Against a backdrop of new yacht registrations in Spain falling by over 40% during the recession, and a punitive tax regime staying in place for “supposedly” luxury purchases such as yachts, it was always going to be challenge for the organisers to put together this year’s Palma Boat Show.

Despite all that, they have still managed to create an event offering the usual combination of floating and land based exhibits, and these can be viewed in a totally outdoor environment which sets the Palma Show apart from others.

Up to 300 boats  are expected to be afloat on the moorings, with the largest, a sailing cruiser from San Lorenzo, being 45 metres long.  Plus  the Italian builder will also have their award winning 40 metre alloy motor yacht on display. 

German builder Bavaria Yachts who turned out 2000 vessels last year, also have an impressive display of power and sail boats between 8,5 and 14 metres at the show, and more models to view or sea-trial just 5 minutes away at Club de Mar, reachable by an arranged shuttle service.

Below our press colleague Pepe Quiroga from Gaceta Nautica, interviews Chema Sans, Director of The Palma  Boat Show about his views on the 27th edition:

Q: Spain, like many other western countries, is enduring a major economic crisis and the start of any recovery still seems a long way off. How is the crisis affecting the Boat Show? Have you noticed any signs of recovery?

A: No. It was seriously affected last year and this year too. And for the moment, there are no signs of recovery. The reality is harsh. The Balearic sailing sector is having a hard time. And any Show, whether sailing or not, can only be a reflection of reality.

Q: Your answer gives me the impression that this year the Boat Show will have less exhibition space?

A: Yes, the Show will be smaller than last year. The reduction in exhibition space relates more to floor area than water surface. A 17% loss compared with last year.  It is true that it is not such a calamity as the Barcelona Show, which lost nearly 70% of exhibition space and not so tragic as the Madrid Show which simply did not take place.  But yes, this year the crisis has again forced us to reduce the size of the Palma Show.

Q: Did you think at any time that there would not be a Show this year?  Has your marketing gone wrong?

A: No, to the first part of your question and yes to the second.  Obviously the crisis has made its planning slower and more complicated, because salesmen have had to deal with a sector which has major financial problems.  Therefore, the expectation of taking part has not been the same as in previous years.  Remember that then we even had a waiting list months before the opening and many companies could not take part despite the show occupying the huge port area that the Port Authority assigned to us.

Q: Will this be felt in terms of exhibitors and products?

A:  Of course.  Someone who used to turn up with ten boats, this year will only exhibit three.  The crisis is also affecting them.  They are involved in a cost reduction or optimisation policy to ensure maximum profit from their stock. 

Q:  One of the characteristics of the Palma Boat Show which is particularly appreciated by exhibitors is the ability to make direct sales at the Show itself, unlike other exhibitions which do not allow it.  Will you be selling more new or secondhand boats?

A: Both, I hope.  I assume that the shipyards will include not only new boats but also all those which they bought from their customers to encourage them to trade up. 

Q: I anticipate and forecast, more secondhand and more sailing boats.

A: And I do not think you are wrong.  In times of crisis, someone who has made the decision to buy knows that he has those two options.  Obviously secondhand boats are cheaper than new ones and sailing boats are easier to maintain than motor boats.  And also, it is in response to the huge 41% slump in Balearic registrations this year.  On the other hand, Spanish financial institutions are definitely not being helpful when it comes to buying a boat. 

Q: And will the Show be more national than international this year?

A: No.  It will be more international.  Let’s not kid ourselves.  The crisis is much more severe in Spain than elsewhere where the sector has stood up better.  More boats are being bought abroad than in Spain.  But even so, we are very grateful for the effort that Spanish companies are making to be present in Palma this year.  This winter has been really bad for small and medium sized Spanish nautical companies.  Therefore, there will be more foreign companies. 

Q: An effort that has benefited from financial aid from the Balearic Government.

A: Yes of course.  With a 35% discount.  And not only Spanish companies, but also foreign ones with headquarters in the Balearics.  And it will also be offering a 35% discount on the registration charge for boats sold at the Show.

Q:  What level of loyalty do foreign companies have for the Show?

A:  High.  For them, the Palma Show is very profitable and very commercial.  Also, they like the dates on which it is held and of course its location.  As far as they are concerned, Palma is a very appropriate venue for attracting customers.  It should not be forgotten that because the Show is also afloat and being held in a special nautical and tourist environment… let us say, it is of more help and encouragement to them. 

Q: That’s strange.  A few Majorcan companies criticise that, in that regard, the Show has become a Dijous Bo, a village fair, with lots of passers by but few interested buyers.

A:  I do not agree.  That criticism implies lots of people and little business.  But that is not the case.  The Show has always had lots of visitors and a fair amount of business.  Many people intent on buying visit it.  On the other hand, I was talking about foreign companies which even win their customers outside and take them to Palma because of the attractive conditions I talked about above.  And in that regard, I believe that those who are saying these things should perhaps follow the example of those other companies, which do not only wait for customers but also go out and find them. 

Q:  Finally, do you think that the crisis has affected the size of the sector?

A:  Yes.  I believe that the sector was as overblown as the property sector.  And the crisis has filtered out prudent and well run companies for survival.  As the saying goes, “every cloud has a silver lining”.  And also, we can console ourselves with the fact that crises are cyclical and this crisis will also come to an end.  Let us hope, soon.  

Peter Franklin

The Islander

THE MONTHLY NEWSLETTER FOR BOATING 

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