Palma, the Mediterranean Yachting Capital

The Palma Boat Show is consolidating itself as one of the top boat shows in Europe. During the 5 days it lasted, show received over 40.000 visitors, exceeding even the expectations of the organizers. The volume of the expected business is also positive, according to the exhibitors themselves. The mood of optimism among the participating companies and tradesmen is such that 75% of them have already booked a slot in the next edition.

This year there were around 3.000 brands distributed in 207 stands (with a long waiting list behind) and a total of 180 vessels, out of which 70 were large megayachts. An all around success, even more so considering that only 4 years ago the show was cancelled due to lack of interest.

The organization of the Palma Boat Show is also pleased with this edition. Jane Thompson, the coordinator of the event, confirmed that there were more visitors, and more importantly, of “higher quality”. Indeed a majority of the exhibitors and brokers consider that “the show was more professional and attracted more potential buyers”.

How has such a radical change been possible over such a short period of time? To answer correctly, we have to take various factors into consideration. On one hand, obviously, the economical crisis. A client of medium or medium low purchasing power (the bulk of the sector) has made do over these years with whatever he/she had, putting a patch over a patch and hoping that the equipment would last as long as possible. This year, according to the exhibitors we spoke to, these clients are seriously considering an update. The business sector agrees that the Spanish market is waking up.

On the other hand the organization of the show applied a basic marketing concept: it listened to its primary target group (the exhibiting companies) and implemented the necessary changes in order to reach its goals. In 2012 the Nautical Trade Association of the Balearic Islands (AENIB) refused to carry on with an expired concept of the show which was not beneficial for anybody. Some months later it presented a project for the Organizing Committee of the show, presenting the proposals of a large number of companies within the sector. The report presented by AENIB became the backbone of the new successful model of the show. It was made by and for the companies, but focused also on the clients. The association emphasizes that the future growth of the show is based on staying faithful to these principles, and that the Organizing Committee should be the decisive organ when it comes to strategy and reinvestment of the benefits back to the show in order to improve it and to take our heritage into consideration.

We also have to remember that internationally the Balearic Islands are going to be back on the radar. Spain has advanced considerably towards fiscal and administrative harmonization with its European partners, although still miles behind France, Malta or Italy. The matriculation tax, the high other taxes and tedious bureaucratic processes still keep many clients away and hinder the development of lucrative nautical tourism. However, the nautical charter has grown over the recent years boosted by the exemption of matriculation tax on commercial yachts.

Although the Palma Boat Show still has some shortcomings, specially from the organizational and promotional points of view, it can be stated that the show is reaching its objective. Over the last few years the benefits of the show have been invested back into its improvement, not to patch up losses in other events and fairs as was done before. Ahead of the next year’s edition, AENIB encourages the organization to include other sectors like dinghy sailing and diving, which were not well represented in this past edition. It is also suggested to carry out more water activities and to consider the possibility of organizing guided tours with schools in order to promote the nautical culture among our children and youngsters.

We can only speculate ahead of the 2016 edition, but the current development of both the sector and the show give indication that it could break all previous records. The organization has already published the dates: from 28th of April to 2nd of May 2016. Besides, they have announced that the show will be officially presented in Monaco and Cannes next September. It is a welcome initiative for the companies of the sector, as they have been asking the organization to dedicate more effort in capturing quality clients.