| Global demand for private luxury yachts has been | | | | than acquisitions. Social marketing research firm DYG's |
| increasing steadily over the last five years. Marinas are | | | | survey of status symbols highlights this. "Travel is the |
| at saturation point in many parts of the Mediterranean | | | | number one non-materialistic way to express |
| as well as the Caribbean with even Egypt | | | | success," DYG President Madelyn Hochstein says, |
| experiencing a rapid rise in Red Sea marina | | | | "and for the older set, it is also a way to express |
| developments. This growth is due to the largest | | | | continued youth and vitality." |
| demand for leisure boats ever seen. | | | | 3. Yacht chartering now tops the list of the most |
| Recreational boat ownership is currently a $25 billion | | | | popular and most expensive activity for people with a |
| international industry and sales are growing annually at | | | | net worth of more than US$10 million. In a survey of |
| 5-10%. According to Showboats International, a | | | | the spending habits of 198 millionaires by Prince & |
| publication that tracks vessel construction, in 1993 the | | | | Associates for Elite Traveler magazine, summer |
| world had fewer than 700 private owners with boats | | | | holiday spending in 2007 is up 56% on 2005. In |
| over 24 metres (79 feet). Today, there are an | | | | particular, spending on private yacht charters will cost |
| estimated 7000 yachts over 24 metres (79 feet) in | | | | an average of US$384,000 per family this summer |
| use. | | | | with the cost of chartering between $200,000 - |
| Another indicator of the strong growth of the luxury | | | | $250,000 per week. This is part of an increasing trend |
| yacht industry is the potential for 'flipping'. With waiting | | | | among the wealthy for 'experiential excursions' that |
| lists of up to three years for luxury yachts in the USA | | | | offer much more than a typical tourist vacation. As |
| and Europe, yacht flipping is becoming aprofitable | | | | with most trends, what the wealthy are experiencing |
| business for entrepreneurs who commission a vessel | | | | now the upper middle class will be aspiring to in the |
| and sell it before completion. | | | | coming years. The yachts may not be as large, but |
| Why is luxury yacht ownership and the trend for yacht | | | | they will add yet more demand to the yachting and |
| charter holidays increasing? There are several | | | | marina industries already straining to meet the |
| reasons. | | | | demands of the wealthy. Expect yacht prices and the |
| 1. People can live tax-free through 'off shore' residency | | | | cost of marina berths to continue to rise. |
| on a yacht, cruising the world and docking in exotic, | | | | 4. There are at least two dozen Russians now worth |
| exciting locations such as Porto Cervo Marina on the | | | | at least $1 billion, according to private bankers, and |
| Costa Smeralda in Sardinia, Marina Frapa in Croatia, | | | | thousands of new Russian multi-millionaires have been |
| Port d'Hercule in Monte Carlo and Emerald Bay Marina | | | | created in the past five years. Roman Abramovich, |
| in the Bahamas. Yacht ownership offshore is on a | | | | the 11th richest person in the world according to |
| record rise. Show Boats International's 2005 Global | | | | Forbes, epitomises the growing reputation of Russians |
| Order Book indicated that that year's increase was | | | | as the world leaders in conspicuous consumption. The |
| equal to the entire order book rating for 1995. That | | | | mega wealthy Russian has commissioned a new |
| equates to a $1.2 billion dollar increase in sales. | | | | yacht, the Eclipse, being built under a veil of secrecy in |
| 2. Baby boomers are splurging on travel as a way to | | | | Germany, at a cost of around US$300 million. Yacht |
| enjoy their retirement, wealth, relative youth and to | | | | brokers say at least 20% of the business for new |
| demonstrate that they are still intrepid pathfinders. | | | | vessels over 200 feet is coming from Russians - more |
| Many baby boomers already own everything they | | | | than from any other single country including the USA. |
| could want and now they demand experiences rather | | | | |