Superyacht business case study: The Islands of Tahiti and Fiji
The crystal blue seas and island life found on The Islands of Tahiti (previously known as French Polynesia) and Fiji have been attracting UHNWIs for decades. As these two countries grow as luxury destinations, how are they ensuring their facilities and attractions develop in a way that can accommodate superyachts and their clients?
The Islands of Tahiti
As yachts grow larger and are capable of visiting more remote destinations, the Islands of Tahiti have opened up as a viable – and attractive – superyacht cruising area. This, coupled with an apparent surge in interest in traveling off the beaten track and away from the well-trodden paths of the Mediterranean and the Caribbean, has increased the amount of yacht traffic seen around the Islands.
The Islands of Tahiti promote that they are the first superyacht hub after passing through the Panama Canal. The Islands see between 50 - 60 superyachts visiting per annum, with this number expected to increase substantially with the various international events that are taking place in the Pacific in the next five years, including the America’s Cup in 2021.
Christelle Hoeller, managing director of Tahiti Private Expeditions, discusses how the Islands of Tahiti have been established within the past few decades. "Superyachts started visiting The Islands of Tahiti regularly about 20 years ago. The notion of high-end service expected by such clients has been well-known since, with dedicated professionals [available] to cater to their needs. The main change [for superyachts] is really the promotion and communication about the Islands that have been made to the industry worldwide over the past 10 years, right at the time where more and more owners were looking for new destinations.”
When it comes to logistics and marina infrastructure in the area, the main superyacht destination is Marina Taina, on Tahiti Island, which was built in 1994 and was the first superyacht facility in the region; this marina has 15 berths for superyachts up to 60m. For larger vessels, there are 15 berths in Papeete Marina for superyachts over 100m. However, many visiting superyachts choose to stay within the anchorage areas on the islands. "The yachts anchor safely in the large deep bays of the various islands and in the sheltered lagoons,” remarks Holler. The Islands of Tahiti also have the infrastructure for refit and repairs in the capital city of Papeete, on the main island of Tahiti, with a 3800-tonne dry dock for vessels up to 150m, a 300-tonne dry dock, and a marine slipway. There are currently three main superyacht agents in the region, who can organize charter licenses, provisioning, maintenance and immigration and customs for visiting vessels.
Captain Michael Gooding, M/Y Silentworld, who has cruised extensively in the region, argues that the increase in yacht traffic means that the various elements needed to cater for a yacht have improved, as the relatively young yacht infrastructure could adapt easily to the requests of a modern-day superyacht client. “The Islands of Tahiti has developed in the last ten years in the way of accommodating what superyachts expect. There have really been no additional facilities, but the understanding of a yacht's needs and provisioning has improved immensely.”
The natural beauty of the Islands of Tahiti is a significant draw for many superyacht clients. There are 118 islands, and five different archipelagoes to explore, and the scope of the islands means that it’s rare that you will see another vessel in the same area as you. “No cruising permits are required so you will easily find yourself anchored in a lagoon without a soul in sight. [The Islands of Tahiti] is made of one percent of islands in a territory as wide as Western Europe, which allows endless possibilities of customizing itineraries for various client profiles,” remarks Hoeller.
The natural beauty of the Islands of Tahiti is a significant draw for many superyacht clients. There are 118 islands, and five different archipelagoes to explore, and the scope of the islands means that it’s rare that you will see another vessel in the same area as you
Captain Gooding agrees that the remote nature of the Islands is stunning, but argues that this was the primary reason that yachts didn’t travel to the region. This attitude is changing, however, as a result of a successful marketing campaign from the government’s tourism board and the growing interest from superyachts wishing to explore greener pastures. “The main reason there was restriction [on the Islands] as a superyacht destination in the past is that people don’t want to travel so far. This is still a setback, but some clients are now willing to travel that little bit further.”
The government is involved in the promotion of The Islands of Tahiti to the wider superyacht community through Tahiti Tourisme. ‘Tahiti Tourisme has been promoting The Islands of Tahiti as a superyacht destination for about 10 years now, with the help of the local superyacht industry, which consists of agents and specialized activity providers,” remarks Manoa Rey, superyacht market coordinator for Tahiti Tourisme. The strategy for superyacht growth included attendance at international boat shows, organizing events and educational seminars for captains and charter brokers and coordinating familiarisation trips for industry stakeholders. “In 2018, we decided to reinforce that link with the local superyacht industry by creating the Tahiti Tourisme superyacht cluster, whose goal is to allow local stakeholders to help Tahiti Tourisme with its promotion strategy towards the superyacht sector, and to raise awareness locally about the positive impact of this market for the local economy,” adds Rey.
The strategy for superyacht growth included attendance at international boat shows, organizing events and educational seminars for captains and charter brokers and coordinating familiarisation trips for industry stakeholders.
For crew and guests on board, the Islands offer friendly immigration procedures. Due to its history with France, visas and immigration for EU citizens are very simple, as they are allowed to stay without a time restriction. A tourist visa for non-EU citizens allows a maximum stay of three months. To encourage chartering in the region, there is no registration fee for a charter license, which is granted for six months and is renewable.
The Islands also have activities to appeal to the adventurous superyacht client. For example, in order to protect its wildlife, and continue to attract divers from across the world, The Islands of Tahiti became a marine mammal wildlife sanctuary in 2002. The islands and reefs are also home to some of the largest shark populations on the planet, and in 2012 the Tuamotu island of Fakarava (and its five neighboring atolls) was granted the status of a UNESCO biosphere reserve. This status means that the area is dedicated to sustainable development, where superyachts are encouraged to cruise the waters for recreational diving.
The established superyacht facilities, and continued efforts to attract vessels to the region, are complemented by the growing number of yacht owners and clients interested in new destinations, meaning that the boutique yachting industry in this area is developing in a sustainable way. As Captain Gooding concludes, “The Islands of Tahiti are the perfect superyacht-destination with a combination of culture, marine life, high-end facilities, and remoteness all in one location. No matter what our guests are after [it] has it all.”
Fiji
Fiji has long been established as a luxury destination, but as with the Islands of Tahiti, its remote nature meant that many superyachts didn’t travel the distance from the hubs of the Mediterranean or the Caribbean. However, in the last 10 to 15 years, the islands have seen a sharp rise in the number of visiting vessels. In 2010, there were 32 superyachts recorded by the Fiji Customs & Revenue Service, this number hit a record high in 2017 with 65 visiting vessels, and 54 reported in 2018. Yachts, once in Fiji, spend an average of 81 days cruising its waters.
In 2010, there were 32 superyachts recorded by the Fiji Customs & Revenue Service, this number hit a record high in 2017 with 65 visiting vessels, and 54 reported in 2018. Yachts, once in Fiji, spend an average of 81 days cruising its waters.
“The growth in superyachts visiting Fiji has been exponential,” begins David Jamieson, managing director of Yacht Help Fiji. “To begin with there was very limited information on superyachting in Fiji. Tahiti was getting 50 or so superyachts per year and Fiji was seeing 20 in 2006. Yachts would get to Tahiti and turn around back to Panama.” This growth is attributed to the effort by superyacht professionals in the region to promote Fiji as a destination for visitors on board. As with the Islands of Tahiti, an increase in superyachts visiting Fiji is also due to more information available to captains, owners, and charter agents about the area. “Apart from limited marina space, there has been a long process of informing captains and owners that Fiji can reliably cater to them and their yachts,” explains Jamieson.
Fiji has very friendly superyacht legislation. Vessels can stay for 18 months, and parts and supplies can be imported duty-free. When it comes to chartering, there is a 10% tax on the charter fee. According to Jamieson, this is due to the Fijian government understanding the positive impact that visiting superyachts can have on the region. “The Fijian government is behind this industry and appreciates the input into the local economy. The government also recognizes that some superyacht owners have bought islands in Fiji, which is generating major investment in the country.”
The main marina is Port Denarau Marina, with 20 superyacht berths, with plans for four to be completed at the end of 2019. “Port Denarau Marina was created to cater for local ferries and day trip boats. The marina was too shallow for superyachts. Over the years the marina owners have dredged and enlarged the marina to cater for yachts up to 90m,” says Jamieson. Another area, Vuda Marina is undergoing expansion in order to cater to the burgeoning yacht market in the region, as it and Port Denarau are both customs port of entry, and are nearby to Nadi international airport.
A luxury development on Nawi Island is building a new marina with spaces for 150 vessels, including eight superyacht berths up to 60m. This new resort, offering UHNWIs the opportunity to purchase a plot of land and a marina berth, echoes the successful expansion of Christophe Harbour in the Caribbean. This newly-built infrastructure encourages yacht owners to establish the island as a home berth, and a stepping stone from which to explore the region further.
‘The Economic Impact of Yachting in Fiji’ was published in 2018 and found that yachting's total economic contribution to the Fijian economy is 60.6 million Fijian dollars (which equates to 28 million US dollars and almost 22 million British pounds) per year. The forecasted economic value of yachting over the next 30 years is FJD 909 million Fijian dollars (425 million US dollars and approximately 329 million British pounds).
The forecasted economic value of yachting over the next 30 years is FJD 909 million Fijian dollars (425 million US dollars and approximately 329 million British pounds).
The study also outlined the initiatives that could be implemented to support superyacht growth in the region. It highlighted that while a high percentage of yachts that visit the area are in the sub-24m range, there needs to be a differentiated development plan for those over 24m. To strengthen the yachting sector, it was proposed to establish a marina industry group in Fiji, expand international ports of entry, simplify the permit process to encourage more charters in the region, and focus on marketing to neighboring countries (or ‘markets’) where tourism is growing at an exponential rate, such as India and China.
