SUSTAINABILITY, TECHNOLOGY & INNOVATION FOR GLOBAL YACHTING ECOSYSTEM

I arrived at the Westin Dubai Mina Seyahi Beach Resort & Marina in the Ferrari for the Dubai Boat Show Leisure Yachting Conference 2024. The conference provided a comprehensive platform for industry professionals to network, share insights, and contribute to shaping a more sustainable future for the maritime sector.

The Dubai Boat Show Leisure Yachting Conference 2024, operating under the theme “How to Navigate and Win in the New Yachting Economy of the Middle East,” brought together over 100 industry professionals to discuss crucial shifts and developments in the yachting sector. Key topics included the rapid growth of the Middle East as a yachting destination, strategies for achieving sustainability amidst national net-zero goals, and targeting ultra-high-net-worth individuals.

Held at The Westin Dubai Mina Seyahi Beach Resort & Marina, the conference commenced with opening remarks from notable dignitaries such as His Excellency Saeed Mohammed Hareb, Secretary-General of Dubai Sports Council and Senior Advisor to the Dubai Boat Show, and Trixie LohMirmand, Executive Vice President of Dubai World Trade Centre. These remarks set the stage for in-depth discussions on the region’s transformation into a global yachting hub and the impact of its remarkable performance in the sector.

The one-day Boat Show Leisure Yachting Conference, held on February 27, 2024, served as a prelude to the highly anticipated 30th Dubai International Boat Show. The conference brought together key players and visionaries in the marine leisure and tourism industries to examine crucial topics shaping the sector’s sustainable growth.

With a focus on fostering dialogue and collaboration, the conference featured engaging panel discussions, keynote speeches, and interactive sessions led by industry experts. Participants delved into emerging trends, sustainable practices, technological advancements, and strategies for driving responsible growth in the maritime leisure and tourism industries.

The conference provided a valuable platform for industry leaders and experts to exchange insights and ideas on how to adapt and thrive in the evolving yachting landscape. By addressing key challenges and opportunities, attendees could better understand the strategies needed to succeed in the new yachting economy of the Middle East.

The Dubai Boat Show Leisure Yachting Conference commenced with opening remarks from distinguished dignitaries, including His Excellency Saeed Mohammed Hareb, Secretary General of Dubai Sports Council and Senior Advisor to the Dubai Boat Show, and Trixie LohMirmand, Executive Vice President of Dubai World Trade Centre. Their remarks set the stage for discussions on the region’s transformation into a global yachting paradise and the impact of its remarkable performance in the sector, driven by government initiatives and sustainable developments like the awe-inspiring Dubai Reef.

His Excellency Saeed Mohammed Hareb, Secretary General of Dubai Sports Council, and Senior Advisor to the Dubai Boat Show said: “The Annual Dubai Boat Show Leisure Yachting Conference is an annual highlight, bringing together the best minds in the industry together to spark conversations on innovation. As we gear up to open Dubai International Boat Show 2024 in its landmark 30th edition at Dubai Harbour where we will have over 200 magnificent vessels, I can’t help but reflect on how far we have come.”

The conference provided a valuable platform for over 100 industry leaders and experts to exchange insights on the evolving yachting landscape, addressing key challenges and opportunities to thrive in the new yachting economy of the Middle East.

Abeer Al Shaali, Deputy Managing Director of Gulf Craft said: “Reflecting on the conference, it was insightful to see the maritime industry’s progression. The discussions around sustainable practices, technological advancements, and the evolving preferences of HNWIs provided valuable insights into Gulf Craft’s strategic direction. Embracing Dubai’s 2030 Vision for Sustainability, we remain dedicated to playing a pivotal role in shaping a more responsible and innovative future for yachting.”

The conference provided a comprehensive overview of the factors shaping the luxury yachting industry, including sustainability, marketing strategies, influencer collaborations, commercial approaches, and technological advancements. Industry experts expressed optimism about the sector’s ability to capitalize on the growing focus on sustainability, emphasizing the importance of incorporating green practices into commercial strategies.

Various topics were covered during the conference, such as innovative marketing techniques contributing to Dubai’s success, the role of influencers in the industry, and the transformative impact of AI on luxury yachting. AI is driving innovation in yacht design, navigation systems, and overall onboard experiences, ensuring that yachting remains at the forefront of technological progress.

The discussions at the conference underlined the powerful strategies employed by regional shipyards and brokers, reflecting the continued growth and evolution of the luxury yachting industry in the region. With a focus on sustainability, technology, and strategic partnerships, the industry is poised to meet the changing demands of yacht owners and enthusiasts worldwide.

Panel members at the Dubai Boat Show Leisure Yachting Conference discussed the advancements in green technology and its potential to create more environmentally conscious luxury yachts. They agreed that stricter emissions regulations would encourage shipyards to produce eco-friendly vessels, leading to new opportunities for profitable ventures.

Developing sustainable practices would also influence the attractiveness of eco-friendly destinations, particularly among the growing youth demographic that prioritizes sustainability. Gulf states were identified as potential beneficiaries of this trend due to their increasing focus on environmentally conscious development.

The conference attendees gained valuable insights into the progress being made in adopting advanced green technology and the potential impact of these efforts on the luxury yachting industry. As environmental concerns continue to shape consumer preferences and regulatory policies, embracing sustainability will be crucial for the future success of the sector.

Yousuf Lootah, Acting CEO of Corporate Strategy and Performance Sector, Dubai Department of Economy and Tourism, commented: “As Dubai continues to grow in stature as a leading marine tourism destination and a global superyacht capital, we look forward to the continued expansion of Dubai’s marine ecosystem and infrastructure over the next 10 years. This aligns with the aspiration of our visionary leadership and the goals of the Dubai Economic Agenda, D33, to further consolidate Dubai’s position as one of the top three global cities for business and leisure. Dubai Reef, one of our city’s most ambitious and inspiring projects yet, will play a vital role, as we remain committed to supporting our ESG and UAE NetZero 2050 goals and advancing the transition towards a green economy, with the aim of making Dubai the best city to visit, live and work in.”

The Gulf region has emerged as a leading yachting capital, with several multi-billion-dollar projects redefining industry standards. Key developments in the area include:

Ras Al Khaimah’s Wynn Al Marjan Island: A multi-billion-dollar project transforming the luxury yachting landscape in the UAE.

Saudi Arabia’s $2bn Amaala Yacht Club: A world-class yachting destination offering state-of-the-art facilities and pristine natural beauty.

NEOM’s Sindalah Island: A luxurious development combining sustainable practices and innovative technologies to create an unparalleled yachting experience.

Delegates at the conference emphasized the significance of these projects in elevating the Gulf’s status as a global yachting hub. As the region continues to invest in high-end developments and prioritize sustainability, it will likely attract more yacht owners and enthusiasts seeking exceptional experiences in line with their environmental values.

Michael Breman, Sales Director – Lurssen Yachts said: “We have seen how the customer has morphed from a ‘yachtsman’ to a ‘lifestyle-r’ who is seeing yachting as the ideal space to share with family. While many customers remain conservative and careful – it is a niche market, we are witnessing that shift which we are adapting to and has enabled further expansion.”

The yachting audience here is very careful and considerate, so it remains a very niche marketing. But the lifestyle market is very quickly realising that this is a great way to bring together the whole family and spend some quality time.” – Michael Breman, Sales Director, Lurssen Yacht

Even though luxury yachts are often seen as a symbol of wealth and extravagance, yacht builders should prioritize sustainability and eco-credentials in their designs. The growing concern for the environment among consumers and the increasing demand for eco-friendly alternatives are pushing the luxury yacht industry to adopt sustainable practices.

By focusing on sustainability, yacht builders can cater to the evolving preferences of affluent buyers who are increasingly conscious of their environmental impact. This shift towards green alternatives in the luxury yacht market is not only beneficial for the environment but also offers several advantages for yacht owners, such as:

Reduced fuel consumption and operating costs through hybrid propulsion systems or alternative energy sources like solar panels.

Extended cruising range, enabling longer voyages with a reduced carbon footprint.

Increased efficiency and performance, as sustainable technologies continue to advance.

Enhanced onboard comfort, as eco-friendly materials and systems often improve air quality and reduce noise levels.

In conclusion, prioritizing sustainability and eco-credentials in luxury yacht building is essential for addressing environmental concerns, meeting consumer demands, and ensuring the long-term success of the industry.

Speakers at the Dubai Boat Show Leisure Yachting Conference emphasized the importance of aligning boatyards’ values with those of the new-age yacht owner. This involves integrating eco-friendly features, such as hybrid electric propulsion and sustainable materials, which appeal to a younger demographic seeking to explore the world while minimizing their environmental impact.

By embracing sustainable manufacturing, luxury yacht builders can not only capitalize on the growing market but also contribute to a more eco-friendly future for the maritime industry.

Other speakers at the Dubai Boat Show Leisure Yachting Conference include Abeer AlShaali, Deputy Managing Director of UAE boat manufacturer, Gulf Craft; Guillermo Canellas Vears, Head of Asset Management at NEOM; and Yousuf Lootah, Acting CEO of Corporate Strategy and Performance at the Dubai Department of Economy & Tourism.

With an increasing number of heavyweights in the industry prioritizing green options, the conference served as a critical platform to share knowledge, insights, and best practices for driving sustainable growth. The event fostered dialogue and collaboration among participants, ultimately contributing to a more innovative and environmentally conscious future for the maritime sector.

As the demand for sustainable yachting increases, the maritime industry can expect a rise in the production and popularity of e-boats and hybrid electric propulsion vessels. These environmentally friendly crafts will not only contribute to reducing the carbon footprint of the luxury yacht market but also align with the values of a new generation of eco-conscious consumers.

In the coming years, these sustainable vessels can be seen exploring breathtaking marine hotspots such as the Dubai Reef, an ambitious project launched in 2023 to create one of the world’s largest reef developments. Spanning 600sqm of Dubai’s picturesque coastline, the Dubai Reef will serve as a prime destination for environmentally conscious tourists and yachting enthusiasts, further solidifying the UAE’s commitment to sustainable development and climate neutrality by 2050.

Eric Althaus, Managing Partner and Senior Broker of Althaus Yachts, a brokerage specializing in high-end yachts, acknowledged the growing interest in eco-friendly vessels among contemporary yacht owners. He stated that “eco yachts are the perfect solution for today’s owners who are keen to minimize their environmental impact.”

Althaus’ observation aligns with the shifting preferences of yacht owners, who increasingly seek to reconcile their passion for yachting with their commitment to sustainable living. Eco yachts, which leverage cutting-edge green technologies and materials, allow them to enjoy the luxury of yachting while simultaneously reducing their carbon footprint and contributing to the preservation of marine ecosystems.

As the industry continues to adapt to these evolving demands, it is clear that sustainable yachting practices will play an essential role in the future of the luxury yacht market.

“The modern yacht owner, often younger, seeks global exploration and adventure in remote places,” said Althaus, who will sit on a panel about innovative marketing strategies in luxury yachting at the Dubai Boat Show Leisure Yachting Conference, taking place on 27 February at the Westin Mina Seyahi.

“To align with these values, eco yachts are equipped with advanced features such as hybrid electric propulsion, sustainable materials, dynamic positioning, solar panels, and cutting-edge wastewater recovery systems, emphasising a commitment to environmental care during cruises.”

Dr. Mariem Nasraoui, R&D Director at ChromaMe Air & Surface Nano Tech, emphasized the vital role of technology in driving sustainability within the luxury yachting sector. As a speaker on a panel discussing technology’s transformative potential in the industry, Dr. Nasraoui highlighted the importance of tech-driven innovations in addressing environmental concerns and promoting a more eco-friendly approach to luxury yachting.

According to Dr. Nasraoui, technology is essential in advancing the sustainability agenda within the luxury yachting sector. By leveraging cutting-edge solutions and innovations, yacht builders and technology companies can work together to reduce the industry’s environmental impact and create more efficient, sustainable vessels that cater to the evolving preferences of eco-conscious yacht owners.

As the demand for sustainable yachting continues to grow, the insights shared by experts like Dr. Nasraoui will play a pivotal role in shaping the future of the luxury yacht market and driving positive change within the industry.

“Innovations such as eco-friendly propulsion systems, lightweight materials, and energy-efficient technologies will help reduce the environmental footprint of yachting activities while maintaining high standards of luxury and performance,” said Dr. Nasraoui.

“In the coming years, we can expect to see further integration of technology into luxury yachting, including advancements in areas such as autonomous navigation, renewable energy integration, and augmented reality experiences for passengers. These innovations will continue to enhance the overall yachting experience while addressing sustainability challenges and driving industry growth.”

In discussion at the Annual Dubai Boat Show Leisure Yachting Conference; “Introducing the Capital of the Yachting World: A New Paradise on the Global Tourism Scene,” focused on exploring the Arabian Gulf as an emerging and captivating destination for marine tourism.“What needs to be done next? What the region needs is more destinations. More Dubais to help cement the region!” – Hamza Mustafa, COO, Port Rashid DP World.

“We need to work on a proper GCC riviera. There need to be synergies and cross promotion, but even more importantly, regulations. Eco-friendly destinations are extremely popular, so we must work on our sustainability.” – Guillermo Canellas Vears, Head of Asset Management, NEOM.

The panelists explored the emergence of the Arabian Gulf as a captivating destination for marine tourism and delved into the region’s potential to attract both local and international tourists with its unique blend of natural beauty, rich cultural heritage, and luxurious offerings.

The Arabian Gulf’s appeal as a marine tourism hotspot can be attributed to several factors:

Its pristine coastline, which stretches for thousands of kilometers, offers ample opportunities for beach-goers and water sports enthusiasts alike.

The region’s abundant marine life, including coral reefs and diverse fish species, makes it an attractive destination for diving and snorkeling.

The Gulf’s cultural heritage, reflected in its historic sites, museums, and local traditions, provides an enriching experience for visitors seeking authentic encounters.

The luxury offerings in the region, such as world-class resorts, high-end restaurants, and top-tier shopping experiences, cater to the discerning tastes of affluent travelers.

With a growing focus on sustainable development, the Arabian Gulf is well-positioned to become a premier marine tourism destination, attracting visitors from around the world to its enchanting landscapes and exceptional experiences.

“When travelling people want to experience the world. Dubai offers a unique proposition, from business, to setting up family office and expanding a business. Topped by the safety it offers, Dubai is a prime destination.” – Yousuf Lootah, Acting CEO, Corporate Strategy & Performance, Dubai Department of Economy & Tourism.

The Gulf region has witnessed a remarkable rise in its status as a global yachting destination, as highlighted by Figen Ayan, Chief Port Officer of Galataport Istanbul and MedCruise. A panel discussion at the Dubai Boat Show Leisure Yachting Conference further examined this growth, attributing it to significant investments in infrastructure development, luxury tourism, and regulatory reforms.

As the Gulf region continues to evolve into a yachting hub, speakers at the conference emphasized the importance of sustainable manufacturing practices in aligning with the values of eco-conscious yacht owners and first-time buyers. By prioritizing sustainability in yacht construction, boatyards can not only cater to the demands of environmentally aware consumers but also contribute to the preservation of the region’s pristine marine ecosystems.

With the Gulf’s increasing prominence in the global yachting landscape, the Dubai Boat Show Leisure Yachting Conference served as a platform to discuss and explore the future of yachting in the region, as well as the challenges and opportunities that lie ahead.

The Dubai Reef, a groundbreaking sustainability initiative, is at the forefront of transforming the Gulf region into a global marine paradise. With its ambitious goal of deploying 20,000 purpose-built reef modules, this project aims to enhance marine biodiversity, safeguard coastal habitats, boost fish populations, and support the local marine ecosystem.

Ayan said the Dubai Reef is the result of an “amazing orchestra of collaboration” that invites visitors to dive into local culture and discover all aspects of a destination: “Especially post-pandemic, we clearly see in the marine tourism industry that travellers and Z generations are more eco-conscious, sustainable, and look for holistic experiences,” said Ayan.

“The investments in ports, marinas or waterfronts are clearly following this trend and we see that the line between ports, berths and the hinterland is no longer separated and clear cut. Cities and communities are fully integrated, and the vision is fully inclusive where tourists, yacht owners and locals are brought together in a harmonious, inclusive space in a socially sustainable manner.”

As part of the larger Dubai Can initiative, the Dubai Reef is driven by the city’s commitment to environmental sustainability and its aspiration to become a leading global sustainable city. By providing habitats for various marine organisms, these artificial reefs contribute to increased ecosystem resilience and improved food security in the UAE.

The Dubai Reef project not only represents a significant investment in protecting marine life but also serves as a testament to the region’s dedication to environmental conservation. This pioneering initiative will undoubtedly attract both yachters and divers alike, offering them a unique opportunity to explore and appreciate the beauty of a thriving and eco-friendly marine environment.

The Annual Dubai Boat Show Leisure Yachting Conference brought together a distinguished panel of experts to share valuable insights and strategies for navigating the ever-evolving luxury yachting sector. Drawing inspiration from industry leaders, the panelists explored innovative NFT marketing techniques and examined effective brand turnaround tactics.

Furthermore, the conference delved into emerging trends reshaping the luxury yachting landscape, ensuring that stakeholders were well-prepared to capitalize on new opportunities. Key discussion points included the growing importance of sustainability, the impact of technology on vessel design, and strategies for catering to the discerning needs of modern consumers.

“Our experience is based on business. We need to turn a virtual experience into real life. The real challenge will be how to transform the AI world into the real world experiences and optimize virtual reality to work for us. “ Jad Zakkak Migliorini, Europe Head of Sales & Delivery Operations & Head of Marketing, Azimut Yacht.

The Dubai Boat Show Leisure Yachting Conference highlighted the significance of technological advancements in transforming the luxury yachting industry. As technology continues to evolve, it has a profound impact on various aspects of yachting, including vessel design, construction, and marketing.

Dubai, being a frontrunner in the luxury market, is at the vanguard of these technological changes. The city’s dedication to innovation and sustainability is influencing the entire industry, raising the bar for expectations and standards.

Integrating state-of-the-art technologies such as AI, virtual reality, and sustainable materials has enhanced not only the design and performance of luxury yachts but also revolutionized the purchasing process. Potential buyers can now immerse themselves in virtual environments to experience yachts firsthand and make informed decisions based on detailed information about a vessel’s eco-friendliness and technological features.

The conference underscored the pivotal role that technology plays in shaping the future of the luxury yachting industry, with Dubai setting an example for others to follow in terms of innovation and superior customer experience.

Jad Zakkak Migliorini, Head of Sales & Delivery Operations and Head of Marketing – Azimut Yachts said: “It’s important for us to use tech to make the process of buying easier – this is what buyers are looking for right now. In the post-pandemic area, buyers expect virtual services including e-lounges which can cause challenges given our business is based on experience. There are opportunities for us to continue to optimise and curate advanced experiences using technological advancements.”

Jonny Dodge, CEO, My Ocean, and Ben Taylor, Founder, Taylor Media, explored the “Influencer Quotient – The New IQ” at The Annual Dubai Boat Show Leisure Yachting Conference.

Industry experts discussed how the mindset of ultra-high-net-worth individuals (UHNWIs) has reshaped the industry landscape, with businesses catering to their specific needs and demands. The discussions also highlighted the impact of the stock market’s performance on market growth. According to recent research, the yacht market is projected to grow at a compound annual growth rate (CAGR) of 5.1% from 2024 to 2030, reaching a value of $17.4 billion by 2034. This growth can be attributed to factors such as government initiatives, rising urbanization, and an increasing number of high-net-worth individuals.

The U.S. yacht market, in particular, is experiencing notable growth due to its high concentration of affluent consumers, extensive coastlines, and strong boating culture. As UHNWIs drive demand for custom-built, high-end yachts, technological innovations and a focus on sustainability are attracting a younger demographic interested in eco-friendly yachting solutions.

However, the yacht market also faces challenges such as regulatory complexities, environmental concerns, and the potential impact of economic fluctuations on consumer spending. Nonetheless, the market’s overall outlook remains positive, with rising global demand and growing interest in sustainable yachting practices contributing to its expansion.

“When we first opened it was extremely manual and now we are moving towards digital solutions. We give clients direct access online and what’s in the pipeline is AI. English is not everyone’s first language and a tool like ChatGPT helps putting it into perspective for people.” – Wayne Shepherd, Director (Marinas), Dubai Harbour Marinas.“

On the sustainability side we are trying to be proactive. There are solutions such as the engine manufacturers are searching for more sustainable solutions and some vessels.”

Post the conference, the delegates continued for a sumptuous lunch.

BILLIONAIRES, YACHTS & THEIR HYPERCARS