Abu Dhabi Megayacht Show – Update

One element is largely missing from the Abu Dhabi Yacht Show this year: megayachts.

Only a handful of megayachts over 30 meters made it to the 2011 Yacht Show at Yas Marina. The 2010 Abu Dhabi Yacht Show featured 34 megayachts, with the most expensive valued at $100 million USD.

“Piracy and regional unrest are both massive influences on the show this year,” said Andy Treadwell, the managing director of Informa Yacht Group, the organizer of the show, which is focused on the megayacht and superyacht sectors. “They can’t get their boats here because insurance premiums are too high.”

Yacht companies are finding it difficult to convince underwriters to insure larger yachts against piracy.

“On top of that you throw into the mix the political instability at the moment, the unrest in Bahrain and elsewhere in the region, and people are just worried,” Treadwell said.

Some yachts from abroad were in Abu Dhabi in preparation for the show, but departed in the past few weeks as the unrest spread across the region. In January, Yacht Show organizers expected 20 megayachts to attend.

“Sadly a lot of the big industry players don’t really want to attend the show if they haven’t got a boat to show off,” Treadwell said.

Palmer Johnson, a United States-based yacht manufacturer, was planning to bring a $30 million 46 meter megayacht and a $24.5 million 41 meter yacht to the show from the Mediterranean, but decided against it, citing the risk of losing the yachts to piracy as the main factor, as well as the unrest in the Gulf region.

“It was the uncertainty of what would happen,” said Russell Morris at Palmer Johnson. He said underwriters were unclear on whether insurance would even fully cover the costs if they were lost to piracy. The company still had a stand at the show.

Still, the industry is generally optimistic about the long-term potential of the UAE and the wider region to become a yachting destination. Abu Dhabi is investing heavily in its marina infrastructure as part its tourism strategy and expects to have 45 yacht marinas by 2030.

“There might be a bit of a lull at the moment, but that will change because there’s such an interest in yachting here in the Middle East,” Mr. Treadwell said.

Yachting industry insiders say other factors are holding back the growth of yachting in the region. Regulatory red tape, such as strict visa regulations and registration procedures for boats, is also deterring marine tourists from visiting, said Erwin Bamps, CEO of Gulf Craft, a manufacturer based in the UAE.

“You add still rampant piracy and do you even dare to come in?” he said. “There are challenges that remain a big issue preventing this region from being turned into a yachting destination.”

He said there was a strong market in the region for larger, more luxurious yachts.

“I see some positives too,” Bamps said. “We do see opportunity for growth. The region is boating-oriented, we have clients who have bought 4 of 5 boats from us, constantly upgrading (into larger yachts).”

Source: R. Bundhun, The National

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Megayachts For Sale in the Middle East

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