In Greece, people often say “the great sea power” partly because of the eternal dominance of the Greek merchant fleet, and it seems that the Aegean is opening up a new field of glory for the economy. We’re talking about the continuously booming global maritime tourism, namely yacht charters, where our country has become the ultimate powerhouse. To illustrate, our country is breaking records in this sector, especially regarding luxury vessels, maintaining its global lead in yacht charters. The data shows that, just like in 2022, in 2023, in the sector of luxury leisure boats larger than 20 meters, charters exceeded 14,000, almost evenly distributed per year (7,200 in 2022 and 7,100 in 2023).
The President of the Union of Greek Tourism Boat Owners, Antonis Stelliatos, claimed since last year that “2023 will be a record-breaking year” as occupancy reached 100%, explaining that the year would mark a new era for our country’s tourism data with the development of yachting with sailboats and catamarans in Greece. And indeed it did.
Numbers always tell the truth: therefore, the truth about the rapid growth of the yachting sector in Greece is demonstrated by the data from yachtfolio.com, processed by the Riginos company with extensive experience in the yachting industry. According to these, 2022 was a record year for luxury yacht rentals larger than 20 meters, surpassing 7,200 rentals both in Greece and throughout the Mediterranean, while in 2023 the market moved at the same high levels, reaching 7,100 rentals. As the company emphatically notes, these performances bring Greece to the top position worldwide in this sector, with a share of 26%. The good news continues, as it appears not to be just a naval flare but the establishment of a powerhouse in the yachting sector – particularly regarding large luxury vessels.
After COVID-19
Based on the data from yachtfolio and Riginos, the numbers show a significant increase in the last two years compared to previous years. Specifically, in 2020, rentals in Greece and the Mediterranean reached 2,350, while in 2021, there was a significant increase, reaching 5,800. Moreover, on a global scale, Greece ranks first in preferences for yacht charters, with a share of 26%, followed by France and Italy, each with 17%. This has its explanation. According to market factors, the pandemic and lockdowns acted as triggers for the explosive growth of yachting in our country.
Due to the social distancing brought by COVID-19, amidst the pandemic, a large number of (mostly high-income) tourists preferred, instead of staying in a hotel room, to rent a leisure boat (mostly crewed) and spend their holidays on the Greek islands. Privacy, but mainly the flexibility provided by renting a boat, which allows one the freedom to vacation on many islands and beyond, constantly enjoying the beauty of the Greek sea, without sacrificing the luxury one would enjoy in a hotel, constitutes one of the main advantages of the industry that is increasingly preferred. All this growth brings new vessels to the market. With the movement revitalizing in the past two seasons, increased demand also boosted sales, resulting in the introduction of new boats to the market.
These intensified competition, which worked in favor of the clients, and have led to a decrease in the average charter fees for a boat. According to the aforementioned sources, in 2023, there were more than 2,100 boats for rent worldwide, compared to 1,950 in 2022, 1,800 in 2021, 1,700 in 2020, and 1,600 in 2019.
Of these boats, around 400 operate in Greece, with lengths up to 95 meters. Our country ranks third in the number of vessels in the Mediterranean, with Italy leading with 450 vessels and France following with 430 vessels. In Greece, boats built in the last decade, from 2013 onwards, account for 27.5% of the total number of vessels, a lower percentage compared to France, which stands at 46%, Croatia at 43%, and Italy at 42%. The most significant markets for Greece in 2023, according to the yachting company, were Germany, France, Spain, and Australia, while most clients mainly came from the United States and the United Kingdom. The fact that our country has 6,000 islands and the longest coastline in the entire Mediterranean is another significant factor attracting foreign visitors.
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Duty-free fuel
Commenting on the research results, the charter consultant of Riginos, Konstantinos Angelopoulos, states: “Greece remains at the top of charterers’ preferences in the entire Mediterranean in 2023, with a share reaching 31%, an increased percentage by 2% from 2022, followed by France with a share of 20% and Italy with a share ranging from 19%. It is worth noting that both France and Italy have a larger and newer number of vessels for rent compared to Greece, however, a significant advantage of our country over other Mediterranean countries is the existence of low VAT on charters as well as the duty-free fuel we have.”
Fuel is another detail taken into account by those who charter boats, as it is one of the most significant expenses to be budgeted for yacht vacations. Due to the increase observed in fuel prices in recent years, customers both from Greece and around the world have turned to renting boats with lower fuel consumption, including catamarans and sailboats.
For the current year, the same sources comment that boat bookings are currently moving at a slow pace, partly due to the ongoing conflict situation in the Middle East, which affects consumers in the long-term planning of their summer vacations.
What does the industry offer to the country besides advertising and increased flow of high-income tourists? According to the most recent law on yachting passed last year in the Parliament, for every charter agreement entered into by Greek vessels, revenue goes to the Tax Authority, the Independent Authority for Public Revenue, the Port Authority, and the Ministry of Shipping. The professional boat sector contributes 1.42% of the GDP to the Greek economy, while in 2022, 30 million euros were allocated to the National Tourism Organization and 10 million euros to the National Social Security Fund (EFKA). It should be noted that EFKA includes crews for vessels under 24 meters that do not require registration.
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Third in mega yachts
The category of mega yachts (vessels over 24 meters in length) targets high-income individuals. According to data from the research firm diaNEOsis, a mega yacht with a length of 40-60 meters entails expenses of almost €100,000 per week, including the charter fee (about half), vessel provisions, crew costs, and passenger expenses. This is a subset of the market that is growing rapidly – there are now 8,538 mega yachts worldwide, of which 350 are located in Greece.
Greece maintains its tradition of superpower in mega yachts, as evidenced by the fact that it boasts one of the largest fleets of very large pleasure craft (over 40 meters in length) in the world. According to a relevant study, out of nearly 4,795 such vessels worldwide, 407 belong to US citizens, who own the most, followed by Russians (168) and Greeks in third place (107). Most of these vessels, since they are not used all year round, or are not the sole vessels in their owners’ fleets, are often leased to specialized companies which offer them for charter for specific months each year.
