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Indonesia Tourism and Destination Management Newsletter | Vol III | Mid 2024
Yachting Tourism
Yachting, a popular sport and symbol of opulence, has its roots in the mid-1600s. The global yacht industry emerged in the 1950s and matured in the 1990s. It’s gaining popularity in developing regions due to economic growth and increasing affluence. The rising trend of yachting tourism has had a beneficial effect on the coastal regions, generating employment opportunities and contributing to the local economy. Sustainable development of yachting tourism can play a crucial role in the revival of local economies from economic downturns.
Market Dynamics
The yacht and marina markets are driven by High Net Worth Individuals (HNWIs) and Ultra High Net Worth Individuals (UHNWIs). An ultra-high-net-worth individual, also known as UHNWI, is someone with a minimum net worth of $30 million. They represent a very small fraction of the global population, only 0.003%. Currently, there are over 200,000 people who are classified as UHNWI. In recent years, there has been a consistent increase in the demand for yachts. This can be attributed to the rise in disposable income among individuals, as well as their growing interest in leisure and recreational activities, especially among the HNWI and UHNWI populations. Additionally, the increased preference for luxury tourism, personalized service, and exclusive travel experiences among travelers has also contributed to the growth in yacht sales. Despite economic slowdowns, the luxury yacht market is expected to grow from $6.30 billion in 2022 to $9.61 billion in 2027.
Marinas in Southeast Asia
New and unexplored markets like Asia are attracting significant attention from yacht owners and makers, indicating that marina development has great potential in the future. The region’s best marinas have traditionally been in Singapore, Malaysia, and Thailand, with Vietnam and the Philippines also flourishing as Asia’s new hotspots. Despite having a vast coastline and rich marine biodiversity, Southeast Asia, particularly Indonesia, has limited marina development. However, the rising trend of yachting tourism and government support indicate potential growth in this sector.
Indonesia’s Boating Tourism & Marina Market
With over 17,000 islands and the second-longest coastline in the world, Indonesia is well-positioned for marine tourism. Indonesia, being the largest archipelagic country globally, enjoys a favorable climate and boasts a rich and distinctive marine biodiversity. At present there are only 5 key boating areas/marinas in Indonesia, most of which consist of a clubhouse, a few pontoons and an anchorage: Jakarta, Bali, Lombok, Riau Islands, Raja Ampat. The government is focusing on accelerating its tourism industry, particularly marine leisure tourism.
Challenges
The growth of Indonesia’s leisure boating market is hindered by factors such as high income disparity, political instability, restrictions imposed by the government on cruising, a lack of interest on affluent middle class, and concerns about security.
Outlook & Potentials
Indonesia’s marine tourism industry, particularly yachting, is expected to flourish in the future. The country’s geographical location, the rising trend of global boating tourism, and the local government’s support are the key factors behind this optimistic outlook.
Indonesia Tourism and Destination Management Newsletter | Vol III | Mid 2024
Yachting Tourism
Yachting, a popular sport and symbol of opulence, has its roots in the mid-1600s. The global yacht industry emerged in the 1950s and matured in the 1990s. It’s gaining popularity in developing regions due to economic growth and increasing affluence. The rising trend of yachting tourism has had a beneficial effect on the coastal regions, generating employment opportunities and contributing to the local economy. Sustainable development of yachting tourism can play a crucial role in the revival of local economies from economic downturns.
Market Dynamics
The yacht and marina markets are driven by High Net Worth Individuals (HNWIs) and Ultra High Net Worth Individuals (UHNWIs). An ultra-high-net-worth individual, also known as UHNWI, is someone with a minimum net worth of $30 million. They represent a very small fraction of the global population, only 0.003%. Currently, there are over 200,000 people who are classified as UHNWI. In recent years, there has been a consistent increase in the demand for yachts. This can be attributed to the rise in disposable income among individuals, as well as their growing interest in leisure and recreational activities, especially among the HNWI and UHNWI populations. Additionally, the increased preference for luxury tourism, personalized service, and exclusive travel experiences among travelers has also contributed to the growth in yacht sales. Despite economic slowdowns, the luxury yacht market is expected to grow from $6.30 billion in 2022 to $9.61 billion in 2027.
Marinas in Southeast Asia
New and unexplored markets like Asia are attracting significant attention from yacht owners and makers, indicating that marina development has great potential in the future. The region’s best marinas have traditionally been in Singapore, Malaysia, and Thailand, with Vietnam and the Philippines also flourishing as Asia’s new hotspots. Despite having a vast coastline and rich marine biodiversity, Southeast Asia, particularly Indonesia, has limited marina development. However, the rising trend of yachting tourism and government support indicate potential growth in this sector.
Indonesia’s Boating Tourism & Marina Market
With over 17,000 islands and the second-longest coastline in the world, Indonesia is well-positioned for marine tourism. Indonesia, being the largest archipelagic country globally, enjoys a favorable climate and boasts a rich and distinctive marine biodiversity. At present there are only 5 key boating areas/marinas in Indonesia, most of which consist of a clubhouse, a few pontoons and an anchorage: Jakarta, Bali, Lombok, Riau Islands, Raja Ampat. The government is focusing on accelerating its tourism industry, particularly marine leisure tourism.
Challenges
The growth of Indonesia’s leisure boating market is hindered by factors such as high income disparity, political instability, restrictions imposed by the government on cruising, a lack of interest on affluent middle class, and concerns about security.
Outlook & Potentials
Indonesia’s marine tourism industry, particularly yachting, is expected to flourish in the future. The country’s geographical location, the rising trend of global boating tourism, and the local government’s support are the key factors behind this optimistic outlook.
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