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Emerging European Marine Markets Report 2009 Turkey

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Emerging European Marine Markets Report 2009 Turkey Emerging European Marine Markets Report 2009 Turkey Contents Summary & Overview 86-87 Statistics & Data 88 Leisure Boatbuilding 89-95 Leisure Boat Imports 96-97 Marine Equipment Distribution 98-101 Marine Equipment Manufacturers 102 Marine Engine Suppliers 103-104 Charter Industry 105 Ports, Harbours & Marinas 106-107 Repair & Refit Yards 108-109 Boat Shows 110 Media 111 Challenges for British Exporters 112 General Guidance & Advice and Useful Contacts 113-114 Turkey (TÜRKIYE) SUMMARY AND OVERVIEW Turkey is uniquely situated in the world in that it spans two continents; Asia and Europe, separated by the Bosphorus Strait, thus forming a natural gateway between East and West. Although not the capital city, Istanbul, situated on both continents either side of the Bosphorus, is Turkey’s major economic centre, generating almost half the country’s trade and one fifth of its GDP. In 1964, Turkey became an associate member of the European Community and over the past decade, it has undertaken many reforms to strengthen its democracy and economy; it began accession membership talks with the European Union in 2005. Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that still accounts for more than 35% of employment. Despite the strong economic gains from 2002- 07, which were largely due to renewed investor interest in emerging markets, IMF backing, and tighter fiscal policy, the economy is still burdened by a high current account deficit and high external debt. Economic fundamentals are sound, marked by moderate economic growth and foreign direct investment. Nevertheless, the Turkish economy may be faced with more negative economic indicators in 2009 as a result of the global economic slowdown. Turkey has a very strong and centuries old commercial shipbuilding industry and is recognised as a specialist producer of chemical and oil tankers between 50m and 100m in length. Geographically, there are three main boatbuilding regions: Tuzla, a major shipbuilding region close to Istanbul, Antalya, an economic free zone in the south and Bodrum / Ören, considered the birthplace of boatbuilding in Turkey, claiming a boat building industry going back almost 2,000 years. Turkey’s boatbuilding sector is characterised by low labour costs, an abundance of locally produced raw material and a pool of highly skilled labour. However, the quality of boats produced can vary from one end of the spectrum to the other. In recent years a number of yards have made significant advances in technology and working practices and can now stand alongside the best yards in the world. The high profile Maltese Falcon, built at Perini Navi’s facility in Tuzla did much to change the perception of Turkish yacht building and yards such as Numarine can boast some of the most sophisticated manufacturing techniques and technology found anywhere. Between 2004 and 2008 the leisure boatbuilding sector has enjoyed significant foreign investment with a number of the world’s higher profile yacht builders looking to Turkey to set up production facilities either as subsidiary companies or by working with partner companies. Examples include Vitters, Nedship, Oyster and Perini Navi. Picture: CIA World Factbook Turkey has long since been a popular tourist destination and enjoys the Mediterranean, Aegean, Marmaris and Black Sea around its coastline. However, domestic boat ownership per capita is very low and the slow pace of marina development is blamed for restricting the growth of the leisure marine industry. Of course, like everywhere else, Turkey has to contend with the global economic downturn further restricting growth within the marine sector. The future growth of the Turkish leisure marine industry therefore relies on increasing the export reach of its boat builders and therefore the build quality, brand recognition and general reputation for quality are of utmost importance for its credibility on the world stage. Many companies are now demonstrating that they are globally savvy and are pushing hard to establish themselves in the world’s markets, gaining presence through global marketing and establishing strong dealer networks. For this reason, Turkey’s yacht builders are becoming more discerning of quality products and services creating opportunities for British manufacturers of high end products. These opportunities also extend to yacht designers and naval architects, interior designers and to services such as marketing and brokerage. Turkey’s Superyacht sector is one of the largest and most established in the world after Italy, Holland and the USA. Despite the economic situation most of Turkey’s larger yacht builders have strong order books and, which means that it is a good time for British exporting companies to explore this rapidly developing market. STATISTICS AND DATA Population 76,805,524 (July 2009 est.) Currency New Turkish Lira (TRY) Exchange rate (Euro : Lira) 1 : 2.11 VAT 18% GDP per capita €9,000 (2008 est.) Coastline 7200km Boat Park 90,000 (estimated) Marinas & Yacht Harbours 50 Boat Ownership / capita 1 / 850 Source: ICOMIA (2007), CIA –The World Factbook Other rigid Inflatable Domestic Motor boats inc. boats production per (inboard / outbaord 2.5m+ and annum Sailboat sterndrive) motorboats 20kg+ Total 2.5m to 7.5m - - - - - 7.5m to 12m - - - - - 12m to 24m - - - - - Totals 250 650 150 1200 2250 Source: ICOMIA (2007) Motor (inboard / Boat Import / Export Sailboat sterndrive) Total Import 250 175 425 Export 60 300 360 Import - value in millions Euro 2.62 1.89 4.51 Export - value in millions Euro 3.53 32.98 36.51 Source: ICOMIA (2007) LEISURE BOATBUILDING Turkey has a number of eminent boat building companies serving the leisure marine and Superyacht sectors. Many of these companies have enjoyed strong growth over the last 6-8 years and have been able to invest in their facilities and production techniques. Others have attracted the attention of foreign companies to finance their development. As Turkey is taken more seriously as a producer of high quality, technically advanced products, so it’s presence in the world market will grow, creating opportunities for those companies servicing the industry. In times of financial difficulty and cost-cutting more people will be looking to take advantage of the combination of Turkey’s relatively low labour costs, highly skilled workforce and technologically advanced production facilities. Some companies, such as Vicem Yachts have thrived on their reputation for using traditional materials and working practices to produce very high quality and unique boats, enjoying a very strong following in the USA. Others, such as Peri Yachts and Numarine have embraced the latest designs, working practices and materials to gain brand recognition in the very tough and discerning European market. Superyacht Building in Turkey During the last 10 years luxury yacht building has increased in popularity and capacity. The type of yacht builders currently fall into three categories based on the structure of their organisation and facilities. The first category generally comprises boat builders with small workshops owned by individuals who have been building boats of all sizes, mainly out of wood. Over the years the size of vessel has increased and production methods modernized. The old method of carvel planking on cut frames has died away and has been replaced by wood epoxy planking over laminated keel and frames. Several significantly sized yachts have been constructed using this method, predominantly motor yachts or traditional ketches, called ‘Gulets’*, which can reach up to 50m in length. Another common sight in Turkey is a three-deck, hard-chine motor yacht, normally around 40 / 42m. This group of vessels is the most cost-effective in terms of production and offer excellent value for money. The second category comprises shipyards with strong corporate identities, well known brand names, modern facilities and well educated and highly experienced engineers. Yachts in this category range from 20m to 80m; the smaller ones being constructed from composite materials with planing hulls and the larger ones in steel / aluminium or all aluminium. Many of these yards are producing to European quality with MCA, ABS and Lloyd’s certification. The third category contains the production yards producing smaller boats. Still in its early stages, this sector of the Turkish boat building industry has experienced rapid growth and with experience improved quality and manufacturing efficiency. Many foreign yards are choosing to have facilities in Turkey and, in some cases, are starting to deliver vessels under their own brand name built entirely in Turkey. We can expect to see Turkish yards continue to increase their share of the market and continue to provide excellent opportunities for buyers wishing to take advantage of the high quality on offer at great value for money. *Gulets A Gulet is an all wooden motor powered sailing yacht, built with a wide, flat deck, a large, round stern, two masts and strong, square sails that is famed for providing the zenith of luxury. Though primarily motor powered they often boast tall sails as a secondary, and quieter, means of propulsion. They are a product of a maritime heritage that is second to none. From the Classical era through to the Ottoman Empire and beyond, the Turkish region has been famous for the quality of its craftsmen and the handsomeness of its ships. The Gulet is the modern representation of this tradition. Gulet cruising is one of the most popular activities that holidaymakers can enjoy while exploring the temptations of the Turkish Riviera. Agantur Yachting Co. Ltd. İçmeler Mevkii No: 83 - P.O.Box 40 TR - 48400 Bodrum, Turkey Tel: +90 252 316 51 56- Fax: +90 252 316 51 55 ÖzkalayYachts@ÖzkalayYachts.com.tr www.agantur.com.tr Type: Traditional wooden and steel Motor and Sailing Yachts from 8m to 70m Models: Traditional, Gulets and Superyachts Output: 5 boats per year Alen Yacht BOSB Aydinli Mah.
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