Superyachts: long-range outlook fine

With turnover of NZ$2.3 billion, the marine industry is the largest specialised manufacturing sector in New Zealand, and a string of golden years propelled superyachts into one of the highest earning segments.

Of the 900 superyachts on order around the world last year, 18 were being made in New Zealand. It doesn’t sound like a lot, and Marine Industry Association (MIA) Executive Director Peter Busfield says it can be higher when New Zealand has better infrastructure for superyacht construction and servicing.

But it still represents significant earnings - New Zealand excels at the top end of the industry, crafting multi-million dollar yachts for passionate sailors. New Zealand also excels at refitting them - and that’s one sector that’s thriving despite the downturn.

More than 630 visiting yachts arrived in New Zealand over the last 12 months, some for a stopover and routine maintenance, but others wanting to complete a major refit, taking advantage of New Zealand’s reputation for high standards of workmanship.

Refits flourishing

Refit specialist Integrated Marine Group, for example, has had back-to-back, large refit project work for the past two and a half years and is currently completing a refit of the 56 metre, Italian built superyacht S.Y Zenji.

Managing Director Mark Wightman says New Zealand’s reputation for refit work is outstanding. “It’s a combination of things – good prices, the quality of work is excellent and location is also an advantage. Auckland is almost unique in having refit facilities right in the middle of the city so crews can easily go out at night and take advantage of everything a big city has to offer.”

Refit work is one part of the marine industry expected to grow steadily. New Zealand companies already manage NZ$150 million of business a year and MIA forecasts predict that could reach NZ$412 million by the end of 2010.

There are around 7,000 superyachts in the world, most built in the last 10 years. All of them will need maintenance both for their look and longevity and to meet insurance requirements.

But other factors are also driving growth, says Wightman.

While many prospective superyacht owners are reluctant to be seen spending up large on a new boat during hard economic times, they can substantially improve their vessels with a refit without it being obvious to the untrained eye.

A desire to keep under the radar is also persuading many owners to head down under to the South Pacific Ocean this year, says Wightman.

“It’s a way of having an extra summer and keeping out of the limelight. Auckland is becoming a logical destination for many more boats as a result.”