Eastern Mediterranean Yachting & Cyprus In Focus.

Following a recent extremely positive and progressive visit to Cyprus and subsequent trips to the Greek Islands, Turkey and Croatia. I thought I’d share insights into the 2021 yachting market and explain why many yacht owners & charters have been choosing Eastern Mediterranean locations over the more traditional yachting hotspots.

Superyacht sales surge in 2021

According to the luxury lifestyle publisher,?Boat International, wealthy people have spent more than ￡1bn on superyachts in 2021 as seeking to escape Covid lockdowns and travel restrictions. Statistics show in fact that 2021 is set to go down in history as the biggest year ever for superyacht sales, in particular second-hand sales.

In this regard, data recorded from?Superyacht Times?states that a record 381 pre-owned 24m+ yachts have been sold since January – this value is twice as much as the one representing the sales during the first 6 months of 2020 and it is even superior to the value of 2019 sales, where 261 yachts were sold. With regards to the new yacht market, boats are now selling in unprecedented numbers, with over 100 new 30m+ yachts sold so far in 2021.

This upward trend is going to stay steadily up during all 2021 as a strong international activity and a solid client demand for both pre-owned and new yachts will keep characterising the upcoming months too.

From the traditional yachting hotspots…

Along with a notable rise of sales, it is interesting to note the changes in usage and geographic focuses that have been happening for some time within in the industry and what that will mean for key regions like the Eastern Mediterranean and in particular islands like Cyprus.?

New research released by?Bloomberg?suggests that traditional yachting hotspots such as Spain and France are falling out of favour with the wealthy. According to their findings, Spain has welcomed 26 fewer yachts during this summer compared to last year, while France has welcomed 16 fewer – the total being 84 and 155 respectively.?

What has certainly impacted these figures is COVID related issues, but also the fact that vessel owners have a growing frustration with France and Spain due to the complex and changeable TAX & VAT regulations - and indeed confusion around how they apply them – not to mention the ever-increasing costs associated to chartering in these historically attractive yachting hubs.?

In addition, the recent “seagrass meadows” related restrictions on the anchoring and mooring of vessels on large sections of the French Mediterranean coast in order to safeguard the marine fauna and sea life have been further discouraging yachts from stopping in certain Western Mediterranean areas. According to these latest restrictions, vessels over 24m (or 20m in some cases) are now prohibited from anchoring, mooring or otherwise stopping within protected areas and those who ignore warnings or otherwise break the rules can now expect significant penalties, including a temporary or permanent ban on sailing in French territorial waters, up to one year’s imprisonment and a up to 150,000 EURO fines.?

… to the rise of Eastern Mediterranean

All the above conditions have certainly been putting extra pressure on vessels and making them set sail for alternative European destinations – in particular, Eastern Mediterranean ones – which offer less restrictive areas to enjoy the yacht-life. Latest statistics show that the number of vessels in Croatia, Turkey and Greece is at a three-year high; Croatia is up 25 from 2019, Turkey is up by 12 and Greece is up by 10 – totals so far are 64, 63 and 145 respectively.

The rise of the Eastern Mediterranean is not a new phenomenon, but it is certainly more in focus than ever before. Croatia, Montenegro, Greek Islands, Cyprus and Turkey are all now on the radar – along with beautiful scenarios and modern infrastructures for yachts, they also offer the perfect gateway to the Suez Canal and key locations in Egypt, Lebanon, Saudi Arabia and other stunning locations in the Indian Ocean.

Between the many gems of the Eastern Mediterranean, many yacht owners have been choosing the vibrant island of Cyprus,?the third largest island in the Mediterranean, as their new European yachting hub.

Cyprus in Focus

With more than 340 sunny days per year and a blissfully subtropical climate, Cyprus offers excellent year-round cruising with plentiful diversions on land and sea.

Not only is Cyprus one of the safest and most interesting yachting destinations in Europe but is also an abundantly easy destination to get to whether travelling from Europe, Middle East or Asia as sitting at the crossroads of three continents. As a?Middle East gateway, Cyprus is a core destination for Russian and Middle Eastern yacht owners, with Lebanon in particular using it as a home base for their yacht activity.

The Republic of Cyprus has a longstanding history of being an epicentre for sailing and maritime trading. Currently, the Cyprus Registry is the 3rd largest fleet in the European Union and the 11th largest merchant fleet worldwide, accounting for more than 1,000 vessels and 21 million gross tons. The city of Limassol holds the place for the largest third-party ship management centre in the EU and the Cyprus flag manages roughly 20 percent of the world’s third-party ship management fleet.

Recognising?the significance of marine business activities, the local Government has been attracting entrepreneurs and new business on the island by investing in advanced infrastructure and offering the right legal and fiscal ecosystem for those choosing Cyprus for yacht registration purposes.?

Cyprus in fact invested in and developed some of the most luxurious new marinas in Europe;?from the superyacht marina in Limassol, managed by?Campers & Nicholson, which has berths for 650 yachts and superyachts up to 110 metres, to Cyprus’s new state of the art marina in?Ayia Napa?which can accommodate yachts up to 85m and can offer dry stack storage, repair facilities, VIP Beach Club, high-end shops, crew facilities and a host of restaurants and bars.?

In addition to that, registering a yacht in Cyprus offers many advantages for the operation or management of vessels registered under a Cypriot structure/flag, for example no tax on the operational or management profits on Cyprus-registered ships, no tax on income or dividends received from a ship management company, no estate duty imposed on inheritance, no income tax imposed on the wages of the officers or crews, low tonnage tax based on gross tonnage and no stamp duties for ship mortgage deeds or security documentation.?Besides that, the country has a network of local inspectors for yachts with far-reaching services in significant ports all over the globe.

Moreover,?there are currently significant refit projects happening and Cyprus has a highly educated and skilled labour force, so the refit yard is well-known for?their work in vessel operations and maintenance in both the commercial and leisure industry, and fully qualified to undertake extensive marine repairs and maintenance.

Thank you for taking the time to read my thoughts, please don’t hesitate to contact me for further insights or advice.?