The 2022 Palm Beach International Boat Show is getting under way this weekend in Florida with all the lavishness you’d expect: $1.2 billion worth of boats glistening along the inland waterway, a VIP pavilion with open bar, and an accompanying contemporary-art fair. What it won’t have is many customers from the country that until recently was the second-largest market in the world for high-end yachts. Russia, which according to market observers has made up 9 percent of the total superyacht market, has been abruptly sidelined by the west’s unprecedented economic sanctions over the invasion of Ukraine. You’d never know it from the way the yacht market is booming.
“2022 started extremely well and we have seen strong sales activity across the board, which we expect to continue,” says Richard Lambert, head of sales at the yacht-brokerage firm Burgess, which sold more than $2 billion worth of yachts last year.
Losing a tenth of your customer base isn’t such a big deal, apparently, when the market is white-hot. For one thing, the sort of person who might buy a superyacht — often defined as any vessel for personal use over 131 feet in length — is in plentiful supply these days. Though the COVID pandemic triggered a worldwide recession, it saw the number of the world’s billionaires climb from 2,095 to 2,755 and their cumulative wealth increase by 60 percent, or $5 trillion.
If the sudden disappearance of Russian yacht buyers does ultimately have an effect, it may only be at the very highest end of the market. “Clients from Russia and the Middle East have a higher average length of yachts,” says Merijn de Waard, founder and director of SuperYacht Times. “They are more keen on the very big boats.” According to the publication’s statistics, the average Russian-owned superyacht is 200 feet long, compared to 177 feet for American-owned ones. Of the 13 superyachts that are over 140 meters in length (459 feet), nine are owned by Arab royalty and four of them are owned by Russians. Or maybe five. Italian authorities are currently holding the 459-foot Scheherazade in a small port on the Tuscan Coast. The owner might be the richest Russian of all, Vladimir Putin — no one’s completely sure. Continue reading New York: The Superyacht Market Just Lost Some of Its Best Customers. It Doesn’t Care.