Infrastructure
MALTA:
Islandofpotential
InterestinMaltaasbothafagregistryandadestinationforsuperyachtsisrising.
Buthowarelocalbusinessesincreasingtheirappealandwhatliesinthefuture?
Juliet Benning reports
With a dry climate that
provides ideal conditions for
refit work all year round, and
located in the centre of the
Med, Malta certainly ticks
some of the boxes highest
on the list when it comes to
refit. Yet it seems that the
country is failing to exploit its
resources to the best of its
abilities. Raising awareness of
the wealth of opportunities the
superyacht industry can bring,
the Malta, a better destination
for superyachts conference,
held last September, highlighted
some of the ways in which
the country can improve. SB
was at the event and has
spoken to several key local
figures in the following months
to find out how plans are
being implemented.
Presumably motivated by
a less than robust economy,
Malta has already begun a
campaign targeting HNWIs by
selling citizenship for 650,000.
The controversial scheme aims
to attract individuals from
countries as China and Russia,
allowing them to buy citizenship
into the European Union, which
Malta joined in 2004. With this
plan the island also hopes to
raise its international profle by
attracting famous celebrities
and sports stars. The scheme
coincides with Maltas bid to
raise its profle as a cultural
hub as it prepares to host the
Presidency for the Council in
the EU in 2017, and for Valletta
to serve as European Capital for
Culture in 2018. Also in the
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Valletta, the historic capital of Malta
is a great place to start a charter
air is a zeitgeist which
refects the islands desire to
collaborate with other European
countries thereby attempting
to eliminate its sometimes
parochial tendencies.
Rich pickings
Although there has been
criticism that the island will
now attract tycoons looking for
a convenient place to protect
their assets from tax collectors,
the infux of these super
successful foreigners is bound
to have a positive impact on the
yachting industry and the winds
of change are prompting the
island to step up a pace.
Over the past seven
years the National Maritime
Administration (Transport
Malta) has made a concerted
efort to attract superyachts to
the country. The Malta registry
has already been feeling the
warming economic waters and
has experienced unparalleled
success with the merchant
feet Malta is currently the
largest fag in Europe and
the seventh largest in the
world. Alison Vassallo, senior
associate at Fenech & Fenech
Advocates reveals, Figures
that have recently been
published by the Malta registry
indicate that Transport Malta
has registered a record year in
2013, with a solid performance
and strong improvement in ship
and yacht registration. There
has been overall registered
growth of 13.6 per cent,
equivalent to over 6 million
gross tonnes (bringing the feet
to a record 51.8 million gross
tonnes), and a growth of 18.1
per cent in the registration of
superyachts over 24 metres in
length over the previous year.
From a jurisdictional aspect
the island has become more
attractive since the launch
by the Maltese government
in July 2013 of the more
favourable guidelines on the
VAT treatment of short-term
charters commencing in Malta.
Stable jurisdiction
The country, entrenched in
maritime afairs, also has a
solid track record as a stable
jurisdiction. It has proven to
be popular with owners and
fnanciers of both private and
commercial yachts with regard
to their fagging requirements
and also their fnancing,
chartering, importation, yacht
leasing and general fscal
requirements. Vassallo tells
SB, A strong point which
needs to be emphasised is
the excellent relations which
the private sector enjoys with
the local authorities and how
this strengthens the overall
efciency and service that can
be ofered to yacht owners,
fnanciers, yards, project
managers, brokers and other
key players using Malta and the
Photo: viewingmalta.com
options that it ofers.
But the take-up for
yachts looking for reft and
winterization in Malta has still
been slow and facilities are
not being exploited to their
potential. A visit would
12/02/2014 17:05
 Infrastructure
The setting of Camper & Nicholsons
undoubtedly reassure any
captain that the island has the
essentials: an accommodating
tax regime, ease of import,
good transport links, local
purchasing, support services
(legal, nancial), widely spoken
English, a convenient position
in Med, haulout facilities and
long stay appeal. So why is the
message failing to reach the
decision makers?
Crew demands
Without further investigation
Malta is often mistaken as
a holiday destination for
retired people. To attract
inuential crew, Malta needs
to convince them it has a
lifestyle to match their often
demanding appetites. It
would also be advantageous
if training opportunities were
present something the
government is keen to invest
in. Additionally, although the
international airport is well
connected, members of the
superyacht industry feel the
countrys appeal would increase
considerably with a direct
ight connection to the South
of France. Dr Edward Zammit
Lewis, the parliamentary
secretary for competitiveness
and economic growth, assured
delegates at the September
conference that he would look
into establishing this route,
although he was unavailable
for comment as to what the
present developments with this
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Grand Harbour Marina, Vittoriosa
A L G E R I A
proposal were.
When it comes to ret the
island is not short of facilities.
Gino Cutajar, president of the
Super Yacht Industry Network
Malta (SYINM) explains, Two
years has passed since the
privatisation of the Manoel
Island Yacht Yard and the Super
Yacht Yard, which was taken
over by Palumbo Group. During
this time both yards have been
revamping their facilities, as
well as extensively marketing
them, which should start having
a positive efect. The other
yards, Bezzina Yacht Yard and
Cassar Ship Repair Yard are also
eyeing the superyacht market
with interest. Although he
conceded that, Unfortunately
last year superyachts visiting
the island were less than the
previous year. However this
year we are more optimistic.
The review of the charter tax
makes Malta more attractive
for superyachts starting their
charters here.
Michela de Curtis from
Palumbo Malta Superyachts has
a more positive outlook, The
yard is busier and busier; we
noticed that the enquires are
increasing as well as the size
of the yachts visiting our yard.
In the last months we have
had three very large yachts
from 85m visiting our yards.
De Curtis believes this is down
to the ongoing improvements
to facilities and the fact that
once experienced Malta is not
FEBRUARY 2014
The yard
yar is busier and busier
enquires are increasing
the enquir
of the yachts visiting our yard
DISTANCE
Barcelona Corsica FROM VALLETTA
Sardinia
Algiers
TUNISIA
Palermo: 162nm
Monaco: 574nm
Dubrovnik: 447nm
Palma de Majorca: 612nm
forgotten: Captains and crew
are a bit reluctant about Malta,
but once they are here they
change their mind completely.
Palumbo is adding to its empire
with the newly acquired ITM
yard in Marseille which will
further consolidate its prowess
within the ret sector.
Improving facilities
Alongside Palumbo is the
Manoel Island Yacht Yard,
with a total area of 70,000m2,
which is being updated in a
major investment programme.
Complementing them both is
Bezzina Yacht Yard with a ret
area of 30,000m2 and a 140m
jetty. The well-established
Melita Marine Group, founded
in 1989, is another major player
in the superyacht sector,
ofering a comprehensive
range of services including
ret management, duty free
supplies and fuel bunkering.The
yard has a specialised
team of project managers who
can deal with yachts of up to
140m and has facilities that
include three docks capable
of lifting yachts up to 100m
and six berths up to 100m. The
family run Cassar Ship Repair,
with roots embedded in the
repair of commercial ships,
is also diversifying into the
superyacht market.
In terms of cruising Malta is
well placed for charter, close to
the Western Med and with Sicily
and Tunisia on its doorstep ripe
busier;; we noticed that
easing as well as the size
Rome
Tirane
ALBANIA
Sicily
M A LTA
India
Tripoli
Benghazi
Gulf of
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for exploration. Fiona Maureso,
the vice president of MYBA and
charter director at Northrop
& Johnson France, gives Malta
her endorsement for charter.
From experience she said
that the countrys capital,
Valletta, was ideally placed for
starting a charter. Gozo, too,
is showing promise in terms of
attracting more superyachts
and the Maltese government
has recently closed bids for
a cruise liner terminal and a
yacht marina. But undoubtedly
another way to raise awareness
of the islands cruising potential
would be to y charter brokers
out on reconnaissance missions
to see rst hand what is
on ofer.
The biggest message the
industry seems to have for
Malta, and this is certainly
one that is being heeded, is
that the small island needs to
reach out to decision makers
and nurture its advocates
and ambassadors. It needs to
establish a cohesive identity
in the form of a Maltese brand.
Competing with the strong
yards of the French and Italian
riviera, Malta needs to identify
what it can ofer to surpass its
Mediterranean neighbours and
spread this message. An island
with a traditionally reticent and
modest character, the Maltese
are now learning to y their
banner within the industry and
we will watch the repercussions
with interest.
12/02/2014 14:09