The superyacht and yachting industry has long been touted as a catalyst for economic growth in coastal regions.
The Mediterranean’s waters were busier than ever last summer. With a record 1,570 yachts over 24 metres cruising in July alone – the highest volume in five years, according to BOATPro. It is safe to say the industry’s footprint is undoubtedly expanding. While impressive industry statistics like these often dominate the headlines, more important questions arise. Is the yachting industry truly benefitting the local communities it operates within? Or is it creating unsustainable burdens that outweigh the advantages?
An Economic Narrative
So, how does money filter through from the sector to the local communities? Aside from the apparent employment and revenue generated from the construction process, a vast array of businesses provide products, services, and support to the entire industry. Once in operation, superyachts distribute a considerable amount to destinations and local economies, including fuel, provisioning, suppliers, and spending ashore from crew and UHNWI guests.
The financial impact appears impressive at first glance. As reported by SYBAss, the superyacht industry generates a positive impact of €11.9 billion annually, which is before onshore spending is factored in. Adding this in inflates the numbers further; on average, yacht spending ashore is 26 times greater than the maritime sector’s average. This year, a specific study was conducted on the Italian market. The Altagamma-Deloitte study found that the yachting industry contributes €22.7 billion annually and employs 157,000 people. These numbers span the globe; while a smaller market, New Zealand Marine conducted an economic impact study this year, citing 215 million NZD (€119 million) in direct benefits from visiting yachts.
However, where these figures come from remains convoluted, and regions struggle to prove the economic impact effectively. This inability to view the market’s impact needs addressing that can be achieved through cooperation and transparency. One initiative that has begun to address this was the study carried out in 2021 by The European House – Ambrosetti. A study done on 58 businesses within the group’ For Yachting’ in Genoa, Italy, that quantified the total effect of the sector and translated it into an index: Total Equivalent Economic Impact (TEEI). The study quantified and compared various economic inputs regarding a yacht staying for one day in Genoa.
Building on our previous article about the need for transparency in yachting sustainability data, this uncertain analysis of the industry’s economic impacts also highlights a gap in needing to improve the way we quantify. Both areas require more comprehensive data collection and analysis.
The Hidden Costs
But these figures only tell part of the story. While the industry creates significant wealth—wherever the data comes from—the distribution and local impact should be examined more carefully. The reality of such ‘local’ impact requires a deeper dive, as the industry’s relationship with communities can be complex and multifaceted.
The influx of wealth into communities brings with it challenges. The industry has been known to inadvertently create economic pressures in smaller communities, where yachting represents significant economic activity. Rising costs of living and property values are some factors that can follow with increased yachting activity.
The seasonal nature of yachting, which we covered in a previous article, also adds another layer of complexity. Many destinations, especially within the Caribbean, experience dramatic fluctuations in activity throughout the year. These peaks and troughs can create unstable employment patterns and economic uncertainty, challenging communities to maintain stable year-round economies.
Environmental Pressures & Progress
The environmental considerations also present a pressing concern for local communities. Such seasonal surges in population that accompany peak yachting periods can strain infrastructure considerably. Water supplies, waste management systems, and electric grids must cope with dramatically increased demand. The marine environment itself also faces direct impacts from increased traffic and activity from yachts.
However, the industry is beginning to show signs of addressing such challenges. And minimising the pressure on communities with advanced waste management systems, sustainable technologies, and marine conservation initiatives.
Balancing Social & Cultural Considerations
When looking at impact, the social and cultural dimensions of yachting also presents some complex dynamics, and a balance between superyacht tourism and local needs must be struck. Some destinations have concerns about the potential of commercialisation diluting local traditions, yet others have successfully leveraged yacht tourism to preserve and showcase their cultural identity.
One promising example is East Timor; the government is working closely with yachting industry stakeholders to establish processes ensuring the cultural and environmental heritage is kept intact with the influx of yachts as it develops into an emerging yacht charter destination. This proactive, community-centred approach demonstrates how local stakeholders can begin to reshape the industry.
Another social element is a humanitarian one. Due to its nature, the industry’s capacity for response is advantageous, with various yachts demonstrating value and aid during natural disasters worldwide. Superyachts cruising the region can provide mobile platforms for relief efforts. The most recent example is the 70-metre Horizons III, which helped out during the most recent Caribbean hurricane, Beryl.
A Critical Crossroads
As the global superyacht fleet continues to grow and new charter destinations emerge, the industry stands at a critical crossroads. The challenge remaining is how to achieve both development and preservation. Success requires a collective effort from all stakeholders working together to create frameworks that ensure the equitable distribution of benefits while minimising negative impacts.
It is also essential to analyse the metrics of local impact. Similar to other sustainability impacts, the industry needs more data and transparency to work from. The sector should consider carrying out further impact indexes and studies, drawing inspiration from the TEEI Genoa study. These indexes for each region should track key indicators like the percentage of yacht-related revenue that stays within the community, the local vs non-local employment level and the changes in the cost of living metrics for yachting communities. Environmental measurements are equally crucial to track. Most importantly, such metrics also need to be measured year-round to understand the benefits of sustainability. These indicators could then provide a more comprehensive overview of whether a community truly benefits from the sector.
Shaping A Sustainable Future
The potential is there for the superyacht industry to become more than just tourism but a model for sustainable maritime development. It requires moving beyond simple economic metrics and embracing a holistic approach, combining environmental stewardship, social equity, and cultural preservation with financial growth.
The question isn’t whether yachting can benefit local communities but how to ensure it does so sustainably. As more destinations embrace yachting, the industry has both an opportunity and responsibility to demonstrate that economic growth need not come at the expense of local communities and environments. Therefore, the future must involve creating partnerships and data tracking that ensures the equitable distribution of benefits while minimising negative impacts.
We at SEA Yacht Group encourage input, suggestions, and ideas about progressing sustainability within the yachting industry. Please leave us a comment or reach out to us via social media.
Author: Malcolm Moss | CEO & Founder of SEA Yacht Group
