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Super yacht flagging,
safety and security
Ivan Sammut
Registrar General of
Shipping and Seamen
The choice of flag has, over the last years, become
one of the most important decisions owners and/or
their representatives must make
Mike Dean, Döhle Yachts
You need to be with a flag that can provide a solid
commercial registration that’s accepted in the
industry and accepted by Governments of the world
Ken Argent, Water’s Edge Consulting Ltd
What governs the choice of flag?
• Intended use – private of commercial
• Area of operation
• Characteristics of the yacht – age,
length, conformity with a Code or
international conventions
• Tax status of yacht
• Residential status of beneficial owner
• Corporate structure of the company
• Quality and reputation of the flag
Quality and Safety Considerations
• Efficient Service
• Good port State performance – White List
• Customer oriented/pragmatic solutions
• Transparent and enjoys a good reputation
• Costs – Price alone should not determine the choice of
flag
• A robust, credible and sound legal and regulatory
system
• Party to major international conventions
• Flexible approach to manning requirements
• Political stability
• Compatible with the yachts area of trading and not a
hindrance to free sailing
Flags of different colours
Owners are often inclined to select a flag
based on its appearance (and perception by
other owners) at the stern of the yacht
A work of art, such as a yacht,
needs to be associated with a
conspicuous flag
If you are tempted to use the flag of a State
because you like the AK-47 image on it,
resist Michael T .Moore, Maritime Attorney
The impact of legislation on yachts
Most professionals within the yachting
industry think the rules in place are an
ill-considered bureaucracy
Safety, Security, Environment Legislation
• Rules carry great force and, until they are
repealed, they must be observed as large
penalties exist against yachts that do not
follow them
• A proactive approach is the industry’s last
hope of preserving self regulation and
creating an environment where it can
operate
Way Forward
Dialogue and Consultation
– To give more visibility of the industry on: • Risks involved
• Sensitivity
• Seasonality
• Volumes and effect on jurisdiction
Policy makers cannot function in isolation, operating out of an Ivory Tower without dialoguing with the industry
Which are the most popular jurisdictions
with superyachts? Superyachts >24m (both PY & CY) - 2013
• Cayman Islands – 31.72%
• Malta – 12.37%
• Isle of Man – 7.53%
• United Kingdom – 6.99%
• Marshall Islands – 6.99%
Commercial Yachts >24m -2013
Malta – 161 (2015 – 221)
Cayman Islands – 113
Isle of Man – 101
United Kingdom – 69
Marshall Islands – 61 Source: Superyacht Intelligence Report 2013
a leading
international
Maritime Centre
at the heart of
the Mediterranean
• Centuries old maritime tradition
• Astride main arteries of international trade
• Whole range of international
maritime services and facilities including
• a reputable international shipping register,
and
• a superior logistics yachting centre
• Sophisticated legal and regulatory regime
• Political stability and commitment
How does Maritime Malta fit the Bill?
A SUCCESS STORY
An industry initially built on the basis of
LOCATION, LOW COST, DUTY FREE FUEL
and FISCALINCENTIVES
now evolved into a strong alternative based on
CAPABILITIES, INFRASTRUCTURE, COMPETENCE, LEVEL OF SERVICE, REPUTATION and STRONG RELATIONSHIPS
WE CANNOT LAY ON OUR LAURELS AND HAVE EMBARKED ON A PROACTIVE APPROACH
Yachting in Malta:
Our Achievements
The Way Ahead
Translate vision into a strategic roadmap
Improve policy and regulation
Invest in collective marketing to avoid risk of fragmentation
Address
Capacity Issues
The Way Ahead
Improve and develop further capabilities
Develop Structured Industry Clusters
Invest in Human Capital and Training
Create more visibility of the yachting industry
Malta has achieved a lot
and is very well positioned
to further reinforce itself
as a flag of choice for superyacht
owners and as a hub in the industry
This necessitates hard work,
an outward looking attitude,
a clear plan and the right regulation
to make it happen.
Conclusion