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Welcome to Yacht Charter Market, the weekly newsletter dedicated to the world of yacht charter.

In today’s newsletter:

• Top Story: We explain the new Turkish charter regulations with Özgür Cengiz of 4U Yachting

• Charter updates: CA announcements for Denison, Istion and Fraser and special offers from IYC, Ocean Independence, Yachtsman and Superyacht Sales and Charter

• Charter photo: Project X 🌟

• Destination spotlight: Sicily 🇮🇹

• Post of the week: Views of the Monaco GP from M/Y Gladiator 📸

TOP STORY

Interview: How will new Turkish charter regulations impact this season?

At TYBA Yacht Charter Show, Jessamie Rattray sat down with Özgür Cengiz, Owner and Yacht Broker at 4U Yachting and Board Member of TYBA, to discuss recent changes to the Turkish charter legislations, Russian sanctions and 2024 charter market trends.

Could you explain the changes in charter legislation in Türkiye now?

Previously, foreign-flagged yachts smaller than 39-metres were able to conduct charters in Türkiye, including embarkation and disembarkation, and they would have to pay by metre to do this. These yachts were required to pay a fee of €36 per metre for a cruising permit, referred to as the "Contribution to the Ministry of Tourism.” This fee allowed the yachts to operate within Turkish waters by following certain entry and exit procedures.

This year, under the new legislation, all foreign flagged yachts are unable to take charter clients from Türkiye. Yachts of <39-metres with a Greek charter license can take clients from Greece and cruise in Turkish waters and can go back to Greece for embarkation. It is also possible for yachts of <39-metres with a Greek charter license to do disembarkation in Türkiye, by paying a fee of €36 per metre.

Last year, a new rule was introduced that means yachts larger than 39-metres can apply for a special Turkish charter licence, which upon approval, allows them to conduct charters in Türkiye. This includes embarkation and disembarkation in Türkiye, as long as the vessel is approved and has paid for this licence prior to the trip.

However, this license is regarded as too costly for some yachts and their owners or clients to consider Türkiye as a charter destination. Each country has specific rules and taxes applied to foreign-flagged yachts, and Türkiye strives to protect Turkish-flagged yachts and their investors.

I think the idea behind these legislations is to protect the charter market for Turkish-flagged vessels. As most Turkish-flagged commercial yachts are in the <39-metre category, by prohibiting foreign-flagged yachts in this category from collecting or dropping off clients in Türkiye, Turkish-flagged commercial yachts are protected. However, this also prevents superyachts and international charter businesses from coming to Turkiye, which is very important in my opinion.

I am always in favour of the benefits of internationally integrated charter markets, so I am uncertain if these licenses and legislations are to the benefit of Türkiye. They may need more consideration to find a more balanced method which attracts superyachts and the wider industry to Türkiye, while also protecting local investors and yacht owners.

Do you think this will be a permanent change?

Personally, I am not sure about this. Every year we see new regulations and rules all over the charter world, and these may also change or be updated. TYBA is also here to represent this industry, both in the face of problems and celebration. Ultimately, this industry contributes greatly to tourism in Türkiye, and TYBA’s role is to make it even better. I believe TYBA will continue to work collaboratively with the authorities to produce the desired outcomes.

How do you think this will impact the charter industry in Türkiye?

Clients love to do both Greece and Türkiye in one trip. Türkiye has so much to offer and cruising solely in Türkiye can easily satisfy clients. However, it is always charming to visit both countries in just one week. We can create some incredible itineraries by combining both Türkiye and Greece into a charter itinerary. Both are so beautiful, with so much to offer. It is unfortunate there is red tape around where we can pick up and drop off guests.

This situation is reciprocal; Turkish-flagged yachts can not pick up and drop off clients in Greece without a Greek charter licence. It doesn’t have a strong impact on the market of <39-metre yachts, as clients are still happy to cruise only in Turkish waters, and we have so many yachts on offer in this category. My concern is not being able to attract superyachts and their clients to choose Türkiye as their destination.

What are the main challenges surrounding chartering in Türkiye when it comes to availability? 

When it comes to Turkish-flagged yachts, there are no restrictions. We have a large availability of yachts all satisfying different needs and requirements. As I mentioned previously, there are not a lot of larger yachts in the Turkish fleet, so the opportunity for foreign-flagged, >39-metre yachts to procure a charter licence aims to fill that gap.

What interest have you had this year and how are you doing compared to previous years?

Due to various situations happening worldwide that create a level of uncertainty, we are very much prepared for shorter charters, as well as last-minute charters, this summer. Shorter charters, like day charters and long weekends, seem to be more popular, particularly around Bodrum.

As the luxury infrastructure in Bodrum is developing rapidly, with various hotels and resorts opening their doors this summer, the interest in day charters and weekend charters is increasing, in a similar style to Miami or Ibiza. We are open to adapting to a changing market at a time when people are reluctant to commit to longer charters because of global uncertainties.

How did sanctions against Russians and their yachts impact the Turkish charter industry? And how has the situation changed over time?

The situation has had both positive and negative impacts. The influx of Russian-owned yachts in Türkiye caused prices to increase, for example, marina prices are the highest they have been. The cruising grounds are also a lot busier than they used to be.

During the first two years, Russians were welcomed into Türkiye and there was a drastic increase in Russian clients. The situation exposed many clients to Türkiye who might otherwise not have chartered or brought their own vessels here, and this was an amazing opportunity to advertise our country, and it works. Through word-of-mouth recommendations, Türkiye has become more and more popular. That being said, we have noticed a slowdown in Russian clients compared to the initial two years.

LATEST CHARTER UPDATES

🚀 New CA for charter: Denison Yachting has added the 34-metre Westport motor yacht Eden to its charter fleet.

She can be chartered for the special rate of $60,000 per week, plus expenses for the first 3 Bookings between June and September in the Bahamas.

✨ Yachtsman advertised a special one time discount on the 86-metre Devonport motor yacht Chakra for charters during June.

Charter Chakra for a June special rate of 350,000 Euro per week.

IYC announced a rare gap in availability for charters onboard the 44.27-metre Sanlorenzo motor yacht La La Land. She has rare availability between 9 and 23 June in Naples and the Amalfi Coast area.

IYC also announced that the 44.17m Heesen motor yacht Bliss also has a gap to be filled from 19 to 26 June, with a 15% discount and chase boat Pardo 50 for free.

Ocean Independence announced a 10% discount for all charters taking place in June onboard the 28.06-metre Sunseeker motor yacht Mr. K Iriston.

She is based in Naples.

🌟 Istion Luxury Yachts is the new charter CA for the 25.3-metre motor yacht Lidia, which was recently refitted in 2023.

Fraser Yachts announced that the 37-metre Numarine motor yacht Amore is available for charter for the first time.

The yacht is offering private flights from the East Coast for its first few clients, and will be available for $155,000 per week in the Caribbean.

Special offer: Superyacht Sales and Charter advertised that the 39.6-metre Hatteras motor yacht Lone Star is offering a summer special rate of 10% off charters booked through August 31, 2024.

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CHARTER PHOTO OF THE WEEK

Check out the main saloon onboard the fabulous 88.01-metre Golden Yachts motor yacht Project X. ✨

DESTINATION SPOTLIGHT

Travel Inspiration: Sicily 🐚

Sicily is the largest island in the Mediterranean sea. The eternal crossroads of the Mediterranean, the island of Sicily offers everything and more to its visitors: glorious vineyards, breathtaking architecture, a rich cuisine and culture, glorious beaches and azure waters.

Sicily’s geography makes for a breathtaking visit - marvel at Mount Etna, the highest active volcano in Europe, swim blissfully in the turquoise waters, sunbathe on golden beaches, and bask in the island’s rich Mediterranean flora and fauna.

Home to 7 UNESCO World Heritage Sites, a visit to Sicily is a true cultural immersion. Guests can enjoy cultural excursions, welcoming locals, stunning natural beauty and mesmerising historical sites. A visit to Sicily is incomplete without visiting some of the island’s glorious old towns.

POST OF THE WEEK

@raphael_sauleau shared this video of the view of the sunset during the Monaco Grand Prix from onboard the 44.65-metre motor yacht Gladiator.

raphael_sauleau

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