Asia Pacific Superyacht Conference 2018 – picking up the threads
by Guy Nowell, Sail-World Asia 10 Apr 2018 09:32 PDT
Barry Jenkins (Chairman, Superyacht Australia), Jean-Marc Poullet (Chairman Asia, Burgess), Nigel Beatty (Chairman, APSA). APSC 2018 © Guy Nowell
Last year it was the Asia Pacific Yachting Conference. This time it’s the Asia Pacific Superyacht Conference, but what’s in a name?
Whether ‘top-down’ development encourages the uber-rich to take to the water and then pass the dinghy habit on to their children – or whether a bottom-up programme that encourages grassroots sailing and boating and eventually leads to superyachts is a well-debated subject with no conclusive answer. We’ll keep our powder dry on that one.
The fact is that this event, which is the industry opener to the annual Singapore Yacht Show, is a B2B chat show at which parties both regional and from further afield ask two questions: “What can we do to encourage more participation in boating in this part of the world?” and “How do we encourage international visitors – particularly superyachts – to come to Asia?”
Those of us who live in Asia happily recognise that this is a largely undiscovered playground. We often hear that for the superyacht crowd “the Med is dead”, and that Asia is about to become the “third destination” (when the second is the Caribbean). But still the secluded bays and white sand beaches from Thailand to Tahiti are not hosting huge numbers of superyachts.
Andy Treadwell, CEO of the Singapore Yacht Show, opened proceedings today by noting that although Asia has “the product” (those secluded bays and white sand beaches), the superyacht world is still not beating a path to our door in vast numbers. Received wisdom says there is a chicken-and-egg situation here – Asia is not overendowed with marinas and service facilities, but if they existed, would the world come?
Arthur Tay, Chairman and CEO of Singapore’s SUTL Group, enthusiastic marina developers, believes that Asia needs more superyacht infrastructure, and the answer to everything lies in China (and more specifically, Hainan).
Martin Redmayne, Chairman and Editor-in-Chief of The Superyacht Group, and conference chairman, opened the proceeding proper by pointing out that the billionaire population of the world has increased from less than 500 to over 2,300 since 1992; over the same period the global superyacht fleet has grown from 1,500 to 5,300 vessels, meaning that superyachts really are an exceptionally small component of the world leisure boating market, albeit one with a heavy concentration of wealth and value. Superyacht do not, make economic sense for their owners, and never have. The only valid reason for running a superyacht is because you want to.
An Industry Leaders’ Panel comprising Nigel Beatty (Chairman, Asia Pacific Superyacht Association), Barry Jenkins (Chairman, Superyacht Australia), and Jean-Marc Poullet (Chairman Asia, Burgess), revealed that the superyacht business is doing just fine in Japan, that a persistent 10-15% growth in luxury goods sales in Asia is not matched in the superyacht industry, and the way to stimulate the market is by removing barriers to charter operations around the region.
“Asia is the biggest-ever potential market for the yacht industry,” we were told. But does the population of Asia want to go yachting? And if it does, is the European designed motor yacht with round dining tables and a mahjong table what is really required?
Tobias Kohl from MTU gave an in-depth presentation on ‘Electric Drive Solutions for Yachts – Performance, Comfort, or Green Image.” Yes, electric and hybrid drives for yachts do have plenty of plus points, especially in the Comfort department. The challenge is to successfully integrate and ‘dimension’ the components of an e-drive (batteries, electric motors, genset power) to successfully support the usage of a yacht. It can be done, and done well, as long as you don’t ask that your 50m yacht travels 500nm at 25 kts on electric power alone.
Mr Li Ning, Secretary-General of the Hainan Cruise & Yacht Association presented a detailed inventory of the assets ofHainan, with particular reference to yachting and yacht tourism. Hainan has a population of 9.25 million people, and last year attracted 67.45 million tourists. It boasts 136 five-star hotels, 68 deep water harbours, and by 2028 is expected to have a yacht population of 20,000 of which 20% (4,000) will be superyachts > 70 ft. Really.
A further panel dialogue asked the questions, “Understanding the Needs of Asian Clients” and “How to enter the Complex World of Asian HNWIs.” Carmen Lau (Camper & Nicholsons Asia), Rock Wang (Burgess China), Farouk Nefzi, (Feadship) and Peter Mahony (GM Benetti Asia) considered whether there was really any difference between Western and Asian consumers at the top end of the yacht market. Rock Wang suggested that it was necessary, first, to sell “yachting”, and then sell the yacht. Farouk Nefzi pointed out that Feadship always builds just what the customer wants anyway – the company has no preconceptions or ‘stock’ designs. It was generally agreed that what is needed across Asia is not more infrastructure but better facilities.
It was also agreed that across Asia there is a need to talk to governments – which is difficult in that officialdom generally lacks experience in the rarefied world of private yachting.
What’s a superyacht worth? Is it simply the purchase price? Or something much greater based on enjoyment, or the potential value of business transacted on and facilitated by the yacht as a business platform?
The Conference then split into a number of round-table discussion groups before adjourning to the MTU Captain’s Lounge for some welcome refreshments.