Is the new superyacht industry poised to boost Singapore’s economy?

As more and more Superyacht owners discover Singapore as a luxurious gateway to the most glorious cruising waters in the world, the potential for the local economy to benefit from the development of a stronger yachting infrastructure and more waterside developments is exciting.

Luxury yachts of 25 metres and above are now considered to be as important a status symbol as a private jet or a supercar. At the same time, the yachting lifestyle is appealing and highly conducive to business entertaining and high level networking.

The potential for the Superyacht industry to thrive in Asia, and for Singapore to position itself as the regional industry hub, is now well documented and widely accepted.

Singapore has the densest population of millionaire households in the world, according to the Boston Consulting Group; making it extremely attractive to yachting industry professionals who want to expand their businesses in this fast-emerging market, given the emphatic slow-down in Europe and the USA.

With one in every 6 households owning more than US$1 million in assets, Singapore is quickly establishing itself as the centre of the increasingly popular yachting playgrounds in the region. But even more important is Singapore’s ability to attract the ultra-wealthy from China and around the region.

Singapore’s geographical location provides a gateway and primary stop-over for yachts heading into South East Asia from Europe, and is one of the safest and most practical places in the world for them to visit. There are four world-class marinas that can accommodate superyachts here, providing top-notch marine services – berthing, refit, repair, refuelling and victualing facilities.

The yachting industry in Singapore is currently estimated to be worth S$45 million, but the potential for growth is vast. The key to this will be the government’s appetite for facilitating the development of the necessary infrastructure. 

The upsurge in the level of personal wealth in Asia – now forecast to reach fifteen trillion dollars by 2015, according to Bank Julius Baer’s “Asia Wealth Report” - could have an even bigger local economic impact by attracting the global yachting industry and other cruising destinations across the region - Indonesia, Thailand, Malaysia, Burma, Vietnam, and even China.

Analysts are excited about the potential for growth as the superyacht industry is poised to take off in Asia Pacific. US economist Jonathan Galaviz, who follows Asia’s luxury sector, estimates the value of Asia’s superyacht industry at $5 billion including boat purchases, maintenance, refit and repair, and crew.

Against this backdrop, we’re hoping to see private and public enterprise waking up to the huge potential and getting ready to provide the right kind of infrastructure for yachts coming to cruise and charter in the region. There has been a significant increase in the number of marina developments across the region, but more superyacht berths, as well as bigger and better refit and repair facilities, will be needed.

There are events like the Singapore Yacht Show which provides an ideal platform for the industry to meet a new, ultra-wealthy audience, and focuses global attention on the potential for growth in Asia.

Another is the Asia Pacific Superyacht Conference, scheduled to take place just before the show from 25th – 27th April. It is supported by the local, regional and global industry, all of whom are keen to learn best practice, understand new trends and glean local information from each other, with discussions on the most important current topics led by key industry insiders.

Andy Treadwell, Managing Director, Informa Yacht Group