No travel, no problem.
For the country’s richest who are opting not to travel abroad just yet because of complicated requirements and long mandatory quarantine periods in some countries, the luxurious world of yachting has become the next best alternative.
Some have been buying boats to escape the pandemic – basking in the sun while at sea, enjoying champagne with friends or simply savoring the sea breeze on one’s face.
Indeed, thanks to the country’s richest, yacht sales in the Philippines have doubled in the first half of this year alone, sustaining a spike since last year and which could translate to an even bigger yacht boom in 2022.
A young tycoon told me that there’s really so much money available – at least in the world of the rich – because people aren’t able to travel, shop or dine out as much as they used to; thus, there’s a lot of unspent money.
The tycoon was among the first to go yachting last year at the height of the travel restrictions, hosting a small gathering of friends in a sleek white catamaran.
Why buy a yacht?
I talked to Martyn Willes, a British national based in Manila who brings yacht sellers and buyers together. He said that one foreign yacht company alone saw its sales to the Philippines double from January to June this year.
“Being on a yacht is a lot of fun. It’s a lot better than being stuck in traffic, and if you don’t like the scenery, you can just move and find a better view,” Willes said.
Pre-COVID-19, overall sales of brand new yachts to buyers in the Philippines hovered around 20 to 30 yachts a year. This has gone up to around 40 to 50 yachts last year.
Buying a yacht isn’t cheap which is why it is only for the affluent. Brand new boats can cost from P10 million to P15 million; higher for the bigger and more opulent ones. The costs of operating, docking, and maintaining a yacht can also be very expensive.
As the old joke goes, the two best days in boat owners’ lives are the day they buy a boat and the day they sell it.
But perhaps there are also many delightful days in between, especially now.
Europa Yachts, which sells to the Philippines yachts from Europe, said on its website that investing in yachts in the time of COVID-19 is a wise move.
It said owning a yacht makes it easier to schedule leisure activities compared to regular vacation preparations. “If you have a boat, it’ll be much easier for you to plan a fun yet safe vacation whenever you please.”
You also have complete control of who rides with you and it provides a break from routine, it said in its Captain’s blog.
“You always have the option to bask in the sun and swim to your heart’s content, and that’s not something that many people get to enjoy every day,” Europa Yachts said.
Thus, for many consumers, having the chance to indulge in leisure activities safely and conveniently is “worth more than the price of having their own yachts.”
Who are the buyers?
Buyers include the kids of the old rich Filipinos. “These are the 25- to 40-year-old rich kids who just want to sail around the country,” Willes said.
I also talked to Capt. Brian Calvert, a boat seller, who gladly took my call even if I made it clear I’m not a buyer. He said that, with strong interest in yachts and actual acquisitions going up, there could be a boom next year.
“I think next year, we’re going to see a mega boom in boat sales,” the captain said.
He added that based on his own business alone — he represents US and Chinese yacht sellers — there has been a 25 to 30 percent increase in interest in boats during the pandemic.
This is why docking areas for leisure boats are now filled to the brim.
Punta Fuego in Batangas has been full since last year, and rumors in the grapevine suggest there will be new marinas at Caylabne Bay and Maya Maya also in Batangas, soon, said Willes.
Cebu, Samal in Davao, Siaton in Negros, Puerto Princesa and Busuanga in Palawan have spaces, too for these billionaires’ toys.
The wealthy are thriving
Unfortunately, in the Philippines, this boom in yacht sales does not trickle down to the local economy as much as it does in other countries because the yachts are manufactured abroad and built by foreign workers.
One thing is clear – today may be the new Gilded Age for the world’s billionaires and they are thriving now more than ever, a clear embodiment of the widening gap between the fortunes of the world’s super-rich and almost everyone else.
Russian billionaire Dmitry Rybolovlev, for instance, has just taken delivery of a $20 million 140-foot racing yacht, according to Bloomberg.
And then there’s the world’s richest man, Jeff Bezos, who also acquired a super yacht, estimated to cost upwards of $500 million, according to The Business Times.
Once complete, Bezos’ yacht will have its own support yacht and even a helipad, “an indication of the enormity of a fortune that has accrued even faster as the world has been upended by a devastating pandemic.”
Article and Photo originally posted by Philippine Star last July 5, 2021 12:00am and written by Iris Gonzales.
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