Turkey

Mono Yachting

Over the past decade, Turkey has emerged as an increasingly attractive location for 30-metres plus superyacht refits among owners worldwide. This surge in popularity can be attributed to a number of things, such as the cost-effectiveness of its refit works, facilitated by historically lower labour costs and favourable foreign currency exchange rates.Furthermore, the appeal of Turkey is heightened by the saturation of many European refit yards each season, coupled with ongoing developments in Turkey’s marina infrastructure and the growing allure of its coastline as a travel destination.According to <a href="https://sytiq.superyachttimes.com/" rel="noopener noreferrer" target="_blank" title="">SYT iQ</a>, there was a significant upswing in the number of 30-metres-plus yachts undergoing refits from 2017 to 2021, from 18 superyachts undergoing refits in 2017 to an impressive 78 in 2021.<img src="https://photo-assets.superyachttimes.com/photo/309766/image/large-3e0c00de0f58ad553ced3fd724d25575.jpg" data-gid="gid://syiq/Photo/309766">Burak Nergiz from <a data-gid="gid://syiq/Company/2580" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="KRM Yacht Refit & Repair (Company)">KRM</a> explained that the significant transformation observed in the Turkish refit sector over the past decade can be attributed to the development of refit infrastructure and a strategic shift in refit approach, enabling an increased capacity for yachts. Nergiz notes that “before 2010, many refit yards were part of shipyard manufacturers, and there was no dedicated company solely focused on refits until the establishment of <a data-gid="gid://syiq/Company/2580" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="KRM Yacht Refit & Repair (Company)">KRM</a>.” Moreover, in 2018, as evidence of the growing demand for refits, <a data-gid="gid://syiq/Company/2580" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="KRM Yacht Refit & Repair (Company)">KRM</a> expanded its capabilities by acquiring a 300-ton travel lift, thereby enhancing the capacity for refitting yachts up to 45-metres in size.<img src="https://photo-assets.superyachttimes.com/photo/290001/image/large-4b7e41140270bcdfb299e428802d1bd3.jpg" data-gid="gid://syiq/Photo/290001">Despite the growth up to 2021, the years 2022 and 2023, witnessed a reduction in refit activities within the Turkish superyacht market. Nevertheless, Turkey appears to have retained its substantial global market presence, constituting approximately 5% of the total number of vessels undergoing refit operations compared to 13% in France and 14% in Spain.The decrease in the number of yachts frequenting Turkey for refit can be attributed to a combination of reasons. These range from the deterioration of financial conditions in Turkey to a considerable increase in the number of superyachts undergoing refits in previous years, along with a rise in new-build projects that has resulted in a lack of space for new refit projects.<img src="https://photo-assets.superyachttimes.com/photo/289999/image/large-49c974f4ef421f68ce3035431b7181d5.jpg" data-gid="gid://syiq/Photo/289999">According to the Associated Press, the Turkish economy is grappling with a currency crisis and soaring inflation, significantly affecting labour wages and the prices of raw materials. Ersun Sengun founder of <a data-gid="gid://syiq/Company/7431" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Mono Yachting (Company)">Mono Yachting</a>, a full yacht services agency based in Bodrum, has undertaken numerous projects over the years and is currently working on the refit of the 49-metre <a data-gid="gid://syiq/Company/18" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Amels (Company)">Amels</a> superyacht <a data-gid="gid://syiq/Yacht/2339" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="MMM49.0m (160'9&quot;)Amels1993">MMM</a>. He confirms the economic impact on the yacht sector, affirming: “due to inflation, the minimum salary for workers has increased unbelievably from 2,500 to 11,500 Lira in three years, and now we are expecting to see it rise to approximately 17,500 Lira this year, representing a substantial 600% increase from the initial 2,500 Lira.” This is noteworthy, as the cost of refitting a yacht 30-metres plus in Turkey has now become comparable to that in France, Italy, and Spain. Ersun highlights this shift by recounting a conversation with a superyacht captain who informed him, “the cost of the refit is now almost the same as Palma.” But despite the increase in price, the “captain was still adamant about carrying out the refit in Turkey due to our craftsmanship and attention to detail”. Ersun further emphasised that in Palma, “where many yachts are stacked on top of each other, there is a lack of focus and attention to detail, unlike the work carried out in Turkey.”<img src="https://photo-assets.superyachttimes.com/photo/289998/image/large-ee8dc32e950f13db1d1bf4a5f7ee566f.jpg" data-gid="gid://syiq/Photo/289998">Regarding the impact of inflation on the sector, Bogdan Gusarev, Sales Director at <a data-gid="gid://syiq/Company/4385" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Bering Yachts (Company)">Bering Yachts</a>, notes, "Turkey has a different approach to inflation compared to people in Europe. While sudden inflation spikes of 10 percent may cause panic elsewhere, Turkey, being more accustomed to inflation has adapted to this economic reality and found effective coping mechanisms. This isn't a new challenge for them, having dealt with ongoing issues even before the impact of Covid. Consequently, this trend is likely to persist. I believe Europe is currently grappling with more severe challenges in terms of pricing and a shortage of skilled labour.”Aside from the economic impact on the Turkish refit market, another factor contributing to the decline in the number of refit projects is the upsurge in new-build yachts, leading to a shortage of available space for refit endeavours. Berkay Yilmaz, Commercial Director at <a data-gid="gid://syiq/Company/1414" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Bilgin Yachts (Company)">Bilgin Yachts</a> commented: “While we acknowledge the growing demand for new-builds, it's important to highlight that <a data-gid="gid://syiq/Company/1414" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Bilgin Yachts (Company)">Bilgin Yachts</a> is currently dedicated to the maintenance and refit of our existing projects, which encompasses both new builds and refit assignments. At present, we are unable to accept external refit projects”.<img src="https://photo-assets.superyachttimes.com/photo/289997/image/large-ce2eb361eb72d5bfe3360e04f2dec97c.jpg" data-gid="gid://syiq/Photo/289997">Moreover, Aleksandra Podlipna, Megayacht Technical Manager of <a data-gid="gid://syiq/Company/5160" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="West Istanbul Marina (Company)">West Istanbul Marina</a>, who is working on the refit project of a 67-metre <a data-gid="gid://syiq/Company/29" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Feadship (Company)">Feadship</a>, further confirms this stating that: “<a data-gid="gid://syiq/Company/1414" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Bilgin Yachts (Company)">Bilgin</a> expanded the size of their vessels. Previously, they constructed yachts ranging from 35 to 50 metres, but now they are working on yachts as large as 80-metres. As a result, their facilities are occupied with new building projects. Moreover, this trend is also evident with <a data-gid="gid://syiq/Company/224" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Turquoise Yachts (Company)">Turquoise</a>, as they have also increased the size of their in-build yachts. This heightened demand has created constraints on both manpower and facility space for other refit projects”.An analysis of <a href="https://sytiq.superyachttimes.com/" rel="noopener noreferrer" target="_blank" title="">SYT iQ</a>'s data on the number of new yacht sales further substantiates Ersun’s and Podlipna’s observations, revealing a notable increase in new-build projects within the region. In 2023 there were 21 new yacht sales and 30 in 2022, a substantial rise from 16 in 2020.Furthermore, Bogdan provided insight, stating, ”I can confirm that major projects are currently underway in Turkey, not merely in the conceptual phase but in the construction stage. These projects surpass the 30-metre range. Specifically, I'm monitoring numerous developments within the Antalya Free Zone, where multiple projects of 40-metres plus are actively under construction.”<img src="https://photo-assets.superyachttimes.com/photo/289995/image/large-f81ff82958c786d1d9aff2945420fd38.jpg" data-gid="gid://syiq/Photo/289995">Oguz Bilgin, sales manager at TransDiesel, a company that distributes John Deere Power Systems in Turkey, highlighted an interesting development, where many commercial shipyards are transitioning into the superyacht sector, particularly in the refit aspect. He highlighted that Tersan Shipyard has opened a superyacht refit division called <a data-gid="gid://syiq/Company/7461" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Tersan Marine (Company)">Tersan Marine</a>, with a large refit area in development covering a total of 200,000 square-metres in Oren, Turkey. After a brief conversation with Fatih Çelik, the Refit and Boatyard Manager Of <a data-gid="gid://syiq/Company/7461" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Tersan Marine (Company)">Tersan Marine</a> confirmed this development and affirmed that <a data-gid="gid://syiq/Company/7461" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Tersan Marine (Company)">Tersan Marine</a>’s facilities in Oren aims to make standard maintenance and refit works for superyachts. Whilst the work is still in progress, the facility recently unveiled an 820-ton travel lift and can accommodate superyachts up to 65-metres in the drydock area. The establishment of this facility, in cooperation with the Turkish government has created a refit ecosystem, attracting various nautical supply chain companies to the area.Regarding the future impact on the Turkish refit market and the Turkish superyacht sector as a whole, Bogdan highlighted that there are challenges with many skilled labourers moving to Europe or other destinations due to uncertainties. However, he acknowledges that this is a temporary period. “It is now imperative for companies to provide incentives to retain qualified personnel''. Despite economic deterioration and focus on large new-build projects, there are further positive signs of the Turkish refit market as seen with the development of refit infrastructure capable of carrying out multiple refit projects simultaneously. <img src="https://photo-assets.superyachttimes.com/photo/309769/image/large-3d5cf723171be50b03110798133585d8.jpeg" data-gid="gid://syiq/Photo/309769">This article is featured in&nbsp;Issue 48 of the SuperYacht Times&nbsp;newspaper.&nbsp;<a href="https://shop.superyachttimes.com/report/the-superyacht-times-subscription" target="_blank">Subscribe now</a>&nbsp;to receive your copy straight to your door and never miss another issue.&nbsp;

Turkey's rising yacht refit market

Turkey has long been fighting for its position as a refit destination, but has the time now come for the region? Enrico Chhibber finds out more. 