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Boat show beats recession blues

Nautor's Swan has sold twelve 45-foot cruisers since November.

By Tammy Oaks

LONDON, England -- The September 11 attacks have dealt a blow to leisure industries, but the European yachting sector seems buoyant as demand increases in the wake of an economic downturn.

Sales have actually risen in the last year and more luxury yachts are being built than ever before. Evidence at the London Boat Show is that the luxury sport seems immune from the global slowdown.

The aftermath of the terrorist attacks have compromised job security, making people more cautious about travel. But some analysts say consumers have decided now is the time to fulfil their dreams, regardless of the expense.

VIDEO There is no shortage of interest from traders at the London Boat Show. CNN looks at the luxury yachts. Play video (QuickTime, Real or Windows Media) For the big spenders, yachts on show in Antigua Play video (QuickTime, Real or Windows Media)   RESOURCES Boat show calendar     QUICKVOTE Will the yachting industry ride the economic downturn in 2002? Yes No View Results

Peter Whitehead, National Marine Manager for Bank of Scotland, told CNN: "We have not seen any signs of a recession. In fact, last year was the best year we've had in 20 years.

"We did 40 percent more business in 2001 than we did in 2000. We’ve got a very low interest rate and consumer confidence is very strong.

"In the last year people's leisure time has become increasingly more important to them.

“After the tragic events of September 11, people took stock of their lives and thought: 'I'm going to do things now rather than put them on hold because you just don't know what the future holds.'"

At the London Boat Show, potential buyer Jerry Hobkirk, who plans to take a year out to sail around the Mediterranean with his partner and child, agreed.

"We are still relatively young, why not go for it?" he said.

Disposable Income

Nautor’s Swan has sold 12 of its newly launched 45-foot cruisers since its unveiling at the Hamburg Boat Show last November.

UK agent Patrick Lilley credits the sales to a lot of people who still have disposable income, people retiring who have planned to buy yachts for years and people recognising their own mortality.

“September 11 has had a funny effect on people. They are taking stock and saying let’s do what we've been planning to do for years,” he said.

Paul Wuyts of Beneteau, the world’s biggest builder of sailing boats, said the last five years had been exceptional for the industry.

”Four months after the September 11 attacks, I am less pessimistic than I was on September 12, 13, or 14. It has had a lesser effect than we all expected in those early days after the attacks,” he said.

Tim Coventry, Managing Director of Laser in the UK, added: "We had budgeted to increase sales from the previous year by about 12 percent, but we actually increased sales by 23 percent.”

Colin Sinclair, owner of yacht brokerage company Michael Schmidt & Partner, agreed, explaining that when interest rates are low, “there is no point putting money where it is not earning, so why not put it in objects?

"We didn't directly lose any business because of September 11," he added. "It was more the unwillingness, particularly in the U.S., of people to travel to buy boats."