Feature: Monaco, Yachting Capital?

The port of Monaco brings together the most prestigious yachts in the world, a quarter of which are said to be on the list of the 100 largest private boats, a symbol that the Principality, with nearly 300 companies in the sector, an iconic Yacht Club designed by Lord Norman Foster and the organisation of the Monaco Yacht Show, has become a flagship of yachting.

Yachting is a gold mine for the whole of the South of France.  According to a recent study on the economic impact of the sector, carried out by Earthcase, yachting represents more than €1 billion and 10,000 jobs in the PACA Region.  "The technical ecosystem generates €438 million for 3,600 jobs and the tourism ecosystem represents €663 million and 6,600 jobs," details the study and it's as simple as this: "The Mediterranean welcomes around 50% of the world fleet each year," (which has increased sixfold in 35 years), ie half the 6,000 yachts of over 24 metres in the world, which belong to people 12% of whom are from the European Union, 20% from North America, 20% from Eastern Europe, 20% from the Far East and 10% from Asia and Australasia.

The sector is obviously also a heavyweight in the Monégasque economy, if we are to believe the latest study, which dates from 2017.  With the help of Monaco's statistics agency, IMSEE, Cluster Yachting Monaco estimated an annual turnover of €750 million and a workforce of 1,500.  This competitiveness cluster aims to bring together all the professionals of the Monégasque market and suggest reforms, with the ambition of making Monaco the world capital of luxury yachting.  "With more than 300 companies operating in the yachting sector, the Principality is the world number three, after the United States and France, in the brokerage and management of yachts," according to the cluster, which has set ambitious objectives for 2025: in excess of €1 billion in turnover in Monaco, 1,800 jobs on land and €100 million in VAT receipts*.  "Monaco brings together yacht owners but also all professionals in the sector, from brokers to builders.  More and more international groups are settling here,” observes Natalia Langsdale, Cluster Yachting Monaco Project Manager.  To get into yachting, the luxury real estate agency, John Taylor, has also chosen a Monaco-based office.

Deepwater Port
Historically, yachting in Monaco is a centuries-old tradition that started with the first regattas in 1862, followed by motorboat meetings, where the main manufacturers came to test their new engines.  After the dark days of the World Wars, the creation of the Yacht Club (YCM) in 1953 by Rainier III revived both nautical events and the development of the maritime industry and the port of Monaco, which is home to the largest yachts in the world.  Carlo Riva, famous for his legendary mahogany boats symbolising La Dolce Vita and the glamour of the Riviera, created the first dry port here, as well as floating mooring pontoons – which should come as no surprise, since the Port Hercule is one of the few deepwater ports on the Côte d'Azur.  Its semi-floating breakwater can accommodate cruise ships and yachts of significant size and tonnage.  With 800 berths, for 30 years it has been home to the largest gathering of superyachts in the world, the Monaco Yacht Show; but the infrastructure has been a victim of its own success.  The land extension at sea to the west of the Principality in the 1970s did make it possible to construct the port of Fontvieille (300 berths) but it was still necessary to further increase the Principality's berth capacity.  This is why the Société d’Exploitation des Ports de Monaco, which provides technical and commercial management for the ports, bought and renovated the port of Ventimiglia, Cala del Forte, an investment of around €100 million.

Many Challenges
After a record year in 2021, the sector is surfing on the buoyancy of the market.  “The number of yachts under construction has increased by 7% in 2023 and there are currently 648 yachts of over 30 metres under construction.  Shipyards have full order books and some have already sold yachts for delivery in 2028.  New yacht sales fell 29% in 2022 compared to 2021; but 2022 was still the second best year (after 2021) in the last 10 years, with 221 new yacht sales,” said Merjn de Waard, Founder of SuperYacht Times and a member of the board of the Superyacht Life Foundation.  Some sales are dizzying: a Greek family has just bought from Italian groups, TISG and IYC, not one but three new 70-metre superyachts!

The fact remains that the uncertain international context, a cocktail of recession, soaring prices for materials and energy, high interest rates, social inequalities and global warming, can only make players in the sector think...For specialists and market observers, the superyacht industry is facing an existential crisis.  Whether within Cluster Yachting Monaco or the annual meeting of the yachting industry, the Economic Symposium, La Belle Classe Superyachts, professionals point out mooring problems in the South of France linked to the new environmental standards of international organisations, the shortage of crew, or even the targeting of yachts by activists**…

One of the major issues is sustainability.  Five million tons of CO² come from yachts, which represents 0.3% of CO² emissions in the maritime sector.  "The ESG (Environment, Social and Governance) strategy drives commitment and action towards decarbonisation and it can help the superyacht industry meet the increasing compliance demands of banks, insurers and regulators and could become, more and more, a license to operate.  Even if the yachting industry only makes a small impact on the planet's CO² emissions, these individuals have a big responsibility, particularly in terms of image: they must be the initiators and leaders of technological progress and the habits of tomorrow, in order to raise awareness amongst the general public and make the maritime world more ecologically-friendly," declared Nicolas Mior, Manager at Jutheau Husson Yachting, during the symposium.  Monaco now wants to play a role in this revolution and become the capital of eco-responsible yachting (with the Monaco Capital of Advanced Yachting initiative).  “The sector is changing and the industry is facing transformation and becoming less polluting.  Today, we offer a platform offering solutions for the yachting of tomorrow,” underlines Bernard d’Alessandri, Secretary General of the YCM and President of Cluster Yachting Monaco.

*The Cluster is due update these statistics and projections.  As part of the Masters in Yachting at the University of Monaco, three market studies will be carried out by the end of the year, in particular on the aspirations of new generations of yacht owners.

**The Yacht CO² Tracker collective has in its sights the yachts of Bernard Arnault (one of the largest in the world, over 100 metres) Martin Bouygues and Vincent Bolloré...