Great potential in SE Asia charter market

South-East Asia’s scenic cruising grounds and clear blue waters that are perfect for yachting and all the attendant watersports remain relatively undiscovered, according to industry experts at the inaugural Singapore Yacht Show which was held recently. While superyacht owners remain reluctant to abandon the traditional cruising hot-spots in the Mediterranean and Caribbean, these areas have nevertheless become crowded and over-commercialised in places.

South-East Asia, with its rich, diverse cultures, tropical weather, miles of pristine nature, exceptional coastlines and extensive marine eco-system, makes for an ideal destination for charters. For busy professionals with high disposable incomes, chartering a superyacht is one of the best ways to spend time with family and friends, without interruptions and distractions.

“These people are extremely busy and always on the go – they are the original jet-setters. Chartering a superyacht allows them to have one week of undivided attention for their family, a priceless time for family bonding that they value and cherish,” said Jean-Jacques Lavigne, General Manager, ONE15 Luxury Yachting.

Currently, the majority of the week-long charter market is still confined to European visitors and affluent Russian travellers who fly in from around the world, then transfer onto a superyacht to begin their cruising adventure.

The current challenge for the superyacht charter market is to attract, inspire and entice affluent Asians to take plunge and go on a more extended luxury cruise.

“Chartering a yacht enables a family to discover new places and adventures together, enjoy water sports like snorkeling, diving and jet-skiing. Busy professional couples can relax and enjoy time with the family, while the on-board private chef cooks the meals,” explained Mr. Lavigne.

The South-East Asian charter market, like the region’s wealth, is growing and has room to expand further. For Eric Kraus, owner of El Aleph, a traditionally-built Phinisi which is participating at the Singapore Yacht Show, the wondrous nature and cruising grounds around countries like Indonesia, Malaysia and Singapore make ideal getaways.

“My favourite at the moment is Raja Ampat in West Papua. It is located in the far eastern part of Indonesia. It is the most unbelievable place I’ve ever seen. It has incredible diving, very clear waters great for snorkeling, there is no commercial fishing so it is rich in marine life. There are also beautiful mangroves and forests where you can go hiking and meet the Dayaks, the native inhabitants, and spot birds of paradise,” said Mr. Kraus. “The potential is unlimited. Cruising in South-East Asia is the perfect getaway for people who want to experience something new.”

South-East Asia’s charter market is estimated to be worth around US$10 million - US$15 million at the present juncture, with Singapore accounting for about a third of the market. These figures are expected to grow exponentially – up to five-fold – in the next 5 years. 

“Most superyacht owners start with sailing on small motor boats, then move on to chartering large yachts for family holidays, before taking the plunge and investing in a second-hand yacht that will eventually be traded up,” said Andy Treadwell, Managing Director of Informa Yacht Group, organiser of the Singapore Yacht Show.