Driving growth in superyacht cruising

At the recent Global Marine Business Advisors (GMBA) conference in Singapore, Kenta Inaba, GMBA Japan and partner at Super Yacht Logistics (SYL) Japan, gave an insightful update on the Japanese superyacht sector, underscoring the fact that Japan, with its vast coastlines and abundant maritime resources, is becoming a prime destination for very large yachts.

Japan has often been referred to as an Ocean State. Being surrounded by water, its coastline stretches more than 35,000km (22,000 mi) and no point in Japan is more than 150km (93 mi) from the sea. The availability of infrastructure (ports, airports, train stations and shipyards) is extensive throughout the country making travel easy and very accessible.
Kenta Inaba believes Japan has great allure as a cruising destination and he emphasises that being able to cruise in Japan all year round is an attractive aspect for superyacht owners. The country has also become an increasingly popular tourist destination, known for its unique blend of traditional culture and modern innovation. From exploring the stunning coastline to indulging in the country’s incredible cuisine and experiencing its diverse natural beauty, Japan offers a diverse range of attractions and experiences for superyacht owners and guests. The manifestations of Japanese culture can be found everywhere, from shrines and temples to castles and traditional fishing ports.
Kenta is enthusiastic about the significant steps the Japanese Government has taken to make visiting superyachts feel welcome. “The government has eased regulations on immigration, customs and quarantine for foreign-flagged vessels and provided services and dockage for superyachts of any size,” he said. “It is also planning to upgrade ports to accommodate additional superyacht berths, reflecting its commitment to supporting the industry. Whilst currently Japan can accommodate visiting superyachts, like every developing industry we need to keep up with the appropriate infrastructure for the bigger yachts.”
Japanese Government rules have been overhauled for foreign registered superyachts. This has brought significant changes for the superyacht industry, removing some of the red tape and bureaucracy, and putting Japan on a level playing field with many other superyacht destinations. Three key changes have been made: introduction of a Naikosen type of cruising permit; no time limit for a superyacht stay and cruise; and introduction of an ‘eligible crew pass’ that only expires if the crew member flies out of Japan or leaves in the yacht.
These three major changes have opened the doors for growth in the Japanese superyacht sector. Superyacht owners are increasingly being drawn to Japan, as evidenced by the extended stay of one yacht that planned for three weeks but cruised 61 ports and stayed for over seven months. The availability of extensive infrastructure further enhances the appeal, and this is having positive affect with regard to other vessels, too. “The profile of the industry in Japan is changing,” Kenta noted. “Whilst small boat ownership has declined, we are seeing growth in the number of motor vessels owned in the 20-30m (55-98ft) range.”
The charter market presents an obvious opportunity to drive growth in the superyacht sector and this must certainly be on the government’s horizon. It has already granted permission to all the main cruise lines to establish a cruising presence, and they are all offering extensive itineraries. Studies have shown that one superyacht with 12 guests will spend more in a local community than a large cruise ship with its all-inclusive onboard packages. Also, a cruise ship buys provisions in main centres and from corporate wholesalers whereas a superyacht provisions in local communities as it cruises around the coastline. Once governments fully understand the real economic value of superyachts, plus the many positive flow-on effects to local communities along their cruising coastline, they understand the importance of reviewing their charter regulations.
There are many examples the Japanese Government can explore that highlight the benefits of a thriving charter sector once regulations are changed. In New Zealand, Australia, Fiji and Tahiti, for example, where – after considerable lobbying from industry – the governments opened up the opportunity for foreign flagged vessels to charter, private investment in infrastructure to service these vessels significantly increased. The yachts have financially supported many small businesses in local coastline communities through their provisioning spend and maintenance requirements, and they have contributed substantial revenue to the economy and created significant job opportunities.
“Captains and owners want a significant comfort level when cruising in new territories,” Kenta said. “It is important that visiting superyachts are confident they will receive support in managing the regulatory process, are able to be provisioned with their specific requirements, and are provided with tailored itineraries that align with the owners’ preferences.”