| From the looks of today's new mega yacht order | | | | vital momentum. |
| book and the high attendance numbers at last | | | | Size matters |
| September's Monaco Super-yacht Show, one would | | | | The size of the yacht seems to have an impact with |
| immediately dismiss the notion that the upper social | | | | regards to the categories that have been hit the |
| classes have been spared by the global economic | | | | most during these recessionary times. Vendors say |
| crisis. In fact, the ultra rich have also been vulnerable | | | | they expect sales to continue to shrink at the lower |
| and begun to reduce spending as they fret over their | | | | end of the market as many small and midsized boat |
| shrinking investment portfolios. Not immune in the | | | | owners bought them with borrowed money and |
| luxury domain are other categories such as premium | | | | some secured on residential property. In many cases |
| cars, supreme watches and the like. Yet for boat | | | | the value of these loans now exceeds the value of |
| yards, they appear to be somewhat affected | | | | the assets. But the super-yacht industry, which is not |
| compared to a year ago. | | | | dependent on financing, is stronger than it has ever |
| A recent survey in the U.S. shows that Americans | | | | been before. Figures released by Camper & |
| are cutting off purchases of luxury goods, and this is | | | | Nicholson, an international yacht brokerage firm, |
| true especially for the ultra affluent. For instance, the | | | | showed that new orders for super-yachts had grown |
| owner of the 14 guest, six stateroom "Alibella", a 50 | | | | 18 percent in 2008. Today the average super-yacht |
| meters (164 feet) luxury yacht, is keen enough to | | | | category is pushing 190 feet (60 meters), with some |
| offer a discount of ten million Euros to a buyer ready | | | | as long as 450 feet (137 meters). |
| to do the transaction in less than a month. "Alibella" is | | | | Modesty replacing ostentation - for now |
| considered a modern day yacht in a class of its own | | | | Nowadays it is considered impolite to boast your |
| with high-end finishing and a helicopter landing pad. | | | | excesses and that includes your floating toys. It |
| The discount reduces the cost of the yacht to 24.5 | | | | seems distasteful at a time when most are struggling |
| million Euros. It is one of the many mega yachts that | | | | to cope with the economic meltdown. Splurging, |
| have seen their price decrease following the | | | | which may be viewed today as synonymous to |
| explosion of the U.S. mortgage sub-prime's crisis | | | | greed, coupled with fear of the unknown in the world |
| which has rapidly spread beyond its borders, including | | | | financial markets, has simmered making a "look at me |
| the start of the economic recession. The situation is | | | | mine" statement a current taboo. |
| such that there are also an unusual number of | | | | Anticipating the comeback of the high flying seas |
| second-hand yachts available these days at | | | | When the dust eventually settles the yachting |
| substantial discounts. | | | | industry should be returning to its allure, though, in a |
| Of oligarchs and petrodollars | | | | more sedate mode. The "nouveau riche" will resume |
| Not surprisingly, in recent times, the major clients | | | | purchasing but to a lesser extent than ever before |
| who have contracted the significant number of new | | | | and possibly consider the fractional ownership or |
| custom made behemoth water crafts have been | | | | charter route as options. We can't dismiss the fact |
| Russia's oligarchs and Arabs from the oil producing | | | | that yachting is what it is: a product and activity |
| Gulf states. The former have accounted for about 18 | | | | reserved for the well heeled. There will always be a |
| percent of new mega yacht purchases. At present, | | | | new crop of willing and able buyers who will have the |
| the signs are proving that both the American and | | | | desire to own a floating asset. Be as it may, boat |
| European upper classes, in addition to their Indian and | | | | builders and dealers are understandably nervous but |
| Asian counterparts, have taken a more conservative | | | | are determined to weather the turbulence. In this |
| view and have restrained themselves from elaborate | | | | case, patience and tenacity will warrant being |
| purchases at least until the world economy regains | | | | meaningful beyond a doubt. |