Mooring price drives away foreign yachtsmen

Stating that the nightly accommodation price of a 42-meter boat in Monaco in high season is 650 euros, Bekiroğlu said, “The nightly accommodation price of the same boat in Göcek is 1,400 euros.”

FILIZ EROL

The yachting industry has experienced an experience unlike many other industries, both in Turkey and globally, due to the impact of the pandemic. During the pandemic period, the demand for boats that offer an isolated and safe environment increased. As a result, the sector achieved a performance well above its ongoing rhythm. 2023 was a year in which the upward trend continued due to the pandemic around the world. However, in Turkey, one of the world’s important yacht tourism centers, astronomical increases in port mooring fees have left yacht and boat owners in a difficult situation. The low number of marinas in Turkey also affected the price increases.

Emphasizing that they lost foreign yachtsmen coming to Turkey as a result of the marinas being full and the prices being so high, Yacht and Boat Industry Association (YATED) Chairman Murat Bekiroğlu said, “In the past, many foreign yachtsmen used to come to Turkey. Sometimes he would live here for 6 months. There was an incredible foreign exchange inflow. He was coming by plane, using his transfer, eating at the restaurant, and having his boat serviced. So, a lot of people were spending money in offshoots of economics. We have now completely lost that amateur yachtsman, the yachtsman in Northern Europe. On the other hand, we have maintenance and repair centers that we call ‘Refit Center’. In the past, many big boats used to come here from abroad. There are very few boats coming to Refit from abroad. Because we lost our price advantage. “They are now doing business in European countries at much more affordable prices,” he said.

“Sales of boats under 15 meters have stopped”

Emphasizing that inflation and high prices are a reality that affects every sector and everyone around the world, Bekiroğlu said, “It is a priority problem as it has become uncontrollable in our country. If we look at the yacht rental sector, the exorbitant level of marina prices, which is the most basic item in the operation, increases operating costs tremendously. The biggest threat to us now is the problem of mooring boats after environmental pollution. Sales of boats under 15 meters have stopped. “People pause when they hear boat mooring prices,” he said.

Looking for ways to rent a boat in Greece

Stating that the mooring price also includes insurance, maintenance, repair and diesel costs, Bekiroğlu said, “Naturally, this creates a large budget. In other words, in addition to the budget allocated to purchase the boat, there is another budget of 15-20 percent of the annual boat cost. Many people gave up buying a boat because of these costs. Or they go to Greece and look for ways to rent a boat. “In order not to waste the great potential of our country and to prevent it from establishing a permanent hegemony in the only branch of tourism in our region where we lag behind Greece, urgent measures must be taken, especially to at least normalize marina prices, and incentives must be provided to strengthen the hand of the sector,” he said.

“A huge crisis awaits us as a sector.”

Stating that the marina mooring capacity in Turkey is currently approximately 26 thousand, Bekiroğlu said, “However, when you look at France, it is 330-350 thousand, and in Italy it is over 200 thousand. It should increase at least 2 times very quickly in Turkey. There is ‘Port Vell Marina’ in the center of Barcelona. The mooring price of a 30 meter boat for 1 month is 2 thousand 500 euros. In our country, a 1-month mooring of this boat is not less than 20 thousand euros in any marina. It goes up to 24-26 thousand euros. Port Vell, Spain’s most luxurious marina; He charges electricity at 36 cents per kilowatt hour. In our case, the lowest is 0.80 cents. That is, more than 2 times. Are we this richer than Europe? Let’s give another example; It is a 42 meter boat, the most famous place today. In Monaco, a nightly stay costs 650 euros in high season. 350 euro in low season. The same boat comes to Göcek today and offers a nightly accommodation fee of 1,400-1,500 euros. People are brooding, they are very stuck in this cycle. “As boat dealers and manufacturers, a huge crisis awaits us,” he said.

“As the market grows, it creates attraction for new actors.”

Stating that a significant and consistent market growth continues in the yacht charter sector worldwide, Bekiroğlu said, “The interest in isolated holidays, which highly supports privacy and freedom, can be customized every moment of the holiday and used in the most efficient way, is far from monotony thanks to mobility, and with the feeling of exclusivity it gives, boating Renting is becoming a more preferred holiday option every year. Accordingly, with the increasing demand, the supply also increases and the market grows. While the market is growing in line with the correlation between demand and supply, new players, large and small, are joining the sector every day, creating attraction for new actors. Although small enterprises, regardless of whether they are old players or new players, will face difficulties in competing against companies with strong corporate and financial structures over time, especially in terms of service, the entry of new companies into the yacht rental sector will lead to increasing demand as it progresses in a very close rhythm with the growth of the sector. “Despite this, there is no significant change in the companies’ pie share distribution,” he said.

“Foreigners should be given the chance to invest in Turkish flagged boats”

Emphasizing that not giving foreigners the chance to invest in Turkish flagged boats significantly reduces the influence of foreign investors, Bekiroğlu said, “Although it is a very serious advantage that boats other than Turkish flagged boats cannot be used in charters, the advantage gained should be better utilized; In order to expand our boat park, foreigners should also be given the chance to invest in Turkish flagged boats. “Eliminating the injustices in taxation through government regulation will be measures that will make our country the leader of the Mediterranean yachting market in a short time,” he said.

“The sector has achieved a performance well above its ongoing rhythm”

Bekiroğlu stated that the yachting industry has experienced an experience unlike many other industries due to the pandemic effect both in Turkey and globally, and said: “The pandemic period when closure and isolated life model is valid; The demand for boats that offer an isolated and safe environment has increased, and as a result, the sector has achieved a performance well above its ongoing rhythm. 2022 was a year when the yachting industry experienced its peak in line with increasing demands. 2023 was a year in which the upward trend continued due to the pandemic around the world. Of course, although there was a slight slowdown compared to 2022, when record levels were reached, the sector’s growth maintained its momentum without any significant negative impact. In terms of sales, we progressed with figures very close to the performance of 2022. “We do not expect the growth in our country’s medium and above-sized boat real sector to lose momentum in the coming periods,” he said.

“Reducing VAT on rentals will increase boat tourists”

Bekiroğlu stated that in the current situation, with the increase in boat mooring prices and the VAT burden applied on boat rentals, hotels have become more attractive prices. While hotel tourists who leave a tourism income of 600 dollars pay 10 percent VAT, this rate rises to 20 percent for boaters. This injustice must be corrected. When tourists come to a hotel and have a holiday, only 10 percent VAT is charged on their room fees, while when they want to rent a boat, this additional tax becomes 20 percent. There is a 10 percent difference between boat rental and hotel room prices, even in terms of tax. This challenges us at the tourist’s choice stage; As an important factor affecting demand, it constitutes a serious injustice. “Regulating the VAT rate for boat rentals as 10 percent, as in hotels, will increase boat tourists, which contribute more to the economy,” he said.

“Reducing VAT on rentals will increase boat tourists”

Bekiroğlu stated that in the current situation, with the increase in boat mooring prices and the VAT burden applied on boat rentals, hotels have become more attractive prices. While hotel tourists who leave a tourism income of 600 dollars pay 10 percent VAT, this rate rises to 20 percent for boaters. This injustice must be corrected. When tourists come to a hotel and have a holiday, only 10 percent VAT is charged on their room fees, while when they want to rent a boat, this additional tax becomes 20 percent. There is a 10 percent difference between boat rental and hotel room prices, even in terms of tax. This challenges us at the tourist’s choice stage; As an important factor affecting demand, it constitutes a serious injustice. “Regulating the VAT rate for boat rentals as 10 percent, as in hotels, will increase boat tourists, which contribute more to the economy,” he said.

“Taxes are an obstacle to evaluating the country’s charter potential”

Stating that it is important to carry out studies on eliminating the tax disadvantage if the activity in the yachting sector is to continue in a healthy and stable manner and to grow the industry, Bekiroğlu said, “Remembering the dynamism gained by the sector after the tax improvements made in 2017 with our efforts, it has become essential for us to make a re-evaluation. Although it is thought that the tax issue is not as effective in renting a boat as in purchasing it, in fact high taxes; Along with new investments, it has a negative impact on the addition of new boats to the country’s total boat fleet, and thus poses an obstacle to the evaluation of the country’s charter potential. “With more investors, the addition of more boats to the Turkish charter fleet is prevented,” he said.

“Aegean coasts are preferred by both local and foreign yachtsmen”

Stating that the Aegean Region consists of three regions: the north between Foça and Çanakkale, the central Aegean between Foça and Bodrum, where Izmir is located, and the south between Bodrum and Fethiye, Bekiroğlu said, “The coastline consisting of beautiful islands and sheltered bays of 2 thousand 805 kilometers. It has the longest coastline in Turkey. As you move from north to south, the climate changes to a Mediterranean climate, so the yachting season gets longer. Therefore, since it is a type of mobile tourism, it can offer very suitable climatic conditions for yacht tourism. In the very hot months of July and August, boats can go north, and in spring, boats can visit the coast and go south. It also hosts the Marmara and Black Sea crossings. Since the 12 islands of Greece are located very close to each other, the Aegean coast is preferred by both local and foreign yachtsmen. “65 percent of the capacity of our country’s marinas, which provide very high value-added foreign exchange inflows as well as sheltered bays that serve as natural harbours, is concentrated in the Aegean Region,” he said.

“Exports of the sector reach up to 3 billion dollars”

Stating that the size of the sector in Turkey is around 450 million euros in annual yacht buying and selling, Bekiroğlu said, “The economic size of the Turkish ship and yacht industry, including its sub-industry, is approaching 2 billion dollars. The annual growth rate of the market is on average 18-20 percent in foreign currency. There has been a significant increase on the production side starting from 2022. Currently, in 1-2 years; In fact, larger projects have even been postponed further. There are currently 85 shipyards in Turkey and serious production is carried out there. The sector’s contribution to employment is around 200 thousand in total. Last year, Türkiye earned an income of 1 billion 720 million dollars from exports of ships, yachts and services. There is also repair and maintenance exports. “When this is added, the exports of our sector reach up to 3 billion dollars,” he said.

“A capacity of approximately 2 thousand boats can be created in Izmir”

Emphasizing that Izmir, which has been a port city throughout history, has marinas and marinas along its 400-kilometer coast, Bekiroğlu said, “With the Foça Marina, which came into operation in 2024, there are three marinas in the Çeşme peninsula and one in Sığacık, with a total capacity of 1,300. There are 5 marinas with boats. Although there is a high potential in the Gulf of Izmir, it is a pity that there is no marina other than Üçkuyular Izmir Marina, which we can call miniature capacity. However, it is easily possible to bring the 6 shelters in the bay, with a potential capacity of roughly 2 thousand yachts, into yacht tourism with a reasonable investment. A capacity of 400 boats can be created in Güzelbahçe, 250 in Bostanlı, 300 in Çeşmealtı, 200 in İnciraltı, 400 in Mordoğan, and 400 in Pasaport. “In addition, the marina for 350 boats planned to be built in Şifne can make very important contributions,” he said.