SupportThe luxury yacht and boat industry in Florida, and Fort Lauderdale in particular, is an industry that has always been big in warm, coastal states. However, in recent years the industry has boomed and grown bigger than in the past and has continued to become more and more popular with all different types of people both in and out of the business world. A lot of yachts and boats are an extremely pricey endeavor so this industry is definitely an expensive one. Yachts and boats have a broad appeal and have attracted a wide range of people and audiences, making them the new focal point for the retail and industrial industry economic expansion. The cost, price, and necessary precautions that one needs to take in order to purchase and maintain one of these boats are one of the most interesting aspects of the industry in Fort Lauderdale. Boat shows, business endeavors, and just the general growing popularity of yachts and boats in the media and in everyday life have garnered the attention of investors, suppliers and manufacturers in the Marine industry.
Boat shows are the main way that these boats and yachts are shown off and displayed for purchase in Fort Lauderdale. These are the ways that most of these units are also set up for purchase and how they are displayed for price. The boat show in Fort Lauderdale is described as the “biggest boat show in the U.S.” with 11 of the most luxurious yachts on display at the boat show along with the 1,500 other yachts and boats in the show in 2018. This boat show is called the Fort Lauderdale International Boat Show or FLIBS and it is a very popular and highly attended event. A quote from Insider describes it well, “The Fort Lauderdale International Boat Show is regarded by many as the most important event on the annual, global boat show calendar because it delivers a unique experience to both consumers and the marine industry” (Pascus 2018). That boat show has been a staple in the Florida/Fort Lauderdale community for over 60
years and it is still planned on continuing after life returns closer to normal post the Covid-19 pandemic. It ended up being the only boat show that was allowed to happen and was famous as both the first and last boat and yacht show of 2020. However, it was considered to be much too important to be canceled and the Florida governor decided to allow it to happen with precautions and distancing in place (Florida is known for being innovative when it comes to the pandemic). The show was described as “quite empty” compared to the other years that the boat show had happened as international travelers that used to regularly attend the boat show were not in attendance this time around. Although the show was almost canceled in 2020, the future of the show as of 2021 is still up for debate as vaccines roll out and life returns to the new normal.
What is most interesting is all the different types of yachts and boats that exist and especially the types that are becoming more popular as time goes on. I honestly just thought that a boat was a small yacht and a yacht was just a bigger, fancier boat. I wanted to get an idea of what kind of sales are occurring in Fort Lauderdale, so I looked up what kind of boat and yacht sales are happening as of the present moment. So far, the yachts called the “Hampton” and it’s different styles and versions are the most popular at the moment. The other one that seems to be very popular in recent years is a type of yacht called the “Alexander”. I also didn’t realize how expensive yachts really are until I looked up the selling price of boats and yachts at some of the boat shows in Fort Lauderdale. These yachts sell for 5 million dollars to a minimum of around 1 million dollars. On top of all of this, depending on where you want to dock your boat it can cost from around $2 a day to $200 a day to leave your boat or yacht parked at the dock and the price goes up with the size of the ship. This was fascinating to me because I always knew that it must be expensive to buy a brand new or even a used boat or yacht but I did not know that you might literally have to be a millionaire in order to buy even the least expensive of the nice
yachts. This leads me to believe that the purchasing of these boats and yachts are selectively targeted to those of a high socioeconomic class and businesses with the budgets to purchase boats for their own use or as investments. Even some of the smaller, cheaper boats are not affordable by any means, leading me to believe that the activity of boating or owning a yacht is only for those of a certain status in life or can get a return on investment by leasing to customers.
Although this gives a good outlook for the industry some articles have discussed some parts of the industry have been going downhill as the wealthy people who would be the main market for buying yachts question the economy. One article said that with the uncertainty between the United States and China and other global challenges that are occurring are deterring some from buying such a long-term expensive item that costs money over time. Some people believe that this purchase is simply unnecessary as “if you are not a fisherman, you don’t need a boat”. Sales have dropped in certain boat categories by 7% compared to a year ago. Boat sales are highly coordinated with consumer confidence, meaning that if consumers are not feeling that the economic market is strong enough, they may not find it necessary to buy a boat or a yacht then sales are going to go down by default. However, despite all this negative data, boathands and salesmen say that they have still been seeing lots of sales and profit and not much of a decline even though the economic situation is uncertain and some people are questioning the market. They have all but said that this dip is just the result of a normal “cycle” that occurs, fear-mongering happens about the economy and people stop spending their money on “luxury items”. However, once this fear is over and people start feeling like the world is right again the cycle loops back around to people spending money on more expensive and “unnecessary” items once again. Certainly, we see this exact same economic trend existing in far more areas than just the luxury boat and yacht industry. This industry seems to be a solid one that can survive a bit of thrashing around and going full circle through the cycle as it withstood a few turns on this wheel of economics and fear surrounding spending.
Although boat and yacht sales have moments where they have gone down in the past and people have not wanted to purchase these items due to the economy, there has actually surprisingly been a recent boom in recreational boat and yacht sales in the last year. At first this was shocking because of the pandemic but then the more I thought about it, it actually makes a lot of sense that these vehicles would become more popular. In a time now where we need to be socially distanced and away from others what better time to spend a day in the middle of the ocean? People are buying more boats and yachts because it is a way to get out and do something while still managing to stay safely away from others. Sales especially shot up in the summer of 2020 because of the lack of events, parties, and social gatherings that were available. With the hot weather couples and families need to have something to do in the warm summer in Fort Lauderdale that is also safe. Because of this, buying a boat or a yacht and being able to be socially distanced, only with your pod, and still being able to have fun in the summer has been an attractive alternative to lockdowns. I imagine that this summer with the pandemic still predicted to be a factor, that yacht and boat sales in Fort Lauderdale are likely to be strong again. Obviously, summertime would be the time that boat and yacht sales would shoot up in price and in product, but when you throw in a global pandemic it makes sense that these sales would go up and that boats and yachts would become a lot more popular even with everyday people. Boat salesmen are reporting that first-time boat sales are happening more and more often the longer the pandemic goes on not only in Florida but also in other coastal places and cities such as San Diego. There has been a record interest in boat industry sales and the pastime of recreational boating, fishing, etc. in 2020 and this trend is said to most likely continue in 2021 as well. The pandemic has made those who were considering buying a boat or yacht or even getting into boating have the final push they need to finally make the purchase. However, it can be costly to take up this hobby as previously mentioned. It can cost up to $600/day to even rent a nice yacht for day use and it is only a little bit less expensive to rent a boat in Fort Lauderdale. So it might be more worth it in this industry to just buy a boat if you live there permanently and plan to use it often as just renting every once in a while could be a waste of money. To me, it seems like this would be the perfect time to start boating or thinking about purchasing a boat/yacht especially because of the summertime being just around the corner. Reading all of this is inspiring me to try to find a boat or yacht and take it out for the entire summer and just avoid all the pandemic mess. It can be a very beneficial practice for both mental health during this time and the new normal we are currently facing as well as a future business opportunity if the boat is kept well and one wants to sell it. Basically, if you are thinking about selling your boat or yacht or if you are thinking about getting into recreational boating but needing that final sign to determine whether or not you should do it let this data be the sign.
The yacht and boat industry in Fort Lauderdale is way more intense and goes way deeper into the national identity of Florida, and even recreational boating, than I could have ever imagined or seen coming. The cost and care of these boats and yachts require a high price and commitment that explain why the boat shows are so popular amongst all kinds of people from not just the United States but all over the world. Although the industry and the types of boats and yachts that one can purchase are very wide in range of cost and style, only a certain kind of person with a certain amount of annual income can really be expected to be able to handle yacht purchasing and care. It was very interesting for me to research the industry of boats and yachts in Fort Lauderdale, Florida and I think if one was to play their cards right this is a big business to
get in and the money could be really in it if you could manage to know the right people and get on top of the industry. This aspect of Florida life is one that is worth looking into whether or not you are trying to get into the industry. It’s fascinating to see how the boating, yachting, and recreational aspects affect the everyday life of Floridians in Fort Lauderdale, and how their buying patterns impact the yacht and boat industry worldwide.