9 Mar 2021

Calls for govt to let superyacht owners quarantine onboard vessels

10:25 am on 9 March 2021

The marine sector is warning it is at crisis point, with few superyachts booked to arrive for refits because their super-rich owners do not see the point if they cannot travel to New Zealand too.

Superyachts docked in Auckland

Superyachts docked in Auckland Photo: RNZ/ Dan Cook

Only 20 superyachts have booked for $50,000-plus refits since last winter when the rule came into effect - the only way to get a foreign vessel here.

Now the sector is urging the government to let superyacht owners in and quarantine onboard their plush vessels.

Auckland was going to be the Pacific's superyacht hub during the America's Cup but superyacht agent Duthie Lidgard said that sank when the border closed.

"We were looking for a big boom on the America's Cup side and where we're at at the moment thanks to Covid is more we've got a lot of owners that don't want to bring their boats to New Zealand because they can't join their boat after their refit," he said.

"We've made the best we can out of the rules and regulations and this is where we're at now."

Superyacht agent Duthie Lidgard

Superyacht agent Duthie Lidgard Photo: RNZ/ Dan Cook

He is managing director of Catalano Shipping, a superyacht support agency that facilitates about three-quarters of such vessels into New Zealand waters.

Duthie estimated up to 70 superyachts would come if their owners could join their vessel.

"Most of the boats will aim for six months, they will spend at least six weeks in refit and then they'll want to cruise. What we're seeing now because of the borders, the owners can't come in to cruise so they do their refit and they go 'Right, what next, well we need to leave to Fiji, to Tahiti, we can go to Australia - they'll let owners in'," Lidgard said.

"[Those countries] have a process, owners can fly in by private jet, there's a way they can isolate on the superyacht. They've all got options. We don't, sadly."

After New Zealand's border closed, Marine Association chief executive Peter Busfield kept a close eye on a marine traffic website as 100 superyachts heading to our shores for the America's Cup turned around - in short, $300 million sailed away.

NZ Marine Industry Association CEO Peter Busfield

NZ Marine Industry Association CEO Peter Busfield Photo: RNZ/ Dan Cook

Last year, the Marine Association lobbied the government to grant border exemptions for the crews on foreign vessels booked for refits.

Since then, Busfield said only 20 superyachts and 54 cruising vessels had arrived under that rule.

"That's certainly well down on what our expectations were," he said.

In anticipation of an influx in superyachts, Orams Marine has invested $100m in a big marina complex at Auckland's Wynyard Quarter including a new 800-tonne travel lift for large vessels.

Under the border restrictions, Busfield said very few superyachts were coming and some of the bespoke companies in the refit sector were struggling.

"Some companies unfortunately have closed their doors and other companies are laying off staff," he said.

"What we're very concerned about going forward and later in 2021 and 2022 is if these yachts do not arrive then we're going to see carnage in our industry and as an association we're labelling this a potential crisis for many of our members - particularly in the Far North and Whangārei, Bay of Plenty areas where they've got wharves and marine service clusters."

Those in the sector are adamant the key to attracting superyachts is allowing the vessel owners in - but not through a government-run managed isolation facility.

"We have got owners approved to fly in that are with the America's Cup campaign but the whole issue is the isolation. A lot of these billionaires are up over 70 years old, they treat every day as their last day and to sit around for 14 days twidling their thumbs waiting to be released is not their ideal final days."

Business NZ is part of private-sector discussions to open up the border to high value tourists and skilled workers and provide private quarantine options.

Chief executive Kirk Hope said the likes of superyacht owners were willing to pay the price of isolating onboard their vessel.

"There's been some frustration about the availability of quarantine facilities, particularly for people coming here for various events like the America's Cup. There's frustration that there aren't other facilities available, or more available."

He said the biggest barrier was ensuring there were enough health workers to support any extension to the current managed isolation facilities.

"There are some real opportunities there - they won't stay for two weeks they'll stay for six months, particularly if we are Covid-free."

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Busfield said owners could fly into Fiji and sail their superyacht to New Zealand, spending most of their 14-days quarantining in transit with just a few days quarantine on board at Opua.

"There's an easy option for these owners and families to fly to Fiji, join their superyacht there, it'll take about a week to sail to New Zealand and then spend the rest of the seven day isolation tied up to a special isolation berth in Opua which is well set up for it in the Far North. They could complete their isolation under the guidance of New Zealand Customs and the Ministry of Health."

The Marine Association has put its proposal to government.

"They have helped us to date in easing up the border for superyachts to come in for a refit. We're asking them now to go a little bit further and consider that the owner of a superyacht is part of the superyacht. To us it makes plain sense, they own it, they should be allowed to be on it with their family. That's the only extension that we're asking for."

Busfield said allowing superyacht owners into the country would make a huge difference to the marine sector - without it he estimated the country would miss out on 60 superyacht arrivals, each spending $3 million while in New Zealand.

Lidgard said superyacht pandemic plans often went further than the government's restrictions.

"The boats operate like any hotel, they have a pandemic plan, they have a health and safety plan. If there's community transmission, like now, they go into mandatory self isolation."

He said the sector was ready to welcome superyachts and their owners if and when they got the nod from government.

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