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The morning after Italy’s latest political corruption scandal erupted in May, when the Ligurian governor and influential local businessmen were placed under house arrest, photos of them aboard luxury yachts appeared on the front pages of several national media.
It was not the first time that images of yachts, long a symbol of wealth and opulence, had been associated with individuals accused of some form of wrongdoing. This is a problem for a major Italian yacht trade.
“Our industry will always be undermined by public perception as long as yachts are associated with scandals, as opposed to examples of Italian engineering, design and manufacturing,” says one influential yachting executive.
But the industry in Italy is now seeking greater recognition for its economic contribution, arguing the country should do more to support a sector where it appears to have excelled.
Italy is home to many of the world’s best-known yacht manufacturers, including Azimut, Sanlorenzo, Mangusta, Ferretti Riva and Codecasa. A Deloitte report for luxury association Altagamma published last month showed the country is the world’s leading producer of superyachts (longer than 24m), with half of the 1,024 current orders placed at Italian shipyards.
Deloitte emphasizes that the yachting industry “is strategic [one] for Italy’ both in terms of its contribution to the country’s GDP and in terms of spillovers to other sectors and supply chains.
In 2022, the yachting industry had an economic impact of €27 billion when indirect income from leisure activities was included. More than half of the impact comes from larger ships, and data shows that the longer the yacht, the higher the spend per guest.
In several coastal regions, such as Liguria, this industry is one of the most important contributors to the local economy, alongside the wider shipping industry. Universities in cities such as Genoa and La Spezia, for example, offer word courses in fields such as marine engineering and design. And a large number of local SMEs are suppliers to the industry. These include manufacturers of wood, marble, glass and steel.
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But of the 6,500 superyachts sailing around the world, only 6.5 percent sail under the Italian flag. If the vessels do not have such a flag, their stay in Italy is limited to 30 days, meaning that lucrative refits are often carried out elsewhere. All this limits the sector’s economic contribution to the Italian economy, say industry experts, who say yachts and their high-spending owners should be seen as an opportunity.
Tommaso Nastasi, senior partner at Deloitte, says: “The greater development of the yacht tourism industry and its supply chain can have a significant impact on the Italian economy.”
After all, Italy is a country shaped by water and rich in islands and tourist attractions. While popular destinations include the famous Capri and the Aeolian Islands, as well as Sardinia’s Emerald Coast and Portofino, there are potentially many more regions to visit, particularly in the less industrialized south, where the economy could be boosted.
The yachting industry believes that the country does not have enough ports and other infrastructure, which limits the options. A report by Deloitte found that only 30 percent of berths available in Italy are in marinas equipped for yachts and superyachts.
Overall, the tourism industry contributes about 10 percent to Italy’s GDP, and the government hopes that figure will grow. Greater development of the yachting industry could help with this. About 30 percent of superyachts vacation off the country’s shores each year.
Other measures being sought by the industry are making Italian yacht registration more attractive, harmonizing value added tax rates for chartering with hotels and simplifying bureaucratic procedures in areas such as crew recruitment checks.
The world of superyachts is small indeed, and at a time of tension over wealth inequality, supporting the sector may not be a political priority for any government. But the yachting industry is one where Italy has created jobs while companies in other industries have moved abroad or reduced local production.
Giovanna Vitelli, Chairman of Azimut Benetti and Vice President of Altagamma, adds: “We must intervene to increase the attractiveness of our ports, the hoisting of the Italian flag and the booking of charters on our shores.”
silvia.borelli@ft.com