The interview: Wade Pearce, founder, Singapore International Yachting Festival
BOULEVARD: Congratulations on the launch! It must be a thrill to see so many people out here – and a welcome sign of the growing interest in yachting coming out of Singapore.
WAYNE PEARCE: Thank you–and yes, we have more and more people here realising that Singapore is a hub; they can base their yacht here – where they might have business interests or a residence – and then head out to Malaysia, Indonesia and Thailand. And it’s all the more relevant when we’re talking about bigger boats, 30 metres and above.
BOULEVARD: Is this a relatively new thing?
Pearce: Covid really sparked the interest – why people wanted to buy a boat, for their families, for their friends. And now the marina is full of super-yachts. There are more people asking for information, asking about taking larger boats out to Malaysia and Indonesia, and it’s indicative of what the whole industry’s doing here.
I think people are realising that yachting is an escape. For people who are busy and spend their lives in the city, yachting is the ultimate escape. But equally, it can be about business. People are entertaining more than they used to, and having a yacht takes that to another level.
One of the growing trends is that it’s not just about going out and having a nice time on the water. It’s also about entertaining. So when the F1 is in town, the marina is guaranteed to be full of super-yachts, and they’re all having meetings and networking.
BOULEVARD: How is this trend changing the space of yachting in Singapore?
PEARCE: Given that Singapore doesn’t have that history or industry in yachting, the opportunity for us lies in servicing. Service levels are extremely important when it comes to super-yachts, getting the right stewards, and rigorous maintenance. We’ve got more and more super-yachts coming in but we don’t have the service levels.
Singapore is ideally situated for this – despite not being a cruising destination in itself – because you have so many attractive sites nearby.
The Anambas Islands in Indonesia’s Riau Archipelago are phenomenal, an increasingly unkept secret but totally unspoilt – and just an overnight cruise to get there. You’ve got Tioman Island even closer off the East Coast of Malaysia. And you’ve got so much to choose from in Thailand. We’re right in the middle here, as a base to explore the region.
BOULEVARD: Where’s the market at? Are people chartering first and developing a love of yachting, or are they diving right in and buying?
PEARCE: InAsiawetendtoseemorepeople owning than chartering. But I’d say that chartering is a massive potential market: if the boat’s sitting here for months on end with a full-time captain, full-time crew, and paying to berth, it starts to make a lot of sense. However, in Singapore, you do need to get a special licence to rent out your boat, and that requires paying GST on the value of the vessel. It’d be a lot more attractive if the GST applied to the value of the charter services rather than the vessel itself.
BOULEVARD: Which yachts are getting the most attention from buyers?
PEARCE: There are two types of yachts that are really popular in this region. One is the 30-foot range, where the value has gone from $100k or $200k in the past, to $500k or $600k these days, and it’s because of all the features they have on board. Often you see owners putting in all the best features of a much larger vessel – stabilisation, extra comforts, and luxuries.
The second category we’re seeing more traction in is the 100-plus-foot range. You could say that the 100-footer is the new 50-footer. The clientele has traded up, they have the means, and they want something at the higher end.
BOULEVARD: What are the key factors driving this higher level of interest?
PEARCE: Accessibility, definitely. One of the realisations at this level is that there’s a full-time crew, and a full suite of services, so owners don’t need to do anything, organise anything, or have a history with yachting. It’s all there, it’s all done for them.
BOULEVARD: Where do you think it will go from here?
PEARCE: The trend for Singapore is bigger and bigger boats coming in. It has the potential to become a serious industry for Singapore, because it’s not just about the owners, it’s the ecosystem – the services, the marinas, there is massive potential.
But it needs more infrastructure. We’re full. If we had more marinas we’d have more yachts, it’s that simple. I know super-yacht owners who can’t bring their boats here because they can’t get a berth.
BOULEVARD: And finally, what’s it all about? What makes it so special?
PEARCE: Yacht ownership is about a proposition: it’s a space unlike any other where you can entertain, meet, or just get away. I’ve seen owners who’ve bought a smaller boat, and they’ve loved it and re-organised their lives or aspects of their business and networking around that boat, and then they’ve bought a bigger one.
Once you get into the lifestyle, once you’re on the water and you’re out there and you’re free, it’s hard to go back.
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