Casting Off With Yacht Tourism

The growing popularity of tourism-by-yacht offers an immense opportunity for tourism in the Caribbean. But enticing visitors on a yacht to make port in a particular destination is more complicated than simply offering a dock and cocktail upon arrival, especially with the number of competing ports and attractions on offer within the region and beyond. The work required to make a nation enticing to yachting tourists isn’t as complex as the calculations required for arrival by plane or cruise ship, but consideration must be given to the broader economic and environmental factors that form the full picture of this growing industry, alongside the benefits it can bring. 

Clear Sailing in the Caribbean

For many nearby major markets, the Caribbean is the perfect destination for yacht tourism. Islands within the region are at a sufficient distance from Mexico, the US and Canada to make any journey a real adventure, while also providing the assurance that help is never far away in the event of a mishap. What’s more, the opportunity to pursue inter-regional sailing and go island-hopping ensures that any sailor has an abundance of local ports from which to choose. 

The growth of yacht tourism has not only delivered a cash injection to the Caribbean but, at times, has been a saving grace. Following the savagery of Hurricanes Irma and Maria in 2017, estimates that up to 90 per cent of the British Virgin Islands’ charter fleet of yachts was damaged were made more harrowing by the prediction that up to 60 per cent of them would be write-offs. But the staging of the BVI Spring Regatta and Sailing Festival thereafter saw over 70 yachts and their crew take to the waters, some journeying from as far away as the UK and France. This event did not undo all the damage of the hurricanes, but it helped keep businesses in operation, confirm that the Caribbean remains an iconic destination for tourism, and that it was once more ‘open for business’.

Certainty Surrounding the Offer

Alongside the global citizen set, yacht tourism appeals to adventurers. Travellers who arrive with more modest budgets and more humble vessels (think sailboats with a tall mast instead of glamorous yachts with a jacuzzi on deck) bring immense enthusiasm just the same. Then there’s also the ‘once in a lifetime’ market – those who may charter a boat for US$ 10,000 a week from a hub like Yachtico in Boca Raton, Florida, that has 5,000 yachts in its inventory, and set sail for a Caribbean island.

In targeting this market, a nation like Saint Lucia could increasingly appeal to the same audience that is enticed by the country’s abundant water sports activities and its hiking. But consistency from one year to the next will be critical. This is something the nation has had some challenges with over the past decade. In 2011 yachting restrictions were eased, but in 2014 tightened again. Certainly Saint Lucia isn’t alone in this space.  

There’s also the issue of docking fees. Although the Caribbean can generally offer a more attractive price than ports outside the region, with early 2017 reportedly seeing the Hemingway Marina in Havana charge around US$ 1.60 per foot of boat compared to US$ 7.50 per foot in Miami, once a yacht is in the region there’s no shortage of ports from which to choose. 

A key part of a nation’s challenge in leveraging its tourism assets is deciding what else it wishes to offer (or not offer) alongside yacht tourism. For example, the Isle of Man has generated substantial media attention for its tax concessions offered to HNWIs who import private jets into Europe for lease. In recent years it has allowed owners of such jets to receive 100% VAT refunds, and the scheme has proved lucrative, seeing over US$ 100mn claimed back in 2018. Yet there has been criticism by the EU, with legal experts flagging such an arrangement as being open to legal challenge.

For any Caribbean nation envisioning a ‘package deal’ that provides mooring for a yacht in complement to easy banking and even a CIP offering, the Isle of Man is a case study for better or worse in what unfolds when luxury transport and favourable local taxation arrangements are combined.

The Law of the Seas

Although the growth of yacht tourism has some real promise for the region’s tourism economy, it needs to be considered alongside the environmental impacts of increased traffic. For Caribbean nations this is a particularly critical issue given the threat of climate change, and its potential to diminish the tourism industry in the years ahead.

One of the greatest challenges in this sphere is the pursuit of a uniform policy. In other regions of the world, like Europe, or in major nations like the United States, there’s an easier avenue for the development of a region-wide framework (allowing for the fact that continental US adjoins both the Atlantic and Pacific Oceans) that encourages a consistent approach to environmental regulation and conservation. Even if some critics would say the EU and US are not yet doing all they should, the mechanism exists for such a policy to be pursued. The path to a uniform policy on yacht tourism regulations and sustainable sailing is far more complex in a Caribbean region with nearly 30 nations. 

Small Investment for Strong Returns

For Caribbean nations to continue growing yacht tourism offerings, it must be recognised that it’s not only the beauty of the waterways or the attractions onshore that entice sailors, but the ease of mooring and resources available for refuelling and repair. Recent years have seen numerous Mediterranean nations engage in infrastructure upgrades to service their growing yacht tourism industry. Although any maritime infrastructure build is never a small undertaking, the advantage of upgrades for yacht tourism – over developing more substantial facilities such as cruise ship amenities – is they can be smaller in scale, and more rapidly created. Christophe Harbour in St Kitts is an example of this opportunity turned into action, with the launch of six new berths in October 2018, created in response to growing demand, and thereafter offered for sale for US$ 6.25mn-7mn.

For Caribbean communities and nations without the inclination or finance to upgrade cruise amenities, upgrading yacht facilities offers a way to make a small investment that taps into a growing market that should continue to grow substantially. Star Businessweek will be watching with interest to see which regional ports are next to get underway with such works.