Market Trends of Yacht Charter Industry
Augmentation in Fleet Size by Key Players is Propelling the Market Growth
Numerous yacht charter companies are adding new yachts to remain ahead of their competitors, as several charter companies have contracts with yacht manufacturers to ensure that the new yachts are provided to them for chartering. For instance,
- In February 2022, Imperial Yacht announced that with the collaboration of Amels and Damen Yachting, the launch of Project AMELS 242-07 is scheduled to be delivered this summer.
- In March 2021, Imperial Yacht announced the signing of a new 100-meter project, Project Titanium, in collaboration with The Italian Sea Group, the parent company of Admiral Yachts. Project Titanium, which is scheduled to be delivered in 2025.
With the addition of new yachts in the fleet, charter companies invested huge amounts in upgrading their fleet. For instance,
- In May 2021, Northrop & Johnson announced closing deals, including the 120-foot (37m) Benetti motor yacht TANUSHA, two Pershing yachts LOUNOR, and AMJU, the 130-foot (39.7m) classic superyacht ARIONAS from Lürssen.
Europe and North America are Anticipated to Lead the Market
Europe is preferred as one of the top destinations for marine culture. Northern Europe has a very rich culture of yacht charters. Countries, like Germany, Sweden, England, Denmark, Scotland, Ireland, Norway, and Russia, have the existence of a variety of options to select from motor yachts, luxury yachts, and crewed yachts. Several superyachts are also available for charter along with expedition/explorer yachts. The summer season is the finest time to charter a yacht in Europe.
Correspondingly, most clients in North America selected to visit chartered destinations to avail of large discounts. In the United States, consumers are oriented toward comfort over performance. The Northern American yachting season is from May to October, whereas in South America, it runs from January to September. Florida has one of the largest gatherings of private superyachts. It has two coastal borders, one in the Atlantic and the other in the Gulf of Mexico, and it holds around 30,000 lakes.
Several countries are reforming their tax regulation and rules, which is concerning the yacht charter market. For instance, in January 2020, the French Tax Authorities released an official tax bulletin with some new rules, which will affect charter contracts signed after March 30, 2020. The VAT will be charged at a 20% rate when the yacht is sailing in EU water bodies, and there will be no VAT while sailing in international waters. If any boat is in EU waters, it is fully subjected to VAT.
As developments in the current situation are constant and fluid, one would expect that certain measures are put in place, comprising governmental and legislations directives, which would give some assurance to the industry.
