YACHTS & MARINAS FINANCIAL TIMES SPECIAL REPORT | Friday May 27 2011 www.ft.com/yachts­marinas­2011 | twitter.com/ftreports Inside this issue Buyers and owners The rich are The new generation of the super­rich is not necessarily interested in the Riviera lifestyle Page 2 Superyachts The heady still af loat, days of bulging order books may never return Page 2 Interview Ed Dubois, but more the British naval architect, was a landlocked boy who felt discreetly the pull of the sea Page 3 Racing and regattas Organisers are hoping 1m the number of deliveries fell, the The latest challenge online gamers will take part in aggregate length of superyachts the 2011­2012 Volvo Ocean for the industry is produced rose slightly in 2010 to Race Page 3 buyers’ wariness about 8,008m because the average length increased from 40m to flaunting their riches. 45m. The ultra-wealthy, in other Marinas Berth prices have Victor Mallet reports words, are buying bigger yachts. risen fourfold in six years How can this be in times of at some of the most crisis? The answer is that the expensive facilities Page 4 t is no secret that the lux- very rich have, in many cases, ury yacht industry was an continued to get richer over the A home in early and prominent victim past three years. The main the Med of the economic crisis that obstacle to further growth in Big boats Ibegan with the collapse of Leh- the superyacht market, then, is battle for man Brothers in September 2008 not so much lack of money. As limited and continues to affect econo- in the private jet and corporate berths, while mies throughout the world. aviation businesses, it is that suppliers vie Manufacturers, designers and the wealthy find it politic not to to upgrade service providers for the yacht flaunt their riches on highly vis- marinas Page 4 business say a recovery is now ible symbols of excess. under way, although they doubt For the superyacht industry, Security Arming boats that the extraordinary explosion much will depend on the state remains controversial despite of demand that marked the dec- of the European and US econo- ade before the crisis will be mies in the year ahead, but high­profile pirate attacks repeated, and believe that fur- most experts agree that the Page 4 ther consolidation among strug- worst seems to be over. And New breed of boat: the 45m motoryacht Big Fish is designed for long trips and has completed a voyage to the Antarctic Peninsula gling shipyards is inevitable. while many buyers seek to Interior design Attention to The numbers tell the story. remain discreet, the occasional “While things haven’t mine things or make things the contract lawyers and design- would be plenty of space for intricate detail gives the lie to According to The Yacht Report spectacular projects continue to bounced back, I certainly think seem to be quite solid.” ers who oversee new construc- them in the marinas of the Med- external similarities with other – which tracks the state of the bring cheer to the chosen con- they have levelled out,” says One awkward reality for the tion projects are as busy as iterranean, but in the most vessels Page 5 market for “superyachts” – tractors. Dean Smith, marketing director superyacht business, as for the ever. favoured locations, especially defined as those over 30 metres Take Eclipse, the 162m motor of Royale Oceanic, which man- corporate jet market, is that the “Yes, the big economies are the French Riviera, demand for Accessories Gadget mania: or 100 feet in length – deliveries yacht built for Roman Abramov- ages superyacht projects and stock of existing vessels (the still in a ‘gloom and doom’ berths continues to exceed sup- from jet packs to retractable declined to 180 last year, from ich, the Russian tycoon who provides services to owners. great majority are motoryachts phase, but there are still a lot of ply because so little capacity climbing walls Page 5 213 in 2009 and a peak of 264 in owns Chelsea Football Club. It Inquiries have picked up so rather than sailing yachts) inev- people making a lot of money,” has been built in recent years. 2006, although it must be borne is the largest private yacht much, he says, that “in the first itably continues to increase and he says. “While there is wealth, people in mind that deliveries reflect afloat, costing an estimated five months of this year we this holds down prices for sec- Given that a mere 2,000 rich will go on building these yachts, FT.Com orders made two years earlier, $500m and reportedly supplied have been busier than in the ond-hand and new boats, partic- individuals own most of the and some of them are extraordi- Boat Shows A round­up of because of the time needed to with a mini-submarine and a previous two years . We’re cer- ularly those in mid-range. 4,000 superyachts afloat, “you nary things,” says Nick Maris, the biggest events for construct and equip a large missile detection system. tainly seeing some real interest But Martin Redmayne, chair- only need small market seg- chairman of Camper & Nichol- browsing and buying a boat vessel. Then there is the 141m Dream again.” man and editor of The Yacht ments to be excited for there to sons Marinas. The total number of yachts on Symphony, being made (of Mr Smith adds: “The wealthy Report and the Superyacht be an upturn. There are a lot of “You don’t need a lot of deliv- Asia The super­rich still have order has also fallen steadily wood) in Turkey, reportedly for industrialists, be they Russian, Intelligence Agency and a vet- guys in the world today that can eries, particularly in the larger funds to splash out on over the past two years. a Ukrainian buyer, and which American, European or Middle eran observer of the business, afford a €10m ($14m) yacht.” sizes, to put a lot of a stress superyachts But those headline figures will be the largest luxury Eastern, they are the ones who says that “cautious optimism” is If dozens of yachts were being mask an intriguing detail. While sailing yacht in history. are still there. Those who either the order of the day and that scrapped or mothballed, there Continued on Page 2 2 ★ FINANCIAL TIMES FRIDAY MAY 27 2011 Yachts & Marinas ‘If you buy a boat, you might as well use it for adventure’ develop long-range luxury with the range and robust build In both these areas – super opment of cohorts of very streams [private jets] and they “Who’d want a villa, even a Buyers and owners motoryachts for millionaires to do more than speed from yacht use and aesthetics – wealthy individuals in particu- want to do things when they are seaside villa, where you would keen to see the ends of the beach to beach in the Mediterra- trends in the industry suggest lar nations. on holiday. They don’t want to wake up and say ‘I’m still here, The new generation of earth. nean or the Caribbean. “The Mr Beattie is on to something. The new generation of young sit with cigars and cognacs.” it’s the same old view’,” he asks. the super­rich is not “I never thought I would get majority of these big yachts and Shipyards and brokers will internet millionaires and billion- Big Fish has the usual super- If you are wealthy and buy a into this business,” says Mr yacht-owners don’t go any- always wonder about identify- aires is not necessarily inter- yacht toys – including two Laser boat, he believes, you might as necessarily interested Beattie, who is also one of where. It’s showboating,” he ing the next cohort of super- ested in the Riviera lifestyle sailing dinghies stowed aboard – well use it for adventure. “They in the Riviera lifestyle. the co-founders of TCC, an inter- says. “They want to be noticed. yacht owners. that appealed to the industrial- and some unusual features, are massively expensive to buy national company that designs, They want to be in that marina, ists of old. such as an observation pod akin and run, so why do you do it? Victor Mallet reports manages and provides supplies with all the entertainment and That shift has prompted the to a modern crow’s nest and There’s no villa, no house, no for customer loyalty schemes they want to be seen being ‘Who’d want a villa, development of various types of bulwarks around the stern that other holiday that gives as for retailers. noticed.” even a seaside villa, “explorer” yachts, some of them fold down to make a big plat- wonderful experiences as being When Richard Beattie, the Brit- “I was just going to buy a Big Fish and its crew, by con- converted working vessels. form that is almost at water on these yachts.” ish-born Australian entrepre- yacht. I remember my first trip trast, have already circumnavi- where you would Still, as Jim Gilbert, a yacht level. Big Fish is already for sale, as neur based in Hong Kong, to the Monaco and Fort Lauder- gated South America and visited wake up and it’s expert and an associate of Mr But what makes the yacht is Star Fish, a 50m motor yacht decided to buy a big yacht, he dale shows. I was absolutely Antarctica and the South Beattie, points out, the ideal is special are the adaptations for under construction. The third was astonished not to be able to convinced I would look at all Pacific.