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China / News

Sailing into the future China-style

By Xie Yu in Shanghai (China Daily) Updated: 2014-01-09 09:58

Sailing into the future China-style

Becker said on the other hand, in coming years a certain range of yachts made in China will certainly be exported back to Europe, North America and other countries based on a more competitive cost structure for these highly labor-intensive products. While brands may retain the same overall market share, their manufacturing origin might not, he added.

There's certainly ample room for growth. Figures cited by State media show there are about 1,300 private yachts in China. This compares with 17 million privately owned recreational boats in the United States, the world's biggest yacht market, according to industry publication International Boating Industry.

Although the economic growth of China, the world's second-largest economy, is slightly slowing down, rich people here are getting richer.

In 2013, the net assets of the top 100 richest people in China soared 44 percent from a year earlier to $316 billion. And the number of dollar billionaires rose to a record high of 168, making China the country with the second-highest number of billionaires in the world, following the US and ahead of Russia, according to a recent Forbes magazine report.

Meanwhile, it seems interest in ocean sailing is soaring.

"Right now there is a significant and growing demand among wealthy Asian people and, in particular, the Chinese, to properly enjoy yachting," said Olivier Besson, managing director of YPI Asia, an Asian joint venture run by Monaco superyacht firm Yachting Partners International Group. He said almost all of YPI Asia buyers come from the Chinese mainland.

According to a recent survey by Royal Caribbean Cruises Ltd, cruise trips are growing more and more popular with the Chinese. Based on a survey, 77.8 percent of interviewees were "very satisfied" about their cruise experience with Royal Caribbean Cruises. As many as 98.9 percent were "overall satisfied".

"It feels so different spending holidays on boats, whether it is on a big cruise or a private yacht, because we have only been used to onshore entertainment. It broadens Chinese people's horizons. Many people love it," said Zhang Qi, a senior vacation consultant with Shanghai Perfect Vacation.

"Yachts have a bigger market in China, compared with private jets," said Zhao.

A private jet costs about 15 million yuan ($2.47 million) for annual maintenance, while the cost for a 15- to 20-meter yacht will be around 400,000 yuan. Clearly it is more affordable to a bigger group of the new rich, Zhao explained.

Meanwhile, because of strict regulations and lengthy approval procedures in the aviation sector, the jet life still seems complicated and inconvenient in China.

Sundiro mainly builds smaller yachts from 22 to 62 meters based on the Sanlorenzo design, under the joint brand of "Sanlorenzo" and "Sundiro" or just "Sundiro".

"High-end medium-size yachts are currently small in number in the China market. But demand is huge from entrepreneurs, celebrities and other elites," Zhao said. He noted the price for a Sundiro yacht about 10 meters in length will be about 3 million yuan, cheaper than an ordinary flat in Beijing or Shanghai.

"The price makes it possible for several families to buy a yacht together and enjoy beach holidays at different periods separately, which is highly likely to prevail in China over the next few years," he added.

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