Balearic Nautical Sector Weathers a Season Marked by Crisis in Europe

These are challenging times for the European economy, particularly affecting Germany, which directly impacts the Balearic nautical sector, according to the analysis by Jaume Vaquer, president of the Association of Nautical Companies of the Balearic Islands (AENIB).

"In the Scandinavian countries, the nautical market has stalled because, given the poor economic outlook, consumers prefer to wait it out. Meanwhile, Germany has been experiencing months of negative or flat growth, which directly impacts the Balearics due to our direct dependence on this economy," analyzes the president of the Balearic nautical employers' association. "In fact, currently, the majority of second-hand boats put up for sale are registered under the German flag," he notes.

Thus, in the first seven months of the year, the Balearic nautical market accumulated a year-on-year decrease of 16.71% in terms of recreational boat registrations, according to data collected in the 'Report on the recreational boat market. January-July 2024', published by ANEN from data provided by the Directorate General of the Merchant Marine. "It must be taken into account that the high season, as far as boat sales are concerned, ends in June, since hardly any boats are sold during the summer months. Anyone who wanted to buy a boat for this summer would have done so months ago, considering that delivery times are about three months," he explains. Therefore, although these data are from before summer, they accurately reflect the Balearic nautical market this season. "Last year, at the same dates, we already experienced a slight decline in registrations, so it's pouring rain on wet ground," Vaquer emphasizes.

Regardless, the marked drop of 19.4% recorded in the same period in the whole of Spain caused the Balearics to increase its market share nationally from 17.93% in July 2023 to 18.52% now, having contracted less than the rest of the country. In this way, the archipelago consolidates itself as the leading province in the national nautical market. "It is true that the Balearics, being an international nautical destination, suffer less intensely from the rises and falls of the nautical market, becoming the region in Spain with the greatest stability in the sector," concedes the president of AENIB.

As for the rental market, the vessels registered in Spain for this use between January and July showed a decline of 20%. Of the total boats registered until July, 62.7% correspond to boats for private use, and 37.3% are vessels intended for nautical charter, according to ANEN data.

The Balearics, for their part, accumulated in the first seven months of the year a decrease of 23.5% in terms of registrations of recreational boats intended for rental, while its market share in this segment is 27.8%.

"As far as chartering is concerned, in the Balearics, the drop in activity is even more pronounced than in boat sales," highlights Vaquer. "This sentiment is shared by the hospitality and complementary services that serve hospitality. The people who visit us have less budget to spend," he analyzes.

Nevertheless, "the sector of maintenance and repair of vessels maintains a good billing pace this season, despite everything indicating that boats would be used less than in previous years due to the confluence of the poor economic situation, bad weather, and sporting events that generate great interest, such as the recently concluded European Football Championship and the Olympic Games," observes Vaquer.

Finally, the president of the Balearic nautical employers' association emphasizes "the uncertainty and difficulty in forecasting that mark our days. If before we could make forecasts a year in advance, now it is difficult to know how we will be in a month. The situation is very volatile and unpredictable, and everything that is happening in the world affects us. Companies in the sector have to be very agile to react and adapt to any scenario," he concludes.