidly grew with an increase in orders. Demand for luxury yachts rarely spikes, as wealthy tourists are choosing to spend their vacations at sea in an attempt to escape crowds and the risk of the new coronavirus. For those who can afford it, everything is available on board the yacht from water sports to yoga and fitness sessions. It also provides an opportunity to enjoy time with friends and family in an isolated bubble.
Anthony Sheriff, CEO of Princess Yachts, said: "After coming out of the first lockdown last summer, the market completely thrived to a level far beyond what we were at before we went into lockdown," according to the Financial Times. This coincides with the echoing success stories from yacht manufacturers across Europe. The Ferretti shipbuilding company based in Forli, northern Italy, reported record deliveries of 56 yachts in the first quarter, stating that the "remarkable acceleration" in orders had overturned expectations.
Elsewhere, by May 17 of this year, 208 luxury yachts were purchased for £1 billion, up from 131 a year ago, according to Boat International. Yacht manufacturing company leaders also noted that the pandemic inspired the wealthy to reassess how they spend their time, whether by purchasing their first boat or jumping forward to increase their wealth as asset prices rise.
Marco Valle, CEO of Benetti Yachts, said: "The coronavirus made people realize that their lives can change quickly." They have changed their perceptions of life and wanted to seize that moment. He added, "It’s no secret that the market has risen significantly; we have the right product in the right place."
Rose Damen, Managing Director of Dutch manufacturer Damen Yachting, which saw an increase in orders of about €800 million over the past twelve months, stated: "We won the highest orders ever in a year without displaying yachts." Damen further mentioned: "People expect yacht manufacturing to be very profitable, especially since the clients are billionaires, but it really isn't a high-margin business and can be high-risk."
Now, the task for the builders of the fleet of 5,700 super yachts – defined as boats over 30 meters in length – is to retain clients in the post-pandemic market. Although the number of individuals with a net worth exceeding $30 million is expected to grow to 520,000, according to the Frank Knight wealth report, many wealthy clients may choose to spend their money on other things once the crisis is over.
