INDUSTRY DEVELOPMENT ADVANCE CAIRNS PRIORITIES 2019/20

BRIEFING NOTE SUPER YACHT SUMMARY • Appropriate policy settings will secure an additional $1.12 billion in GDP CHARTERING per annum for with no requirement for COUNCIL: CAIRNS STATE ELECTORATE: CAIRNS FEDERAL ELECTORATE: LEICHHARDT Government investment. • The inability for foreign flagged superyachts to THE ISSUE charter in Australia is the single biggest inhibitor to The inability for foreign flagged superyachts to charter in Australia is the single biggest growth in the Australian inhibitor to growth in the Australian superyacht industry. Changes in legislation to allow superyacht industry. foreign flagged superyacht charters in neighbouring countries such as Fiji has shown a • Neighbouring countries 40% increase in vessel visitation and an increase of average stay from 21 days to 136 have seen significant increases in superyacht days. New Zealand enjoyed an increase of 54% in superyacht visitation in 2014-2015 visitation following with new legislation permitting a vessel to stay up to 2 years and conduct charters. changes in their chartering legislation. • Allowing foreign flagged BACKGROUND superyachts to charter in Australia requires a revision In 2017, the Federal Government with appropriate policy settings the of The Coastal Trading (Revitalising Australian submitted changes to The Coastal superyacht sector’s annual contribution Shipping) Act 2012. Trading (Revitalising Australian Shipping) to the Australian economy could grow Act 2012 into Parliament that removed by as much as 70%, delivering $1.12 the current requirement for five voyages, billion more in GDP and 8100 more requiring each voyage to be between Australian jobs. two separate ports and allowed In Tropical North Queensland (TNQ) exemption from the Customs Act whilst the industry currently injects $324.1 alongside or in a maintenance yard. million into the regional economy and The amendments were passed by the supports 2664 full-time equivalent jobs, Lower House in August 2018, however which represents 18% of the 14,500 jobs were not sent to the Senate. supported by the superyacht industry With no change to the current policy, Australia-wide1. economic modelling of the Australian Following an appropriate change superyacht industry suggests the in policy, by 2021 the TNQ regional $1.965 billion industry would grow contribution is expected to grow by 78% by approximately 13% over the five to $577.7 million per annum, leading to years from 2016 to 2021. However, an additional 4504 jobs. ADVANCE CAIRNS PRIORITIES 2019/20

NEXT STEPS Super Yacht Group Great Barrier Reef (SYGGBR) strongly Current events that will attract superyacht vessels to the recommends that the amendments to the Coastal region include: Trading Act be passed by Government as soon as • Sep 2019 – Rugby World Cup in possible in order to permit foreign flagged superyachts • Jan 2020 – SailGP in Sydney Harbour to charter in Australia. There is no requirement for • Sep 2020 – Summer Olympics in Tokyo Government investment in order to secure the additional • Dec 2020 to Mar 2021 – 36th America’s Cup in Auckland $1.12 billion in GDP per annum2. The urgency of a solution is demonstrated by Of particular interest is SailGP3, an international interest from international companies such as Burgess grand prix racing circuit that was launched in Sydney (world’s largest superyacht charter company) which has in February 2019. The event’s long-term success will expressed an interest in opening an office in Sydney, and be determined by the ability for ultra high net worth by the growing number of international events that will individuals to follow the series and view the races from attract superyachts to the Indo-Pacific region. their superyachts. Competing nations include Australia, China, , Great Britain, Japan and the United States. With 50% of the world’s superyacht charter vessels catered for by this series alone, to maximise the benefits That in 2019 the Department of Infrastructure and Regional Development submit The Coastal from the event it is crucial that from 2019, foreign Trading (Revitalising Australian Shipping) Act flagged superyachts be permitted to charter in Australia. 2012 amendments to the Lower House as an urgent priority and work with the Senate to secure its passage in order to allow foreign

flagged superyachts to charter in Australia. 1 Economic Impact of the Superyacht Sector on the Australian Economy, December 2016 2 Economic Impact of the Superyacht Sector on the Australian Economy, December 2016 3 SailGP global racing league unveiled at spectacular London launch: https://sailgp.com/news/SailGP-unveiled

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