In the world of maritime opulence, where luxury superyachts have emerged as the playtoys for the affluent, a new destination seems to be on the horizon for those whose incomes fall in the world’s highest brackets. With a growing appetite for luxury yacht ownership and private charters, we take a look at the emerging yacht trends in Southeast Asia, where the tides of change are propelling the region into uncharted waters of extravagance.
Southeast Asia is fast becoming the go-to destination for those who crave the finer things in life, and it’s no surprise that the luxury yacht market projections are cresting at a remarkable USD 1,249.5 million by 2028. Nestled within Asia Pacific’s expansive 135,000-kilometre coastline, this region has all the makings of a maritime paradise. The flourishing post-COVID tourism industry, drawing travellers to its pristine islands, is setting the stage for a yacht renaissance. As if that weren’t enough, rising living standards and escalating incomes across Southeast Asian nations have ignited an insatiable demand for the crème de la crème of luxury resources among the nouveau riche and the generationally wealthy.
Read on, as we navigate the currents of emerging luxury yacht trends —unearthing how Southeast Asia is rapidly establishing itself as the world’s hottest docking port for an elite circle who simply cannot resist the siren call of luxury.
1. The rise of disposable incomes among Asians in a post-COVID era
For most Asian buyers, buying a superyacht is not just for entertainment, it’s an investment. “Over the past few years and following pandemic travel restrictions, there’s been an increased desire to explore the world’s hidden, most exotic corners and discover Southeast Asia’s untapped beauty, with many high-worth travellers choosing to do so by yacht for utmost comfort, privacy, and control,” says Advait Deodhar, Senior Yacht Sales and Charter Broker, TJB Super Yachts.
The rising disposable income is propelling the Asia Pacific luxury yacht market growth. Eric Noyel, Founder of Asia Marine and Managing Director of Fraser Asia, saw this trend reflected in sales. In his interview with SuperYatch Times, he opened up about the growth he had witnessed in emergent Southeast Asian markets. “Hong Kong has been crazy for the last two years. 500 new boats arrived – mostly Italian and American – and were sold in the city. There have been record sales across the board for yacht brokers in Hong Kong. I’d say that we’ve had the equivalent of 20 years’ worth of sales in the last two years,” he said.
Across the peninsula, India showed signs of becoming the world’s third-largest economy by 2027, surpassing Japan and Germany, reported Morgan Stanley. The rise in wealth has been synchronous with the rise in disposable incomes — consequently resulting in the growth of the luxury yacht market. “My millennial client percentage has increased substantially this year and I would say about 33 to 35 percent of my clients are millennials,” says Deodhar, who personally completed a total of 56 charters in 2022, with superyachts up to 325 feet in length.
For Thailand and Singapore, the luxury yacht markets are blooming, ever so in the post-COVID era. “In Thailand, the number of charter yachts of 30-45m has more than doubled over the past five years. Although many of the yachts are a bit older, they are usually extremely well-maintained with their interiors and furnishings regularly updated,” Lies Sol, Charter Manager at Northrop and Johnson told The Singapore Yacht Show.
What is the driving factor behind this luxury yacht trend in Southeast Asia?
In Southeast Asia, superyachts are mostly used for relaxation, discovery, and diving. In the past, yachting was associated with building a larger-than-life status and entertaining wealthy guests but today, the focus has shifted to genuine pleasure usage, enjoying with family and friends, the rise in water sports, and in an increasing number of cases, regional cruising. “80% of our charter guests request a diving instructor or PADI school on board. From manta rays to whale sharks, the natural sea life in Indonesia, Thailand, and the Philippines are unparalleled,” Deodhar adds.
Superyacht charters in Southeast Asia might tend to be of the same duration as they are in Europe currently, but the average trip has increased by a few days as compared to what it was five years ago. “Many of the yachting locations in Southeast Asia take longer to get to, particularly the likes of Raja Ampat – a journey which requires a charter flight and seaplane, so our guests prefer to spend longer on board in order to recover from jet lag and make the most of the destination,” Advait tells us.
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2. Emerging destinations for a luxury yachting experience in Southeast Asia
Southeast Asia houses thousands of island destinations across the Pacific Ocean, where tourism is the major economy in itself. The rise in tourism on these islands has boosted the demand for luxury yachts in the region. Governments across these oceanic nations have also identified the potential for attracting wealthy tourists who are looking for a thrilling high-sea adventure. To attract more billionaires to a life of luxury maritime experiences, several yacht shows have been popping up in recent times that bring together professionals and consumers from various industries under one roof. In a similar grain, shows in Singapore, Thailand, and Hong Kong have seen successful iterations in the past couple of years with High Net Worth (HNW) individuals flocking to gauge the emerging market.
Among the charter segment, luxury yacht trends in Southeast Asia point to a few hidden gems. “Our clients are increasingly keen to discover the waters around Sumba Island – one of the most remote and unspoiled areas of Indonesia, which has been developing over the past few years with five-star hotels. Likewise, the Bay of Saleh has world-renowned whale shark-watching opportunities. Palawan in the Philippines is also seeing increased demand from yacht owners and charterers – it’s particularly popular amongst honeymooners due to its natural beauty, pristine beaches, and crystal clear waters, but also offers a vibrant social scene on the surrounding islands to enable guests to strike a balance,” Deodhar reveals from experience.
Malaysia is also seeing growth – from Langkawi to Penang, the islands offer idyllic coves and bays. With a plethora of world-class luxury hotels, the country has always been a popular travel destination by land – with stunning jungles, groves, and mountains to discover. The same can be said about Thailand, which saw 11.4 million foreign tourists arriving from January to June 11 2023 alone. The estimated spending accounted for THB 472 billion (USD 3.67 billion), revealed the Ministry of Tourism and Sports.
3. Size and construction trends among luxury yachts in Southeast Asia
Asia, with its rich history and melting pot of religions and beliefs, poses a different kind of challenge. Here, cultural preferences and influences play a large part in the purchasing decision. In an industry dominated by European and American brands, ensuring their relevance to Asia and Asian buyers has become crucial for local manufacturers and designers. “In countries such as China, Singapore, and Hong Kong, for example, Feng Shui is very important. However, Feng Shui is not so well understood by Western yacht designers and we need to help designers understand it more. While Western owners like simple, classic designs, often blacks and whites, Asian people often think these colours are sad and prefer something more colourful. Chinese people often have their own special colours and colour in Asia provides a happy feeling,” told Yunzhu Jin, Asia Director of Amels in an interview for the Thailand Yacht Show.
Customisation is another popular process for luxury yacht owners in Southeast Asia. Requests include entertaining spaces such as karaoke lounges, bespoke wine cellars, helipads, space for submarines and water toys, and much more. Construction-wise, steel and aluminium superyachts make up the majority of the superyachts in the region, with Phuket being one of the biggest hubs, believes Advait from TJB Super Yachts. For Asian owners, the interior areas are very important as well as having the flexibility to entertain and cater to large groups. Multinational shipping companies with an established reputation in Asia Pacific like Ferretti have often spoken about specialised designs needed for the region. They started building the ‘Tai He Ban’ layout especially for Asian buyers, which includes a large entertainment or multi-purpose group space. The collection offers new interior layouts that are more suitable for social occasions with increased entertainment areas, making the boat a meeting or party platform as opposed to an overnighter.
As of today, Southeast Asia has unfurled its sails and established itself as the ‘it’ destination on the horizon for potential buyers, existing yacht owners, and luxury thrill seekers. This emergence is no happenstance; it is a confluence of rising incomes, an ever-widening embrace of global yachting culture, and the sheer allure of the region’s picturesque backdrops.
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This story first appeared here.
(Main and Feature Image: TJB Super Yachts, Northrop and Johnson)
Related: The World’s Most Luxurious Yacht Rentals
Frequently asked questions
1. What is the yacht industry market worth?
The global luxury yacht market size was valued at USD 6.40 billion in 2022. The market is projected to grow from USD 7.67 billion in 2023 to USD 13.67 billion by 2030, exhibiting a CAGR of 8.6% during the forecast period, revealed a report by Fortune Business Insights.
2. Where do the rich take their yachts?
Marinas such as Monaco Yacht Club Marina, Monte Carlo, and Marina de Capri in Italy are some of the most popular destinations for docking among High Net Worth Individuals.
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