Yachting Industry contributes VT579.5M to Vanuatu’s economy in 2023

September 25, 2024 9:31 pm | Posted in Business News | Share now TwitterFacebook

By Ezra Toara.

The first independent economic assessment of Vanuatu’s international yachting industry has revealed substantial contributions to the local economy in 2023.

Superyachts visiting Vanuatu spent an average of Vatu (VT) 12.6 million each, contributing to a total direct expenditure of VT202.6 million. Yachts under 24 metres in length spent VT1.1 million each, resulting in an overall direct expenditure of VT376.9 million. Additionally, the yachting industry generated VT579.5 million in indirect spending, benefiting local businesses and communities. This expenditure supported services such as fuel, maintenance, dockage, food, restaurants, bars, cultural visits, and other tourism activities.

Most international yachts base themselves in Port Vila and Luganville, Vanuatu’s main yachting hubs, before travelling to different cruising areas. Their economic impact reaches even the remote areas of Vanuatu, which do not usually benefit from regular tourism.

Yachts visiting Vanuatu mainly come from New Zealand, Australia, Europe, and the United States, with most arrivals occurring outside the cyclone season. Three main migration patterns were identified as the routes bringing yachts to Vanuatu.

Yachting tourism is becoming increasingly important for Pacific Island countries due to its low environmental impact and positive contributions to local economies. It generates foreign exchange and can attract international investment in infrastructure.

The Vanuatu Government is working to increase yacht arrivals and expand the yachting tourism sector, as outlined in the Vanuatu Tourism Development Plan 2021.

Yacht tourists travel widely across Vanuatu, spreading their spending across urban and remote communities. The assessment showed that in 2023, 360 foreign-registered yachts under 24 metres visited Vanuatu, based on data from the Automatic Identification System (AIS). These yachts typically range from 40 to 50 feet, a size ideal for long-distance ocean travel.

Although yacht tourists represent just 1% of all visitors to Vanuatu, they tend to stay longer and spend more than other tourists. This presents an opportunity to further develop the sector and diversify Vanuatu’s tourism industry.

A survey conducted as part of the assessment included 46 yachts, yielding a 12.2% response rate, which exceeded the industry standard. These yachts brought a combined total of 1,064 crew members and 578 guests to Vanuatu. On average, superyachts stayed for 34 days, while yachts under 24 metres stayed for 39 days.

The report illustrates the need for continued development of Vanuatu’s yachting tourism sector to maximise its economic potential.