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THE STATE OF WEALTH, LUXURY AND YACHTINGA REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
“ Luxury means rarity. Having the feeling that you’re the first or only one to have this experience, that it will be totally tailor-made for you, your family and friends.”
Kurt FraserMarketing Director,Camper & Nicholsons
1A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
M/Y A 119m | Blohm + Voss
THE STATE OF WE ALTH, LUXURY AND YACHTING2 CONTENTS
THE STATE OF WEALTH, LUXURY AND YACHTING
Foreword
Three questions: A commentary by C&N
Executive summary
The state of wealth
Market intelligence
The changing luxury landscape
The lifecycle of yachting
Yachting: the ultimate platform of experience
Trends in yachting
To own or to charter?
6
8
12
14
21
36
42
48
56
66
3A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
460Exp 42.78m | San Lorenzo
THE STATE OF WE ALTH, LUXURY AND YACHTING6 FORE WORD
Gualtiero GioriExecutive ChairmanCamper & Nicholsons
Today, we continue to fly the flag of innovation and have partnered with Wealth-X to create this first edition of The State of Wealth, Luxury and Yachting. The only report of its kind to take a comprehensive look at the changing world of luxury.
Together with Wealth-X, the global authority on wealth intelligence; whose award-winning research and thought leadership are regularly cited by renowned media outlets such as CNBC, the Financial Times, and the BBC; we shed light on how the shifting sands of wealth and luxury affect trends in yachting. We highlight how yachting can, in fact, become an all-encompassing platform for experiencing the very definition of luxury.
Wealth-X’s researchers and analysts in 13 offices across five continents have compiled and analysed data on the world’s Ultra High Net Worth (UHNW) population, identifying key themes and macro trends, and building a profile of a typical superyacht owner.
Luxury is an elusive concept to pin down. Tastes and desires differ around the world – and even beyond the geographical, what constitutes luxury (and its enjoyment) is immensely personal. The answer lies in the theme underscoring all our findings: that luxury is shifting from the accumulation of objects to the acquisition of experiences.
As individuals seek to maximise the return on the investment of time and resources they commit, yachting continues to stand head and shoulders above other activities through its ability to encompass a spectrum of experiences that no other luxury vehicle can.
Surveying the state of wealth, we find that the UHNW individuals are a small proportion of the world’s population. But, even within these elite ranks, only a select few can afford superyachts – a fact which further establishes yachting as the pinnacle of experiential luxury.
As far back as you look, Camper & Nicholsons has been the hallmark of quality, luxury and prestige. Our craftsmanship and innovation have secured our place in yachting history, while our unblemished reputation and dedication to excellence means the world’s most discerning clientele trust us beyond all others.
Foreword
Mykolas RambusChief Executive OfficerWealth-X
7A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
Yachting is a timeless luxury experience, and the investment clients make in buying a superyacht is not just financial. More importantly, it is an investment founded on a need to connect with those close to them, to be known as the discerning individual that they are, and to escape the confines of everyday reality so they can be 'renewed' at sea.
Ultimately, the greatest return their investment will give them is in the unique experience that a superyacht provides. You can buy access to this from any brokerage house, but what you get back is what you put in. And this is where Camper & Nicholsons comes in. For over three centuries, we have been perfecting our ability to maximise the return on our clients' investment – and create experiences that are unsurpassed in their capacity to hit the mark for each and every person.
Three questions come up time and time again in conversations held with our clients: how can they make the most of their investment in yachting; what investment themes should they focus on; and, how can they get the highest returns out of their investment?
The State of Wealth, Luxury and Yachting 2016:A commentary by Camper & Nicholsons Marketing Director, Kurt Fraser
THE STATE OF WE ALTH, LUXURY AND YACHTING8 THREE QUESTIONS: A COMMENTARY BY C&N
M/Y Ruya 41.29m | Alia
9A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
M/Y Kismet 95.2m | Lürssen
A younger generation of wealthy individuals is now transforming the broader luxury landscape that UHNWs have access to. Both inheritance and entrepreneurial wealth accumulation are driving this shifting wealth demographic.
The change is marked by a move from accumulating tangible assets to pursuing rare, tailored experiences. In part this is because such uniqueness both confers and confirms high status for those who can secure such experiences.
To understand what unique experiences will be sought out, we can identify three factors that mark them out as desirable: time for making every moment really count; privacy during the experience; and personalisation to meet both individual tastes and to provide something truly unique.
A superyacht is the ultimate platform for luxury, meeting all these characteristics. It is an utterly personalised and incomparably private cocoon, meaning the return on time invested is maximised unlike any other.
Furthermore, the yacht platform does this in a myriad of ways:
Privacy & peace – The yacht provides the seclusion and personal attention usually reserved to a private estate or home.
Health & wellbeing – Gyms, spas, swimming pools, Jacuzzis, saunas and beauty salons ensure personally valued routines can be continued on board, avoiding lifestyle disruption and compromise.
Food & drink – Dining is often nothing short of majestic, with service to match. Menus can be simplified or elevated as moods dictate, and personal dietary needs of family and guests effortlessly accommodated.
Activities & entertainment – A large variety of options are available, from beach and seclusion, to cinema rooms, parties and marine activities.
Travel & culture – Travel and cultural sampling have long been a luxury experience and are of course intrinsic to yachting.
There is a lifecycle to the yachting experience that allows it to return dividends on time invested, in all the above dimensions, and to do so in the past, present and future. From the planning of the boat’s build and the anticipation preceding a sailing or charter (future), to the on board experience and journey itself (present) – and the memories that endure after clients have returned to shore (past), yachting is an experience that extends beyond just the period on board.
Looking forward to the future of yachting, we are guided by some emerging trends:
Ultimate luxury vs adventure – Increasingly, UHNWs want to combine 5 star luxury with adventure, something superyachts are ideally suited to facilitate. Exploring the lesser known cruising grounds of the Galapagos Islands, and the Polar regions on board ice breaking hulls, long range vessels, and various ancillary craft feature among emerging itineraries.
Innovative layouts – The line between indoor and outdoor is being redefined. Large open plan interiors now flow and blend with outside space that is designed to emphasize the sea and outdoor experience.
Imaginative water toys & entertainment – Toys are becoming a primary rather than secondary part of the voyage. Jet skis, water skis and canoes are being joined by new items like jetlevs, skibobs and hover boards. Cinema rooms and film choices are becoming increasingly important too.
Health & wellness – Individuals demand carrying their whole lifestyle into the world of yachting. Personal trainers, nutritionists, therapists and masseurs, together with menus to suit all palates and dietary needs, are becoming normal rather than exceptional. In conclusion, as the pursuit of luxury moves from goods and services to unique experiences, the super rich are demanding that the return on their most precious possession, time, is maximised in every way possible.
Superyachts provide the pre-eminent platform to do this – and in a myriad of ways. Membership of this elite club is undeniably tough to gain, but the rewards have never been greater or more rewarding.
Ultra High Net Worth (UHNW) individuals – defined as those with a minimum net worth of $30million – number only 211,955 globally. With just one for every 33,000 members of the general population, it’s an elite club.
Executive summary
THE STATE OF WE ALTH, LUXURY AND YACHTING12 E XECUTIVE SUMMARY
“ Luxury is living according to a specific lifestyle. Naturally, if you ask wealthy individuals from different cultures and regions, they will describe different concepts of luxury. What Camper & Nicholsons does best is to enter their world and understand what they require, according to their specific lifestyle.”
Gualtiero GioriExecutive Chairman, Camper & Nicholsons
13A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
M/Y Forever One 54.5m | ISA Yachts
THE STATE OF WE ALTH, LUXURY AND YACHTING14 THE STATE OF WE ALTH
Our report puts Ultra High Net Worth individuals (UHNW) under the microscope to understand how the changing luxury landscape affects their luxury lifestyle portfolio. But who are these ultra wealthy?
The state of wealth
“ The concept of luxury for superyacht owners is about a multitude of different things. For some it’s about being able to control one’s environment, being away from prying eyes and enjoying that splendid isolation – something you can easily do on a superyacht. For others it’s about the means to afford the exceptional – the best in terms of engineering and design.”
Andrew WhitneyBAC Automotive
15A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
0.003%
Percentage of the world’s population classified as UHNW
The top tier of wealthTo be classed as an UHNW individual, a person needs to have a minimum net worth of $30million. Globally, there are only 211,955 such people. If you fall into this category, that puts you in the top 0.003% – a staggeringly small sliver of the world’s population.
UHNW DISTRIBUTION — BY WEALTH TIERSSource: Wealth-X
2015 2014
WEALTHTIER
UHNW POPULATION
UHNW WEALTH(US$TRILLION)
UHNW POPULATION
UHNW WEALTH (US$TRILLION)
TOTAL 211,955 29.8 211,275 29.7
US$30m – US$49m 91,815 3.7 91,630 3.8
US$50m – US$99m 63,085 4.7 63,120 4.8
US$100m – US$249m 40,290 6.8 39,980 6.8
US$250m – US$499m 9,395 3.5 9,335 3.5
US$500m – US$999m 4,965 3.6 4,885 3.5
US$1bn + 2,405 7.5 2,325 7.3
GLOBAL UHNW HOTSPOTS, 2015Source: Wealth-X
Europe
61,095
US$8.2t
Middle East
5,960
US$1.0t
Asia
47,550
US$7.2t
Pacific
3,610
US$0.4t
North America
75,195
US$10.3t
Latin America and the Caribbean
15,330
US$2.3t
Africa
3,215
US$0.4t
The world 211,955 UHNW individuals US$29.9t combined wealth
THE STATE OF WE ALTH, LUXURY AND YACHTING16 THE STATE OF WE ALTH
“ In my generation, people are more attracted to experiencing luxury as opposed to just showing it off.”
Gualtiero GioriExecutive Chairman of Camper & Nicholsons
$10 million
Average value of a superyacht owned by a UHNW
$29.9 trillion
The collective net worth of all UHNW individuals
Yachting: an elite club What we find is that there's exclusivity within this already elite club. The average value of a Superyacht owned by a UHNW individual is $10million. With the values so near the $30million that allows a person to even qualify as an UHNW individual, it's no surprise that so few actually own a superyacht.
TOP COUNTRIES FOR UHNW SUPERYACHT OWNERSSource: Wealth-X
UHNW YACHT OWNERS ALL UHNW INDIVIDUALS
1 United States 33% United States 33%
2 United Kingdom 11% Germany 9%
3 Italy 5% Japan 7%
4 Australia 4% United Kingdom 5%
5 Russia 3% China 5%
17A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
Spotlight on billionairesBillionaires (individuals with a net worth of $1 billion or more) control 4% of the world’s wealth. They are global citizens, choosing their residences and business holdings not just because of government regulations – but also because of the unique benefits that a specific location can offer.
For instance, New York’s role as the financial capital of the world has helped attract new billionaire financiers. In addition, certain cities are particularly attractive because of the lifestyle they offer, from cultural attractions to a desirable environment in which to raise a family.
Other locations, such as the Balearics and Alicante, for example, have proven to be popular locations with superyacht owners who wish to make their vessels available for charter. This is due to a tax exemption which was put into place in October 2013.
A report by the Spanish association of superyachts (AEGY) shows that the two areas hold 21% and 18% of the market sector respectively. While figures from a separate study by AEGY on the Balearics show that in 2014, 52 superyachts registered to charter. In 2015 this number jumped to 86. Over the two-year period, the charter market in the Balearics is thought to have generated €22.9 million. This is just an example of how certain countries and areas can be attractive to superyacht owners.
4%
Percentage of the world’s wealth controlled by billionaires
€22.9million
The revenue generated by the charter market in the Balearics since the tax exemption was put in place at the end of 2013
BILLIONAIRE FORECASTSource: Wealth-X
3,800
3,600
3,400
3,200
3,000
2,800
2,600
2,400
2016 2017 2018 2019 2020
C.A.G.R High 9.4%
C.A.G.R Mean 5.6%
C.A.G.R Low 3.5%3.7% 2.4%
7.8%
7.0%
7.4%
THE STATE OF WE ALTH, LUXURY AND YACHTING18 THE STATE OF WE ALTH
The billionaire profile86% of all billionaires are married and have, on average, two children. Interestingly, 55% of billionaires are self-made entrepreneurs, indicating that it usually takes more than inheritance to achieve this status. And yet there is a new wave of inter-generational wealth transfer happening from baby boomers to their heirs – a fact which is having a big impact on the state of luxury and yachting.
THE “TYPICAL” BILLIONAIRESource: Wealth-X
2015 2014 2013
Mean net worth ($US billion) 3.1 3.1 3.0
Mean liquidity ($US million) 690 600 540
Average age 63 63 62
55%
Number of the world’s billionaires who are self-made
86%
Percentage of the world’s billionaires are married
26.8
%
25%
13.4
%
6.9%
20.5
%
6.2%
1%
BILLIONAIRE AGE DISTRIBUTIONSource: Wealth-X
45–54 55–64 65–74 75–84 > 8535–44<35
SELF-MADE
MEAN NET WORTH$US 3.2b
INHERITANCE/SELF-MADE
MEAN NET WORTH$US 2.95b
INHERITANCE
MEAN NET WORTH$US 3.23b
19A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
Monaco Wolf 50m | Heesen Yachts
THE STATE OF WE ALTH, LUXURY AND YACHTING20 THE STATE OF WE ALTH
– The superyacht fleet– The superyacht order book– The superyacht sales book– The superyacht charter book
Market intelligence
21A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
The superyacht fleet
THE FLEET IN NUMBERS
4,476NUMBER OF YACHTS
183,200mTOTAL LENGTH
41m AVERAGE LENGTH
3,740MOTOR YACHTS
887YACHT BUILDERS
736SAIL YACHTS
53NO. OF COUNTRIES
DELIVERIES — 2014
156NUMBER OF YACHTS
6,784mTOTAL LENGTH
44m AVERAGE LENGTH
139MOTOR YACHTS
76YACHT BUILDERS
17SAIL YACHTS
20NO. OF COUNTRIES
DELIVERIES — 2015
146NUMBER OF YACHTS
6,461mTOTAL LENGTH
44m AVERAGE LENGTH
134MOTOR YACHTS
76YACHT BUILDERS
12SAIL YACHTS
22NO. OF COUNTRIES
MOTOR YACHT VS SAIL YACHT
3,740 736154,600m 28,600m41m 39m670 30849 31
TOTAL NUMBER
LENGTH
AVERAGE LENGTH
YACHT BUILDERS
NO. OF COUNTRIES
Powered by SuperYacht iQ
Official media partner for providing the data and intelligence on the superyacht marketsuperyachtiq.com
A superyacht is, by definition, any yacht over 24 metres in length, but for the purposes of this report we have reported on figures for superyachts of 30 metres plus. Yachts may be powered by sail, motor, or a combination of the two. Some yachts are either used exclusively by their owners or are available part time for commercial charter, while others are operated year round as charter businesses.
THE STATE OF WE ALTH, LUXURY AND YACHTING22 MARKET INTELLIGENCE
Top 6 countries of build 2015
European yards remain the largest producer in terms of the number and length of build, with Italy leading.
USA743 YACHTS
OF GLOBAL MARKET17%
Turkey324 YACHTS
OF GLOBAL MARKET7%
UK287 YACHTS
OF GLOBAL MARKET
6%OF GLOBAL MARKET
The Netherlands556 YACHTS
13%
Italy1,402 YACHTS
OF GLOBAL MARKET
31%
Germany201 YACHTS
OF GLOBAL MARKET
4%
23A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
The superyacht order book
THE ORDER BOOK IN NUMBERS
455NUMBER OF YACHTS
22,682mTOTAL LENGTH
50m AVERAGE LENGTH
409MOTOR YACHTS
145YACHT BUILDERS
46SAILING YACHTS
27NO. OF COUNTRIES
ORDERS — 2014
152NUMBER OF YACHTS
7,335mTOTAL LENGTH
48m AVERAGE LENGTH
136MOTOR YACHTS
70YACHT BUILDERS
16SAILING YACHTS
16NO. OF COUNTRIES
MOTOR YACHT VS SAILING YACHT
409 4620,437m 1,245m50m 49m119 3125 12
TOTAL NUMBER
LENGTH
AVERAGE LENGTH
YACHT BUILDERS
NO. OF COUNTRIES
The number of new yachts ordered per year is one of the most significant numbers in the industry. New projects are not only vital for shipyards but for countless businesses in the superyacht industry, ranging from suppliers to designers, and from subcontractors to the media.
ORDERS — 2015
166NUMBER OF YACHTS
7,404mTOTAL LENGTH
45m AVERAGE LENGTH
153MOTOR YACHTS
72YACHT BUILDERS
13SAILING YACHTS
19NO. OF COUNTRIES
THE STATE OF WE ALTH, LUXURY AND YACHTING24 MARKET INTELLIGENCE
Powered by SuperYacht iQOfficial media partner for providing the data and intelligence on the superyacht marketsuperyachtiq.com
As of the end of 2015 there were 455 superyachts in build at 145 shipyards in 27 different countries. The total length of all superyachts in build was 22,682 metres, with an average length of 50 metres.
ORDERS AND SHIPYARDS, 2008–2014Source: SuperYacht iQ
250
225
200
175
150
125
100
75
2008 2009 2010 2011 2012 2013 2014 2015
130
120
110
100
90
80
70
60
New orders
Shipyards with new orders
25A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
The superyacht sales book
Review 2015
268 superyachts sold in 2015 In 2015 268 superyachts over 30 metres were sold, with a length totalling 10,667 metres. Compared to the 271 superyachts sold in 2014 and 242 in 2013, this shows a picture of stability in a landscape reshaped by the global financial crisis. Looking back on the past five years, we can see that in 2011 there were 205 yachts sold, yet the 23.5% rise in the number of yachts sold in 2015 compared to 2011 has not resulted in a rise in the total value of superyachts sold, which in fact has decreased by 34.5% since 2011. However, a large proportion of this is due to exchange rates with the strengthening US Dollar which has made Euro priced yachts worth 17.5% less in 2015 compared to 2011 when expressed in US Dollars.
“ The superyacht brokerage market has shown signs of recovery for the past few years, with the number of sales in 2014 and 2015 increasing significantly since the economic downturn of 2008. Pressures on prices remain steady, and realistic valuations and competitive asking prices were rewarded with successful sales, fuelling confidence in the market, a confidence which remains today. Although still a buyer’s market, most good value quality yachts are in demand.”
Alex Lees-Buckley Camper & Nicholsons sales broker
Superyachts sold in 2015 valued at $2.68 billionThe total value of all motor and sailing yachts (30m+) sold in 2015 is estimated at $2.68 billion with an average value of $10,002,689 per yacht. Despite the number of yachts sold remaining almost level between 2014 and 2015, the total value decreased by 17.6%. However, as previously explained, a large proportion of this was because of the strengthening US Dollar which has made Euro priced yachts worth 13% less over the course of the year when expressed in US Dollars (the Euro priced yachts representing approximately 60% of the fleet).
“ Currencies are both a cloud and silver lining – depending on where you are coming from. If you are dollar based or the equivalent (any currency pegged to the US Dollar like the Hong Kong Dollar, or even the Saudi Riyal), the Euro priced vessels are far more attractive. These currency fluctuations are creating some interesting dilemmas for both sellers and buyers. Even the most bullish of sellers is now getting the message that the right reaction to headwinds is not to ask more than the market will pay.”
Michael PayneCamper & Nicholsons CEO
2015 saw a decrease in the number of sailing yachts soldOf the 268 superyachts sold in 2015, there were 249 motor yachts and 19 sailing yachts. These 249 motor yachts had a total length of 9,961 metres, with sailing yachts totaling 706 metres. Comparing the number of yachts sold in 2015 to the previous years sales, we can see a large difference in the number of sailing yachts sold – a 45% decrease year on year – while the number of motor yachts sold remained almost the same.
“ The sailing yacht market has always
been difficult to predict as the numbers involved are relatively low. However, it is fair to say that 2015 was certainly not a good year for this market sector. With that said, the end of 2015 did see the sale of the 52m Red Dragon and the first month of 2016 the sale of the 57.5m Twizzle – both significant transactions that show some level of confidence in the larger end of the market. But across the market overall supply still far outweighs demand and with new orders down from 16 in 2014 to 13 in 2015, the market continues to remain exceptionally competitive with sellers needing to appreciate the lack of qualified buyers available and the need to be creative and pragmatic to get deals done.”
Simon GoldsworthyCamper & Nicholsons sales broker
Brokerage Review 2015Camper & Nicholsons data is based on sales of yachts over 30 metres with figures in the public domain. Our Market Intelligence division and brokers keep an eye on the market in order to be able to provide clients with the most informed market analyses of both published and unpublished intelligence.
THE STATE OF WE ALTH, LUXURY AND YACHTING26 MARKET INTELLIGENCE
Preview 2016 Already, the number of yacht sales are up in 2016 compared to 2015, with 20 yachts sold in January 2016 compared to 17 in January 2015. We are far from Panglossian but our sense is that the market later this year will be stronger than many think. Sellers are pricing accordingly and we think that those with a long term plan will bite the bullet and get on with buying their dream yacht.
The average size of motor yacht sold in 2015 remained the same as 2014 at 40 metres. Interestingly the average length of sailing yacht sold decreased by 2.3 metres over the same period from 39.3 metres to 37 metres.
249
YACHTS SOLD IN 2015
MOTOR YACHTS
Section 1: Yacht sales in numbers
10,667m TOTAL LENGTH OF SUPERYACHTS SOLD
11,022m TOTAL LENGTH OF SUPERYACHTS SOLD
2015
2014
39.8m AVERAGE LENGTH
40.4m AVERAGE LENGTH
SUPERYACHTS
9,961m TOTAL LENGTH OF MOTOR YACHTS SOLD
9,724m TOTAL LENGTH OF MOTOR YACHTS SOLD
2015
2014
40m
AVERAGE LENGTH
40.5m AVERAGE LENGTH
MOTOR YACHTS
706m
TOTAL LENGTH OF SAILING YACHTS SOLD
1,298m TOTAL LENGTH OF SAILING YACHTS SOLD
2015
2014
37m
AVERAGE LENGTH
39.3m AVERAGE LENGTH
SAILING YACHTS
19SAIL YACHTS
Source: Camper & Nicholsons
27A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
LARGEST YACHTS SOLDSource: Camper & Nicholsons. Asking prices at time of sale.
Serene
133.9m (439’3)
Fincantieri, 2011
Price Confidential
Nero
90.1m (295’6)
Corsair, 2008
€39,950,000
Red Dragon
51.7m (169’6)
Alloy Yachts, 2008
€17,950,000
Felicita West
64m (210’)
Perini Navi, 2003
$25,000,000
MOTOR YACHT
2015
2014
SAILING YACHT
The brokerage market in
2015 shows a picture
of stability
YACHT SALES YEAR ON YEARSource: Camper & Nicholsons
300
200
100
0
2011 2012 2013 2014 2015
Motor Yachts
Sailing Yachts
NUMBER OF YACHTS SOLD BY QUARTERSource: Camper & Nicholsons
90807060504030
2011Q1 Q1 Q1 Q1 Q1Q2 Q2 Q2 Q2 Q2Q3 Q3 Q3 Q3 Q3Q4 Q4 Q4 Q4 Q4
2012 2013 2014 2015
+2-4
0
-5
+5 +12
+20
+21
+26
+8
+33
-6
-9
-5
-15
+20
-3+ and – based on the same period of the preceding year
THE STATE OF WE ALTH, LUXURY AND YACHTING28 MARKET INTELLIGENCE
YACHT SALES BY MONTH, 2015Source: Camper & Nicholsons
30
20
10
0
JAN
Motor Yachts Sailing Yachts
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
TOTAL VALUE OF SUPERYACHTS SOLDSource: Camper & Nicholsons
$3 billion
$2 billion
$1 billion
0
2011 2012 2013 2014 2015
Section 2: Yacht sales in value
$2.68 billionVALUE OF ALL YACHTS SOLD IN 2015
The total value of all motor and sailing yachts (30m+) sold in 2015 was approximately $2.68 billion with an average value of $10,002,689 per superyacht.
TOTAL VALUE OF MOTOR YACHT SALESSource: Camper & Nicholsons
$3 billion
$2.5 billion
$2 billion
2011 2012 2013 2014 2015
AVERAGE SELLING PRICE OF SUPERYACHT SOLDSource: Camper & Nicholsons
$16 million
$14 million
$12 million
$10 million
2011 2012 2013 2014 2015
29A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
TOTAL VALUE OF SAILING YACHT SALESSource: Camper & Nicholsons
$400 million
$300 million
$200 million
$100 million
2011 2012 2013 2014 2015
AVERAGE SELLING PRICE OF MOTOR YACHTSSource: Camper & Nicholsons
$16 million
$14 million
$12 million
$10 million
2011 2012 2013 2014 2015
AVERAGE SELLING PRICE OF SAILING YACHTSSource: Camper & Nicholsons
$12 million
$10 million
$8 million
$6 million
2011 2012 2013 2014 2015
$10.8 mAVERAGE SELLING PRICE, MOTOR YACHTS 2015
$6.4 mAVERAGE SELLING PRICE, SAILING YACHTS 2015
AVERAGE SELLING PRICE BY SIZE 2015Source: Camper & Nicholsons
$5.4 m30M–40M
$5.5 m30–40M
$12.2 m40M–50M
$5.1 m40M–50M
$31.8 m50M+
$19.6 m50M+
MOTOR YACHT SAILING YACHT
A motor yacht is a stable cruising platform with plenty of space for luxury on deck facilities, they can be fast or leisurely cruisers and come in a variety of shapes and sizes.
A sailing yacht may differ in terms of rigging, power and performance. A sloop is the most common boasting a single mast, while a ketch has a mizzen style rigging comprised of two masts. A schooner has two or more masts, and a cutter generally has multiple sails. The latter two are rarer rig types on the superyacht market.
The average selling price of yachts sold between 2011 and 2015 declined by 34.5% yet the number of sales has increased by 23.5%. However, a large proportion of this is due to exchange rates with the strengthening US Dollar which has made Euro priced yachts worth 17.5% less in 2015 compared to 2011 when expressed in US Dollars.
THE STATE OF WE ALTH, LUXURY AND YACHTING30 MARKET INTELLIGENCE
Section 3: Yacht sales in type, size and age
SIZE OF SUPERYACHT SOLDSource: Camper & Nicholsons
16230M–40M
6340M–50M
3550M–65M
865+M
16930M–40M
6940M–50M
2250M–65M
1165+M
13930M–40M
6840M–50M
2650M–65M
965+M
10230M–40M
4140M–50M
1950M–65M
565+M
13330M–40M
4740M–50M
1350M–65M
1065+M
2015 2014 2013 2012 2011
Section 4: The brokerage fleet
AGE OF YACHTS SOLD 2015Source: Camper & Nicholsons
40%
30%
20%
10%
0
Pre 1995
1995–2005
2006–2010
2011–2013
2014–2015
421376 MOTOR YACHTS 45 SAILING YACHTS
1099TOTAL YACHTS
64430M–40M
29940M–50M
11650–65M
4065+
NEW TO THE MARKET IN 2015
BROKERAGE FLEET TODAY
TYPE OFYACHTS
SIZE OF CURRENT FLEET
84.25%MOTOR YACHTS
15.75%SAILING YACHTS
93%PERCENTAGE OF YACHT SALES AS MOTOR YACHTS (249)
7%PERCENTAGE OF YACHT SALES AS SAILING YACHTS (19)
2015
31A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
The superyacht charter book
Review 2015In all instances we have watched the rise and fall in fortunes of businesses within the industry. When the global recession first struck we were still relatively protected as charterers continued taking holidays, but as the effects hit home, our industry slowed.
As we entered the second decade of the new millennium, charter started to recover – a recovery which continues to this day, with charterers booking yachts earlier in the year to avoid disappointment. There is still a dearth of good quality yachts available to charter, but with slowly improving new build deliveries, it is hoped that charterer satisfaction will be fulfilled.
All the below comments relate to pre-recession and the current day. Data is taken from the preceding tables.
Value & numbers 2015 saw an increase on the number of charters booked over the previous year, with the value of charters and revenue up by corresponding amounts. Comparing 2015 to the boom years of 2007 and 2008, before the recession, we can see that the number of charters decreased during that period. Market recovery was slow across the globe, but with each subsequent year since 2008 the industry has seen a steady increase back towards pre-recession figures. Exchange rates with the strengthening US dollar has made Euro priced yachts worth less in
2015 than in 2007 and 2008. During the past 10 years the average value of a charter ranged between $115,500 – $190,000 per week. The higher number indicates the industry’s most successful year of 2008 when, despite the number of charters being slightly lower than previously, revenue was up.
Camper & Nicholsons charter broker Barbara Dawson provides an insight into the charter market in 2015, “We witnessed a high level of charter activity during the summer season in 2015 with the number of bookings heading towards the peak numbers we saw in 2007. We found that clients who had previously been waiting for last minute charter offers missed out as during the peak summer months of July and August almost all charter yachts over 40m were booked. Charter rates, however, remained static and continue to remain so for 2016, though we have seen a significant decrease in the number of discounted rates for 2016.”
Nationalities charteringOver the past six years we have seen an increase in the number of nationalities chartering, with the South Americans enjoying a resurgence in chartering. The Americans have increased their hold on the charter market and now represent nearly
half of all nationalities booking charters. Of other nations, we have seen a slight decrease in UK and Russian bookings, but the former is on the increase, climbing back towards their peak.
The Saudi market is another area of significant change, doubling their interest in chartering taking the place previously held by Russia.
Europe remains a steady market with Switzerland, France, Monaco and Spain all maintaining their averages.
Cruising grounds Traditionally, the West Mediterranean has always been the most popular cruising ground, but this is now changing. There has been a slow decline in charters in the area as more exotic locations become accessible, including Antarctica. This will always be a niche market, because of the ice-breaking hull requirements, but charterers are becoming more adventurous in their choice of destination.
The Caribbean and the Bahamas remain a constant in terms of popularity as both areas favour a means to escape northern hemisphere winters.
THE STATE OF WE ALTH, LUXURY AND YACHTING32 MARKET INTELLIGENCE
The East Mediterranean has fluctuated more, with its stunning scenery versus political situation, each vying for control, but on balance it’s an area improving in popularity.
Size & type of charter yachtsWhen looking at the type of yacht chartered we can see that there is a similar split between the fleet of yachts available to charter and the type of yacht booked. This split between motor and sailing yachts has remained pretty constant over the last six years. It is also in correlation with the current brokerage market.
The size of yacht chartered also remains relatively stable, with equal divisions between over 40m / 30–40m / and under 30m yachts.
Preview 2016January and February can be pretty gloomy at the best of times. This year, however, the charter market has a spring in its step and the summer season is already looking strong. Head of Charter, Barbara Dawson comments, “Towards the end of 2015 we were already receiving a high level of charter enquiries for the 2016 Mediterranean season and a number of advanced bookings.”
Based on the knowledge that the high season months of July and August 2015 saw numbers peak, the message is clear – book early to avoid disappointment. For those with a little more flexibility on dates then the best deals can be found in June and September, which are also great months for chartering if you want to avoid the crowds.
21%
2014–2015
CHARTER NUMBERS
15%
2014–2015*
CHARTER REVENUE
1.3%
2014–2015
AVERAGE CHARTER FEE
$115,500–$190,000/week
RANGE OF VALUE OF CHARTER OVER THE PAST 10 YEARS
AVERAGE VALUE OF CHARTER
Section 1: Values & numbers
22.5%
2014–2015
CHARTER VALUE
Source: Camper & Nicholsons
* Though charter numbers and value were up by more than 20% the revenue was up slightly less due to exchange rates with the strengthening US Dollar which has made Euro priced charter yachts worth less when expressed in US Dollars.
“ We witnessed a high level of charter activity during the summer season in 2015 with the number of bookings heading towards the peak numbers we saw in 2007.”
Barbara DawsonCamper & NicholsonsSenior Charter Broker
33A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
Section 2: Nationalities chartering
Section 4: Size & type of charter yachts
The nationality of charter clients
reflected the political and
economic headlines of 2015. The
American market is buoyant, helped
by the exchange rate and general
economic climate, while the Russian
market is down due to the exchange
rate, plus the economic and
political situation.
Percentages shown are accurate at the time of compilation. Any difference is taken by the ‘also rans’ which do not appear in these lists.
CHARTERS BY NATIONALITYSource: Camper & Nicholsons
40%
30%
20%
10%
2010 2011 2012 2013 2014 2015
American
British
SaudiSwiss
South American
FrenchSpanish
Russian
Monegasque
RELATIVE CHANGES (2015 ON 2014)
STH AMERICAN
AMERICAN
BRITISH
RUSSIAN
MONEGASQUE
SAUDI
SWISS
FRENCH
SPANISH
TYPE OF YACHTS CHARTEREDSource: Camper & Nicholsons
YEAR MOTOR MOTOR/SAIL SAIL
2015 82.18% 0.3% 17.52%
2014 83.53% 0.6% 15.87%
2013 82.57% 0.29% 17.14%
2012 84.35% 0.32% 15.34%
2011 82.83% 0.83% 16.34%
2010 77.13% 0.8% 22.07%
33.66%YACHTS 40M+
37.62%YACHTS 30M–40M
28.71%YACHTS UNDER 30M
2015
THE STATE OF WE ALTH, LUXURY AND YACHTING34 MARKET INTELLIGENCE
Section 3: Cruising groundsPercentages shown are accurate at the time of compilation. Any difference is taken by the ‘also rans’ which do not appear in these lists.
CHARTERS BY CRUISING GROUNDSource: Camper & Nicholsons
60%
40%
20%
2010 2011 2012 2013 2014 2015
West Med
East Med
CaribbeanBahamas
Nth America
Indian OceanPacificAsiaAntarctica
RELATIVE CHANGES (2015 ON 2014)
WEST MED
CARIBBEAN
EAST MED
BAHAMAS
NTH AMERICA
INDIAN OCEAN
PACIFIC
ASIA
ANTARCTICA
CAWM EM BH NA IA PA AS AN
SIZE OF YACHTS CHARTEREDSource: Camper & Nicholsons
YEAR OVER 40M 30M–40M UNDER 30M
2015 33.66% 37.62% 28.72%
2014 36.23% 30.54% 33.23%
2013 42.29% 34% 23.71%
2012 36.42% 38.98% 24.6%
2011 36.01% 36.84% 27.15%
2010 36.7% 37.77% 25.53%
35A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
M/Y Galactica Star 65m | Heesen Yachts
THE STATE OF WE ALTH, LUXURY AND YACHTING36 THE CHANGING LUXURY L ANDSCAPE
The fact that the experiential luxury sector consistently out performs any other sector of luxury goods is testament to a fundamental change in attitudes. It means that the ultra wealthy have shifted from the acquisition of goods to savouring unique experiences that no one else can have – and that are completely tailored to one’s personal tastes.
Why? Hunting for unique experiences makes a person unique, much more than owning material goods. Plus experiences will be different each time – which is exactly what the UHNW of this generation are looking for.
There is a new generation of UHNW individuals that’s radically changing the face of luxury. A lot of this change is being driven by a transfer of wealth among the top tier of UHNW from the older generation to the younger one. The fastest growing segment of the billionaire population, in terms of wealth source, are those who inherited only part of their fortunes and became billionaires through their own endeavours.
The changing luxury landscape
“ The new generation take a much more pragmatic view and think of any property in terms of their own personal lifestyle and whether it suits it.”
Paddy DringHead of International Residential, Knight Frank
37A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
The quest for luxuryGlobalisation has created a greater awareness of what luxury is and where it can be found. It means that the ultra wealthy now go that little bit further in seeking out truly extraordinary experiences – and making them unique by tailoring them to their tastes. There are three main influencing factors for a luxury experience to be relevant and enjoyable: time, privacy and personalisation.
TimeAs we’ve seen, the UHNW are often entrepreneurial individuals. 63% of all billionaires’ primary companies are privately held. And if a billionaire wishes to cross the $10 billion threshold, they would have to do so through hard work and perseverance: 97% of billionaires worth $10 billion or more have made part of all of their wealth themselves. While 89% of all billionaires are married with families of their own.
This makes time a precious commodity, if not a luxury in itself. And so a distinct need emerges to eliminate any obstacles which can be seen as inconvenient and time wasting in the pursuit of luxurious leisure.
PrivacyUHNW individuals tend to value and guard their privacy with ferocious intensity. From private islands to private jets, the overall tendency is to spend time with friends and loved ones behind closed doors. Billionaires, after all, tend to cluster in high density metropoles like Moscow, Hong Kong, and London, which could account for the need to be away from prying eyes.
PersonalisationIn the quest for the extraordinary, the UHNW are using their privilege to personalise experiences to their unique tastes. This trend is being seen more and more across the luxury market. In the fashion world, for instance, this can translate into looking behind the curtain, where you see how collections are formed before they hit the catwalk – then being able to purchase a highly personalised and unique item. It’s an approach being embraced by brands across the luxury spectrum.
34%
Percentage of the world’s billionaires based in the top 20 billionaire cities
97%
Percentage of the world’s billionaires worth $10 billion or more who have made part or all of the wealth themselves
ANNUAL UHNW SPEND ON LUXURYSource: Wealth-X
Travel/HospitalityUS$45b /18.9%
ApparelUS$15b /20%
AutomobilesUS$40b /8.9%
Total Annual UNHW Spend: $234b / Share of Luxury Market 18.9%
AccessoriesUS$12b /14.1%
ArtUS$25b /37.9%
HomeUS$8b /28.1%
Jewellery/WatchesUS$25b /35.2%
Wines/SpiritsUS$8b /10.1%
Private AviationUS$23b /82.9%
FoodUS$7b /11.8%
YachtsUS$22b /88%
BeautyUS$4b /6.5%
THE STATE OF WE ALTH, LUXURY AND YACHTING38 THE CHANGING LUXURY L ANDSCAPE
TOP 20 BILLIONAIRE CITIESSource: Wealth-X
103NEW YORK
85MOSCOW
82HONG KONG
72LONDON
37BEIJING
36SÃO PAULO
35ISTANBUL
34DUBAI
33PARIS
32SINGAPORE
28MUMBAI
26TOKYO
25LOS ANGELES
25SHENZHEN
23GENEVA
21MEXICO CITY
21MADRID
21SHANGHAI
21TAIPEI
20RIYADH
“ Whether it be a product or a service, there’s a never ending quest for the next most extraordinary luxury experience”.
Paddy ByngChief Executive Officer, Linley
“ No time is lost on board a yacht – and that is true luxury.”
Concierge ExecutiveAnon
“ Time is the only real currency now. Luxury means dealing with the very best, the experts, to make sure that none of your time is ever wasted. That is true luxury.”
Sacha WilliamsDirector of Charter Marketing, Camper & Nicholsons
“ There is a desire for simplicity with excellence. Individuals want the superyacht experience to be effortless, refined and unobtrusive. Essentially, that is the essence of luxury.”
John LeonidaPartner, Clyde & Co.
“ Yachts are being used more and more as a way of finding that level of privacy to do whatever it is you enjoy, without it being documented.”
Julian FarrowArt, Luxury and Lifestyle Advisory
“ A yacht provides exclusivity, the chance to be where no one else is at that time, and enjoy the different elements of nature – cliffs, beaches, sea, sky, etc… all those things which make it magical.”
Tom LeylandOperations Manager, West Nautical
INDUSTRY INSIGHTSKey insights from leading industry representatives
39A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
M/Y Air 81m | Feadship
THE STATE OF WE ALTH, LUXURY AND YACHTING42 THE LIFECYCLE OF YACHTING
From the planning of a build and itinerary, and the anticipation preceding a cruise, to the on board experience and journey – and the memories that linger long after clients have returned to shore, yachting as a whole is an experience that extends beyond the time on board.
While yachting has the ability to encompass an extraordinary array of activities and tick multiple requirement boxes, it is the longevity of the experience that allows it to pay the greatest dividends on time invested. This can be summarised in the three stages of yachting: The Input, The Event and The Recollection.
The lifecycle of yachting
This is where yachting’s power comes full circle: in the generation of unique and indelible memories
43A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
The InputThe experience of yachting begins well before the first voyage. It starts in the mind, with the anticipation and excitement that comes with selecting destinations, planning itineraries and daily activities. For those commissioning builds, a large part of the pleasure is the privileged ‘behind the curtain’ involvement. It is a chance to participate in the creation of something extraordinary and complex – and then watch it unfold precisely as specified. Many decisions are required in the build of a yacht – from the engines to the fabric for the curtains – and create a close connection with the yacht itself.
Getting involved is, of course, optional. But for many, this involvement is fundamental to the experience of building and owning a yacht. Most owners comment on the joy of influencing the build, and the romance of learning and intimately understanding the vessel they are helping to create.
The EventThe day finally arrives and you set sail. The power of the yacht is its ability to bring people who see too little of each other during the year into a close-quarter environment to share quality time. As a result, many think carefully about the companions they choose to invite on board.
The RecollectionThe experience of yachting lingers long in the mind and lives on. After The Event has ended, The Recollection begins. This is why UHNW individuals seek out extraordinary experiences that are personalised and tailored to their tastes. There is only so much one can say about a purchase. But when you chart your own course and tailor a cruise to your tastes, the places seen and people encountered give rise to experiences that beg to be relived over and over.
This is where yachting’s power comes full circle: in the generation of unique and indelible memories. The Recollection is about that fundamental human need to tell stories – something which yachting more than amply satisfies.
THE STATE OF WE ALTH, LUXURY AND YACHTING44 THE LIFECYCLE OF YACHTING
45A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
THE YACHTING EXPERIENCEA collection of individual experiences
The InputPlanning and investment
The EventTime with friends and family
The RecollectionStories and memories
Activities & Entertainment
Food & Drink
Privacy & Peace
Health & Wellbeing
Travel & Culture
THE STATE OF WE ALTH, LUXURY AND YACHTING46 THE LIFECYCLE OF YACHTING
INDUSTRY INSIGHTSKey insights from leading industry representatives
“ Many clients enjoy the process of designing a yacht almost as much as they do the finished product. That is why so many come back to us again and again, wanting to embark on another project.”
Jimmy CarrollHead of Marketing & Communications Winch Design
“ We provide designers with briefs, asking them to imagine and design a yacht for the specific needs of a specific client. So we ask the designers to do two things: to express their creativity in the shape and design of the product. And then also to illustrate their ideas through mood boards that convey the on board experience that the client wishes to have.”
Marco MazzùHead of Origination Strategies & Market Development Fincantieri Yachts
“ Whether you own a yacht, or charter one, the stories that come from the experience are phenomenal. Most people recognise the value in that. They get a good feeling from telling their stories and reminiscing.”
Barbara DawsonSenior Charter Broker, Camper & Nicholsons
“ There’s a trend for the same group of people to come back year after year, simply because a yacht charter is the only time they get to see each other. It’s not a time you share with a bunch of people that you don’t know. This is something special that you share with people you really want quality time with.”
Sussie KiddSenior Charter Broker, Camper & Nicholsons
“ All my clients who charter yachts with their family really enjoy the experience. They spend a lot of time together – much more than they do in their daily life.”
Marta IglesiasCharter Broker, Camper & Nicholsons
“ From the perspective of a stressed out, overworked businessman who doesn’t have time to connect with family and friends throughout the year – being on a yacht, spending time together and enjoying each other’s company, is truly precious.”
Sacha WilliamsDirector of Charter Marketing Europe, Camper & Nicholsons
47A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
M/Y Lioness V 63m | Benetti
THE STATE OF WE ALTH, LUXURY AND YACHTING48 YACHTING: THE ULTIMATE PL ATFORM OF E XPERIENCE
Boosting your lifestyle investment portfolioA lifestyle is a finite resource, based in time. This fact creates pressure to invest one’s time wisely. If you look at yachting in this light, i.e. the return on investment that it provides, it soon becomes clear that it is one of the most sensible investments worth making. Why is this? Upon closer examination one discovers that yachting isn’t just one experience. It is
multi-faceted and capable of engaging all the senses, drawing together incomparable experiential luxury activities.
The result is a personalised microcosm of luxurious leisure – a cocoon of privacy able to satisfy the tastes of every single guest. Whatever it is that each person seeks, the yacht can offer it while lending its own experiential twist to it. Quite simply, investing time in yachting pays off the highest dividends you could imagine.
In a world where Ultra High Net Worth individuals value experiences more than goods, the yacht stands apart from the rest as the ultimate and most exclusive way to enjoy luxury. It’s not simply a monetary reason. It’s the multitude of experiences made possible by yachting, as well as its ability to transcend time itself through its three-stage lifecycle.
Yachting: The ultimate platform of experience
Yachting is a multi-faceted experience capable of engaging all the senses and drawing together incomparable experiential luxury activities
49A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
Although more volatile, sales of superyachts have broadly moved in line with growth of billionaires
YACHT SALES VS BILLI0NAIRE POPULATIONSource: Wealth-X, Camper & Nicholsons
300
250
200
150
100
50
0
2011 2012 2013 2014 2015
3,000
2,500
2,000
1,500
1,000
500
0
Linking the experiential dots
Privacy & peaceYachts are unrivalled in their ability to deliver privacy
and peace. From dropping anchor at inaccessible beaches, to enjoying the personalised and discreet attention of the crew. The yacht experience is a unique and private one. The only other place you could enjoy this level of privacy is on a private estate or at home.
It is this ‘home away from home’ element that is its biggest allure. The backdrop and the landscape can change, but the yacht is constant in its ability to cater to your every need like only a true home could. It is an ideal blend of change and consistency, remoteness and self-sufficiency.
Some vessels can offer privacy not just from the outside world, but also from the rest of the yacht itself. If required, private apartments and large deck spaces can create an extra layer of insulation from disturbances.
Health & wellbeingYachts are safe-havens for the health conscious – an increasingly
important trend among yacht owners and their guests. Equipped with their own gyms, they offer clients the option of keeping in shape and maintaining their routine while away from home.
Wellbeing on yachts extends far beyond running machines and weight sets. In addition to gyms, the larger vessels come equipped with spas, swimming pools and Jacuzzis, saunas and beauty salons, ensuring that every potential need is catered for – and every option covered.
Food & drinkFood and drink on board a yacht has reached new heights. Exquisite
quality and creativity meet unprecedented levels of personalisation, as meals are served in an inimitable setting of your choosing. Meanwhile staff tend to your every need, all in all making for rather royal treatment.
All moods, diets and occasions can be catered for, minimising the chances of compromise. While the on board food experience can be as
sophisticated or as simple as you require.Talented chefs and careful preparations can turn yachts into fine floating Michelin-style restaurants. It is a key part of the entertainment experience, and can make the time spent truly special and memorable.
Activities & entertainmentAlthough yachts can be floating havens of peace and
tranquillity, they can just as easily become hives of aquatic activity.
Being on the water is one of the most attractive aspects of yachting. Not only does this mean that the vessel has the luxury of movement and isolation away from the shore, but also a close interaction with the sea which lends a yachting holiday a sporting, highly-active edge.
For those less inclined to play on the water, superyachts have the on board technology to convert a yacht into a sleek, floating entertainment centre. Cinema rooms and a catalogue of High Definition films and shows, many of which are the most recent releases, mean that the choice of evening amusement extends well beyond the mundane and enables the choice of valuable ‘together’ time.
The sheer variety of options, from beach and seclusion, to parties and marine activities ensures that the yacht is a place where the return on one’s investment of time pays off a million fold. After all, the focus is on enjoyment and not logistics, while every desire is rarely, if ever, compromised.
Yacht Sales
UHNW Billionaire Population
Sports
89%Aviation
42%
Vehicles
24%Outdoors
30%Philanthropy
42%
TOP HOBBIES FOR SUPERYACHT OWNERSOther than boating
THE STATE OF WE ALTH, LUXURY AND YACHTING50 YACHTING: THE ULTIMATE PL ATFORM OF E XPERIENCE
Travel & cultureIt is commonly acknowledged that
nothing captures the essence of exploration and travel better than yachting does. Whether that is moving on to seek different landscapes, places and habitats, or being able to access remote, relatively untouched places that are only accessible by boat.
With huge diversity on offer, the intrepid traveller is never lacking options for cultural exploration and wonder. The experience of travel is as much a luxury as the on board facilities since it affords the exclusive privileges of ‘being there’ as well as the promise of adventure yet to come.
ConclusionLuxury is a changing landscape. While the pursuit of the rare and exceptional remains a constant, there is a shift from amassing goods and services to acquiring truly unique experiences. For the wealthy and super rich, the most valued commodity they have is time – meaning luxury experiences need to deliver.
Superyachts provide the pre-eminent platform for such experiences. As the preserve of an elite upper stratum of the world’s wealthy, their possession alone confers that status and recognition. However, far from being beautiful trophies they are becoming incomparable platforms of unique experiences that are now being sought out by the world’s wealthiest individuals. There has never been a better time to enjoy membership of this most distinguished of clubs, whether as an owner or charterer.
268
Total yacht sales, 2015
2,405
Billionaire population, 2015
INDUSTRY INSIGHTSKey insights from leading industry representatives
“ Exploration yachting, as it is known, is becoming the next frontier in luxury travel. From polar ice caps, to untouched exotic havens, the potential for adventure and discovery is limitless thanks to a handful of yachts that are breaking out ofthe mould.”
Molly Browne, Charter Broker,Camper & Nicholsons
“ One of the biggest challenges facing a chef today is the multitude of new diets that are served up almost on a daily basis. Whether for health reasons, vanity’s sake or purely for the desire to be considered ‘so now’, almost all of us have some sort of dietary code. When customising food for guests, a superyacht chef must get to grips with the finer points of every diet going.”
Dylan StaceyChef on board M/Y Metsuyan IV
“ Not all yachts are built for exploration, but as demand from intrepid travellers grows, more yachts will be constructed to help realise this passion.”
Cristabel Nye, Charter Broker,Camper & Nicholsons
“ Connoisseurs of food and travel know that to cruise the oceans by superyacht is one of life’s finest experiences, but in today’s health conscious world guests are not looking to spend their time on board over indulging. They are looking to carry on living their balanced lifestyle while away from home.”
Miriam CainEditor SEA+I
51A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
THE STATE OF WE ALTH, LUXURY AND YACHTING52 YACHTING: THE ULTIMATE PL ATFORM OF E XPERIENCE
53A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
M/Y Alfa Nero 81m | Oceanco
THE STATE OF WE ALTH, LUXURY AND YACHTING56 TRENDS IN YACHTING
As superyachts continue to grow in size, so too do the possibilities for palatial private spaces, spas, balconies, cinemas, gymnasiums and secluded spots where one can focus. These features are at the top of owners' lists of requirements.
With high-tech offices, yoga studios and reading rooms in demand, impressive personal zones will continue to push limits
– from snow rooms to private pool decks that transform into sports courts – nothing, it seems, is impossible when it comes to the latest trends in yachting. The sky is the limit for the future of creating intimate, innovative and truly unique spaces that meet an owner’s every fancy.
Superyachts have always been prized for their ability to offer the ultimate in privacy, but a new trend in secluded areas within the yacht itself is seeing a new breed of yacht taking the world of luxury cruising by storm.
Trends in yachting
“ Technology advances almost daily and with it the expectations of superyacht owners. As audio visual and IT innovations reach new heights, the entertainment factor on board yachts the demand for innovation continues to push the boundaries of what’s possible.”
Paul RoseDirector, Icon Connect
57A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
Ultimate luxury vs adventure
Once you’ve seen the Riviera and the popular parts of the Mediterranean and Caribbean, then what? Increasingly, UHNW individuals want to contrast the experience of 5 star luxury with that of adventure. Since yachting allows the customer freedom of the seas, they can decide where to go – and when.
Within Europe, newer yachting destinations such as the Eastern Mediterranean are becoming increasingly appealing. Similarly there is a growing desire for access to even more remote locations such as the Galapagos, Antarctica and Asia.
As a result the number of explorer vessels and even yachts with ice-breaking hulls is increasing. Similarly, the number of long range vessels allowing for voyages across greater distances has increased. Numbers of ancillary craft is also rising to facilitate the storage of additional sporting materials such as diving equipment and providing extra accommodation for guests.
01
“ People hanker after what’s new and exciting. Where haven’t we gone yet? What can we do, as opposed to what we have done, is the biggest thing. What is there other than just the so-called milk run in the Med or the Caribbean. Let’s start travelling further afield, seeing new destinations, new places.”
Jan VerkerkOwner M/Y Sherakhan and M/Y Legend
THE STATE OF WE ALTH, LUXURY AND YACHTING58 TRENDS IN YACHTING
59A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
THE STATE OF WE ALTH, LUXURY AND YACHTING60 TRENDS IN YACHTING
Innovative layouts
Today’s yachtsman is moving away from traditional structures with divided interiors and smaller outdoor spaces. There is an increased focus on the outdoor areas and creating a direct, intimate experience with the sea.
Similarly, lighter and larger open plan interiors are becoming more popular. This maximises the space that a yacht’s inhabitants can share. It also enables yacht owners to incorporate the alfresco feel into the interior of a yacht.
02
“ The M/Y ‘Ottantacinque’, for example, stands out for creating a seamless experience of the sea. There is a large beach club/spa area in the over-deck of about 170 square meters, which allows in an enormous amount of light and creates a great feeling of openness inside the yacht. Not to mention a sense of communion with the sea, and a real continuity between indoors and outdoors, which would be difficult to experience in many other circumstances.”
Marco MazzùHead of Origination Strategies and Market Development, Fincantieri
“ Spaces themselves are evolving with glass and material technology advancing, the structural constraints are becoming less, leading to more interesting ways of designing spaces and combining areas.”
Jason MacareeDirector, Reymond Langton Design
61A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
Imaginative water toys & entertainment
Toys are becoming a primary rather than a secondary part of the voyage. Support vessels often carry additional toys and tenders to cater for this need. At the same time, the toy inventory continues to be regularly updated. Alongside standard ones such as jet skis, water skis and canoes, there is an increasing demand for the latest gadgets, be it a jetlev, skibob or hover board.
On the entertainment front, yachts are making great strides to offer the latest and most up to date content in a top notch setting. Cinema rooms are becoming increasingly popular, while content is expected to be of the highest quality with regard to picture, sound and speed.
Online film libraries and the latest movies can now be bought directly from the studios and are becoming the norm. Because of this increased demand, effective internet connections are essential to the yachting experience.
03
“ There are new trends in toys, in addition to the traditional jet skis. Seabobs are very popular and we’re seeing more of the slides that you can hook onto the side of the yachts. Trampolines – anything that floats and flies around. People these days are keen to know what’s on the toy list.”
Vaniese BaldacchinoCharter Broker, Camper & Nicholsons
“ Cinemas of the highest quality are becoming significant, both internally and on deck. But the most impressive private space I have designed would be a private swimming pool on board a yacht with a water flow machine – you could spend all day in it and never have to swim in the sea.”
Andrew WinchWinch Design
THE STATE OF WE ALTH, LUXURY AND YACHTING62 TRENDS IN YACHTING
M/Y Galactica Plus 34m | Heesen Yachts
63A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
THE STATE OF WE ALTH, LUXURY AND YACHTING64 TRENDS IN YACHTING
Focus on health & wellness
Individuals are looking to carry their balanced lifestyle into the world of yachting. No longer are they willing to compromise their health. Instead their dietary, fitness and wellness requirements are expected to be met onboard, to the same standard as they are at home.
This is why many yachts are offering highly skilled personal trainers, nutritionists, therapists and masseurs – all appealing to a growing number of health conscious men and women. Similarly menus and food demands can be tailored to suit all palates and dietary needs.
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“ We think that the ‘spa experience’ is accelerating, and I am sure this will make for some interesting space concepts in the next few years.”
Jason MacareeDirector, Reymond Langton Design
“ A chef on board a luxury yacht is unlike any other. Not only is every meal prepared to the same exacting standards as in the world’s finest restaurants, but every day brings with it the balancing of dietary requirements, and the wishes and whims of between eight and 12 guests.”
Dylan StaceyChef on board M/Y Metsuyan IV
65A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
M/Y Silver Angel 64.5m | Benetti
THE STATE OF WE ALTH, LUXURY AND YACHTING66 TO OWN OR TO CHARTER
That is the question. Opinions are divided but did you know that choosing one doesn’t exclude the other? Some superyacht owners might even charter a specialist vessel like a diving boat, or one conveniently positioned for a quick winter getaway in the Bahamas, for instance. As the world’s oldest superyacht sales and charter brokerage firm, Camper & Nicholsons can shed light on the delights and the challenges. Here, we argue the case for both sides.
To own or to charter?
There has never been a better time to enjoy membership of this most distinguished of clubs, whether as an owner or charterer.
67A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
What can we say? There’s nothing quite like owning a yacht. For starters, there’s the cachet that ownership bestows. With the average superyacht costing $10 million to buy, the price tag makes it prohibitive to the masses – and a rarity even among the world’s ultra wealthy. Consider this: the club of yacht ownership is so exclusive, you would be joining an elite group populated by some of the world’s wealthiest and most famous individuals.
If you choose to build your own yacht, you are only limited by your imagination. In fact, owners speak of the construction process with great fondness. Many find envisioning and creating their own superyacht so enjoyable that they repeat the build experience – rather than looking to the used yacht market.
Even if you decide to buy an existing yacht, you can still tailor your superyacht to be exactly how you want it to be. Toys, cinema, your own office, private relaxation spaces – again, you are only limited by your imagination. Or maybe you would like to show off your art or private car collection. One thing is for sure – your superyacht can be a mirror of you and your lifestyle. It is no surprise that for some, their superyacht becomes one of their most prized possessions.
But the biggest perk of being a superyacht owner is the ability to be master of your own dreams. Had enough of the French Riviera and want to explore further afield? Moor your yacht in the South Pacific, fly out and explore your heart’s desires in inimitable style. In fact, you can position your yacht wherever it pleases you, making no corner of the world beyond your reach. Interestingly, though, many owners choose to charter yachts that can give them easy access to the experiences they desire – such as diving, arctic exploration and more.
On the downside, you have to contend with significant running costs. But for some, the ability to maintain your own superyacht is part and parcel of the cachet of ownership. On the other hand, many owners offset some of the running costs by offering their yacht on the charter market. Of course, the process of purchasing can be complex and operating your yacht can be tricky – but that’s what seasoned brokers are for.
Ownership
THE STATE OF WE ALTH, LUXURY AND YACHTING68 TO OWN OR TO CHARTER
If chartering a yacht appeals to you, it is probably because of its carefree nature. For people who charter, the focus is entirely on the experience – and the creation of memories. Flexibility is key – and in this realm we mean it in every sense of the word.
In the hunt for experiences, there is no greater experience than yachting itself. You can easily explore this exclusive world, alternating between sailing yachts or motor yachts as it pleases you. The array of yachts available for charter is impressive. In this respect, chartering is also the ideal way to sample what ownership could be like.You will have full freedom to go wherever
you want. In other words, you won’t be seasonally tied to a single region like an owner would. So you could easily cruise round the Virgin Islands one week, then charter a yacht with an ice-breaking hull the following – and head to the Antarctic. It is the ideal option for those who are put off by the steep price tag and running costs – or prefer to have their capital invested.
You will miss out on the cachet of ownership. And you won’t be able to personalise the boat to reflect your particular tastes. But for some, the lower overheads, flexibility and the ability to focus on experiences prove themselves a bigger draw.
Chartering
There has never been a better time to enjoy membership of this most distinguished of clubs, whether as an owner or a charterer.
69A REPORT BY CAMPER & NICHOLSONS AND WE ALTH-X
M/Y Serene 134m | Fincantieri Yachts
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A M E R I C A
Fort Lauderdale 801 Seabreeze Blvd Fort Lauderdale, FL 33316 T. +1 954 524 4250E. [email protected]
Miami 1001 Brickell Bay Drive, Suite 2006 Miami, FL 33131T. +1 305 604 9191E. [email protected]
Newport 1 Washington Street Newport, RI 02840–1513 T. +1 401 619 0075E. [email protected]
New York 445 Park Avenue, 9th floor New York, NY 10022 T. +1 212 829 5652E. [email protected]
Palm Beach 450 Royal Palm Way Palm Beach, FL 33480 T. +1 561 655 2121E. [email protected]
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Antibes12 Avenue de la Libération06600 Antibes, FranceT. +33 4 92 91 29 12E. [email protected]
GenevaRue Kléberg 141201 Geneva, SwitzerlandT. +41 223 47 27 08E. [email protected]
London15 Sackville Street London W1S 3DJ United KingdomT. +44 20 7009 1950E. [email protected]
MonacoGildo Pastor Center, 7 Rue Gabian, MC 98000, MonacoT. +377 97 97 77 00E. [email protected]
Palma Club de Mar,07015 Palma de Mallorca, SpainT. +34 971 40 33 11E. [email protected]
Photography Credits:
BREED MediaSYBAssNeil Rabinowitz
To explore our fleet of yachts for sale and charter visit camperandnicholsons.com
THE STATE OF WE ALTH, LUXURY AND YACHTING72 OFFICES
Camper & Nicholsons International 15 Sackville Street London W1S 3DJ United KingdomT. +44 20 7009 1950E. [email protected]
Wealth-X 12th Floor, 142 W 36th StNew York, NY 10018, United StatesT. +1 877 887 8454E. [email protected]