on 30 May 2022
The show is set to capitalise on growing demand for the domestic Thai boating market, and new rules around foreign-flagged charter vessels
The organisers of the Thailand Yacht Show have issued further updates ahead of the sixth edition of the show, which is set to kick off from June 9-12, 2022, at Pattaya’s Ocean Marina. The show this year takes place in two stages, with the second half scheduled for Phuket in December — dates to be confirmed.
At a press conference held last week, Verventia CEO Andy Treadwell revealed the show has partnered with AXA Thailand General Insurance as the ‘main strategic partner’.
“The domestic Thai boating market is poised for tremendous growth at all levels – from superyacht charter to day trips to sailing lessons; we have listened to our long-term repeat exhibitors and partners, all of whom are excited at this opportunity to address the Bangkok market on its doorstep,” says Treadwell.
Despite a limited global supply of production yachts due to increased boat-buying in the Covid era, Verventia promises a “strong lineup of yachts from most global brands.”
Due to the pandemic, the Thailand Yacht Show has been cancelled for the previous two years. “We are really looking forward to this year’s Thailand show coming back to life finally,” says Treadwell, “and are honoured to have such a prestigious organisation as AXA Thailand General Insurance become our main strategic partner – I believe we will be working together for our mutual benefit for many years to come.”
Claude Seigne, CEO of AXA Thailand General Insurance, says: “We are delighted to partner with Verventia as the Official Insurer of the Thailand Yacht Show 2022. Being part of this prestigious event is naturally a source of pride for all of us at AXA Thailand. The TYS is the perfect platform to promote our insurance products and to expand our business network among visitors and yachting industry professionals.
“By this partnership, we expect to bring more visibility on the full suite of our insurance products that extend to private art, yachts, villas and luxury lifestyle. It gives us also the possibility to reinforce our commitment to be a partner to our customers as well as the brand image of quality associated to our insurance products and services.”
In February last year, Thailand changed its rules to allow foreign-flagged superyachts to charter legally in Thailand. Instead of being required to pay VAT on the yacht’s value, superyachts will now pay tax only on their charter earnings.
Verventia confirms the first charter license under the new regulations has been issued on behalf of a foreign-flagged superyacht that will spend the whole of next winter in Thailand.
Verventia also reports it has been working with the Saudi Arabia government for the past nine months, helping them with their own project to bring yacht tourism to their fast-developing Red Sea cruising grounds. Verventia describes this as ‘a highly strategic consultancy,’ since most yachts making the journey East to Asia for the winter would come down the Red Sea.
Thailand historically welcomes less than 1 per cent of the global superyacht fleet every year, but is now in a position to tackle this luxury travel segment, which has emerged post-pandemic as the travel industry’s fastest-growing sector.
“Future global superyacht market growth is going to come from Asia – and especially from the north-east Asia countries neighbouring Pattaya and the Gulf of Thailand. An imaginative marketing campaign, with the right financial backing, can turn that 1 per cent around, with the potential to attract over 200 superyachts by 2026, injecting at least US$1 million per yacht (in overheads, charter tax revenue and associated local costs) per year directly into the local economy. And that is just the beginning. If yachts can be persuaded to stay for the whole season, each one will spend on average US$ 5 million – not counting the spending of their charter guests, who themselves are of necessity some of the wealthiest people in the world,” says Treadwell.
The global superyacht fleet (defined as yachts over 30m) currently comprises approximately 5,600 yachts, with the segment of larger 70-90 metre yachts seeing the highest growth rates. The pandemic has deepened economic inequality across the globe and help’s the world’s richest become even richer, while 99 per cent of humanity are worse off as a result, according to figures from the World Economic Forum.
The global yacht charter market was valued at US$10.91 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 25.6 percent from 2020 to 2028.