New legislation, expanding marinas and yards and millions of dollars' worth of investment are all contributing to Australia's rapidly growing superyacht sector. Michelle Singer investigates the staggering impact yachting is having on Australia's domestic economy and how industry leaders plan to supercharge its momentum...
Australia’s superyacht industry is not just a playground for the elite; it’s a burgeoning economic powerhouse. Cruise destinations like the Whitsundays, the Great Barrier Reef and Sydney have long been attractions for discerning owners and their guests, as an alternative to the traditional Mediterranean and Caribbean milk run. However, a rise in superyacht activity has been met with millions of dollars being invested in infrastructure projects, expanding events and policy changes as the maritime industry tries to capitalise on this new-found momentum. In the past five years alone, BOATPro indicates there has been a 52.5 per cent increase in the number of 24-metre-plus yachts cruising the region, going from a total count of 160 in the 12 months between June 2018 and June 2019, to 244 between June 2023 and June 2024.
The superyacht industry was worth an estimated AUS$3 billion in 2021, injecting AUS$936 million into the national economy. Superyacht Australia (SYA), the industry’s peak body, is forecasting that by 2025 those figures will have increased 70 per cent, with the total industry value surpassing AUS$4.3 billion while supporting more than 33,000 full-time jobs.
“I see significant growth opportunity across all facets of the industry,” said SYA chairman Chris Blackwell. “Australia offers very high standards in advanced superyacht design and manufacturing, exemplary industry know-how, exotic cruising grounds and a proven track record in delivering world-class superyacht new build, refit and cruising experiences to international and Australian clients alike. The extent of this growth is only limited by the support our superyacht industry receives from Australia’s federal and state governments, through international promotion and policy settings, to help secure and nurture its growth over the coming decade.”
A booming infrastructure
Hundreds of millions of dollars are currently being poured into the industry through the construction of new marinas, expansion of existing infrastructure, and interest from private equity seeking to acquire the assets.
The listing of Crystalbrook Superyacht Marina in Queensland in April is a prime example of the strong investor interest in superyacht marina assets, said CBRE senior director Tom Gibson. Queensland’s northernmost marina, it has 135 berths and caters for both commercial and private use for boats up to 50 metres. “A marina like Crystalbrook, with its redevelopment potential, attracts a broader range of investors, including private equity, developers, high-net-worth individuals and syndicates,” added Gibson.
“Marinas are emerging as a sought-after alternative real estate investment class. The growing discrepancy between boat registrations and available berths, particularly for larger vessels, indicates a strong demand that will continue to attract investment.”
The challenge of accommodating the extra demand from visiting superyachts can be seen through several large-scale expansions and the opening of new facilities. In Brisbane, the Rivergate Marina and Shipyard is undergoing a AUS$200 million expansion that includes a state-of-the-art shiplift capable of lifting vessels of up to 3,000 tonnes and 90 metres, a new hardstand space, sheds and berthing facilities.
Sydney’s Jones Bay Marina is being upgraded to alleviate the shortage of berths for large vessels in Sydney Harbour, adding 150 metres of floating berths, while the new AUS$500 million Shoalhaven City Marina, scheduled to open this summer, will be the first facility of its kind on the New South Wales South Coast.
It’s a sign that the industry is playing catch-up, said Peter Redford, owner of the Sydney-based yacht Domus, after the number of locally owned vessels increased dramatically through Covid-19. Redford, who is Fraser Australasia’s managing director, says the increase in demand has led to a chronic shortage of berthing facilities for visiting and permanent superyachts in Sydney. “Sydney Harbour is the most beautiful harbour in the world, but if you pulled up here with a 40-metre or a 60-metre boat you’d have trouble finding a berth,” he said. “The knock-on effect is we don’t get the visitors into Sydney; they may go to Queensland where there are more berthing opportunities, and we miss out on the spending.
“It’s a fact that superyacht owners and their guests spend vast amounts of money,” he continued. “They need food, supplies, repairs. When a vessel comes in, depending on the size, they could easily spend anywhere from $250,000 to $1 million in a matter of days. They are big spenders for the short time they’re visiting.”
Gold Coast City Marina (GCCM), where Google billionaire Sergey Brin’s Dragonfly underwent a repaint, engineering and interior refit in 2020, is also awaiting approval for a 1.5-fold expansion. GCCM chief operating officer Andrew Chapman described the AUD$300 million multi-year project as “a game changer” for the superyacht industry, with the yard’s lifting capacity to increase from 300 tonnes to 1,850 tonnes. With no tenancy vacancies at the facility and many of its 90 trade partners ready to expand into larger workshop and showrooms under the GCCM’s expansion, Chapman said the marina’s collaborative environment is one of its key advantages. “Clients are getting quotes from Europe, US and also Australia these days,” he added, emphasising the competitiveness of Australian refit services.
Policy change
A confluence of factors has caused the surge in Australia’s superyacht industry, not least the pandemic and a significant change in government legislation, said David Good, CEO of Superyacht Australia. Covid-19 prompted a repatriation of Australian-owned superyachts based overseas, he explained, which led to a domestic charter fleet explosion from 59 vessels to 121 during that period.
The introduction of the Special Recreational Vessels Act 2019, which allows foreign superyachts to operate in the Australian charter market without import restrictions, also encouraged the industry’s expansion. The new regulations mean yachts are subject to a 10 per cent goods and services tax (GST) on the charter fees they collect and are exempt from vessel import duties.
Good said Superyacht Australia has been instrumental in lobbying the legislative change to the restrictive import rules, which has significantly lifted visitation numbers, average vessel size, length of stay and increased GST income. During the 2022 calendar year, the average length of stay for a superyacht was 102 days, and although 2021 was higher at 175 days, he said border closures kept vessels moving around. “The average length of stay for a superyacht used to be 40 days. Now we are hoping to entice the owners, crews and passengers to stay for up to 200 to 365 years a year given the vast Australian marine availability,” Good said.
But the legislation hasn’t done enough to encourage the repatriation of all superyachts, with owners such as businessman Jack Cowin reversing plans to bring back his 43.8-metre Warren Yachts Silver Dream, one of two boats he keeps in Europe. Hopeful of tapping into the growing Australian charter market, Cowin said the intention was to bring Silver Dream to Australia but after further investigation of the tax implications on the domestic charter business, he decided it wasn’t financially beneficial.
“Australian tax laws aren’t very friendly for people with a charter licence, and the market is not well developed,” he said. “There’s a market for people who want to take it for a day or companies for corporate events, but the tax laws are somewhat punitive to charter companies. The idea in Europe is that everyone takes a charter for a minimum of a week. It’s a better business and there’s no doubt the European market is more charter-friendly.”
Cowin expects a viable charter market in Australia will be established in time, but at present, he said it’s not as well developed as Europe and the cruising experience is not comparable. “There’s not the same variety of places to go and visit, the distances are greater and there are no little historic towns to stop in and visit. It’s quite interesting, but it’s a different experience,” he said.
For Ahoy Club CEO Ellie Malouf, the day charter business is booming, with a consistent 20 per cent growth in weekly charters in Australia and South Pacific over the past two years. “We are witnessing a growing trend of local vessels venturing into the South Pacific during the winter months, exploring destinations such as the Solomon Islands, Fiji and Papua New Guinea,” she said. “This shift has enabled owners to capitalise on increased revenue opportunities, especially as these bucket-list destinations gain popularity. In the day charter market, there is a notable trend of boats enhancing their cruising capacities, with some accommodating up to 100 passengers – an offering not commonly feasible in Europe – to meet the demand for large-scale private and corporate events.”(Article continues below...)
An Australian first for dedicated superyacht marinas and residences
Australia’s first integrated superyacht marina and residential project, The Mantaray Marina and Residences at Main Beach on the Gold Coast in Queensland, has received an overwhelming level of interest. “It’s a one-hectare haven between the beach and the Broadwater, offering unparalleled amenities,” Gordon Corp CEO Tim Gordon said.
Mantaray’s 67-berth superyacht marina, designed to “Platinum” Gold Anchor status, provides long- and short-term berths, immediate ocean passage and year-round deepwater access. The project is the first of its kind, with private amenities including an exclusive floating lounge in the heart of the marina.
“The Mantaray Lounge is the centrepiece of the superyacht precinct, providing an unrivalled marina and clubhouse experience,” Gordon said. “Residents and superyacht guests can enjoy the highest standards of personal service including an arrival and departure lounge, restaurant and bar facilities, sundeck and private dining and meeting rooms. At any one time there will be multiple concierge staff on site, providing access to general superyacht marina operations, security services and everything from repairs and provisions to events, catering and curated experiences.”
The 24 ultra-luxe residences have attracted buyers from the local prestige market and Sydney, Melbourne and Canberra. In March, two Sydney families seeking a Gold Coast holiday home each acquired a luxury sub-penthouse within The Mantaray for $17.5 million. Builder Multiplex has commenced construction, which is on track for completion in late 2025.
A new breed of owner
Echo Yachts, Australia’s largest superyacht shipyard, is in several discussions with clients following the delivery of 56-metre Charley 2 and multiple refit projects in 2023. Having recently secured the contract to deliver the world’s biggest sailing catamaran, the business has a full schedule of major refits and new builds in the pipeline, said SYA’s Blackwell, who is also Echo Marine Group & Echo Yachts’ sales and marketing manager.
Offering an in-house team of experts across all superyacht disciplines, its facilities – including large construction halls, various docking options and a state-of-the-art 12,000-tonne floating dock – allow them to cater for the most demanding superyacht jobs, said Blackwell. “We offer and provide a personalised, transparent and flexible service – often starting from a blank sheet of paper through to completed project, be that a full-custom new-build or a carefully planned and executed refit or maintenance project.
“This avoids the need for Australian superyacht buyers or owners to have to look abroad for a foreign shipyard to perform their next project for them. They can design, build and maintain their superyacht here in Australia with a world-class Australian-owned and operated superyacht builder.”
Ownership demographics are shifting to younger and more adventurous owners, said Brock Rodwell, CEO of Ray White Marine and a second-generation yacht broker. Many of his clients are tech-savvy entrepreneurs in their thirties who are embracing a life of luxury on the water with little prior experience.
“In previous generations, yacht owners were from traditional industries such as property development, mining and logistics,” Rodwell said. “Now you’re more likely to see a much younger demographic entering the market, those who made their fortune in tech and innovative ventures. They’re prepared to go large from the outset – 30 metres and above. They’re also more detail-oriented, requesting features like improved fuel economy, longer cruising ranges and flexible cabin layouts to maximise charter potential that can offset costs, if they choose to do so.”
Australia’s largest boat event, the Sanctuary Cove International Boat Show (SCIBS), has benefited from this fervent activity, doubling in size in the past decade, prompting a AUS$30 million infrastructure investment by owner Mulpha to cater for ever-larger vessels. The May 2024 show was the largest to date, featuring more than 330 exhibitors and 700-plus boats, while attracting an estimated 50,000 visitors.
Research conducted by Griffith Business School at Griffith University estimated SCIBS injected almost half a billion dollars into the Gold Coast economy, a figure not lost on SCIBS general manager Johan Hasser, who said the event’s sustained growth was in part due to Australians’ passion for a life on the water. “The post-pandemic world has sparked a shift in leisure priorities, aligning perfectly with a robust Australian economy. This demographic craves bespoke experiences and larger vessels to accommodate them,” he said.
Bigger boats herald a change
As vessels have expanded in size, so have the itineraries, reflecting a growing desire among owners for customised expeditions that encompass longer and more adventurous voyages. “We’re witnessing bolder itineraries venturing beyond the traditional Sydney to Great Barrier Reef route. The Kimberley region in Western Australia, the Solomon Islands and Papua New Guinea are all gaining popularity,” Good observed.
The founders of Superyacht 153, a company that provides onshore support services for visiting superyachts, regularly field requests for non-traditional itineraries. “Owners are more willing to take on the elements now; they don’t want to be sipping champagne but prefer to get out into the wild,” co-founder Dave Saul said.
The 59-metre Amels Just B is one client undertaking an 18-month circumnavigation of Australia, having recently cruised from Darwin to Perth via the Kimberley and Broome.
“The logistics can be really challenging and not every yacht or crew is going to be able to handle some of these more remote places, but for those that can, it’s worthwhile and an incredible experience,” co-founder Corina Wilson said. “Just B has been keeping us updated, sending us photos of the wildlife and scenery and have told us they consider the Kimberley among the best places they’ve ever been to.”
Cairns in North Queensland continues to serve as a strategic refuel stop for vessels planning South Pacific expeditions, but locals such as John Morris, owner of 22-metre explorer Seabear, fear the region is often overlooked despite its excellent access, facilities and cruising opportunities.
“Cairns offers a compelling proposition for superyachts. It’s an international hub with direct flights on major airlines, making crew and owner transportation a breeze. It also has exceptional facilities, catering not just to berthing needs but also major repairs and even vessel construction thanks to its large shipyards,” he said.
“As a starting or finishing point, it’s a great stepping-off place for adventures cruising through Fiji, the Solomons and the Great Barrier Reef. There’s immense potential for Cairns to further solidify its position as a premier superyacht destination.”
Next stop: Brisbane 2032
The 2000 Sydney Olympics was one of the last watershed moments to have ignited Australia’s superyacht industry. It sparked the construction of new marinas, berths and services, and a similar flurry of activity is underway in the run up to the Brisbane Olympics, scheduled for August 2032.
The Queensland Government has forecast visiting superyachts will inject AUS$1.8 billion into the state’s bottom line, and many in the industry are already preparing to bring Australia’s superyacht capabilities to a global audience.
SYA’s Good is hosting annual Brisbane familiarisation trips for international speakers at the Australian Superyacht, Commercial Marine & Export Conference (ASMEX) as a way of increasing awareness of the destination. “Brisbane is the River City and will be the best Olympics to attend with a superyacht; we just have to get the word out to ensure the yacht owners and captains are assured we can cater for them,” he said.
Attracting just one per cent of the global fleet each year, there’s a long way to go for Australia to be considered a major world player. Good suggests that the rise of larger vessels with extended range could position Australia and the Asia Pacific as prime destinations for yachting.
“Our backbone is still the refit and maintenance support we can provide to yachts, but we are maturing the cruising itineraries to offer a more rounded offering – something for guests, crew and the vessel. We are looking towards the Brisbane 2032 Summer Olympics to further supercharge the industry here,” Good said.
Destination Tasmania
As far as summer destinations go, the guest experience in Tasmania is absolutely first class, Superyacht Australia CEO David Good said. Prior to the Covid-19 pandemic, vessels such as the world’s largest ketch, Aquijo, and the Baglietto Mischief were among the yachts that made the trip south to Tasmania. Now, superyachts have started to return to the destination that Good said “is on every Australian captain’s bucket list”.
Yacht Services Tasmania founder Cynthia Pascual understands the appeal better than almost anyone and is lobbying hard to bring more superyachts to the scenic wilds of the “Apple Isle”. “Tasmania is untapped territory,” she said. “The scenery is incredible, but then there’s art, culture, hikes and world-class food and wine.”
Unlike established cruising hotspots, Tasmania offers a sense of remoteness and untouched beauty. Its dramatic coastlines, secluded bays and abundant wildlife were a compelling draw for the owners of the 43-metre Sanlorenzo Globas to visit this summer. “They spent a month exploring hidden gems like Port Davey and experienced Tasmania’s unique hospitality,” Pascual said.
While infrastructure for superyachts is still developing, the island offers a unique experience with its vibrant capital Hobart’s rich colonial past, alongside a thriving art scene and world-class dining – attractions Pascual hopes will entice more visitors to the state.
