Kevin Kwan of Voyager Discusses the Evolving Yachting Trends in Hong Kong

With increasing sales and arrivals in Hong Kong, local owners are utilizing their boats more frequently, and this trend is expected to persist even as international travel becomes more accessible.

Image: Kevin Kwan

As the pandemic appears to be subsiding, the majority of countries in the region are emulating the actions of many in Europe, North America, and beyond by reopening their borders and alleviating travel obstacles and restrictions. The yacht business has flourished during the pandemic, particularly in Asia, as individuals have devoted significantly more time to their home cities rather of traveling.

In Hong Kong, the local epidemic-prevention measures restricted activities in public spaces, rendering a private yacht an excellent venue for socializing with friends and family. With the lifting of travel prohibitions and restrictions in numerous countries, what impact will this have on the yacht sector in Hong Kong? Will it be the conclusion of the boat industry's 'winning streak,' or will demand persist?

The yachting activity experienced a hiatus earlier this year when Omicron severely impacted Hong Kong, resulting in a citywide suspension lasting nearly three months. Yachting served as a refuge for high-net-worth persons when prior epidemic control measures did not extend to private facilities and locations. This persisted until the stringent regulations that restricted the number of family households in a single private location nearly halted all sailing activities completely.

Did this new restriction ultimately impact sailing activity in the long term? In reality, it had no impact all. Despite the tranquility of the water over those three months due to the 'fifth wave' in Hong Kong, the demand for new yachts and brokerage activities persisted unabated. New boats persist in accumulating for cargo shipment to Hong Kong; moreover, the backlog is so extensive that delivery delays have become customary.

As a leading yacht insurance broker, we observe the arrival of new vessels nearly every week. Although it may be presumed that these orders were placed in 2021 or prior, and that the deliveries do not correspond with the present market conditions, the timeframe for the delivery of new production boats accurately represents the demand.

Should you place an order for a production boat now, the earliest delivery would occur in the latter half of 2023, and the waiting list is progressively lengthening. The demand for new yachts is robust and shows no signs of abating, despite the prospect of a waning pandemic and enhanced travel alternatives.

Image: Azimut

Boating has now evolved into a habitual activity for local yacht owners, occurring often on weekends rather than infrequently.

The epidemic has altered the usage patterns of yacht owners in Hong Kong, particularly those with vessels above 100 feet in length. Historically, prior to the pandemic, such owners utilized their yachts seldom, often once a month or even fewer. The engines' operational hours were far lower than the typical consumption in Europe, for instance. Luxury yachts and superyachts are ubiquitous in Hong Kong, resulting in increasingly congested seas.

Yachting Ecosystem

The pandemic not only increased yacht sales and transactions but also fostered an improved environment inside the yachting sector. In addition to basic yacht-related enterprises such as dealerships, brokerage firms, shipyards, services, and insurance, yacht owners are more cognizant of crew and steward recruiting as well as yacht management.

Stewardship is becoming vital, as effective stewardship offers a markedly distinct sailing experience. To establish a benchmark for stewardship service and entice the younger demographic to join this sector, several stakeholders in Hong Kong are pooling their resources to offer stewardship training programs for prospective candidates to enhance the business.

In November, our CEO Tommy Ho and Mandy Wong served as guest speakers at the ‘Job Opportunities of Local Vessels in Hong Kong’ webinar, where they shared their experiences in yachting to entice new talent to the field.

Yacht-service enterprises are also progressing. Standard yacht-maintenance services no longer meet the expectations of boat owners. Numerous yacht-management firms now collaborate closely with designated service shipyards to optimize their operations, providing a more customized, comprehensive service that elevates the whole luxury experience of the yachting lifestyle.

Furthermore, new yacht clubs and marinas, like Lantau Yacht Club and Delta Marina, have been established to enhance the city's berthing and mooring capacity, with LYC being designed for mid-sized luxury yachts and superyachts.

The yachting sector in Hong Kong persists in its expansion and has no indications of deceleration. Despite the appearance of a return to 'normalcy' in our lives, the yacht communities have already raised their sails and continue to advance at full speed.

Image: Kevin Kwan

Kevin Kwan serves as the Director and Head of Yacht Specialty Risks at Voyager Risk Solutions, established in Hong Kong in 2018. He has dedicated more than ten years to the yacht-insurance industry, having been engaged in marina building and design.