Super Yachts Super Idea

(Friday 4th November 2011, No:2016/MOI) YACHTING TOURISM HAS HIGH ECONOMIC POTENTIAL IN FIJI

A policy dialogue paper prepared by the Marine Operators Sub Committee of the Fiji Hotel and Tourism Association in association with Sustainable Tourism International Ltd reveals a positive trend and high economic potential of the yachting industry for Fiji.

The presentation by John Philips of the  Yachting Tourism of Fiji highlighted a positive trend as well as the high economic potential of the industry towards Fiji’s growth. Prepared in 2010,  it is the first ever written document exclusively analyzing the yachting tourism sector in Fiji and also revealed positive trends of the yachting sector.



“Sustainable and viable tourism alternative, yachting tourism doesn’t rely on airport so if there is an airport strike our customers are still happily spending money. Yachting is largely unrecognized and misunderstood by many of the government agencies involve in its regulation but  that is now changing,” Mr Phillips said.

“We do see a need to inform all the government agencies exactly what yachting tourism is, thus the yachting industry has conducted its own survey. It is an online survey conducted on 50 yachts that visited Fiji last year.

“Many times over, we’ve witnessed the negative effects of uninformed regulatory actions on the growth of the industry that’s why formed this lobby group.

“A total of 7,436 tourists visited Fiji in the yacht tourism sector. The average length of stay in Fiji is 136 days for super yachts which is tremendous and 116 days for cruising yachts,” Mr Phillips said.

“Every single day they are in Fiji, they’re spending money. The average spend per super yachts is $122,000. Average spend per cruising yacht is $32,000.”

According to Mr Philips, one the total direct spend last year is $33 million and direct revenue to Government is $3.8 million. Super  yachts significantly cater for the ‘top-end’ market  who are willing and able to invest and spend multiple millions of dollars.

“ The yacht survey conducted at Port Denarau in 2010 suggests that super yachts, although less in number and overall passengers, have an average spend $122,143 which is more than other yachts $32,733.

“While super yachts are a relatively new market segment for Fiji, it is regarded as having significant potential. It is estimated that there are about ten thousand super yachts registered around the world with around two hundred currently under construction.”

The survey also highlighted improved tax regulation which was made possible after a ground breaking meeting by the Marine Operators Sub Committee and Fiji Revenue Customs Authority last year.

“Positive changes included the abolition of the antiquated Domestic Clearance, duties on alcohol applied only to alcohol consumed in Fiji and not the entire ship stores, no need to apply for code 239 if entered 228, streamlining process for the five per cent duty on yachts imported into Fiji and Port Denarau and Port Mariner considered Ports of Entry.”

Mr Phillips is optimistic that with Fiji’s geographical amenities and good international flight connection, the yachting tourism sector has a very high potential for future growth.

“We believe Fiji should have the biggest multi-million dollar yachting industry in the Pacific.”

Comments

Robin Irwin said…
I am currently in Bay of Islands in New Zealand researching and promoting the market here for yacht potential for Fiji. The big change in Fiji's favour is its decision to allow yachts to spend 18 months in Fiji whereas New Zealand only allows 6 months. This is already causing a shift of yachts to Fiji and given facilities in Fiji expanding this will accelerate. Although cruising yachts average a $32,000 spend per yacht with some 400 now visiting Fiji that is some $13 million. The super yachts are bigger spenders but considerably fewer in number. The drive to increase marinas and boat yard facilities will substantially improve this income stream. John Philp has done an excellent work in bringing this useful income to the attention of Government.
Robin Irwin - Savusavu Marina
Anonymous said…
Good luck Mr. Philips.

Your industry has to overcome the "envy" factor of civil servant who may very will live in a squatter settlment or has come out of a village enviroment and who now needs to overcome his natural tendancy for envy.

This will be perpetual cross and hot coals that any sailor will have to bear when dealing with customs etc.

I know of one fellow who has been waiting for months to get a determination on whether he will pay 5% or not. He was sent away to get three "local" boat builders to state they could not build his vessel in Fiji.

Ministers may make a law but the beaurocrats think and act otherwise and will subvert the intent of the law to fit their own prejudice of envy.

Soon this potential investor will quit and the news will be transmitted around the Pacific rim via short wave radio that Fiji is still full of shit.
As catologed and rated by UN,Fiji is one of the worst countries in the pacific to start a business.

Don't anybody doubt it.
Croz Walsh said…
@ Robin ... Please resend your second comment. I accidentally deleted it on my smartphone. Fingers too big for the key! Best wishes, Croz
Robin Irwin said…
@ Robin, I rescued it. Croz
Robin Irwin has left a new comment on your post "Super Yachts Super Idea":

Anonymous Nov 13 08:00 has struck a very valid point in that some Fiji buerocratic civil servants tend to interpret the regulations to suit their own prejuduces. On arriving on my yacht in Fiji in 1975 I had an unpleasant experience from the customs officers. I also heard via the yachtsmens coconut wireless that Fiji had a bad reputation regarding attitude and treatment of visiting yachts and many did not visit as a result. There is still an element of that now. Given that this form of nautical tourism is valuable with very little investment needed such as hotel rooms, etc. (they bring their own rooms with them!) a different approach is needed known as being 'customer friendly'.
Robin Irwin said…
Just be nice to our nautical yacht tourists and get them to stay double the current 113 days (they can now spend 18 months - lets take advantage of this smart move by government). That will increase the income from $13 to $26 million JUST by being nice with a yacht friendly environment and real Fiji hospitality.
Lisa said…
i think this is the best trip ever for you. Nice article you have publieshed.
Yacht Charter Dubai

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