They already drive flashy cars, wear expensive watches and eat at top-end restaurants. Now rich Chinese businessmen have found a new way to flaunt their wealth — luxury boats.
“They want to go out on the ocean and have fun — and take VIP clients to fish and negotiate deals,” said Zheng Weihang, secretary general of the China Cruise and Yacht Industry Association.
With the world’s second-largest number of dollar billionaires after the US, according to Forbes magazine, China is drawing eager foreign marina developers and boat makers to its shores to tap the fast-growing market.
China currently has about 1,000 luxury powerboats and yachts moored around the country, and that number is expected to balloon to more than 10,000 over the next five years, Zheng said.
On a stretch of reclaimed land near Tianjin, Hong Kong-based developer Rainbow Land Holdings is building what it claims will be China’s largest yacht club and marina with 750 berths.
FUTURISTIC DESIGN
The futuristic design includes a 655-room hotel and underscores the expected growth in the nascent market.
“Sometimes it seems that if you build it, they will come,” said David Brightling, general manager of the development. “I think we will be a weekend destination for many people in Beijing —it’s a matter of introducing them to the lifestyle.”
Powerboats are the most popular vessels among wealthy Chinese, mainly because they are easier to handle than sailboats, and more than 80 percent of them are imported from Europe and the US.
Luxury Italian boatmaker Azimut entered the Chinese market five years ago. In that time, it has sold 30 craft, some costing as much as 100 million yuan (US$15 million), Shanghai-based sales representative Tim Bai said.
“China has a huge population and has got a lot of billionaires — there’s a huge market to be explored,” he said.
Bai’s optimism is shared by Janet Chen, editor-in-chief of China Boating magazine, who believes the industry has “huge potential.”
Chen expects the number of marinas and berths in China to nearly double over the next five years to 60 and 5,000 respectively, making for a “bright future.”
“China’s nouveau riche like new stuff and new lifestyles and they like to compete on the size of the boat,” Chen said.
SOCIAL KUDOS
While Chinese companies are starting to make luxury boats, the preference among cashed-up consumers is still for foreign-made brands that carry greater social kudos.
“When you want a high-level and high-quality product for the moment you still go for the foreign-made luxury brand,” said Delphine Lignieres, director of China Rendez-Vous, which organizes an annual luxury lifestyle exhibition on Hainan Island.
Last month, Lignieres took a group of 25 Chinese shipbuilders, marina developers and prospective boatowners to the Cannes Boat Show in France to help them discover the “lifestyle of boating.”
“Bringing them here will give them more desire to buy a boat in China afterwards,” Lignieres said. “They are mainly businessmen in real estate or finance who are looking for another lifestyle.”
After 30 years of rapid economic growth in China, a growing number of people can afford high-end products and the country is forecast to become the world’s top buyer of luxury goods by 2015, according to PriceWaterhouseCoopers.
CULTURAL SHIFT
The growing popularity of boats is more than just a sign of the growing wealth in China — it represents a cultural shift in the way people like to have fun, said Ryan Swift, editor-in-chief of Asia-Pacific Boating magazine.
“What these wealthy guys liked to do for fun [in the past] was go to very, very expensive karaoke bars or buy shiny objects. Their concept of having fun was very urban,” Swift said.
“But now they see rural and coastal territories as things to embrace, not avoid,” he said.
CONFRONTATION: The water cannon attack was the second this month on the Philippine supply boat ‘Unaizah May 4,’ after an incident on March 5 The China Coast Guard yesterday morning blocked a Philippine supply vessel and damaged it with water cannons near a reef off the Southeast Asian country, the Philippines said. The Philippine military released video of what it said was a nearly hour-long attack off the Second Thomas Shoal (Renai Shoal, 仁愛暗沙) in the contested South China Sea, where Chinese ships have unleashed water cannons and collided with Philippine vessels in similar standoffs in the past few months. The China Coast Guard and other vessels “once again harassed, blocked, deployed water cannons, and executed dangerous maneuvers” against a routine rotation and resupply mission to
GLOBAL COMBAT AIR PROGRAM: The potential purchasers would be limited to the 15 nations with which Tokyo has signed defense partnership and equipment transfer deals Japan’s Cabinet yesterday approved a plan to sell future next-generation fighter jets that it is developing with the UK and Italy to other nations, in the latest move away from the country’s post-World War II pacifist principles. The contentious decision to allow international arms sales is expected to help secure Japan’s role in the joint fighter jet project, and is part of a move to build up the Japanese arms industry and bolster its role in global security. The Cabinet also endorsed a revision to Japan’s arms equipment and technology transfer guidelines to allow coproduced lethal weapons to be sold to nations
‘POLITICAL EARTHQUAKE’: Leo Varadkar said he was ‘no longer the best person’ to lead the nation and was stepping down for political, as well as personal, reasons Leo Varadkar on Wednesday announced that he was stepping down as Ireland’s prime minister and leader of the Fine Gael party in the governing coalition, citing “personal and political” reasons. Pundits called the surprise move, just 10 weeks before Ireland holds European Parliament and local elections, a “political earthquake.” A general election has to be held within a year. Irish Deputy Prime Minister Micheal Martin, leader of Fianna Fail, the main coalition partner, said Varadkar’s announcement was “unexpected,” but added that he expected the government to run its full term. An emotional Varadkar, who is in his second stint as prime minister and at
Thousands of devotees, some in a state of trance, gathered at a Buddhist temple on the outskirts of Bangkok renowned for sacred tattoos known as Sak Yant, paying their respects to a revered monk who mastered the practice and seeking purification. The gathering at Wat Bang Phra Buddhist temple is part of a Thai Wai Khru ritual in which devotees pay homage to Luang Phor Pern, the temple’s formal abbot, who died in 2002. He had a reputation for refining and popularizing the temple’s Sak Yant tattoo style. The idea that tattoos confer magical powers has existed in many parts of Asia