Build slots for large yachts are reserved years in advance
Richard Simm and Nic Arnold at PwC’s private client luxury asset advisory team also say that fear of newspaper and social media coverage is driving wealthy clients to advisers.
What’s the hottest topic at the Monaco Yacht show?
Clients have always been keen to offset the costs of running their yachts when possible. This has led some clients, who only use a yacht for a few weeks of the year to set-up yachts as commercial charter operations. However, with commercial operation comes restrictions and this doesn’t suit everyone. The growing complexity of administering charter yachts has meant we have seen clients want to operate their yachts purely privately. But this doesn’t stop clients wanting to have paying charter guests on-board. Various solutions are being hotly debated during the show and no doubt this will be a key theme going into the 2017 Mediterranean yacht season.
How much do your clients spend on superyachts?
We have had clients who’ve bought yachts for £1m all the way up to £100m. However, the area of the market that gets the most attention is the top-end, with build slots for the largest yachts being reserved years in advance.
What trends do you see in the yachting industry?
The biggest trend we have seen is a move by yacht owners towards obtaining professional advice that considers the impact having a superyacht in their life will have and building a strong team who understand their needs. Hitting the front pages of newspapers and social media when things go wrong, like getting impounded by tax officials or becoming subject to litigation, is highlighting the importance of getting paperwork right first time.