WORKSHOP: CRUISE SHIPS AND SUPERYACHTS: THE CHALLENGE OF THE TERRITORY
“The aim of the work is to point to the creation of a network formed by public and private institutions: a synergy to make permanent the already substantial flow of tourists who come to an area of considerable interest, which is an open air museum for the huge number of natural, historic, artistic and architectural beauty. Almost equidistant from Naples and Rome, the Sud Pontino is a must-visit place for a cruise in the Mediterranean sea route. The Gaeta’s harbour’s insiders bet on the revival of southern Lazio, which is no longer considered as “hit and run” tourism destination but as a safe harbour. Able to ensure excellent services to all, including large ships and luxury yachts, both Italian and foreign.”
This aim opened the final day of the event entitled “IV Italian National Day on the Sea Economy” organised by the Chamber of Commerce of Latina, in collaboration with the national Chambers of Commerce.
Under the wise direction of journalist of RAI 2 Mr. Luciano Ghelfi, there were many speeches of representatives of local and national politics, local authorities and experts in the marine industry including those of: Mayor of Gaeta, Mr. Cosimo Mitrano, Councilor to the economic development of the city of Genoa Mr. Giancarlo Vinacci, Dr. Mauro Zappia special Latina’s Chamber of Commerce Commissioner, Mr. Francesco Maria di Majo, President of the harbour authority of North-Central Tyrrhenian Sea, Mr. Andrea Vaiardi, Commander of the Gaeta coastal group AliLauro Corps of the Port Captaincies – Coast Guard Mr. Salvatore Lauro, President of ASSONAT (Italian Association of Harbours) Luciano Serra, Dr. Cesare D’Amico President of ITS Foundation “GIOVANNI CABOTO” as well as the president of the marine of Cala Galera, the economist Prof Massimo Lo Cicero, Dr. Bruno Santori director of Marine of Pescara, Mr. Antonio Bufalari President of Marina of Capo d’Anzio, Dr. Francesco Luise, Managing Partner of Luise Group, Dr. Leonardo Massa, Manager of MSC Cruises and Dr. Rosalia Di Perna, Ship Agent of Argentario Yacht Services.
Summary of the speech of lawyer STEFANO NOTARANTONIO – Unique nautical sector advisor in Italy of the Italian and Cuban joint Chamber of Commerce (CC-ICRD and Caribbean countries)
The Italian-foreign joint Chamber of Commerce, registered number 41 of the special Register of the Italian Ministry of Economic Development (MISE the acronym in Italian) – of the jointed Italian-foreign Chambers of Commerce, has jurisdiction for the Republic of Cuba, the Republic of Santo Domingo and the commercial area CELAC (Community of Latin American and Caribbean States)
Purpose of its activity is to promote and contribute to the development of economic, trade and cultural relations between Italy and the territories of CELAC.
The Chamber of Commerce carries out its activity independently from Italian and/or foreign Official Legal Representatives both institutional and diplomatic, but it works in the closest way possible with them and with all those who pursue such purposes or, with who in some ways useful to achieve the purpose of this jointed Chamber of Commerce.
The Nautical section of the Italian – Cuban and Caribbean countries Chamber of Commerce, is focused on strategic consulting to companies who intend to develop activities in the nautical sector on the island of Cuba.
Stefano Notarantonio, after introducing the audience to the work carried out by the Italian – Cuban – countries of CELAC jointed Chamber of Commerce, he briefly explained the choice of some Italian firms wanting to start a business of superyacht refitting on the island of Cuba. Below is the summary of an excerpt of his speech:
“The primary choice to locate super-yachts on the island of Cuba is made by the captain and, indirectly, by the crew.
In Italy, there are no schools, with rare exceptions, that prepare and train crews for superyachts. It is a niche market, that represents only 1% of the market for recreational boating.
Cuba is the connection between the Caribbean market and the North American market.
The opportunity is to transfer vessels that in winter are normally refitting in Florida or in Fort Lauderdale, on the island of Cuba, benefiting of lower costs, but having all the facilities you need to refit a superyacht (for example, the dry dock and everything you need to manage a high-level service).
The choice, made with some Italian companies, has been to fix and concentrate the activity in the Bay of the Havana, because this allows us to assist the crews of superyacht and that because behind the superyacht’s crews there are the families.
The argument that during this meeting has not yet been dealt with, but I think it is very important and deserves a great deal of attention, concerns all the benefits that are assured to the city by the crew of a superyacht during the winter period and by the crew’s families.
The choice of the captain to perform the refitting in one place or another represents, in most cases, the synthesis of what the crew desire.
The crew clearly “chooses” to go to perform the refitting where they can have support during the winter.
This also means international schools for the children of crewmembers, and this means a close connection with the territory where there is boat storage and also actual activity in the water.
It is an activity that employs the boat during the winter, but the crew is employed 12 months a year.
Despite being Italian crews in the superyacht market one of those better prepared and well known, on the other hand, there is a sort of “attention” for the crews of other nationalities. The difficulties have come out during today’s meeting, including the choice of where to go for the refit and to go to moor the yacht are obvious.
Just today, Nautical Base (Flavio Gioia of Gaeta) told us that for the first time signed a one-year deal with a superyacht. I know Nautical Base Flavio Gioia, I’m glad there’s this first chance to have an elite client throughout the year, but I was wondering: at the first gust of wind, not having a place that can repair the superyacht properly, the Captain will have to run to repair!
With few exceptions, we do not have the facilities that will be able to accommodate the superyacht, even if Gaeta is localized in the centre of the Mediterranean.
It is evident that Gaeta has untapped possibilities. Unfortunately, until Gaeta has the problem of not being able to accommodate superyachts in winter, these will go away.
And they will go abroad!
We risk losing a large part of the international market that currently heads in Spain, France, Montenegro and Malta. Lately, they have created marine who have all facilities for boats and also mainland facilities that host 24/7 crews and their families.
In Italy we have nothing like this: we have the cluster is a cluster of Viareggio, but it is a “winter” cluster and it doesn’t have all these facilities. In order to have them, we got to go to Barcelona, Palma de Mallorca, Malta and then doing so, we must run away from Italy.
We have here the right people here to address these issues. We have some absolutely qualified people: a table both political and technical, which if you can not find the right solution, will bring the market to be exclusively “summer logic”.
The right market is not the one represented by a “hit and run” superyacht, spending thousands of euros in mainland! The real market is after the single “hit”, that is to say, that is necessary to extend and de-seasonalize the activity.
If you cannot solve this problem, we, experts in this field, will always be with something that is missing, so it means that there must be ideal structures on the mainland.
Here, in the area of Gaeta there was high-level shipbuilding, but today there is nothing there.
- The President of the port authority of North-Central Tyrrhenian Sea, Mr. Francesco Maria Di Majo, from the crowd, said “we’re recovering” (referring to the shipbuilding industry)
That’s what we all want to hear. There are the qualified people but went to work in Viareggio, in Genoa, in Pesaro and other places.
Then only if the institutions will be able to call these people back, doing structural actions (I will not talk about the need for certain legal rules because it would take a day just to talk about this) and together with the operators can start a positive phase for the superyachts market. Otherwise, neither Nautical Base (Flavio Gioia) nor any other harbour will invest a penny until we can be confident that the financial plan deposited at your offices can have a development and a satisfactory return. Without a definite regulation, this is not possible.
This means that the boating industry is stopped and it won’t have that growing trend it might have and that is the real issue that should come out. ”
Some considerations
The short time available to each speaker made impossible to talk about other very interesting points, such as the position of superyachts in the island of Cuba, not only for the summer tourism activity but also for the opportunities that the island can offer during the winter season for the fulfilment of all reffing tasks.
In fact, if on the one hand, the cruise ship market in Cuba is absolutely mature, on the other for what concerns superyachts business is absolutely unknown.
If Cuba is the central goal of the major shipping companies and by terminal operators (Global Ports Holding) playing key role as hub that acts as a link for USA/Caribbean/Latin America cruises, the Superyacht market in Cuba, like all fields of boating, is still unknown, but Italy has been chosen to develop such activities because we have qualified crews, experience, expertise in the field.
The island of Cuba is the only Caribbean island still almost unexplored for everything related to recreational boating. Entire coastal areas are unexplored until now!
Thanks to its geographical position, Cuba is considered access and forced transit point from South America and North America and vice versa It is very close to the USA: Key West is 90 miles away from Cuba.
It is the largest island of the Greater Antilles group that includes the Cayman Islands, Jamaica and Haiti and the Dominican Republic and is the gateway to two of the four “gates” in the Caribbean.
The total length of the coast is about 2,500 miles (Italian coast is 3800 miles long considering Sicily and Sardinia), excluding the islets.
The nautical activity is clearly favourite to Cuba also from the Carribean climate. Rainy season starts in May and ends in mid-November and the dry season goes from mid-November until April. The prevailing winds from November to April are the trade winds, that comes from the Northeast and are referred to as Christmas trades.
The best time to sail to Cuba is during the spring, or in early summer or also in early autumn, when the Northern winds do not blow and the trade winds have their way, without being influenced from the north winds.
The Italian – Cuban Chamber of Commerce has in fact collected the interest by some leading Italian players in the superyachts’ business and not only with the intent of “intercepting” boats that refit in Florida or goes back into the Mediterranean.
The area of Havana has been chosen as the place to refit since it has all the requirements demanded by the “key men” (i.e. captain, crew members and their families).
In fact, Havana has:
- dry dock and facilities on site;
- Airport near to the marina;
- mainland’s facilities for high-level hospitality;
- food services – entertainment – fishing sports – diving – golf.
- glamorous events and nightlife.
Since the start of the refitting activity, many other collateral businesses start, such as:
- Yacht chandler activities;
- Bunkering;
- Services of food and beverage for the activity of charter of the S/Y.
Business start-up in Cuba is also encouraged by favourable legislation on taxation of investments.
The Cuban Government, in order to encourage and promote foreign investment, as indispensable for sustainable development in the country, has issued legislation that encourages foreign companies to invest their capitals in order to promote new start-up in production, trading and services businesses.
- The opening to foreign investment established with the foreign investment law (118/14) provides tax benefits for foreign companies wishing to invest in the island, which benefit of a complete exemption from taxes and duties for the first eight years of business, and for the next 8 years, a 15% rate on taxes on profits for joint ventures.
- 2. The creation of Mariel Special Development Zone offers to best foreign investors a full taxes and duties exemptions for the first 10 years and a 12% rate in the next 10 years.
The further important advantage offered by this special zone is that of considering a product from one of these countries a Cuban product, obtaining the same customs advantages that all Cuban goods have towards the countries of Latin America and the Caribbean.
It is, therefore, possible to establish on the spot both a completely foreign company or a mixed capital company.
The recent open door policy of Cuba towards foreign tourism shows the uncontroversial will of the country to encourage, facilitate and increase tourism activity. This policy also has its important structural investment program, and also a plan to intensify trade relations with Europe, Russia, China, Brazil to be the strategic “hub” between Pacific and Atlantic and also between Latin America and Europe.
CONCLUSIONS
Cuba, in this historical moment, has made a change of direction compared to the past and recreational boating is a strategic sector of the international tourism business.
This represents a significant opportunity for Italian companies, which can seize the moment, to become absolute protagonists of the Caribbean nautical market and not only.
Fair Winds!