FOLLOWING A RECENT MEETING with various Thai Government ministers and officials, including a member of the legislative assembly in the Thai Parliament, Andy Treadwell, organiser of the Singapore and Thailand Yacht Shows, said he remains hopeful that foreign superyachts will soon be able to come to Thailand to charter.
FOLLOWING A RECENT MEETING with various Thai Government ministers and officials, including a member of the legislative assembly in the Thai Parliament, Andy Treadwell, organiser of the Singapore and Thailand Yacht Shows, said he remains hopeful that foreign superyachts will soon be able to come to Thailand to charter.
Treadwell said the Government is united in trying to find a solution to the issue that is currently stopping the global superyacht fleet coming to explore Asia – the obligation to temporarily import the yacht and pay VAT on the value of the vessel.
He also said it’s aware of the need to simplify immigration and customs regulations and make them favourable for yachting tourists, and is starting to reach out to the rest of the ASEAN economic community with the objective of regional harmonisation.
Treadwell’s company is the Government’s chosen partner to drive the development of Thailand as a yachting hub for Asia including the organisation of the Thailand Yacht Show, which covers all sectors of the industry including superyachts.
He has had dozens of meetings over the past 18 months with two Deputy Prime Ministers, the Ministers of Tourism and Sports, Finance and Transport, the Governor and the Chairman of the TAT, and representatives of Thailand’s Customs, Immigration, Marine and Revenue departments.
A new Superyacht Charter Licence, approved in September 2015, was designed to allow foreign-flagged superyachts to legally charter in Thai waters for a period of 12 months.
However, a foreign-flagged superyacht still has to be temporarily imported before chartering and seven per cent of the boat’s value has to be paid as VAT to the Revenue Department.
“This remains a stumbling block to creating an effective superyacht charter licence for Thailand. No yacht owner in the world will pay millions of dollars to temporarily import their yacht, even if they are promised they can get it back later,” explained Treadwell, who said the Ministry of Finance has tasked the Revenue Department to propose a viable solution.
“There would always be a perceived risk and they are already spending a huge amount of money each year just running the yacht. It was top of our agenda at another recent ministerial meeting and what’s encouraging is the willingness by all departments to work together and find a solution.”
After the latest meeting, Treadwell said the two Ministers reaffirmed their goal to make Thailand the region’s principal superyacht hub and create a viable ‘third destination’ for foreign superyachts providing charter holidays for HNWI tourists.
“Positioning Thailand as the superyacht hub of Asia and attracting more high and ultra-high net worth tourists is just the first phase of the Thai Government’s master plan. The other ASEAN countries will follow suit, since together, as a region, ASEAN offers cruising grounds unrivalled by anywhere else in the world,” said Treadwell, who also met with the Indonesian Minister of Tourism in Bangkok recently.
“There are approximately 4,700 superyachts in the world, mostly based in the Mediterranean, of which probably a third travel to cruise in warmer climes in the winter months and together they spend hundreds of millions of dollars.
“Our goal is to put Thailand on their radar, to make Southeast Asia a viable alternative to the Caribbean for the winter season after summer in the Mediterranean, and bring all that spending power here. Key to the success of this project is being able to charter in Thailand, which has all the infrastructure necessary to attract the global fleet of superyachts.”
Thailand is a regional hub for superyachts due to a vast coastline offering spectacular short and extended cruising, and top-quality onshore facilities. However, the industry in Thailand and across Southeast Asia still remains under-developed.
“The Thai Government fully understands the potential. Their vision is clear, but more importantly, so is their desire, and this is being backed up by a lot of behind-the-scenes work by all the various departments involved. However, it takes time to change laws and regulations in any country, and we in the industry need to understand that,” Treadwell said.
“The aim is to attract more superyachts to the area, allow them to legally charter in Thai waters, and contribute significant revenues to the local economy during their time here. The Thai government has targeted superyachts as they are at the apex of the industry, generating important revenues and international PR for the country.
“Within a couple of years of overcoming the current obstacles, I expect to see more than 200 superyachts coming to Thailand each season. The benefits from this will filter down to all sectors of the industry from marinas to refit and repair, maintenance and onshore support services. It will also create jobs and most importantly of all, attract significant inward investment.”
