France

Poralu Marine

In the opening presentation of the Asia-Pacific Superyacht Summit, Ralph Dazert, Head of Intelligence at <a href="https://www.superyachttimes.com/" rel="noopener noreferrer" target="_blank" title="">SuperYacht Times</a>, succinctly highlighted the increase in both the number and size of superyachts visiting the Asia-Pacific. In 2022, 372 unique yachts were either based in or visiting the region. This number increased to 445 in 2023, marking a 20% growth. Moreover, in the first four months of 2024 alone, 405 individual yachts were recorded, about 70 more than the same period in 2023. This suggests that the strong performance of 2023 will be surpassed in 2024, potentially exceeding 500 yachts by the year's end. On average, over 400 yachts per year over 30-metres have been counted in the Asia-Pacific region from 2022 to 2024. This is depicted in the graph below.<img src="https://photo-assets.superyachttimes.com/photo/317611/image/large-c54983b3591b8979a0e327f9eca7d254.jpeg" data-gid="gid://syiq/Photo/317611">Regarding the increase in size of superyachts frequenting the region, <a href="http://superyachttimes.com" rel="noopener noreferrer" target="_blank" title="">SuperYacht Times</a> <a href="https://www.superyachttimes.com/market-reports/asia-pacific-superyacht-market-report-2024" rel="noopener noreferrer" target="_blank" title="">Asia-Pacific Superyacht Market Report</a> highlights that superyachts in the Asia-Pacific region tend to be slightly larger than the global average. Specifically, 57% of the regional fleet measures between 30 and 40 metres, compared to 63% globally. Notably, over 12% of the Asia-Pacific fleet exceeds 60 metres in length, whereas only 9% of the global fleet surpasses this size. Thus, it appears that yachts travelling in the region are slightly larger on average than those found elsewhere in the world.<img src="https://photo-assets.superyachttimes.com/photo/317607/image/large-4cf1befe28d87e68ee1053b7bfae4d0e.jpg" data-gid="gid://syiq/Photo/317607">However, a major challenge for the industry in the region is the lack of sufficient marina infrastructure to accommodate these larger and growing numbers of superyachts. This issue is problematic, as it is a major deterrent for superyachts visiting the region in the long term. Additionally owners and crews may be dissatisfied with the current state of marina infrastructure services in the region and choose not to return.Will marine development keep up with growing demand?Jonathan Sit, Regional General Manager of <a data-gid="gid://syiq/Company/2015" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="One °15 Marina (Company)">ONE°15 Marina</a> Sentosa Cove in Singapore, shared his insights and explained that he had recently returned from Australia, where he attended a boat show at Sanctuary Cove. “The consensus there was clear: the current infrastructure is insufficient. For instance, Brisbane is set to host the Olympics in 2032, and they anticipate 200 superyachts moving into the region for the event. However, the team there mentioned that there are probably only 70 berths available to accommodate these vessels.”<img src="https://photo-assets.superyachttimes.com/photo/307337/image/large-7fe12dbfee95d11bc1cec02853e20691.jpg" data-gid="gid://syiq/Photo/307337">Sit further explained that as high-profile individuals and others with brand-new yachts plan to journey to Australia, the scramble to build additional berths has begun. In Singapore, which lies on this route, Sit recounted that he and his colleague James Roy are considering how to monetise this influx. However, according to Sit: &nbsp;“The reality is that simply there isn't enough space to host these vessels, as the marina is already at full capacity, and we cannot build fast enough to meet the rising demand.”Ekrem Reyhancioglu, the Director Asia Pacific at <a data-gid="gid://syiq/Company/7745" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Poralu Marine (Company)">Poralu Marine</a>, a company that specialises in Marina construction and consultancy, concurred with Sit's analysis, noting that the construction of marinas typically requires a minimum of 18 months to two years, sometimes longer if part of a larger development. He further highlighted the long-term perspective necessary in marina design, stating, “From an engineering and manufacturing standpoint, we aim for a design life of at least 50 years. Considering how drastically the market can change, as we saw with COVID-19, it's crucial to build marinas that are flexible and can adapt over time.” Ekrem emphasised the importance of having modular and adaptable marinas to effectively respond to market dynamics, both in terms of size and the varying demands of the industry. Public and governmental stigma impeding marina development:As the conversation progressed, Sit elaborated on how public and governmental stigma towards superyachts is hampering marina development in Singapore. He described his interactions with government agencies, highlighting that they would often ask “How can we justify supporting the luxury marina industry when it is perceived to only benefit the elite?” Sit then emphasised that yachting should not be viewed solely as a luxury for the wealthy. “It's about more than just recreation for the elite; it’s also about the broader economic benefits, including job creation, that it can bring to society,” he explained.<img src="https://photo-assets.superyachttimes.com/photo/314129/image/large-513479290f5dbcba736f9e55ba6a85c7.jpg" data-gid="gid://syiq/Photo/314129">This sentiment was further reinforced by Ekrem, who elucidated on the broader impact that marinas can have on the development and future value of the surrounding land. He noted that residential areas with a marina can see an increased value of roughly 20 to 30%. According to Ekrem, this is one of the many benefits that a marina can bring to waterfront development. Marinas attract investments and restaurants and they create jobs. Ekrem emphasised the importance of promoting this industry among local governments and echoed Sit's viewpoint on ensuring that government institutions don't perceive marinas merely as parking lots for yachts, but as sources of value creation for society as a whole, not just for a privileged few.<img src="https://photo-assets.superyachttimes.com/photo/314130/image/large-56ec98ac10b701c87041f51a9cd71131.jpg" data-gid="gid://syiq/Photo/314130">Cassy Wong, Founder of the Kaohsiung International Marinas &amp; Yachts Development Association, a group lobbying the Taiwanese government for improved marina infrastructure for superyachts, highlighted how negative attitudes within the government impact the industry. She explained that even before Covid-19, bringing &nbsp;superyachts to Taiwan was challenging due to the lack of support from government officials. Moreover, Wong recounted instances where potential visitors expressed a strong desire to visit Taiwan. She emphasised that despite Taiwan's hospitality and attractive destinations, the government's refusal to accommodate yachts has discouraged many from visiting.The origin of stigma in marina development:Jonathan noted that in Asia stigma often arises during the development of marinas. In the master planning and business model stages, real estate developers frequently aim to maximise revenue. Sit mentioned that he has received proposals suggesting exclusive membership models with excessively high fees, which could cover costs but ultimately create highly exclusive marinas. These proposals typically include membership prices set at millions of dollars, similar to private clubs in places like Hong Kong. For Jonathan, such exclusivity presents significant monetary barriers, making access difficult for younger or less privileged individuals. Consequently, government officials, who usually focus on the broader population, view these exclusive developments and business models as unhelpful and contribute to the perception of marinas as elitist, thereby reinforcing the stigma.<img src="https://photo-assets.superyachttimes.com/photo/317613/image/large-7159b4f527f63fa6748e11f56658b46b.jpg" data-gid="gid://syiq/Photo/317613"> Will the Asia-Pacific Region see ambitious marina projects like those in the Gulf Region?In other regions around the world, particularly in the Middle East, there are ambitious projects like Neom in Saudi Arabia and various marina developments in Dubai. The panel was asked whether similar developments would soon be seen in Asia. Jonathan responded first, stating that the marina development project in Saudi Arabia is unique due to the unrivalled capital at their disposal. "We have had discussions with local development teams. They are trying to build 15-20 marinas simultaneously. Who has built so many marinas in one go?”Jonathan then underscored that replicating such a large-scale project in Asia would be challenging. "It’s unlikely to happen here at that speed and scale, simply because we need to navigate cross-border regulations and different governments with varying plans and private enterprises with different agendas.” &nbsp;Jonathan then asserted that whilst there definitely would be more marina developments in the Asia-Pacific region, replicating the speed and scale seen in the Gulf region would be challenging.Ekrem affirmed Jonathan's viewpoint and emphasised the importance of comparing like with like. He pointed out that Neom in Saudi Arabia is a single destination with plans for numerous marinas by 2050. In contrast, Asia comprises multiple countries with vast potential. For example, Indonesia and the Philippines alone have around 17,000 and 8,000 islands respectively. Moreover, Ekrem perceived the potential for marina development growth as much greater in Asia, with many countries like Malaysia offering beautiful natural attractions. He added, “At the end of the day, recreational yachting is about visiting beautiful destinations, not just one location with many marinas. So, I fully agree that it will not develop as fast, but in the long term, I think we'll have more marinas here in global Asia, than in the Middle East.”<img src="https://photo-assets.superyachttimes.com/photo/314538/image/large-2e83ae924426291afa4ebb72e59c8cfd.jpg" data-gid="gid://syiq/Photo/314538">Envisioning marina developments in Asia-Pacific region:As for where the panellists envision the most marina developments happening in Asia, Cassy suggested Taiwan. She explained that there are many abandoned fishing facilities in the country. However, she acknowledged that the local government has been resistant to change. “We have the skills for refit and construction, and many of the fishermen's docks are now empty. So, I see a huge possibility for development in Taiwan, but the government needs to be more open to this development for it to progress further.”Ekrem shared this viewpoint, highlighting that <a data-gid="gid://syiq/Company/7745" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Poralu Marine (Company)">Poralu Marine</a> has two marinas and one more under development in Taiwan. He further pointed out that Taiwan is an example of a country where the government has been implementing incentives and regulations to promote marina development. By converting fishermen's harbours into marinas, they are helping to drive the market forward.Moreover, from a more global perspective, Ekrem reiterated the great potential he perceives in Indonesia and the surrounding areas. He referenced that Indonesia, with its 17,000 islands, has fewer marinas than Hong Kong, highlighting the immense growth opportunities. Ekrem also mentioned the Philippines and Malaysia, maintaining that this region, known as the "Coral triangle," holds the highest potential for boating activities. For Ekrem, “The area presents beautiful landscapes, rich natural beauty, and diverse local cultures, which will attract people and yachts from all over the world. The only missing element today is sufficient marina infrastructure.”<img src="https://photo-assets.superyachttimes.com/photo/317614/image/large-05d5ee49aed9d62bcc5075318dedf1e6.jpg" data-gid="gid://syiq/Photo/317614">The main priorities for marine infrastructure in Asia over the next five years:Regarding the future priorities to address structural issues impeding marina development in the region, the panellists emphasised the complexity due to the diverse regulations, maturity levels, cultures, and approaches to boating across over 20 countries. Ekrem identified regulation as the primary challenge and stressed the need to communicate effectively with governments. He reiterated his point that building marinas should be viewed as ecosystems with significant social and economic benefits, contributing to waterfront development and community living spaces.” Once governments understand this, it will be easier to obtain licences, permits, and supportive regulations to promote and push this industry forward.” commented Ekrem. <img src="https://photo-assets.superyachttimes.com/photo/317612/image/large-11d55d5fb3003970c5a088cf2d629b5b.jpg" data-gid="gid://syiq/Photo/317612">Jonathan posited that the industry needs to make it easy for governments to understand their activities. He noted that governmental perspectives often differ from those within the industry, leading to misalignment between their goals and governmental perceptions. "In Singapore, for example, the Singapore Hotel Association monitors occupancy rates, helping to determine how many hotels and rooms are needed," he explained. "This kind of structure is missing in the marina sector," Jonathan continued. "Although there are many associations, none actively aggregate data to effectively pitch ideas to governments," he concluded. <a href="https://www.superyachttimes.com/event" rel="noopener noreferrer" target="_blank" title="">To find out more about SuperYacht Times’ conferences and events, head to our events page.</a>

Will marina development in the Asia-Pacific region meet the growing demand for superyachts?

a major challenge for the industry in the 