What is the forecast outlook for the yacht charter market?, intrigues a Business Insider Africa news article.
Renting (or chartering) a sailboat or motor yacht
The practice of renting (or chartering) a sailboat or motor yacht and traveling to different coastal or island destinations for recreational or commercial purposes is referred to as yacht chartering. Companies tend to offer a limited selection of departure dates, so it’s necessary to compromise the trip length, marine vessel, or destination. Yachts that are provided on a rental basis have luxury facilities, such as professional crews (first officers, stewards, engineers, deckhands, etc.), helipads, conference rooms, beach clubs, and sports courts. Some companies that furnish yachts provide a detailed itinerary based on the client’s requirements, generally including destinations to be visited at specific times.
A sailing yacht is a yacht that is propelled by wind and sails. Since there’s no universal definition, the term mainly applies to vessels that feature a cabin with amenities accommodating overnight use. A sailing yacht uses a slight amount of fuel compared to a motor yacht. Sailing yachts have become more oversized and glamorous, while motor yachts have been adapted to specific exploration requirements.
A motor yacht is a type of boat that uses a diesel or gasoline engine for propulsion. The typical model offers two staterooms separated by the yacht’s length. Motor yachts range in size from 27 feet to 80 feet; super-yachts or mega-yachts are 140 feet or longer and opulent enough to be the epitome of luxury. As a rule, the cruising speed of a motor yacht is within the 20-knot range, and the top speed can be between 25 and 30 knots.
A catamaran yacht has a larger engine than a sailing yacht, so it can achieve higher speeds, but it requires reinforced hulls to handle the weight and power of the machine. Catamarans are becoming an increasingly popular choice among leisure and sports sailors due to essential characteristics, such as speed capabilities, versatility, comfort, and sleek style.
What Are the Types of Consumer Market Segmentation?
The yacht charter market is segmented into corporate, retail, and other consumer types. A corporate yacht charter offers a way to impress clients, increase employee morale, and implement team-building exercises. Yachts may run for a day, week, or weekend, depending on the purpose. Charter brokers can arrange experiences for wealthy people who use vessels for leisure and business. At present, anyone can afford to take possession of a larger boat for a more extended period of time, as there are yachts at different price points. Booking a skippered and crewed yacht charter ahead of time has numerous benefits, such as lower prices, better choices, and the ability to choose the date.
Looking Forward, The Market Is to Record Growth at A CAGR Of 5.5%
According to the market intelligence report published by Maximize Market Research, the yacht charter market is expected to grow at a compound annual growth rate of 8% during 2022-2029. While there’s no way to predict what will happen reliably, there are indicators of the opportunities worth exploring. The North American region is expected to dominate the landscape during the forecast period. Yacht tourism has grown exponentially in the U.S. owing to the trend of marine traveling and recreational activities carried out across the water. Although offline yacht charter bookings are appreciably higher, online portals have proven to be beneficial, allowing customers to book directly with the charter company.
The Yacht Charter Market in Africa Is Expected to Register Significant Growth in The Future
The yacht charter market in Africa is projected to grow in the long run on account of the rising participation of the masses in recreational and competitive boating activities. Some of the best yachting locations include but aren’t limited to:
- Seychelles (East Africa)
- Zanzibar (Tanzania)
- Cape Verde (West Africa)
- Kenya (East Africa)
- Mozambique (Southeast Africa)
The rising per capita income levels positively impact the progression of the yacht charter market. Numerous economies in Sub-Saharan Africa have grown in record time, particularly Ethiopia and Rwanda. As specified by the World Bank, Ethiopia is the second most densely populated nation in Africa and, most importantly, the fastest growing economy in the region, with 6.3% growth in the financial year from 2020 to 2021. On the other hand, Rwanda has sustained steady economic growth owing to the support of the International Monetary Fund and the World Bank. The financial sector remained stable, with a capital-adequacy ratio of 26.3% in 2021.
Last but not least, a part of Africa’s population is showing an increased inclination to luxury travel, which has fundamentally evolved over the years. Those with the time and resources to obtain anything they want desire experiences that are purposeful, sustainable, and memorable. Therefore, boat owners demand yacht builders be climate-friendly, leading the entire sector to develop technological solutions in accordance with international standards. Over the past years, tourism has been vital to African economies, so leisure facilities have been developed to appeal to European, American, Asian, and other foreign visitors. Nevertheless, Africa’s growing middle class and its population of young travelers could support the future growth of domestic and regional tourism on the continent.
The impact of the COVID-19 pandemic has been unequaled, with yacht charters noting increased demand across all regions. Seeing the potential of the market, many entrepreneurs have become involved in the yacht industry as a way to earn a living, building an impressive client list. The yachts chartered for leisure or corporate purposes provide a seamless experience with comfort and high standards, so it doesn’t come as a surprise that they’ve gained popularity, as they’re considered an elite way to travel.
For African countries seeking to sustain and increase the unprecedented growth rates of recent years, the potential of yacht tourism hasn’t been fully acknowledged as a source of economic and development power. At any rate, there are expectations of growth for the yacht charter market due to adoptions in chartering activities.
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Source: Africa Business Insider