Indonesia

Asia Pacific Superyachts

Yacht brokers of Hong Kong have had a phenomenal couple of years as the local appetite for superyachts has grown. There has been a boom in “demand for anything between 15-metres through to 45-metres, and around 500 yachts have been sold in Hong Kong in the last two years,” Eric Noyel, Founder of <a data-gid="gid://syiq/Company/5504" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Asia Marine (Company)">Asia Marine</a> &amp; Managing Director of <a data-gid="gid://syiq/Company/158" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Fraser (Company)">Fraser</a> Asia, told SYT. <img src="https://photo-assets.superyachttimes.com/photo/223285/image/large-af2e2abb128e9080583b34b18780bff1.jpg" data-gid="gid://syiq/Photo/223285">While the appetite has predominantly been satisfied by European builds, local yacht builders have also been kept extremely busy. <a data-gid="gid://syiq/Company/282" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Kingship Yacht (Company)">Kingship</a>, for one, currently has multiple projects underway, Managing Director, Roger Liang confirmed. “We are currently building a 45-metre motor yacht designed by <a data-gid="gid://syiq/Company/4364" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Horacio Bozzo Design (Company)">Horico Bozzo of Axis studio</a>, and have just delivered a 24-metre catamaran to a buyer who’ll navigate around one of the largest lakes in Southern China.” <a data-gid="gid://syiq/Company/282" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Kingship Yacht (Company)">Kingship</a> built six steel displacement yachts, that are full class and adhere to MCA standards, in the last 10 years. The yard also delivered three high-speed catamaran to clients in Southern China.<img src="https://photo-assets.superyachttimes.com/photo/219565/image/large-22ced79efd4b0eddc1bc720fe5be70a9.jpg" data-gid="gid://syiq/Photo/219565">Across the Taiwan Strait, <a data-gid="gid://syiq/Company/1394" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Ocean Alexander (Company)">Ocean Alexander</a> and <a data-gid="gid://syiq/Company/119" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Horizon Yachts (Company)">Horizon Yachts</a> are churning out yachts with great tenacity, securing owners for each one. Last year <a data-gid="gid://syiq/Company/1394" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Ocean Alexander (Company)">Ocean Alexander</a> delivered 13 yachts in the above 24-metre category and have a further 12 penned in to be launched this year. Whereas eight yachts built by <a data-gid="gid://syiq/Company/119" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Horizon Yachts (Company)">Horizon</a> made their first splash last year, and the Taiwanese builder expects to put another 15 in the water before this year’s through. The bulk of these yachts aren’t destined for Asia though, “<a data-gid="gid://syiq/Company/119" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Horizon Yachts (Company)">Horizon Yachts</a>’ main market is Australia, the States, and Europe” Suzy Rayment, Executive Director of the <a data-gid="gid://syiq/Company/5448" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Asia Pacific Superyachts (Company)">Asia-Pacific Superyacht Association</a>, explained. The lower number of Asian sales compared to other regions was confirmed after a quick call to the European office of <a data-gid="gid://syiq/Company/119" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Horizon Yachts (Company)">Horizon Yachts</a>. The same is true for <a data-gid="gid://syiq/Company/1394" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Ocean Alexander (Company)">Ocean Alexander</a>.<img src="https://photo-assets.superyachttimes.com/photo/214509/image/large-fc13dc58f4b69787fce9940344e59784.jpg" data-gid="gid://syiq/Photo/214509"><img src="https://photo-assets.superyachttimes.com/photo/111186/image/large-210aa4300e3261200ed50c1e362c0d7d.jpg" data-gid="gid://syiq/Photo/111186">“Shipyards in Taiwan and Mainland China have been exporting yachts around the world for many years and there is now a growing market in mainland China for locally built yachts,” Mike Simpson, Founder &amp; CEO of <a data-gid="gid://syiq/Company/1011" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Simpson Marine (Company)">Simpson Marine</a>, commented. “Local builders are learning fast from their more established western counterparts and the quality is improving, but Asian buyers have come to expect cutting edge design, innovation and build quality – and throughout Asia they generally prefer to buy yachts from more established western shipyards. The ‘Designer Label’ is as important for yacht buyers as it is for buyers of cars, watches or handbags.”&nbsp;<img src="https://photo-assets.superyachttimes.com/photo/177088/image/large-42d416153cf207aa10a7e8215e7f1371.jpg" data-gid="gid://syiq/Photo/177088"><a data-gid="gid://syiq/Company/4788" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Jinlong Mega Yacht (Company)">Jinlong Mega Yacht</a> is one such shipyard that is developing quickly. The yacht builder is owned by the conglomerate that recently acquired <a data-gid="gid://syiq/Company/434" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Balk Shipyard (Company)">Balk Shipyard</a>, Zhongying Int’l Holding Group Ltd. The Dutch shipyard will soon be working closely with <a data-gid="gid://syiq/Company/4788" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Jinlong Mega Yacht (Company)">Jinlong Mega Yachts</a>, as the Chinese shipyard rolls out its expansion plans. Daan Balk confirmed this when the initial announcement was made, stating that his team will support the training activities at <a data-gid="gid://syiq/Company/4788" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Jinlong Mega Yacht (Company)">Jinlong Mega Yacht</a>.European or American-built yachts are more than just a status symbol for many though. Quality is one thing, but &nbsp;“there also isn’t the same level of aftercare with Chinese-built boats,” Rayment said. So while these yachts might be cheaper, they still come with a price: a lower guarantee that clients know and expect from superyacht manufacturers. This may not be the case for long though; it seems we’re at a pivotal turning point.&nbsp;The forthcoming developments at <a data-gid="gid://syiq/Company/4788" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Jinlong Mega Yacht (Company)">Jinlong Mega Yachts</a>, for one, but also with headway being made at <a data-gid="gid://syiq/Company/2561" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Heysea Yachts (Company)">Heysea Yachts</a>. “<a data-gid="gid://syiq/Company/2561" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Heysea Yachts (Company)">Heysea</a> was established in 2007 and is currently the leading shipbuilder in mainland China,” Godfrey Zwygart, Managing Director at Marevisio Co. Limited, said. &nbsp;“They have a whole range of boats up to 43 metres, and their quality has been improving considerably in recent years – they are a serious competitor to western shipyards.” <img src="https://photo-assets.superyachttimes.com/photo/100071/image/large-0bf6bfc76339c8dfc6a3125a232f0ff0.jpg" data-gid="gid://syiq/Photo/100071"><img src="https://photo-assets.superyachttimes.com/photo/95551/image/large-7b41d18fc1e4817669080c0f3bf96c0b.jpg" data-gid="gid://syiq/Photo/95551">The other big player in China is <a data-gid="gid://syiq/Company/3780" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Pride Mega Yachts (Company)">Pride Mega Yachts</a>, located in the Yantai Shandong province. <a data-gid="gid://syiq/Company/3780" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Pride Mega Yachts (Company)">Pride</a> is the yard that handled the construction of one of the largest Chinese-built superyachts: the 88.5-metre motor yacht <a data-gid="gid://syiq/Yacht/5634" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Illusion Plus88.5m (290'4&quot;)Pride Mega Yachts2018">Illusion Plus</a>. Currently all three shipyards are predominantly geared for export, they all have scope to expand their facilities if local demand grows – which it could.“China is completely closed off from Hong Kong at the moment, but this could change as Hong Kong is now part of the Greater Bay Area,” Reyment said. “The yachting infrastructure is waiting to happen in China – it’s just not there yet. Hong Kong is a great role model in that respect.”<img src="https://photo-assets.superyachttimes.com/photo/95547/image/large-36050a0922739ff2d4925c9f3755d27e.jpg" data-gid="gid://syiq/Photo/95547">“Hong Kong has been doing well with superyacht sales these last few years and has had a fair bit of success with the 40-45-metre category,” Joe Yuen, Chief Representative, Hong Kong and Macao at <a data-gid="gid://syiq/Company/159" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Burgess (Company)">Burgess</a>, told SYT. “It’s been a slightly different story in the mainland and the market for imported superyachts is a lot slower. There is a demand for locally built superyachts, production boats and smaller yachts in the region, but not for those imported.”Yuen continued, “A lot of local owners want superyachts, but because of local restrictions there is a reduced appetite for larger pleasure vessels. We see a lot of smaller Chinese-built yachts going out fishing and day cruising around Southern China, but larger yachts aren’t a common sight.”Tax and flagging regulations are two issues. While there may be much lower tax imposed if an owner wants to fly a Chinese flag, it comes with restrictions. “Local yachts with a Chinese flag have limited access to domestic waters and need to apply for special permits to go abroad, so boats willing to sail globally would have to be registered as commercial,” Zwygart explained. <img src="https://photo-assets.superyachttimes.com/photo/208973/image/large-f6e2669d736b89cd112f3eb0d442eaed.jpeg" data-gid="gid://syiq/Photo/208973"><img src="https://photo-assets.superyachttimes.com/photo/208974/image/large-b4a17d98ee52c159c2a131cb2bb91edd.jpeg" data-gid="gid://syiq/Photo/208974">This explains the strong focus on export. It also provided an opportunity for other Asian shipyards to tap into the market. South Korean builder <a data-gid="gid://syiq/Company/2478" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="GHI Yachts (Company)">GHI Super Yachts</a> "Phoenix Model Yachts", for one, supplies superyachts to its Chinese clients with an availability of flags and without an export tax. The largest yacht currently in-build at its facilities is the 39.6-metre motor yacht Legacy 135.Amidst heavy restrictions, there’s a lot of potentials. The market is maturing but the infrastructure needs developing and legislation needs lifting. There's also an issue with limited berthing available. Nonetheless, Roger Liang reports a growing number of “yachts on Hainan Island,” while this is positive the numbers “will take time to catch up” with the numbers of other affluent countries. If legislation is passed, there could be an upsurge – but, really, it’s difficult to tell.&nbsp;

yacht building in China

With a growing appetite for superyachts in China and Hong Kong, can we expect to see an increased activity in shipbuilding? 

Will there be an upsurge of yacht building in China? 

The relationship between China and superyachts is curious – but it might not be for long. Per capita the country has the second-highest concentration of billionaires, trailing closely behind the United States and far outpacing anywhere else in the world. If we include Hong Kong and Macau into the mix, then there are a recorded 698 members of the highest wealth percentile that call the nation their home. Wealth’s not just concentrated at this top strata either, as ten percent of the world’s millionaires also reside in China – the country has the second-largest economy in the world. <img src="https://photo-assets.superyachttimes.com/photo/196283/image/large-09d0302703270e4566d1a98eb6d35790.jpg" data-gid="gid://syiq/Photo/196283">It’s also a yachting paradise with thousands of islands to explore, miles of sandy beaches, plenty of thriving cities and diverse fauna and flora. There has been a growing enthusiasm for yachting, especially since the turn of the century, and some heady predictions were made with some expecting the number of local yacht owners to exceed six figures. &nbsp;<img src="https://photo-assets.superyachttimes.com/photo/223288/image/large-52b7982c19caf48ab60d407de6c35dc2.jpg" data-gid="gid://syiq/Photo/223288">An ambitious estimate when we consider that just ten years ago there were only 3,000 Chinese-owned yachts of all sizes, so expecting an increase of 97,000 was a tad optimistic. This is not to downplay the steep curve that has taken place, far from it. Since the turn of the century, Yachting was growing in popularity in China and new clubs were springing up all over the coastline– Qingdao International Yacht Club and Silver Channel Sailing Club, to name just two – while the more well-established clubs saw their memberships swelling.<img src="https://photo-assets.superyachttimes.com/photo/7654/image/large-5d1a7e848d557a90ce52519625ff54a1.jpg" data-gid="gid://syiq/Photo/7654">There were also a number of sporting events, regattas and conventions opening their doors for the first time, the China Cup International Regatta, held in Shenzhen being a point in case as it was the first-ever international big sailing event to be held in China, which kicked-off in 2007 and has been held annually ever since.“When I first arrived here, around 30 years ago, the sailing scene was mostly expat, say 70 percent expat to 30 percent Chinese sailing,” &nbsp;Suzy Rayment, Executive Director of the <a data-gid="gid://syiq/Company/5448" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Asia Pacific Superyachts (Company)">Asia-Pacific Superyacht Association</a> (<a data-gid="gid://syiq/Company/5448" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Asia Pacific Superyachts (Company)">APSA</a>), told <a data-gid="gid://syiq/Company/4509" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="SuperYacht Times (Company)">SYT</a>. “Now the ratios have flipped and it's 70 percent Chinese with 30 percent expat sailing, and we see a lot of locals from Shenzhen come to Hong Kong to sail for the weekend. That was until 2019 when the borders were closed in response to the Covid-19 outbreak.” &nbsp;<img src="https://photo-assets.superyachttimes.com/photo/223265/image/large-4848ae8870b99c70c045040830a7ee7e.jpg" data-gid="gid://syiq/Photo/223265">While yachting has continued to grow in popularity in Hong Kong and southern China, interest in superyachts hasn’t been as strong. Momentum for larger pleasure vessels got hindered – politically that is. Bloomberg wrote a damning report back in 2019, painting quite the macabre portrait of the superyacht sector in China. Not without reason either as Xi Jinping, General Secretary of the Communist Party, was waging a war against opulence, building stigma against showcasing wealth and slapped on some heavy-weight taxes on luxury commodities to hit back financially too. Owning a superyacht is arguably the most ostentatious plaything and they’re not easy to conceal. At the time, Gordon Hui, former head of <a data-gid="gid://syiq/Company/354" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sunseeker (Company)">Sunseeker</a> Asia, reported to Bloomberg that “since the early 2000s he’s shuttered three dealerships in China and hasn’t sold a yacht for use in China since 2015.” <img src="https://photo-assets.superyachttimes.com/photo/223263/image/large-2e3a730b9142016f120cbb0315c49faf.jpg" data-gid="gid://syiq/Photo/223263">A gulf emerged between the growing interest of yachting and the uprate in ownership in China post-2012; however, ironically, at the time of Bloomberg’s publication things began changing in China and with the Chinese yacht market as the pandemic reignited the desire for superyachts. With lockdown measures and border closures, people all over the world were looking at ways to enjoy their time with their families safely and away from the crowds – China was no different.<img src="https://photo-assets.superyachttimes.com/photo/223284/image/large-b29cdf81152c43d545bac54e8fabbe01.jpg" data-gid="gid://syiq/Photo/223284">A major thorn in yachting’s side though is that &nbsp;“the country hasn’t developed a proper maritime infrastructure, making it can be a logistical nightmare to cruise,” Rayment said. But the story is different for Hong Kong. As of the 8th December 2016, the Hong Kong Marine Department finally relaxed the rules for visiting yachts and their crew, as a result of lobbying from the <a data-gid="gid://syiq/Company/5448" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Asia Pacific Superyachts (Company)">Asia-Pacific Superyacht Association</a> (<a data-gid="gid://syiq/Company/5448" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Asia Pacific Superyachts (Company)">APSA</a>), which was spearheaded by Colin Dawson, chairman of <a data-gid="gid://syiq/Company/5448" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Asia Pacific Superyachts (Company)">APSA</a>. The yachting ecosystem is certainly blooming and Hong Kong is acting as a stronghold, a steady footing to invigorate interest in maritime leisure. Being a special administrative region, Hong Kong is excluded from the heavy levies imposed on luxury goods and it benefits from having deeper relationships with the European and US counterparts of the yachting industry.&nbsp;Adding more might to the region is the fact that it’s a gorgeous area to cruise with more than 250 islands to explore. “During the pandemic with restricted mobility, yacht owners were exploring their native waters and reminded how nice Hong Kong actually is for yachting,” Rayment said.<img src="https://photo-assets.superyachttimes.com/photo/223262/image/large-9192ca84470260c8a07a6d21a7bdcc41.jpg" data-gid="gid://syiq/Photo/223262"><img src="https://photo-assets.superyachttimes.com/photo/223264/image/large-acd5f1bcff54e4e9cb70798e724468bb.jpg" data-gid="gid://syiq/Photo/223264">Mike Simpson, Founder &amp; CEO of <a data-gid="gid://syiq/Company/1011" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Simpson Marine (Company)">Simpson Marine</a>, also saw this, “Asian and Asia-based expatriates, all wanting to enjoy local cruising grounds as regular travelling patterns are restricted due to the Pandemic. Yachting has come to be seen as a safe haven and a way to escape from the harsh realities of life ashore in these challenging times.” Eric Noyel, Founder of Asia Marine &amp; Managing Director of <a data-gid="gid://syiq/Company/158" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Fraser (Company)">Fraser</a> Asia, saw this trend reflected in sales. “Hong Kong has been crazy for the last two years. 500 new boats arrived – mostly Italian and American – and were sold in the city. There have been record sales across the board for yacht brokers in Hong Kong. I’d say that we’ve had the equivalent of 20 years worth of sales in the last two years.” <img src="https://photo-assets.superyachttimes.com/photo/223259/image/large-c9a4f99477a98a4622b45c254bcaf805.jpg" data-gid="gid://syiq/Photo/223259"><img src="https://photo-assets.superyachttimes.com/photo/223258/image/large-f1007bb7fa2ccad3179e0022df5b4c9c.jpg" data-gid="gid://syiq/Photo/223258">The Hong Kong Boating Industry Association estimates that there are close to 10,000 registered leisure marine vessels (the majority of which will be vessels under 24 metres) and, according to a yacht market study published by Global Industry Analysts, by 2026 China is expected to have a yacht market that sings to the tune of $1.2 billion. Some major players have pledged to bolster their presence in Asia as they look to capitalise on this growth. Massimo Perotti, CEO of <a data-gid="gid://syiq/Company/374" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Sanlorenzo (Company)">Sanlorenzo</a>, for one, said in a recent press conference that he expects Asia to be a much larger market in the near future.&nbsp;China has a way to go though to support this. But it seems as though the cultural stigma is dissipating. Hong Kong has definitely played a role in this as the local taste for yachting has continued to grow over the years, and has just gone through a period of acceleration. There is a big hindrance for the region, mind: an underdeveloped yachting infrastructure.<img src="https://photo-assets.superyachttimes.com/photo/223282/image/large-d2a5d27b62198f3154697a10936844bf.jpg" data-gid="gid://syiq/Photo/223282">“We need more marinas, repair and refit yards, and better local crew training but we also need regional governments to understand the potential of this amazing industry and to provide their support in facilitating cross-border cruising with friendly tax, immigration, and operating regulations for superyachts,” Simpson wrote in the <a data-gid="gid://syiq/Company/5448" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Asia Pacific Superyachts (Company)">APSA</a> Guide 2021.The Chinese yacht market has potential and could be a major industry in the coming years and is definitely a region to watch, but it does need work. While the Global Industry Analysts’ prediction of $1.2 billion certainly causes for celebration – it’s still just half of the current US yacht market, albeit a more mature market, but with a similar demographic of billionaires. If the Global Industry Analysts are correct with their predictions, then the Chinese market will be around €10 million less than Germany in 2026. This is not to dismiss the growing market as there is scope for acceleration. &nbsp;“Not all Chinese millionaires and billionaires are going to buy a yacht, but they're getting more and more exposure. Even if they’re not buying a yacht, their friends might be.”

How Hong Kong could ignite a yachting boom in China 

The relationship between China and superyachts is curious – but it might not be for long.  SYT takes a look at the growing yachting market. 