An international bestseller entitled Global Paradox by John Naisbitt claims that “the bigger the world economy, the more powerful its smallest players”. Such a statement can be construed as meaning that as one of the smallest players in the moneyed global superyacht industry, Malta’s endeavour in this sector not only is heavily dependent of the economic activity on the international scenario but it should benefit more in time of prosperity.

The ShowBoats International magazine’s Global Order Book for 2014, the authoritative guide to superyachts under construction, reveals that for the first time since the financial turmoil and record year of 2009 the yachting industry is on the road to recovery: the number of new build projects is higher than that of the previous year. Overall, projects over 150 feet are up slightly from last year, 189 this year versus 186 last year, while there are currently 40 projects over 250 feet versus 39 in 2013.

Prior to considering the Malta scene, it is worth reflecting on figures which denote the downward and recovery signals of the luxury yachts segment over the past eight years.

The Global Order Book for yachts of 80 feet (24m) length overall or longer, reveals that in 2007 there were 777 new projects of which 154 were over 150 feet. The next two years recorded ever better business having 2008 with 916 and 2009, the record year, registering 992 new projects. In these two years the number of yachts over 150 feet was 195 and 206 respectively.

The next four years was a trying period indeed for the luxury yachts industry with the number of new projects decreasing annually. The figures then were: 2010 – 753 (183), 2011 – 749 (207), 2012 – 728 (179), and 2013 – 692 (186). The figures in brackets denote the new projects of over 150 feet in each particular year.

Market analysts are being prudent in their enthusiastic reaction but 2014 with 735 new projects – of which 189 are over 150 feet – shows an about turn to the negative downward trend, which is definitely a positive and encouraging sign.

In his winding-up address at a seminar organised by Yachting in Malta on the theme of ‘Malta, a better destination for superyachts!’, Edward Zammit Lewis, Parliamentary Secretary for Competitiveness and Economic Growth, assertively stated that: “The Maltese superyacht industry has all the skills in place. Our challenge now is to build and expand, with the private sector, in order to promote the niche that surely will contribute towards developing Malta as an excellent maritime centre in the Mediterranean”.

Another leading speaker at the seminar was Ken Hickling, president of the International Superyacht Society, the authoritative entity which together with Transport Malta have collaborated in all three seminars organised so far.

Mr Hickling observed: “Exemplary service, minimum down-time (inconvenience) and exceptional experiences that will live long in the memory are what is required. Superyachts are well equipped to provide this as long as they are well maintained and operated. Proximity to stunning locations is also an important factor. The challenge for Malta may well be to recognise what it has and to present that to this new audience in a different way than usual.”

So what is needed? The first point is that Malta does need to develop a marketing strategy for Superyacht Malta. Malta has done very well in building a strong association with fiscal, legal, corporate and registration services.

Substantial effort and funding has been dedicated to this in the past years and while it is imperative to continue promoting these elements of our product it is evidently time to shift the main focus on to promoting other offerings which have more added value and are strategically very important for Malta.

Also, Malta has limited resources and hence we need to improve the cost efficiency of what we spend as a country. Collective marketing rather than fragmented individual efforts can be more efficient and hence it is recommended that someone explores this concept in more detail and prepares a proposal for such initiatives.

We should also be selling Malta as a destination for charter pick-up or as a wintering destination or for refit and repair, which requires getting decision-makers to Malta in order for them to see the facilities and experience the hospitality first-hand.

The easiest way to do this is to invite small groups of say 10 to 15 individuals for a two-day paid visit to Malta. Beyond a welcoming short presentation, the attending captains, managers and charter brokers can be taken to all main facilities such as yards and marinas and to some of the highlights that Malta offers with respect to the guests and/or crew. Depending on the interest of the private operators to financially support this type of activity, it can be organised a number of times every year, targeting different categories and offering the possibility for captains to visit at the most convenient time for their schedule. These should be considered to be ‘mini inbound trade missions’.

While there is no immediate need for more berthing capacity for the larger superyachts, Malta needs more investment and competition in yards offering refit and repair. In this regard it is important that the government ensures that the Maritime Hub, to be developed at the former Marsa Shipbuilding site, allows for the development of dedicated superyacht facilities in a timely manner.

Improved connectivity to and from the south of France, particularly to and from Nice, will undoubtedly be beneficial for the local industry. While local volumes are not enough for a sustainable operation, flights from the Eastern Mediterranean or the Middle East with a stopover in Malta en route to the south of France, could be commercially attractive.

Training and wintering (more so training) are both heavily dependent on connectivity. It is therefore recommended that the government investigates this possibility with a number of leading commercial operators.

The outcome of the September seminar, as well as that of the February pre-election forum, the only recent open activities that focused on the Malta yachting industry, should be further examined and exploited by all concerned to implement the necessary measures without pointless and excessive delay.

The way forward is all there to exploit!

Wilfred Sultana is the publisher of Yachting in Malta.