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Home / Business / Companies / Tourism

NZ surfing the superyacht wave

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
30 Sep, 2014 04:00 PM5 mins to read

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The megayacht "A" that slipped into Auckland was at the time the biggest to ever berth in New Zealand, with interior space almost 15 times the size of an average house. The distinctive vessel is owned by Russian Andrey Melnichenko, who has a fortune estimated to be $17.2 billion, and is in Auckland for maintenance ahead of cruising in summer. Video courtesy Greg Bowker.

Vessels of the mega-rich visiting NZ generated $40m-plus last summer, report shows.

A study of the superyacht industry has found visiting vessels generated more than $40 million for New Zealand last summer - which could rocket if facilities were expanded.

The report found that during the 2013/14 season, 37 superyachts ranging from 24m to the submarine-styled 112m "A", visited the country.

More than $31 million was spent in the marine services sector and $8.25 million in the tourism sector.

The figures do not include an additional $145.6 million earned by refitting superyachts and smaller yachts last year.

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The study by SuperyachtIntelligence.com was commissioned by a range of agencies including Auckland Tourism, Events and Economic Development, whose chief executive, Brett O'Riley, said that of the total $40 million-plus figure, $29 million was spent in Auckland.

"Visiting superyachts spent the largest amount of time in Auckland - and of the $29 million total economic impact [for the city], $4.3 million was spent specifically on tourism-related activities in the greater Auckland region," he said.

"As well as the stunning cruising opportunities of the Hauraki Gulf, Auckland offers a world-class city, with shopping, dining and events right on the marina's doorstep.

"Superyacht owners and crew love the range of experiences and the relative anonymity that a stay in Auckland offers."

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Read the full superyacht report here:

O'Riley said Auckland Council agencies were now investigating expanding facilities at Silo Marina, building "Yard 18" including special lifting machinery and were in discussion with the private sector, including Team New Zealand which is on the move.

The fall of the dollar against the United States currency during the past fortnight was welcome.

"As we've seen with the superyacht business, anybody who wants a boat built or a quality refurbishment is interested in coming to New Zealand but the dollar needs to be around 70c for us to be competitive again," O'Riley said.

Ateed attracted headlines last year for sending staff to the Monaco Yacht Show, the annual mecca for the world's superyachts, owners, crew and other industry participants that was held last week.

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O'Riley said the organisation did not send staff this year because it had made valuable connections at the last show that justified the financial commitment.

"When we see a report like this it justifies the investment we made. We've got a pretty good network now which meant we felt we didn't need to be in Monaco."

The report found superyachts spent a combined total of 623 weeks in the country. While most of these were with just crew, owners or guests were here for 74 of those weeks.

They can be big spenders and the report notes that they contributed $1.5 million. Other "one-off large spends" that were undeclared are not recorded.

According to one provider of a range of services for superyachts, Jeanette Tobin from Asia Pacific Superyachts, one owner of a vessel here for six months spent $80,000 in less than an hour on a Queenstown shopping spree.

She handled the seven-month visit by A, owned by chemical and industrial magnate Andrey Melnichenko, who cruised with his wife, Aleksandra, around the country after the vessel underwent multimillion-dollar servicing in Auckland.

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The SuperyachtIntelligence.com study found that of the $6.7 million spending by crew, most (35 per cent) was spent on eating and drinking onshore.

The study says there is big potential for the superyacht service sector to expand. Of the 4896 completed superyachts in the world, New Zealand is currently attracting just 0.75 per cent of the fleet.

There is "clear value" to New Zealand from tourism and refits.

"As each superyacht ages, it either needs or is required to undertake survey or refit work, representing significant economic impact to the country where the refit is undertaken. In addition to lucrative refit or service contracts superyachts also contribute significant tourism economic impact from both their owners and their permanent crew."

With 350 more superyachts being built globally, the potential for both New Zealand's marine service and tourism sectors continues to grow.

"As yachts become more adventurous and more likely to visit destinations such as New Zealand, it is crucial to ensure that superyacht infrastructure is invested in with the long-term picture in mind."

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If all 37 superyachts that visited New Zealand last summer had stayed the entire season, with a minimum of four weeks of owner-guest tourism activity, this would have contributed an additional $37 million of net economic impact.

A 10 per cent growth in the number of superyachts visiting New Zealand, with the 80-metre-plus segment targeted, would bring additional spending of $63.6 million, the report says.

The report was commissioned by the Destination New Zealand Superyacht Attraction Initiative Group, which includes Ateed, Tourism New Zealand, New Zealand Trade and Enterprise and NZ Marine.

Top 10 destinations

1. Auckland
2. Waiheke Island
3. Great Barrier Island
4. Bay of Islands
5. Coromandel
6. Queenstown
7. Wellington
8. Taupo
9. Rotorua
10. Other

(As ranked by superyacht crew).

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