The cost to enjoy a Balearic Island yacht charter vacation should soon be going down. The Spanish government announced that they have ceased implementation of the IEDMT (Impuesto Especial sobre Determinados Medios de Transporte). In other words, better known in the yachting industry as the Matriculation Tax.
COST OF TAX
First introduced in 1992, the tax equaled up to 13.7% of a vessel’s value. It applied to all yachts over 15 meters used commercially. For instance, charter vessels.
In addition to the standard VAT imposed on charters, the cost to own a superyacht or rent a yacht in Spanish waters became prohibitive. This is when compared to other European Union countries.
PROTESTS BY THE MARITIME INDUSTRY
Protests by the Spanish and Mediterranean maritime industry have been ongoing ever since. Numerous reports outlined how the tax was causing economic harm, not benefit, to employment and economic activity in Spain. Some studies showed losses to the economy of 10 million euro per weekend alone, in high season.
RESCINDING THE TAX
For years, Spain ignored the calls to rescind the matriculation tax . In 2011, the European Union Court of Justice declared the Spanish Boat Tax an “unlawful practice,” yet Spanish authorities ignored the guidance laid down by the EU.
Fortunately, the Spanish government finally listened.
THE MINISTRY COMMENTS
According to a statement released by the Spanish Ministry of Finance and Public Administrations in July, the Ministry will, “…cease the application of Matriculation Tax to vessels of 15m+ engaged in commercial activity.”
While the news is widely heralded as positive, many hurdles remain before chartering in Spanish waters becomes competitive with other regions in the European Union.
“Spanish IVA (VAT) remains at 21% – nearly double the typical fees found in other EU countries,” states Jana Sheeder, President of SailAway Yacht Charters and 1-800 Yacht Charters. Sheeder adds, “A myriad of permits and registration requirements makes it difficult for charter vessels to commit to cruising in Spain.Without Spanish registration, these yachts cannot begin and end a charter within Spanish waters. So the combination of administrative burdens and high IVA keeps most charter yachts out of Spain.”
THE TAX REMAINS
It should also be noted the matriculation tax has not been eliminated.
Sheeder explains,
“The tax has not been eliminated. The Ministry was careful to use the words, ‘Ceased to be applied.’ While we expect the Spanish Parliament to vote in favor of the Ministry’s position on the matriculation tax, there is no guarantee that a future administration won’t vote to reinstate it.”
STEP IN THE RIGHT DIRECTION
Still, the abolishment of the matriculation tax is a step in the right direction. Parliament’s approval is expected within the next few months and the new exemption should be in place in time for the summer 2014 charter season.
You’ve been looking forward to this day for months. You’re at the airport, and you are ready to board a flight that will take you to your rented yacht. You finally proceed to begin your Virgin Islands yacht charter vacation. As you pass through the new airport body scanner, it crosses your mind that you may be concerned about the radiation and what this exposure could mean for you.
Some researchers agree.
ARE AIRPORT BODY SCANNERS SAFE?
“We are very concerned about that being imposed on travelers,” says Dr. Robert Stroud, a professor of biophysics at the University of California, San Francisco (UCSF). In a letter sent to the White House, Stroud and his researchers shared their concerns. “I don’t think we do know what risk we are taking. X-rays are intrinsically ionizing radiation. They damage human tissue,” says Stroud.
The Transportation Security Administration (TSA) and the Federal Government assure the public that passing through the body scanner is safe. A TSA spokesperson even stated, “We consider it a miniscule amount of radiation.”
SCIENTISTS DISAGREE
The scientists at UCSF believe that it is time for outside scientists to take a closer look at airport body scanners and their risk.
“I do think it is time for an independent investigation that really allows people to understand what the risk is that they take going through the scanner,” says Stroud.
“If you have a concern about the exposure to x-rays coming from the body scanner, simply opt for the pat down,” says Sheeder. “When you are on your way to enjoy a luxury yacht charter in the islands, the last thing you need is more travel-related stress!”
An association of charter brokers has announced an award to recognize luxury sailing charter vessels who adopt eco-friendly practices.
SAVE THE BLUE
The Charter Yacht Brokers Association International (CYBA) has launched the 2012 “Save the Blue”awards, as a continuation of the organization’s green initiative to reduce plastic water bottle waste by encouraging yachts to produce their own onboard purified drinking water.
YACHTS GO GREEN
Vessels available for charter can qualify for the award by meeting at least seven of the thirty criteria that CYBA has listed in an online survey. Many of the criteria are simple to implement and include green practices such as using biodegradable cleaners, buying sustainable seafood, and using recyclable shopping bags.
“By undertaking a few simple eco-friendly practices, the fleet of yachts for hire in the Caribbean can make a dramatic impact on the island environment. Our Team commends CYBA’s efforts.”
CYBA is hopeful these awards inspire others. For instance, captains, crews and owners. The association wants them to take more steps. In specific, to go green. Qualifying vessels are recognized at the upcoming charter industry winter shows in St. Thomas, Tortola, and Antigua.
Special mention will be given. Specifically, to the “Most Eco-friendly Sailing Yacht”
Catamaran Rafoly presents an exciting and fun yacht charter vacation option. The Blubay 92 catamaran will cruise the waters of Spain’s Balearic Islands. Mallorca has some of Europe’s finest championship golf courses. Mallorca is the largest of the Spanish.
WHAT IS INCLUDED
The yacht’s own golf pro helps guests select courses and make all arrangements during the 6 night charter, and the package includes 3 complimentary green fees.
In addition to the golf component of the trip, the package also includes airport transfers, all food and beverages (including ship’s bar), and use of the yachts onboard watersports inventory.
“Most golf-oriented vacations focus primarily on the golfer,” says Sheeder. “By adding a golf element to a yachting vacation, the non-golfers can have just as much fun as the golfers. We envision a group of 3 or 4 heading to the links, while others in the charter party go for an afternoon sail, or stop and anchor for a swim.”
Sheeder emphasizes that the location is what makes this package special. “The Balearics are to Spain what the Côte d’Azur is to France. There are numerous cafes, upscale boutiques, and nightclubs, and plenty of small coves where you can anchor and be away from the crowds.”
CATAMARAN RAFOLY OFFERS MULTIPLE COURSES
Golfers can hone their skills on any of 7 courses:
Launched in 2008, RAFOLY is a 92-foot luxury yacht charter catamaran, with accommodations for up to 8 passengers in 4 staterooms. She is a high class sail mega yacht, elegant and refined, and made for cruising with one’s friends and family on a vacation of a lifetime.
France’s efforts to seek an exemption from VAT on yacht rentals has failed, and starting July 15, 2013, charterers can expect to pay an additional 9.8% for their Côte d’Azur yacht charter.
For years, the majority of Mediterranean yacht charter vessels based in France were registered as commercial vessels. This is a strategy that allows their owners to sidestep VAT on the purchase of fuel and on the prices charged for charters. The European Union prevailed in court to force France to follow EU VAT guidelines. Beginning July 15, charters are subject to the nearly 10% fee.
Jana Sheeder, President of 1-800 Yacht Charters and SailAway Yacht Charter Consultants, Inc. is working closely with her preferred clients. She explains the new fees and to explore alternative destinations where the VAT fees are lower or even not applicable.
Sheeder says,
“We are investigating other countries in the European Union as alternative Mediterranean yacht charter destinations. Gibraltar, for example, has no import duty for yachts over 18 meters – and no VAT.”
As the year draws to a close, luxury yacht charter maven Jana Sheeder, President of SailAway Yacht Charter Consultants and 1-800 Yacht Charters, is beaming.
MAVEN COMMENTS
“We’ve closed our year with the addition of 40 brand new 2011 models to our global network of yacht charter vessels. The largest of our new offerings is the 81 meter Feadship motor yacht AIR, followed by Proteksan Turquoise yacht TALISMAN MAITON (ex-Talisman C) and Rossi Navi motor yachtHIGH POWER III (ex-Numptia), both 70 meters in overall length.”
NEWEST AND LARGEST YACHTS
Sheeder’s companies have a reputation of offering the newest and largest yachts in the world’s best destinations. She and her teams spend countless hours identifying potential charter yachts.
“Rarely do we add any yacht to our fleet that is more than two to three years old, “ says Sheeder. “Even when we consider classic-styled yachts, we prefer to promote modern reproductions of famous yachts. Clients know they can turn to us for yachts that are on the cutting edge of new technology and styling.”
CLASSIC SAILBOAT
Germania Nova classic saiilboat replica
An example of Sheeder’s pursuit of modern yachts is the newly launched 47 meter sail yacht GERMANIA NOVA, a replica of a classic racing schooner first launched in 1908. Says Sheeder,
“Turn of the century guests onboard the original yacht would marvel at the technological comforts onboard this modern vessel. From satellite televisions to 5.1 Dolby surround sound, the only thing ‘old’ on this yacht is the classic design.”
AWARD-WINNING YACHTS
Important to realize, many of the new yachts are award winners in global design competitions. Competitions, for instance, the annual ShowBoats Design Awards.
“We pay close attention to these competitions,” reports Sheeder. “The best designers and naval architects in the world judge these yachts. Odds are great that if the best minds in the industry like a boat, our clients will, too.”
SUPERYACHT EXUMA
Superyacht EXUMA
Recent award winners promoted by SailAway to their clients include late 2010 launch Perini Navi motor yacht EXUMA(Best Exterior Design & Styling Award: Displacement Motor Yachts 100-199). Also, the 42 meter Holland Jachtbouw motor yacht CALLIOPE (Best Exterior Design & Styling Award: Semi-displacement Motor Yachts).
WHAT TO EXPECT IN THE NEW YEAR
In conclusion, as to the new year, Sheeder is even more optimistic.
“Our research indicates that 72 new megayachts were ordered in 2011, the largest at 100 meters, and an average length of almost 43 meters. Eighty per cent of these newly-built yachts will be launched in 2012 or 2013, and we’ll surely have an entirely new inventory of yachts-for-hire to present to our discriminating clientele!”
At this wonderful time of the year, we at SailAway Yacht Charter Consultants and 1-800 Yacht Charters wish our “yacht charter family” of discriminating clients, superyacht owners, professional crew members, management professionals, vendors, corporate and special event attendees, personal assistants, agents, concierges, and EVERYONE with whom we’ve had the privilege and honor to work and spend time with this year, a very happy holiday season.
YOU MAKE US WHO WE ARE
We are eternally grateful to you for your patronage, readership, comments, suggestions, and interest in our offerings. Whether superyacht charters, renting a private yacht, bareboat charter, or yacht charters in locations such as Greece, the Virgin Islands, St. Barts, or the French or Italian Riviera. Further, Ibiza, the Bahamas, New England, or anywhere else in the world. We SINCERELY appreciate you.
THANK YOU
Thank you for being in our lives and for helping us to make a difference in this world. In addition, for being valuable members of Team SailAway, 1-800 Yacht Charters, bareboat.com, and The SailAway Group. Here’s to a wonderful year and future ahead for all.
The owner of a 142 foot megayacht and America’s premier yacht charter company have teamed up to bring you a sizzling Caribbean yacht charter winter special.
REBATE TIME
Motoryacht LADY J, in cooperation with SailAway Yacht Charter Consultants and 1-800 Yacht Charters, are offering a $10,000 instant rebate to the next three charter customers to confirm a 7-night or longer booking in the Caribbean in January, February or March, 2012.
EVEN MORE BENEFITS
In addition, SailAway will pay for a “Homecoming Picnic“ for you and your family and friends upon your return home after your luxury yacht charter vacation (up to $1000 in food and drinks).
“We understand the importance of finding the best values when planning a vacation,” says Jana Sheeder, President of SailAway Yacht Charters and 1-800 Yacht Charters. “The manager of motoryacht LADY J approached us with a courtesy discount of $5,000 for our customers. We decided to match that offer with an additional $5,000 instant rebate.”
“In addition, we wanted the great feelings that come with a yachting vacation to last a little longer. Our marketing department came up with the idea of a picnic for family-and-friends when the clients return home.”
“It’s a great way to share photos and stories about a wonderful vacation with your neighbors and friends.”
ABOUT LADY J
Motoryacht LADY J is a 142’ luxury yacht. She is currently in the shipyard undergoing improvements and will arrive in Antigua by December 1st. The yacht features accommodations for 10 to 12 guests in 5 staterooms and operates under the capable leadership of Captain Sandra Yawn.
ACCOMMODATIONS
The full beam Master Stateroom is located forward on deck, with private office, sofa and vanity. En-suite facilities include Jacuzzi tub for her, and separate stall shower for him, with two sinks and private bathroom.
DINING OPTIONS
Guests may choose from several options for each meal, whether seeking al fresco or air-conditioned dining between the aft deck, bridge deck, and formal dining salon.
THE SUNDECK
The magnificent sun deck boasts Jacuzzi with oversized sun pads, 2 elliptical trainers, full wet bar and TV.
Lady J Sundeck Jacuzzi
WATERTOYS
Activities abound with a 25’ towed Pursuit tender, 2 waverunners, snorkeling gear, 2 elliptical trainers, kayaks, paddle boards, fishing gear, and Wii and Xbox 360 game consoles.
RATE
Motor yacht LADY J is priced at $120,000 per week, plus running expenses, and is currently available for the Christmas and New Year’s holidays. The instant rebate of $10,000 shall be deducted from the charter rate and a $1000 gift voucher for the Homecoming Picnic will be mailed to customers upon their return home.
BOOKINGS
Current Bookings:
Nov 23-28: Nassau, Bahamas
Dec 4-10: Antigua, Caribbean
Available for Christmas and New years (10-night minimum)
Jan 22-27: Virgin Islands, Caribbean
Feb 23-Mar 1: Virgin Islands, Caribbean
Mar 23-Apr 1: Virgin Islands, Caribbean
June 3-10: Nassau, Bahamas
June 21-28: Maine, East Coast USA
Lady J is also available to charter in New England, summer 2012.
SailAway is pleased to announce additional superyacht dockage in London. They are available at ExCel London for the London Olympics. These are in addition to those at The Marina at the London Docklands, ExCel is one of the 2012 Olympic Games venues. These berths are beside the ExCel Centre at London’s Royal Docks. Charter guests there have a convenient base for the duration of the Olympic Games.
“We were thrilled in February to announce the availability of dockage at The Docklands,” says Jana Sheeder, President of SailAway Yacht Charter Consultants, as well as 1-800 Yacht Charters. “Now we can offer additional accommodations, specifically to largest yachts, at the Royal Docks. We understand the adjacent ExCel Centre will host a variety of Olympic events. Those events include Boxing, Wrestling, Fencing, Taekwondo, and Table Tennis.”
London Olympics Dockage Setup
Infrastructure is in place to provide an on-site berth manager. The setup also includes restricted public access, a dedicated parking lot for automobiles, and concierge services.
Sheeder expects heavy demand for these prime berths. She encourages yacht owners to reserve their berths right away.
Yesterday, a client texted us from his 170 foot Feadship yacht charter vessel. “@anchor next 2 yacht Eclipse n Rising Sun…no 1 else here!”
Normally, with less than a week before New Year’s Eve, the quay at Port du Gustavia is already packed with yachts, stern-to and packed like sardines, side-by-side. The annual St Barts yacht charter scene is the place to be, as A-list celebrities and corporate CEO’s spend the week yacht-hopping and partying.
NO TRAFFIC
So far this week, the big names – and big boats – have not arrived.
A recent yachting industry report ads credence to the first-hand observations in St Barts. The annual Superyachting Index analyses the global luxury yacht industry. The Index has three sections (new construction, brokerage, and charter) and covers yachts 80 feet and larger.
COMPANY PRESIDENT COMMENTS
According to industry maven, Jana Sheeder, President of SailAway Yacht Charter Consultants and 1-800 Yacht Charters,
“A lack of demand continues to put downward pressure on charter rates. A weak global economy coupled with a significant increase in the number of available yachts for hire means more yachts are competing for charter business. Add to this a host of other heavily-discounted vacation options, such as upscale villa and resort ski packages, and the number of clients electing to go boating has dwindled to 2006 recession levels.”
INDUSTRY SIZE
The Index supports Sheeder’s assertions. The size of the yacht charter industry grew more than 23 percent in 2010. As of 2009, there were about 850 yachts available for charter. In 2010, the number of yachts available rose to 1,049.
This trend is especially evident in the category of yachts from 30 to 50 meters (about 100 to 165 feet). There was a 28 per cent increase in the number of these yachts on the charter market in 2010. Consequently, the same market segment saw a reduction of 10.7 per cent in weekly base rates.
YACHT SALES
In addition, the overall number of charter weeks sold worldwide in 2010 decreased by 9 percent from those of 2009. That means that in addition to increased competition, there were fewer clients booking.
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