Yachting law first step for Greece's superyacht renaissance
Greece’s Parliament are to vote on a bill to lift ‘cabotage’ laws. Part of a New Yachting Law devised by advisor to the Ministry of Merchant Marine, the laws could provide the launchpad for Greece's plans to attract more yachts and encourage foreign investment.…
Greece’s Parliament are to vote on a bill to lift ‘cabotage’ laws by the end of the month, the first stage in a plan to boost its prospects as premier superyacht destination.
The rules are predicted to make Greece a more attractive and viable place to charter, but also lay the groundwork for its leasing of marinas for investment scheme, which began last year with D-Marin and Camper & Nicholson Marinas both acquiring marinas for development.
Giannis Markogiannis, lawyer and government adviser on yachting and marinas legislation in Greece, has been working on the drafts of the New Yachting Law including the 'cabotage' yachting bill for months, and he is now in a position to achieve voting in before summer.
“I am pressing (competent Ministries) now because if they stall another month they will lose the summer season. The longer it takes for this one to pass the longer they have to wait also for the launching of marinas and the ports tender so it’s now their interest to run,” he said.
Greece’s current system is unpopular with many yacht charterers and captains, who say it requires convoluted and illogical routes. The laws actually came in to replace cabotage which was abolished in 2003, but their requirements on EU flagged yachts ended up as equally onerous. For example, laws require EU flagged yachts when embarking or disembarking passengers in Greece to have a designated office in Greece or appoint a captain with a Greek pension scheme. Many cannot comply and so are forced to skip huge parts of the Greece coastline in order to rush charter guests back to Turkey or Montenegro where they can be legally dropped off.
“From personal experience over the last thirty years, I think a change in this law that allows embarkation in a Greek port and disembarkation in another Greek Port, would attract a many more charters to Greece,” said Captain Jules Cope of 75m Leander, who argued the change could also bring huge benefits to the Greek economy:
“We have all experienced the harsh operating conditions that are present during the Meltemi season. Having no cabotage restrictions would then mean that the western side of Greece could benefit from having many more cruising yachts in that part of the country in July and August, due to the often mirror like conditions. The amount of revenue that pours into ports from superyachts when they are chartering therefore would pour into these ports throughout the Ionian.”
The new the New Yachting Law is the first part of the jigsaw puzzle in Greece’s superyachting recovery plan, linked in to the country’s broader scheme to attract foreign investment in order to recoup debt and rebuild the ailing economy.
Markogiannis said the law will attract more yachts in Greek waters and ports, and therefore essential as the first step to make ahead of the public bidding process of a raft of new marinas for privatization.
“You have to pass this decree first, have everyone understand the docks will be full again, then launch the tenders for the privatization and you will get a high price because by that time, the marinas will be back full.”
Foreign investment has poured into Greece in recent months, not just in the yachting sector, but in hotels, luxury villas, gold mines and consumer companies such as William Morris and Unilever, who, enticed by labour costs fallen roughly a third since the economic crisis began, have set up plants and factories in Greece. But bureaucracy, strikes, protests and the problems of reaching agreement amongst a three party government and their followers amongst the Greeks, are preventing strides being taken in investment.
In visual illustration of this, this week over 10,000 people took to the streets of Greece’s second largest city to protest against a gold mine from investors at Eldorado Gold Corp., Vancouver, Canada. The week before, a similar sized crowd marched in favour of the mine. The incident demonstrates the chaos caused by the polarized opinion that is stifling progress, with leftist supporters viewing investment as a threat to prized government subsidized jobs and others in favour of investment as a much needed aid to economic recovery for the entire country rather than an elite few.
Privatization chief Takis Athanasopoulos who quit this week on charges of dereliction of duty in former role as chief executive of public utility PPC, was a further blow to progress made in the country's investment scheme.
Markogiannis is confident however the yachting rules facilitating charter will be a smooth journey and ready for this summer. A designated 24/7 help line for industry and a website translating rules in three languages is already being prepared, demonstrating the degree of support.
The broader change of Greece as a fully fledged luxury yacht destination with the marinas and hotels and airports to match, will, however “take some time.”
“But yachting is easy. Greece is like Switzerland for snow, if you open the doors everyone will come skiing so it’s easier, but investing is still more difficult,” said Markogiannis.
The first steps are being made and it is hoped the only way can be up from there for Greece and its superyacht industry. It has much untapped potential to fulfill not only for the benefit of its visitors, but as a vital part of its economic recovery.
The rules are predicted to make Greece a more attractive and viable place to charter, but also lay the groundwork for its leasing of marinas for investment scheme, which began last year with D-Marin and Camper & Nicholson Marinas both acquiring marinas for development.
Giannis Markogiannis, lawyer and government adviser on yachting and marinas legislation in Greece, has been working on the drafts of the New Yachting Law including the 'cabotage' yachting bill for months, and he is now in a position to achieve voting in before summer.
“I am pressing (competent Ministries) now because if they stall another month they will lose the summer season. The longer it takes for this one to pass the longer they have to wait also for the launching of marinas and the ports tender so it’s now their interest to run,” he said.
Greece’s current system is unpopular with many yacht charterers and captains, who say it requires convoluted and illogical routes. The laws actually came in to replace cabotage which was abolished in 2003, but their requirements on EU flagged yachts ended up as equally onerous. For example, laws require EU flagged yachts when embarking or disembarking passengers in Greece to have a designated office in Greece or appoint a captain with a Greek pension scheme. Many cannot comply and so are forced to skip huge parts of the Greece coastline in order to rush charter guests back to Turkey or Montenegro where they can be legally dropped off.
“From personal experience over the last thirty years, I think a change in this law that allows embarkation in a Greek port and disembarkation in another Greek Port, would attract a many more charters to Greece,” said Captain Jules Cope of 75m Leander, who argued the change could also bring huge benefits to the Greek economy:
“We have all experienced the harsh operating conditions that are present during the Meltemi season. Having no cabotage restrictions would then mean that the western side of Greece could benefit from having many more cruising yachts in that part of the country in July and August, due to the often mirror like conditions. The amount of revenue that pours into ports from superyachts when they are chartering therefore would pour into these ports throughout the Ionian.”
Flisvos marina, near Athens. Fifty per cent acquired by D-Marin in 2012, more marinas are expected to be leased out to investors if the law can be passed
The new the New Yachting Law is the first part of the jigsaw puzzle in Greece’s superyachting recovery plan, linked in to the country’s broader scheme to attract foreign investment in order to recoup debt and rebuild the ailing economy.
Markogiannis said the law will attract more yachts in Greek waters and ports, and therefore essential as the first step to make ahead of the public bidding process of a raft of new marinas for privatization.
“You have to pass this decree first, have everyone understand the docks will be full again, then launch the tenders for the privatization and you will get a high price because by that time, the marinas will be back full.”
Foreign investment has poured into Greece in recent months, not just in the yachting sector, but in hotels, luxury villas, gold mines and consumer companies such as William Morris and Unilever, who, enticed by labour costs fallen roughly a third since the economic crisis began, have set up plants and factories in Greece. But bureaucracy, strikes, protests and the problems of reaching agreement amongst a three party government and their followers amongst the Greeks, are preventing strides being taken in investment.
In visual illustration of this, this week over 10,000 people took to the streets of Greece’s second largest city to protest against a gold mine from investors at Eldorado Gold Corp., Vancouver, Canada. The week before, a similar sized crowd marched in favour of the mine. The incident demonstrates the chaos caused by the polarized opinion that is stifling progress, with leftist supporters viewing investment as a threat to prized government subsidized jobs and others in favour of investment as a much needed aid to economic recovery for the entire country rather than an elite few.
Privatization chief Takis Athanasopoulos who quit this week on charges of dereliction of duty in former role as chief executive of public utility PPC, was a further blow to progress made in the country's investment scheme.
Markogiannis is confident however the yachting rules facilitating charter will be a smooth journey and ready for this summer. A designated 24/7 help line for industry and a website translating rules in three languages is already being prepared, demonstrating the degree of support.
The broader change of Greece as a fully fledged luxury yacht destination with the marinas and hotels and airports to match, will, however “take some time.”
“But yachting is easy. Greece is like Switzerland for snow, if you open the doors everyone will come skiing so it’s easier, but investing is still more difficult,” said Markogiannis.
The first steps are being made and it is hoped the only way can be up from there for Greece and its superyacht industry. It has much untapped potential to fulfill not only for the benefit of its visitors, but as a vital part of its economic recovery.
Profile links
Camper & Nicholsons Marinas International Ltd
Click here to become part of The Superyacht Group community, and join us in our mission to make this industry accessible to all, and prosperous for the long-term. We are offering access to the superyacht industry’s most comprehensive and longstanding archive of business-critical information, as well as a comprehensive, real-time superyacht fleet database, for just £10 per month, because we are One Industry with One Mission. Sign up here.
