Yacht Charter Market Thriving Despite Pandemic and Workboat Restrictions
The growth is in line with customer demand. As shops and entertainment venues on land closed down, the market for recreational boating exploded, with many customers seeing it as a way to get away from the stress of the pandemic in a safe way, away from the masses.
COVID-19 restrictions have hit the passenger vessel sector of workboats the hardest. Shutdowns for cruise vessels, coast to coast, dinner boats, excursions, and sightseeing have been in effect for at least part of the past year. Those that have been able to be operational are seeing only a fraction of their usual customer base—which means only a fraction of what they need to survive financially.
For Derecktor Shipyard, the same cannot be said. Derecktor Shipyards is a megayacht chartering company and service. The company handles repairs, construction, and refit of yachts up to 200 feet. It is a full-on working shipyard that provides a full-service yard with multiple boats and customers.
In February of 2020, the property had boats throughout, with many of them getting painted and having other services performed. One boat, a 100-footer, was wrapped in a white tarp to receive a $1 million paint job. Russel said it can cost anywhere from $60,000 to $80,000 just to remove all the deck hardware. It can also take weeks to erect the scaffolding.
The cost of modifying and repairing larger boats is one of the reasons why smaller boats are often desired even among the wealthy. It’s much easier to add the wiring necessary to include a 12 volt led lighting system on a boat the size of a studio apartment if compared to one that could fit a small building.
Justin Beard, Derecktor Shipyards marketing manager said in January that Derecktor has faced some challenges, but that Dania continues to be a full-service yard—even despite the pandemic. Beard believes the charter business has done better than what most might think. Social distancing is safely achievable and boat owners have been particular about protocols being followed on their yachts.
Derecktor is moving ahead with plans to convert the century-old port of Fort Pierce, roughly 110 miles north of Dania Beach, into a refit and repair facility for megayachts and large sailing yachts. The company was approved by federal and state agencies to start construction on the new shipyard after a long review and permitting process.
The growth is in line with customer demand. As shops and entertainment venues on land closed down, the market for recreational boating exploded, with many customers seeing it as a way to get away from the stress of the pandemic in a safe way, away from the masses.
That recreational shift in desires has been a driving force for the chartered yacht market for boats under 100 feet. More affordable than megayachts, the smaller boats are akin to renting a condominium in one of those destinations. Not a cheap endeavor, but if one can afford a condo, it’s likely they can also afford a charter.
Raul Bermudez, vice president of Fla.-based MarineMax Vacations, said that the company is experiencing a backlog of reservations.
“All you have to do is prequalify by filling out one of our resumes,” said Bermudez. “If that checks out, we give you a boat briefing and a chart briefing and you’re on your way.”
The growth and expansion of the yacht charter business in various areas of the world is just one of the examples of how the pandemic affected the economy in unforeseen ways. Other forms of sea recreation and transportation have also gained attention, with USA Today reporting an increase in the number of boat sales back in August of 2020, to the point where the market experienced a supply shortage.