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Analyst expects boost in August boat sales

Posted on September 19th, 2016

Marine lenders say August powerboat sales offset weak July sales with strong dollar growth and unit growth.

A Wells Fargo industry analyst speculated in a report that retail unit sales in the main powerboat segment grew about 5 percent.

“We believe U.S. industry August retail unit sales in the main powerboat segment grew [by mid single digits to high single digits],” with dollars up by a percentage in the high teens, “based on conversations with our industry lending contacts,” Wells Fargo senior analyst Tim Conder wrote.

July retail sales were weak because there were two fewer non-holiday weekdays in July this year — 20 — than in July of 2015, which had 22, and that is when dealer payoffs and state registrations typically take place, Conder wrote.

“These days were made up in August, which should smooth the two-month average to [rise] 5 percent, indicating continuation of recent strong growth,” Conder wrote. “July retail sales, initially reported [as dropping] 7 percent, based on data from 28 early-reporting states, will also likely be revised upward — but still be slightly negative — as additional states report.”

Preliminary September trends appear “flattish,” but more activity historically occurs near the end of the month, Conder wrote. Year-to-date trends continue to demonstrate broad-based strength across categories.

Wells Fargo is reiterating its 2016 forecast for a 6 percent increase in unit sales and dollar growth up 9 to 12 percent.

Given the low-aged inventory levels, Wells Fargo believes “it would take a major external shock to derail the U.S. industry trajectory.”


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Superyacht new order sales grow 7.5pc since 2003: Altagamma

Superyachts have seen a value of 8.7 billion euro, or $9.7 billion at current exchange, in 2016, amounting to 295 yachts and Italy being labeled as the largest manufacturer worldwide, according to Fondazione Altagamma.

New boats are beating out superyachts in terms of global value, at 19 billion euro, or $21 billion at current exchange, through 2015, which is a 12 percent increase from 2014. Pre-own maritime vehicles are valued at $16 billion, says the study developed in part with Delloitte.

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“The industry opportunity – as well as its duty – is to attract and obtain the most demanding and

wealthy customers who continue to grow annually by 7.5 percent all over the world, which is what the

luxury industry is currently doing as a whole,” said Armando Branchini, Deputy Chairman of

Fondazione Altagamma.

Sailing numbers
There has been a steady increase in the number of high-net-worth individuals purchasing superyachts with a 7.5 percent jump from 2009 to 2015.

Princess Yachts

Princess Yachts

Sales of pre-owned superyachts are also at an incline since 2012, with an increase of 10.6 percent with 233 boats sold in 2015. This increase follows a slight dip in sales from 2010 to 2012, in which retail dropped from 140 boats sold down to approximately 120.

However, 2009 saw the lowest number of superyachts sold with only 100 that year. While pre-owned boats are being sold significantly more than new orders, approximately 130 new superyachts were sold last year, seeing an increase from 2009 of 8.8 percent.

The yacht industry, as whole, needs to focus on targeting new customers and gaining access to a wider range of wealthy consumers. Superyachting is a very closed industry, and the goal is to infiltrate a much broader range of markets.

Camper  Nicholsons %22Baraka%22 superyacht

Camper Nicholsons Baraka superyacht

For example, yacht manufacturer Wally is sailing uncharted seas with an industry-first mobile application.

Wally’s owner’s association and race organize Wally Class is touted by the brand as the first dedicated app for a sail racing division. With yacht racing undergoing a popularity surge, a mobile app will help get the next generation of consumers interested (see story).

Per the report, North America is currently the leading market with boat sales with a share of 48 percent while Europe has a share of 20 percent.

Superyacht lifestyle
Yachts are a significant sector of the luxury industry, with affluent customers taking advantage of the opulent experience the boats provide. Many brands and companies are invested in growing the yachting industry.

Flagstone Property Group expanded the yachting lifestyle with the opening of The Deck at Island Gardens in Miami.

The Deck at Island Gardens was the latest addition to the still-developing superyacht marina, which aims to offer a singular hotspot to complement yachting. With Miami becoming a yachting haven, the extension to lifestyle branding and community was a natural step in developing the sector’s appeal to capitalize on growth opportunity without compromising exclusivity (see more).

Also, Italian apparel and accessories house Trussardi partnered with Dynamiq Yachts to outfit the D4 series model range with exclusive interiors.

The Trussardi for Dynamiq collection included an elegant array of furnishings and accessories from the Trussardi Casa collection. The Milan-based Trussardi was selected for the interior package for Dynamiq Yachts’ Jetsetter, the first model in the D4 series (see more).

“The pleasure boat market is recovering after the past few years of crisis,” said Tommaso Nastasi, yachting industry expert at Deloitte Financial Advisory Italy. “The challenge is to widen the geographical areas of end customers”.


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Former bureaucrat François Guimont suing CBC over boat-tax story …

A former top bureaucrat is suing the CBC for $800,000 over a story that alleged he used a “racket” to avoid paying $105,000 in sales taxes and duties on his 47-foot sailing boat, court documents show.

François Guimont, who recently retired as Canada’s deputy minister of public safety, was featured in an investigative story in March that focused on luxury boats sold at Canadian marinas near the U.S. border, in the binational Lake Champlain area.

The CBC’s flagship French-language investigative program, called Enquête, revealed that many of the boats are officially exported to the United States, meaning no Canadian tax is imposed by the sellers. The program also alleged that American authorities don’t impose taxes or duties, because they are told the boats are only in the United States on a temporary basis, to be stored in Canada for the winter.

CBC journalist Marie-Maude Denis, who broke Quebec’s construction scandal, referred in her story to the example of the Elysium, owned by Mr. Guimont. Asked on the television show whether he had paid sales taxes and other duties on his sailboat, Mr. Guimont answered that he “did exactly” what officials at Marina Gosselin asked him to do. He added that it would be up to the marina to explain its procedures.

In an interview with The Globe and Mail on Friday, Mr. Guimont said he paid taxes and duties on his sailboat two months after the show aired, in May of this year. He explained that when he bought the boat in 2014, he always intended to transfer it permanently from the United States to Collins Bay, on the Canadian side of Lake Ontario. He said he initially hoped to move the boat this summer, but that after experiencing a few difficulties, it will now go to a marina near Kingston, Ont., next year.

“At the time of the purchase, I knew I would pay taxes, that it was a question of time. It’s been a year or two, and now the taxes are paid,” Mr. Guimont said. “I had budgeted for that cost.”

In his lawsuit against the CBC, which was filed in court in Ottawa in June, Mr. Guimont seeks $500,000 for defamation, $200,000 in aggravated damages and $100,000 in punitive damages.

The lawsuit alleges that the CBC unfairly depicted Mr. Guimont “as being a tax evader,” as “someone trying to improperly influence a federal body” and as someone who purchased a sailing boat “without paying any sales tax and with no intention of paying sales tax.”

Mr. Guimont decried the use of the words “scandal,” “racket” and “avoidance” in the broadcast.

In its defence, which was filed in court this month, the CBC said the story aimed to raise “fiscal issues” of public interest related to the sale of luxury goods near the Canada-U.S. border.

Regarding Mr. Guimont’s statement about his “intention” of paying the sales taxes, the CBC said its story was related to the “non-payment of sales taxes at the time of the purchase of the sail boat or within a given period once the good is exported.”

Mr. Guimont told Ms. Denis in January that according to the procedures in place in Lake Champlain, “taxes are paid when the boat is brought back to Canada, if ever it is brought back to Canada,” according to the CBC.

Mr. Guimont also said he was not the only person who had acted that way, explaining “the practice is well-known.”

The CBC said Ms. Denis offered twice to provide her phone number to Mr. Guimont if he ever had anything else to add.

“I’ve answered to the best of my knowledge and in a transparent way, I have no other comment to make,” Mr. Guimont told Ms. Denis, according to the CBC.

The CBC denied any wrongdoing and stated that it abided by the principle of “responsible” journalism, invoking a defence that has been recognized by the Supreme Court of Canada in libel cases.

“The CBC and Ms. Denis do not agree that Mr. Guimont suffered damages as stated in his claim,” the CBC said in its response to the lawsuit.

The CBC story also showed an e-mail that was sent to Mr. Guimont in 2015 by the owners of Marina Gosselin, who raised fears that the Canada Border Services Agency was set to “stop allowing duty-free boats” back into Canada.

While recusing himself from the file, Mr. Guimont forwarded the e-mail to the head of the CBSA, where 24 officials quickly convened to discuss the matter raised by the then-deputy minister, according to the program.



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Former bureaucrat François Guimont suing CBC over boat-tax story

A former top bureaucrat is suing the CBC for $800,000 over a story that alleged he used a “racket” to avoid paying $105,000 in sales taxes and duties on his 47-foot sailing boat, court documents show.

François Guimont, who recently retired as Canada’s deputy minister of public safety, was featured in an investigative story in March that focused on luxury boats sold at Canadian marinas near the U.S. border, in the binational Lake Champlain area.

The CBC’s flagship French-language investigative program, called Enquête, revealed that many of the boats are officially exported to the United States, meaning no Canadian tax is imposed by the sellers. The program also alleged that American authorities don’t impose taxes or duties, because they are told the boats are only in the United States on a temporary basis, to be stored in Canada for the winter.

CBC journalist Marie-Maude Denis, who broke Quebec’s construction scandal, referred in her story to the example of the Elysium, owned by Mr. Guimont. Asked on the television show whether he had paid sales taxes and other duties on his sailboat, Mr. Guimont answered that he “did exactly” what officials at Marina Gosselin asked him to do. He added that it would be up to the marina to explain its procedures.

In an interview with The Globe and Mail on Friday, Mr. Guimont said he paid taxes and duties on his sailboat two months after the show aired, in May of this year. He explained that when he bought the boat in 2014, he always intended to transfer it permanently from the United States to Collins Bay, on the Canadian side of Lake Ontario. He said he initially hoped to move the boat this summer, but that after experiencing a few difficulties, it will now go to a marina near Kingston, Ont., next year.

“At the time of the purchase, I knew I would pay taxes, that it was a question of time. It’s been a year or two, and now the taxes are paid,” Mr. Guimont said. “I had budgeted for that cost.”

In his lawsuit against the CBC, which was filed in court in Ottawa in June, Mr. Guimont seeks $500,000 for defamation, $200,000 in aggravated damages and $100,000 in punitive damages.

The lawsuit alleges that the CBC unfairly depicted Mr. Guimont “as being a tax evader,” as “someone trying to improperly influence a federal body” and as someone who purchased a sailing boat “without paying any sales tax and with no intention of paying sales tax.”

Mr. Guimont decried the use of the words “scandal,” “racket” and “avoidance” in the broadcast.

In its defence, which was filed in court this month, the CBC said the story aimed to raise “fiscal issues” of public interest related to the sale of luxury goods near the Canada-U.S. border.

Regarding Mr. Guimont’s statement about his “intention” of paying the sales taxes, the CBC said its story was related to the “non-payment of sales taxes at the time of the purchase of the sail boat or within a given period once the good is exported.”

Mr. Guimont told Ms. Denis in January that according to the procedures in place in Lake Champlain, “taxes are paid when the boat is brought back to Canada, if ever it is brought back to Canada,” according to the CBC.

Mr. Guimont also said he was not the only person who had acted that way, explaining “the practice is well-known.”

The CBC said Ms. Denis offered twice to provide her phone number to Mr. Guimont if he ever had anything else to add.

“I’ve answered to the best of my knowledge and in a transparent way, I have no other comment to make,” Mr. Guimont told Ms. Denis, according to the CBC.

The CBC denied any wrongdoing and stated that it abided by the principle of “responsible” journalism, invoking a defence that has been recognized by the Supreme Court of Canada in libel cases.

“The CBC and Ms. Denis do not agree that Mr. Guimont suffered damages as stated in his claim,” the CBC said in its response to the lawsuit.

The CBC story also showed an e-mail that was sent to Mr. Guimont in 2015 by the owners of Marina Gosselin, who raised fears that the Canada Border Services Agency was set to “stop allowing duty-free boats” back into Canada.

While recusing himself from the file, Mr. Guimont forwarded the e-mail to the head of the CBSA, where 24 officials quickly convened to discuss the matter raised by the then-deputy minister, according to the program.



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Follow on Twitter: @danlebla


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