Hainan yacht industry buoyed by policy vision

A little luxury

Hongzhou Yacht Marina, the largest commercial yacht base in Hainan province, has undergone a major transformation in recent years.

"A decade ago, Hongzhou Yacht Marina was a bustling fishing harbor — with a multitude of boats moored — that an unpleasant odor emanated from that greatly inconvenienced residents and visitors," said Cui, whose company later repurposed it into the yacht marina.

Yachting, once a luxury pastime for the affluent due to the high purchase price of the boats and maintenance costs, is now accessible for more people, he said.

"Initially, yachts were predominantly used for commercial services," Cui said. "However, owners soon realized they could lease their vessels during downtimes to help defray maintenance expenses."

This shift gave rise to yacht chartering and pooling in 2014, a flourishing business that has advantages for both owners and tourists who want to experience opulence on the seas.

The implementation of hourly yacht rentals has increased the affordability of yacht tourism, said Gao Yongning, deputy director of the cruise and yacht department of the Sanya Central Business District Administration.

With the increasing availability of yachts and the maturation of the market, rental prices have plummeted from over 10,000 yuan ($1,400) to less than 1,000 yuan, making yachting increasingly accessible and boosting its popularity.

"For a three-hour yachting escapade for my family of four, the cost is now under 1,000 yuan," said Zhang, a visitor from Sichuan province.

Sanya is now home to five yacht marinas, with the Hongzhou Yacht Marina having a capacity of 450 berths and hosting around 420 yachts year-round.

Changing tack

However, a series of challenges and obstacles, which experts say need urgent attention, are testing the yacht industry in Hainan.

The upstream aspect of the industry involves design and manufacturing, the midstream sales and consumption, while the downstream covers maintenance, repairs, and financial services, said Hu Xiaoming, a special adviser to the Sanya Central Business District Administration and general manager at Hainan Marine Trade Exchange Services.

Zuo Zhiyong, secretary-general of the Sanya Cruise and Yacht Association, said "even within the midstream segment, where Hainan's yacht industry shines, there are shortcomings".

Despite flourishing yacht tourism in Sanya, operational costs have been hampered by high berthing fees, Zuo said. For instance, one well-known yacht club in Sanya pays an annual fee of around 1 million yuan to berth nine yachts.

Sanya has nearly 1,000 yacht berths, and more than 90 percent are privately owned. This has led to a shortage of affordable public berths, Zuo said.

Another critical part of the industry that needs attention is the upstream design segment, experts said.

Hu believes there is an urgent need to accelerate recruitment and training of yacht designers as well as specialists in construction, woodworking, plumbing, fiberglass work, sheet metal painting, electromechanical installation, and technical evaluation.

After setting up operations in the Lingao Jinpai Port Development Zone, Lingao Haiquan Yacht Co has boosted its manufacturing capacity, resulting in an uptick in orders.

"The growth potential of the yacht industry within the Hainan Free Trade Port is substantial," said Wu Yanfeng, assistant to the company's general manager.

In order to attract more yacht manufacturers to the province, facilities to support the industry need to be expanded and better access to land and marine resources guaranteed, Wu said.

"We hope that raw materials such as steel plates and paint can be supplied locally. Additionally, the construction of suitable sheltered harbors and yacht berthing areas are essential to alleviate the concerns of businesses," Wu added.

The company has secured orders worth about 25 million yuan this year, coming from countries including Singapore and the United Arab Emirates. It is aiming to produce 20 vessels this year, with a total output value of 80 million yuan.

"Under the Hainan Free Trade Port, we want to explore international markets and promote China's 'smart manufacturing' new energy yachts on a global scale," he said.

Showcase event

The Haikou Boat Show, a support event of the China International Consumer Products Expo since 2021, has also played a major role in driving the yacht economy in Hainan.

The exhibition aims to not only showcase vessels and businesses, but also offer a space to foster cross-industry growth and advance Hainan's yacht sector.

"Featuring sleek and innovative designs, the showcased yachts offer a fusion of novel features and experiences," Du Hongyu said while visiting the consumer expo.

This year's Haikou Boat Show was held from April 13 to 18. Visitor turnout on April 15 was double that of the previous year, underscoring the event's growing appeal and popularity.

Wang Min, chairman of the Haikou Tourism and Culture Group, said this year's focus on high-quality and new products, had enhanced the exhibition's appeal. A total of 250 yachts were featured at the event, a 14 percent increase from the previous year. The vessels included 120 from 80 international companies.

At a seminar on development of the yacht industry held during the expo, experts and observers highlighted China's huge consumption potential in the sector.

Liao Minsheng, a maritime economy expert and vice president of Hainan Tropical Ocean University, said as people's living standards rise, the consumer base for yacht tourism is gradually expanding. The yacht tourism market has been experiencing rapid growth in recent years, emerging as a new hot spot for consumer spending, as exemplified by Sanya's success, Liao added.