Sunday, December 30th, 2012
Increased Charter Revenue in the Caribbean
“With demand back to 2009 levels the winter charter market is looking stronger than the last three years leading to hopes of increased revenues for those yachts in the Caribbean,” Hein Velema CEO of Fraser Yachts said in an end of the year review of the market.
“Although fewer yacht owners decided to send their yacht to the Caribbean this year, the demand for Christmas charters is at its peak since 2009, particularly in the smaller yacht market although there is still some availability left on the larger yachts.
“With fewer smaller yachts available we expect that the charter revenues for those that did make it to the Caribbean will double or triple this winter in comparison with last year.
“The Charter Market must however prepare itself for the introduction of VAT.
In France there is increasing pressure to lift the VAT tax exemption for yacht charters and this could have major repercussions on the charter business.
“The country is being put under increasing pressure by the European Commission to lift the VAT exemption on yacht charters. Last year Italy introduced VAT on charters and sooner or later France will have to follow.
“At this stage there is no indication this will happen in 2013. However the market is adapting to the changing situation and services will be put in place to serve yacht owners to deal with the formalities in France like they have been in Italy.