an assessment of superyacht charters

An assessment of

Superyacht Charter Market in Asia

Market Feedback and Reports, a Business Point of View Prepared by Rico Stapel, Charter Manager Northrop and Johnson Asia

The authority on yachting since 1949

Why should you care about Charter?

• Direct Benefits to the Industry:

– Marina Berthing, Bunkering,

Provisioning, Crewing, Maintenance

& Repair, Refitting

• Indirect Benefits

– Superyacht Charters bring Credibility

– Opportunity to develop new Products

and Services

– FDI and Business JV

• Charter: the gateway drug


The Potential

The potential is,

I risk to say, the largest potential in the world…

Alberto Perrone Da Zara,

Ferretti Group

About the potential of Asia's yachting Industry during PIMEX 2012


The Process

The

Knowledgeable

Charter Broker

The most suitable

Yacht The trustful

Client

The perfect

Destination


The Players

• The Destination – To Exite, To Entertain, To Relax, To be Seen

• The Yacht – Charter Registration, Insurance, Crew,

Service, Facilities, Toys, Experience

• The Broker – Add Value, Provide expert trusted advice and

information, Supply “fun”

• The Client – Trades his most valuable asset = Time for an

outstanding experience


The Destination, is it exiting? I think it is a really wonderful charter alternative and feel that it is just not so much on peoples’ radar. People are

basically creatures of habit and are frightened of the new and of change – all of which they have to overcome to

book Asia for charter.

Rosemary Pavlatou - A1 Yachting

Swimming with Whalesharks – Phillipines Bathing Elephants - Andaman


The Destination, is it entertaining? The cruising is superb, with a great variety of destinations – different countries , landscapes , cultures and cuisines

Tom Debuse – YCO Yacht

Chinese New Year Thai Songkran Festival


The Destination, is it relaxing? All of our customers are extremely pleased with it. I believe this has to do with the feeling of a exotic location while

still enjoying a luxurious experience. Many have commented on the difference in hospitality, service and the ability

to have entire islands and beaches to yourself .

Michael Click – SY Samata

High Quality Spas Everywhere Empty Beach in Vietnam


The Destination, see and be seen? The majority of top end clients want to go to a destination that offers; beautiful and safe cruising, nightlife, culture

and safe visits to local sites, choice of high level restaurants, luxury shopping. To have all the above you need a St.

Barths, St. Tropez or Porto Cervo of the east..

Tom Debuse – YCO Yacht

Luxury Shopping in Singapore Jakarta Fashion Week


Charter Yachts – visiting, local and listed on MYBA net

Indian Empress 311’ - visiting Lauren L 295’ - visiting Moonlight II 280’ - visiting

TV 256’ - visiting Vertigo 220’ - visiting Silver Angel 211’ - visiting



SuRi 206’ - visiting Arkley 197’ - visiting Magna Grecia 191’ - visiting

Montiqne 187’ - visiting Noble House 176’ - visiting Alexandra 164’ - visiting



Platinum 164’ - visiting Silolona 164’ - Indonesia Mary Jean 163’ - visiting

Asteria 160’ - visiting Jana 152’ - visiting Golden Compass 150’ - visiting



Dhaainkan Baa 144’ - visiting Douce France 138’ - Indonesia Maverick II 138’ - Thailand

De Lisle III 137’ - visiting Calisto 136’ - Thailand Lady Arraya 132’ - Thailand



El Aleph 133’ - Indonesia Mutiara Laut 130’ - Indonesia Onyx 126’ - visiting

Nashira II 121’ - visiting Eendracht 120’ - visiting Hye Seas II 116’ - Singapore



Lady Hoo 111’ - Philippines Nymphaea 108’ - Singapore Aveline 104’ - visiting

Raja Laut 100’ - Indonesia Asia 98’ - Thailand Salila 98’ - Indonesia



Makarena 96’ - Thailand Kealoha 90’ - visiting Lady Kathryn 80’ - Thailand

Merry Makin 75’ - Indonesia Silandra V 75’ - visiting Sanook 75’ - Thailand


Charter Yachts – world wide

Cote d'Azur 26%

Riviera 24%

Carribean 19%

Greece 16%

USA 9%

Maldives 2%

Australia & NZ 2%

Asia 2%

• Tiny fraction of charter yachts world wide based in Asia

Source charterworld.com


Charter Yachts – population in Asia

Visiting 56% Indonesia

15%

Thailand 16%

Philippines 2%

Singapore 4%

Malaysia 7%

• Lack of high quality Superyachts based in Asia

• Lack of Information on visiting Superyachts


Charter Yachts – charter weeks by type (average)

visiting Superyachts

17%

local Superyachts

13%

Phinisi type 70%

• Asia being perceived as an Explorer Adventure Destination

• Established yachts with professional management do better

• More difficult for visiting yachts, not area bound


Charter Yachts - the challenges

• Local Regulations

• The Perception of Danger of

Piracy

• … Natural Disaster and Health

Risks

• Uncertain Charter Income

• Distance from Traditional

Charter Areas

• Distance from Friends and

Former Clients

• Information Deficit


The Broker – global presence of the Top 10

Broker # yachts Med. Carrib. SE Asia Greece AU/NZ

Burgess 137 Y Y Y

Edmiston 130 Y Y Y

Camper & Nicholson 115 Y Y

Ocean Independence 113 Y Y Y Y

Fraser Yachts 88 Y Y

Northrop & Johnson 79 Y Y Y

Intl. Yacht Collection 40 Y Y

Yacht Partners Int'l ? Y

Merle Woods & Ass. 9 Y

Seven Seas Charter ? Y

Source: McKinsey & Company


The Broker - the challenges

• Don’t want to expose clients to

risk

• Air Travel Time

• Lack of Yachts

• Concerns for Quality of Yacht and

Crew

• Unsure of Regulations, Taxes,

Government

• Provisioning based on Guest

Requirements

• Information Deficit


• The Traditional Market:

– Europe, USA, Australia

• Mainly reached through traditional channels

and oversea Brokers in particular.

• The Emerging Market:

– Russia, China, India, Asian Expats &

Locals

• New Marketing Channels need to be

explored

• Large repeat clientele

– needs nourishing through always new

and flawless experiences

The Client - the Yachts and Brokers biggest Asset


How can we help?

• Information, Information, Information

• Itineraries with High Quality Photos

• Comprehensive Crew Profiles

• FAM Trips with “Mini Boat show” and Agents meetings

• Regular updates on Yachts, Refits etc.

• Broker Friendly Brochures, Online Brochures and

BF “Asia” Website

• Reassurance of Safety and Convenience,

Quality of Yachts and Crew

• Summary of Charter Regulations throughout

• Summary of Marinas, Ports and SY Support Facilities

• Promoting Activities, Facilities and Ease of Travel

• Competitive Charter Rates, Special Offers

• Continue Working on Legislations


How can we help?

• Concluding we can say that the

Region has to promote itself with the

help of every section.

• Region before competition, baking

the pie before sharing it.

• N&J will implement many of the

suggestions. Submissions and help is

encouraged but...

• APSA would be a very appropriate

body to coordinate.


Summary

• Charter is an important part

of the Industry!

• Asia has exceptional

potential!

• There are things we can do!

• The state of market

requires cooperation over

competition The End

an assessment of superyacht charters

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