June 23, 2021

Impact of COVID on the yachting industry

Of course, the Coronavirus (COVID-19) has ripped through the world and changed everything that was once considered normal and has turned everything upside down.

The virus is still prevalent across much of the globe and does not appear to be going anywhere any time soon, which is really unfortunate for a number of businesses and industries.

Lockdowns were introduced across the whole world, from countries in Asia, to the United States of America all the way through Europe and Oceania. That meant borders were closed to tourists as travelling had to be placed on the list as a luxury and something that many were unable to do for a significant period of time.

Sport and recreational activities were some of the worst hit throughout the pandemic as the virus had the horrible ability of being extremely contagious between those within a close proximity of each other.

The yachting industry was one such business that has suffered badly during the unforeseen pandemic and it is one that continues to suffer as national governments continue to impose restrictions on travel.

However, that is just the tip of the iceberg for businesses involved in this particular industry, as they face plenty of different challenges because of COVID-19 that they may not have been foreseeing any time soon.

Less demand

Unfortunately, with the introductions of lockdowns across the world, that has resulted in a significant negative shift in demand of charters and new purchases of yachts. Whilst consumers have less money because of their own specific situations due to the virus, there has subsequently become fewer demand for these luxury services and, as such, charting and purchasing yachts and other boats has become something that many have had to think negatively about when the industry appeared to be showing a rise in popularity.

Travel restrictions

As mentioned, due to the lockdowns of several nations across the world, travel restrictions have been brought into place that has seen many have to give up their annual trips abroad, as well their leisure activities that they might enjoy on a regular basis.

With the strict restrictions in place, that means many are unable to use their boats or charter a yacht, therefore reducing the demand for luxury transportation and having a huge impact on the industry as a whole.

Staff layoffs

Unfortunately, with the Coronavirus affecting demand levels and subsequently the levels of income being received, many industries within the yachting sector have had to look at several different ways to save costs.

One such cost has been cutting back on recruitment of staff, whilst also laying off a number of the staff that are already employed within the sector, for example, those involved in yacht management. In an industry that had already been showing signs of booming prior to COVID-19 coming along, that trajectory took a sharp decline and one that has affected thousands of individuals.

What could the future hold for the industry?

Whilst the current picture looks a little bleak and dark in places, there is some optimism that the industry will be able to bounce back quickly and will be able to recover because of the time lost because of the COVID-19 pandemic as those who are desperate to sail the seas will want to at the very first opportunity they get.

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