The Italian nautical sector has grown three times faster than the national GDP from 2012 to 2022. Its impact is 2.7 times the direct economic impact and 6 times the employment impact. An untapped potential: only 6% of superyachts (>24m) in Italy fly the Italian flag.
This is the first study that outlines the economic and employment impact of the nautical industry in Italy, a global leader in the production of yachts over 24 meters, considering both shipbuilding and nautical tourism. The analysis takes into account both upstream activities (construction of new units, refit, and extraordinary maintenance) and downstream benefits generated by the residential or seasonal presence along the country’s coasts.
“The analysis not only shows the significance of the Italian nautical industry,” highlights Giovanna Vitelli, Vice President of Altagamma for the Nautical sector and President of the Azimut|Benetti Group, “but also the untapped potential of a sector with considerable growth margins: despite Italy being the world leader in superyacht construction, only 6% of these fly the Italian flag. This inhibits the beneficial effect that superyachts can generate on the territory. Therefore, it is necessary to intervene to increase the attractiveness of the Italian flag, the charter on our coasts, by assimilating VAT to the hotel activity, as well as our marinas, true destinations of nautical tourism.”
“Recreational boating is a strategic sector for Italy both for its economic contribution and for the spillover on other supply chains of the made in Italy and tourism. Greater valorization of the service chain and nautical tourism can generate significant benefits for the Italian economy,” says Tommaso Nastasi, Senior Partner at Deloitte Italy.
ITALIAN NAUTICAL INDUSTRY
- Recreational boating represents a strategic pillar for Italy, with an overall impact of approximately €27.7 billion and 157,000 employed, activating the complementary supply chains of tourism and Made in Italy, with a total economic multiplier effect of almost 2.7 times and an implicit employment multiplier of 6.0 times. These values demonstrate the need to open the debate regarding the main growth opportunities for the sector and its entire supply chain, with particular attention to the development of activities related to the use of boats, which today account for more than half of the total impact value. In detail:
- Upstream: The Italian new build nautical shipbuilding — which accounts for 50% of the global superyacht order book — is characterized by highly professional activities with high know-how and technical skills, generating an overall economic and employment impact of approximately €11.4 billion, involving over 54,000 employees, including direct, indirect, and induced jobs.
- Downstream: An even more significant contribution comes from the impact that nautical tourism and fleets have on the territories. Italy confirms itself as a relevant destination on the international scene both during the winter season, thanks to the manufacturing excellences operating in the refit sector, and during the summer season thanks to the uniqueness and attractiveness of the country’s coasts. The total economic impact of the fleet, generated by 1/3 from the value of tourist spending on the territory, is €16.3 billion, with an economic multiplier of 2.7x and 103,000 people involved at the employment level. One of the main opportunities for expanding the induced impact related to nautical tourism consequently derives from the development of port facilities.
- Only 30% of the available berths in Italy are in marinas equipped and suitable for hosting yachts and superyachts with technical and tourist services adequate for the related user.
HIGH-END NAUTICAL SECTOR
The high-end nautical sector — or large yachts over 18 meters — is the segment that registers the most significant spillover effect on the territory:
- It represents 65% of the total economic impact (amounting to €27.7 billion), with 80% of the upstream value (shipbuilding). Furthermore, despite consisting of only about 2% of the visiting fleet in Italy, it generates 55% of the downstream value, i.e., deriving from the use of the boats.
- The spending on the territory of a large yacht is 26 times higher than the average.
- Only 6.5% of superyachts (>24m) fly the Italian flag.
This represents a significant economic and employment contribution for Italy, capable of capturing the interest of a global niche of “high-spending” consumers whose consumption translates into a high socio-economic contribution, potentially even more significant.
A large yacht registered in Italy, with an Italian crew and on the country’s coasts for at least 10 weeks a year, would generate an annual overall contribution of €1.6 million per boat. Hosting an increasing number of yachts, both in transit and especially residential, would generate significant impacts on the economy and employment levels.
The already significant economic and employment impact of recreational boating at the national level has several growth opportunities through the valorization of its entire supply chain. There are all the conditions for the globally recognized leadership in yacht and superyacht construction to be extended to the services and nautical tourism supply chain to attract increasing demand both nationally and internationally.
The main development directions to increase the induced impact of nautical tourism therefore contemplate both specific regulatory adjustments to make the Italian flag more attractive, and greater investments in port infrastructures and related services, with an enhancement of technical and managerial skills and a development of innovative and sustainable platforms.
ALTAGAMMA RECOMMENDATIONS
The Vice President of Altagamma for the Nautical Sector, Giovanna Vitelli, presented the preliminary reflections of the Foundation, highlighting the priorities for strengthening the sector in Italy. In summary:
1) Align — in terms of VAT rates — nautical rental and chartering with the parameters of the hotel-tourism sector.
2) Adjust the procedures and regulations of the Italian flag to those of other International Registers, in order to increase its attractiveness.
3) Simplify the bureaucratic procedures relating, for example, to checks on yachtsmen or recruitment for recreational units.
Milan, June 25, 2024. First Altagamma-Deloitte study on the economic and employment impact of the sector.
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