- Published on Saturday, 13 October 2012 13:19
- Written by Carlo Caraluzzo
13 October, 2012, Jakarta: In the West, few of us ever think about the effect of the economic downturn in the Far East, even though countries like India and China are some of the largest economies on the planet. The fact is however that this area has been hit far harder than most Western nations. In the United States the wealth of the mega rich has grown more than 25% during the last decade but the combined fortunes of China´s leading billionaires had dropped more than $160 billion during the last year alone. But how does this apply to the yachting industry? When the wealthiest suffer a reduction in income one of the first things to get cut will be marine vessels. But in China the number of super/megayachts has fallen by 2.3%.
But the Chinese economy has experienced a big turnaround, according to USAToday, and yacht builders worldwide are very excited, supported by the enthusiasm exhibited economists recently and the numbers bear these feelings out. In Indonesia for instance Credit Suisse Research Institute reports that total wealth has increased nearly US$420 billion to $1.8 trillion during one 18 month period and this small country is one of the top 20 highest contributors of global wealth growth and the number of millionaires is expected to double during the next 4 years.
The yachting industry has taken notice however. Event’s organizer PT Megawatt International has already begun planning for the 2013 Indonesia Yachts Show, the largest public event ever held in that country and organizers say that inspiration comes from a mostly local group of wealthy investors, with a few expatriates thrown in for seasoning. One official in the country said that Indonesia is set to become the largest global market for luxury goods, a large part due the new found political stability in the region. The one big problem the region has is a growing pirate problem but if more money comes in and governments become more stable, the resources needed to address this problem will naturally follow.