|By PR Newswire||
|January 6, 2014 05:19 AM EST||
SHANGHAI, Jan. 6, 2014 /PRNewswire/ -- According to new statistics, the total value of import/export trade across China's borders in the yacht and leisure boat market grew by 25.7 per cent over the last year to US$476m. Exports accounted for US$258m – an increase of 24.1 per cent – while imports grew by 24.1 per cent to US$218m.
Secondly, looking at the pattern of the global leisure boat industry, the most obvious point has been the frequent mergers and acquisitions. Three cases of note: The Italian Ferritti Group built over 99 years became 70% Chinese-owned with an investment of Euro3.7 billion injected. Secondly, in 2013, Dalian Wanda Group acquired British Yacht builder, Sunseeker for Euro320 million and thirdly, also in 2013, the Hainan SUNDIRO Holding Group invested Euro20 million in the acquisition of 75% of an Italian yacht builder Sanlonrenzo S.p.A. These three cases illustrate China's desire to become involved in the global yacht industry and their appreciation of the investment opportunities.
Taking this into account, the China (Shanghai) International Boat Show (CIBS) is a showcase for the whole yacht industry supply chain including the boats, equipment, research, development and design materials and parts, all the way through to yacht clubs, marinas and training.
Further to this, local governments across China are beginning to see the wider benefits of the leisure boat industry with 41 smaller and regional boat shows held around the country. However, these regional shows cannot compare to the China (Shanghai) International Boat Show in terms of size, scope and influence. Yet, local governments still show their support to the development of the leisure boat industry across China.
In February of last year, the State Council promulgated the Outline of National leisure travel. The second half of the State Council promulgated the country's plan for accelerating industrial structure adjustment and promoting the transformation and upgrading of industry. Both programs referred to the development of leisure cruising products, to encourage infrastructure advice to facilitate yacht cruising. It was pointed out that any products or initiatives introduced should assist with the needs of the cruise and leisure boat marine tourism development. The leisure boat industry should improve its supply chain, to cultivate the leisure boats and luxury yacht. The introduction of these two documents raises optimism about the government's reaction to leisure boating and brings hope for the leisure boat and yacht industry.
When it comes to classification of a new leisure boat, both our domestic yacht manufacturers and importer are equally concerned regarding the process of classification of yachts. This is a process required as a major step towards the customer eventually being able to register his vessel. At the moment, the process is complex and repetitive and ways to simplify the process are under exploration.
Finally, the trade association has been notified and invited by the Ministry of Finance Tax Administration to give comments on Customs and Excise Duty on yachts. The trend is for the tariffs to be reduced with consumption taxes affected in phased tranches. Certainly, the tax rate on boats should be less than 10% but this requires further discussion both within the industry and with the Ministry.
China (Shanghai) International Boat Show wishes to further consolidate its position as the Asian Boat Show for the whole industry supply chain. The show organizer won a consensus that we should propose the development of China's yacht industry toward a layered and structural change. That is to follow the market demand, insist on providing different levels of products, especially for middle- and low-end or popular end of the market.
The 19th China (Shanghai) International Boat Show will be held at the World Expo Exhibition & Convention Center from April 10-13, 2014.
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