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Friday, September 29, 2023

“Yacht Show” revives booming yacht tourism trend; supports Thailand as a hub of Asia

Andy Treadwell, chief executive of Verventia Company Limited, an expert in yachting events and show business, said that after the global spread of the coronavirus, which has changed traveler habits around the world, there is an increased interest in yachting. He believes that the yacht tourism market will grow significantly and rapidly from now on.

‘Verventia’ reveals high growth in yacht tourism, reinvigorated the Pattaya-Phuket Yacht Show, propelled Thailand into Asia’s yachting hub, and encouraged tourists from all over the world to be sailable all year round. It aims to bring more than 200 superyachts to Asia by 2026, each generating a profit of at least US$1 million, which will directly benefit the national economy.

The Asian yacht tourism market share is about 30%, while the number of yachts only accounts for about 1% of the overall market. Therefore, the market has a very high growth potential compared to Europe and the already popular US.

Organized Boat Show: Pattaya – Phuket

Thailand is seen as a market with tremendous growth potential, from superyacht charter, sailing training and exciting Thai yacht tourism. It is, directly and indirectly, boosting the economy of the Gulf of Thailand. The company plans to host the 2022 Thailand Boat Show, a government-backed event; it is the sixth edition and will be held twice this year.

Events include the Pattaya Yacht Show 2022, which will be held at Ocean Marina Yacht Club, Pattaya, one of the largest yacht ports in Asia, from June 9 to 12, 2022, and the Thailand Yacht Show 2022 in Phuket at the end of the year.

“In the past two years, we have cancelled the long-standing yacht shows in Thailand and Singapore, which yachting enthusiasts and businesses highly anticipate. Until this year, we have received support from the Tourism Authority of Thailand, the Office of the Convention and Exhibition Bureau, the Ocean Terminal, The Yacht Club, Renaissance Pattaya Resort and many other institutions,” said Mr Trade Well.

Support Thailand as the center of Asia

Due to the impact of the coronavirus, the number of brands participating in this year’s event may not be many, resulting in a smaller event space than usual. But it is believed that in the case of an upward trend in business, the scale of the event will increase year by year starting from next year.

Exhibiting brands this year are big names, including Sweden’s Asia Marine, Nimbus T11, Max Marine Asia, Motorium (the world’s first outboard diesel engine COX drive), Princess Yachts, Simpson Marine and V. Yachts Asia.

“Having a boat show in Thailand is a great opportunity to help increase revenue in Thailand. The upcoming European winter will make Thailand a destination for yachting travelers and make Thailand a regional hub for yachting tourism as well.”

Adjust the tax system to attract high consumption groups

Mr Treadwell also said that Verventia had played an important role in developing the yachting industry in Asia and Thailand over the past six years. In February 2021, the Minister of Finance approved changes to regulations governing superyacht charter licenses, which allow almost all foreign superyachts to be legally chartered in Thailand.

It also issued a foreign superyacht license to Verventia, changing from value-added tax (VAT) that must be paid on the yacht’s value to only paying income tax on the yacht charter. The new rules will be implemented next winter in Thailand.

Tens of thousands of high-spending tourists (UHNWIs) are expected to travel on superyachts from the US, Europe and the Middle East, looking for new destinations for winter holiday yacht cruises as an alternative to Caribbean cruises.

Joint development of routes with Saudi Arabia

Meanwhile, the company has spent the past nine months working with the Saudi government, a strategic advisor to the fast-growing yacht tourism project in the region near the Red Sea. This is because most yacht cruises wishing to travel to Asia in winter have to pass through the Red Sea.

The new Jeddah Yacht Club and Marina (Saudi Arabia), it’s a great destination for a stopover on the trip. Also, an excellent understanding of international politics (entente Ccordiale) emerged between Saudi Arabia and Thailand during the Thailand roadshow last week in Saudi Arabia.

And the Saudi-Thai Investment Forum, both of which aim to attract ultra-high net worth individuals and work together to build a community of superyacht owners. Chartering brings opportunities to promote bilateral tourism on the “Spice Route” (Mediterranean-Red Sea-Indian Ocean-Andaman Sea-Gulf of Thailand).

“In the past, Thailand hosted less than 1% of the world’s superyachts each year, but now it can accommodate this luxury group of tourists. After the Covid-19 outbreak, this has become a growing market, the fastest-growing tourism,” Treadwell said.

Future growth in the global superyacht market will come from Asia, especially from Pattaya and Northeast Asian countries near the Gulf of Thailand.

Attract 200 yachts by 2026

By 2026, more than 200 superyachts are expected to be attracted to the region, each generating at least $1 million in revenue for direct introduction into the domestic economy, and this is just the beginning. (If the yacht can last an entire season, it will cost an average of $5 million per boat, not including the cost of package tourists)

There are currently around 5,600 superyachts (i.e. vessels over 30m in length), with yachts over 70-90m accounting for the largest share of the growth in the number of global billionaires. The global yacht charter market was valued at USD 10.91 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 25.6% from 2020 to 2028.

Kris Lam
Author: Kris Lam

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