million. In a survey of the spending habits of 198 millionaires by Prince & Associates for Elite Traveler magazine, summer holiday spending in 2007 is up 56% on 2005. In particular, spending on private yacht charters will cost an average of US$384,000 per family this summer with the cost of chartering between $200,000 - $250,000 per week. This is part of an increasing trend among the wealthy for 'experiential excursions' that offer much more than a typical tourist vacation. As with most trends, what the wealthy are experiencing now the upper middle class will be aspiring to in theGlobal demand for private luxury yachts has been increasing steadily over the last five years. Marinas are at saturation point in many parts of the Mediterranean as well as the Caribbean with even Egypt experiencing a rapid rise in Red Sea marina developments. This growth is due to the largest demand for leisure boats ever seen.

Recreational boat ownership is currently a $25 billion international industry and sales are growing annually at 5-10%. According to Showboats International, a publication that tracks vessel construction, in 1993 the world had fewer than 700 private owners with boats over 24 metres (79 feet). Today, there are an estimated 7000 yachts over 24 metres (79 feet) in use.

Another indicator of the strong growth of the luxury yacht industry is the potential for 'flipping'. With waiting lists of up to three years for luxury yachts in the USA and Europe, yacht flipping is becoming a profitable business for entrepreneurs who commission a vessel and sell it before completion.

Why is luxury yacht ownership and the trend for yacht charter holidays increasing? There are several reasons.

1. People can live tax-free through 'off shore' residency on a yacht, cruising the world and docking in exotic, exciting locations such as Porto Cervo Marina on the Costa Smeralda in Sardinia, Marina Frapa in Croatia, Port d'Hercule in Monte Carlo and Emerald Bay Marina in the Bahamas. Yacht ownership offshore is on a record rise. Show Boats International's 2005 Global Order Book indicated that that year's increase was equal to the entire order book rating for 1995. That equates to a $1.2 billion dollar increase in sales.

2. Baby boomers are splurging on travel as a way to enjoy their retirement, wealth, relative youth and to demonstrate that they are still intrepid pathfinders. Many baby boomers already own everything they could want and now they demand experiences rather than acquisitions. Social marketing research firm DYG's survey of status symbols highlights this. "Travel is the number one non-materialistic way to express success," DYG President Madelyn Hochstein says, "and for the older set, it is also a way to express continued youth and vitality."

3. Yacht chartering now tops the list of the most popular and most expensive activity for people with a net worth of more than US$10 million. In a survey of the spending habits of 198 millionaires by Prince & Associates for Elite Traveler magazine, summer holiday spending in 2007 is up 56% on 2005. In particular, spending on private yacht charters will cost an average of US$384,000 per family this summer with the cost of chartering between $200,000 - $250,000 per week. This is part of an increasing trend among the wealthy for 'experiential excursions' that offer much more than a typical tourist vacation. As with most trends, what the wealthy are experiencing now the upper middle class will be aspiring to in the

ners with boats over 24 metres (79 feet). Today, there are an estimated 7000 yachts over 24 metres (79 feet) in use.

Another indicator of the strong growth of the luxury yacht industry is the potential for 'flipping'. With waiting lists of up to three years for luxury yachts in the USA and Europe, yacht flipping is becoming a profitable business for entrepreneurs who commission a vessel and sell it before completion.

Why is luxury yacht ownership and the trend for yacht charter holidays increasing? There are several reasons.

1. People can live tax-free through 'off shore' residency on a yacht, cruising the world and docking in exotic, exciting locations such as Porto Cervo Marina on the Costa Smeralda in Sardinia, Marina Frapa in Croatia, Port d'Hercule in Monte Carlo and Emerald Bay Marina in the Bahamas. Yacht ownership offshore is on a record rise. Show Boats International's 2005 Global Order Book indicated that that year's increase was equal to the entire order book rating for 1995. That equates to a $1.2 billion dollar increase in sales.

2. Baby boomers are splurging on travel as a way to enjoy their retirement, wealth, relative youth and to demonstrate that they are still intrepid pathfinders. Many baby boomers already own everything they could want and now they demand experiences rather than acquisitions. Social marketing research firm DYG's survey of status symbols highlights this. "Travel is the number one non-materialistic way to express success," DYG President Madelyn Hochstein says, "and for the older set, it is also a way to express continued youth and vitality."

3. Yacht chartering now tops the list of the most popular and most expensive activity for people with a net worth of more than US$10 million. In a survey of the spending habits of 198 millionaires by Prince & Associates for Elite Traveler magazine, summer holiday spending in 2007 is up 56% on 2005. In particular, spending on private yacht charters will cost an average of US$384,000 per family this summer with the cost of chartering between $200,000 - $250,000 per week. This is part of an increasing trend among the wealthy for 'experiential excursions' that offer much more than a typical tourist vacation. As with most trends, what the wealthy are experiencing now the upper middle class will be aspiring to in the

f shore' residency on a yacht, cruising the world and docking in exotic, exciting locations such as Porto Cervo Marina on the Costa Smeralda in Sardinia, Marina Frapa in Croatia, Port d'Hercule in Monte Carlo and Emerald Bay Marina in the Bahamas. Yacht ownership offshore is on a record rise. Show Boats International's 2005 Global Order Book indicated that that year's increase was equal to the entire order book rating for 1995. That equates to a $1.2 billion dollar increase in sales.

2. Baby boomers are splurging on travel as a way to enjoy their retirement, wealth, relative youth and to demonstrate that they are still intrepid pathfinders. Many baby boomers already own everything they could want and now they demand experiences rather than acquisitions. Social marketing research firm DYG's survey of status symbols highlights this. "Travel is the number one non-materialistic way to express success," DYG President Madelyn Hochstein says, "and for the older set, it is also a way to express continued youth and vitality."

3. Yacht chartering now tops the list of the most popular and most expensive activity for people with a net worth of more than US$10 million. In a survey of the spending habits of 198 millionaires by Prince & Associates for Elite Traveler magazine, summer holiday spending in 2007 is up 56% on 2005. In particular, spending on private yacht charters will cost an average of US$384,000 per family this summer with the cost of chartering between $200,000 - $250,000 per week. This is part of an increasing trend among the wealthy for 'experiential excursions' that offer much more than a typical tourist vacation. As with most trends, what the wealthy are experiencing now the upper middle class will be aspiring to in the

youth and to demonstrate that they are still intrepid pathfinders. Many baby boomers already own everything they could want and now they demand experiences rather than acquisitions. Social marketing research firm DYG's survey of status symbols highlights this. "Travel is the number one non-materialistic way to express success," DYG President Madelyn Hochstein says, "and for the older set, it is also a way to express continued youth and vitality."

3. Yacht chartering now tops the list of the most popular and most expensive activity for people with a net worth of more than US$10 million. In a survey of the spending habits of 198 millionaires by Prince & Associates for Elite Traveler magazine, summer holiday spending in 2007 is up 56% on 2005. In particular, spending on private yacht charters will cost an average of US$384,000 per family this summer with the cost of chartering between $200,000 - $250,000 per week. This is part of an increasing trend among the wealthy for 'experiential excursions' that offer much more than a typical tourist vacation. As with most trends, what the wealthy are experiencing now the upper middle class will be aspiring to in the

million. In a survey of the spending habits of 198 millionaires by Prince & Associates for Elite Traveler magazine, summer holiday spending in 2007 is up 56% on 2005. In particular, spending on private yacht charters will cost an average of US$384,000 per family this summer with the cost of chartering between $200,000 - $250,000 per week. This is part of an increasing trend among the wealthy for 'experiential excursions' that offer much more than a typical tourist vacation. As with most trends, what the wealthy are experiencing now the upper middle class will be aspiring to in the coming years. The yachts may not be as large, but they will add yet more demand to the yachting and marina industries already straining to meet the demands of the wealthy. Expect yacht prices and the cost of marina berths to continue to rise.

4. There are at least two dozen Russians now worth at least $1 billion, according to private bankers, and thousands of new Russian multi-millionaires have been created in the past five years. Roman Abramovich, the 11th richest person in the world according to Forbes, epitomises the growing reputation of Russians as the world leaders in conspicuous consumption. The mega wealthy Russian has commissioned a new yacht, the Eclipse, being built under a veil of secrecy in Germany, at a cost of around US$300 million. Yacht brokers say at least 20% of the business for new vessels over 200 feet is coming from Russians - more than from any other single country including the USA.

As Mike Kelsey, from the world's leading luxury yacht builders Palmer Johnson in Fort Lauderdale, says, "There are yachts being built for hundreds of millions of dollars and I think we have not hit the ceiling yet. Although, I will say there comes a point when a yacht is no longer a yacht; it is most certainly a ship!"