Croatia tax cut boosts yacht sector.
Shipping agents in the Adriatic Sea, who have had a tough time of it over the last two years, have received a timely boost with the significant reduction by the Croatian government of a stiff luxury tax introduced on yacht sales last August.
According to Filippo Gallo, president of Italian agents association Federagenti, the reduction of Croatia"s luxury tax is good news for the the yachting segment and for super-yachts in particular.
?The entire Adriatic area should benefit,? he said. ?The Croatian fleet has been significantly penalised by this tax, and Croatia is part of a network of routes that also takes in Venice, Trieste, Ancona and Brindisi, with a significant impact on these areas.
According to Federagenti estimates, superyachts can generate as much as ?10,000 ($13,600) in economic value for every day that they berth. Shipping agents, who provide the connection between the owner and the area, are best-placed to generate value from such opportunities.
The Croatian tax cut comes as the hard-hit yacht market shows signs of stabilising. As the Venice Yacht Show prepares to open next Thursday, new figures from BMps" Research & Intelligence unit suggest that the Italian yacht market could grow at an average rate of 5% per year between 2010 and 2012.
Given the dramatic decline in sales and earnings over the last 18 months, and the carnage wreaked on a sector that had expanded in the expectation that the boom times would continue, this is hardly an impressive number. At this stage, however, the industry would accept anything it can get.