To prove the negative impact of the Spanish Matriculation Tax on the country’s luxury superyacht charter market, Nacional de Empresas Náuticas (ANEN), Asociación Española de Grandes Yates (AEGY), Asociación de Empresas Náuticas de Baleares (AENB) and the Mediterranean Yacht Broker Association have released the Spanish Matriculation Tax Study and Report (see below).
In addition, here is an exclusive interview with the President of The Balearic Islands from the Future of Superyachts Conference expressing very positive opinions about the Spanish government’s view on superyachts and the nautical sector in Spain:
SPANISH MATRICULATION TAX STUDY AND REPORT
The Report is an assessment of the economic impact of recreational boating in Spain with particular emphasis on the luxury Superyacht charter sector; it includes comparisons of the tax burden in Spain with that of neighbouring maritime countries such as France and Italy. It concludes by proposing a set of legal amendments which would modernise the outdated fiscal policy affecting recreational boating in Spain thus leading to improved competitiveness of the sector and the resultant generation of wealth and employment.
Information sources include statistics prepared by the Centro de Estudios Economicos Tomillo, data on boat registrations provided by MSI-Sistemas de Inteligencia de Mercado commissioned by ANEN, data sourced from reports by the Mallorca Chamber of Commerce on the economic impact of the large yachts sector and data from Superyacht Intelligence .
Economic impact of recreational boating in Spain
The first part of the report is a detailed analysis of the economic impact of recreational boating in Spain based on information taken from Spain’s National Statistics Institute’s input-output tables. This analyses the sector from a macroeconomic perspective, observing the trends and fiscal indicators. In addition it takes into account the all-important ´ripple effect´ which impacts upon productivity and employment in other sectors and is referred to as a multiplier factor.
A recreational craft requires services and products from many ancillary provider companies e.g. engines, outboards, generators, batteries, navigation equipment, electrics, electronics, refrigeration, paints, safety equipment, metal work, deck fittings, water tanks, woodwork, furnishings, chains, anchors, sails, masts, rigging, fuel, and countless other components.
The statistics show that the value (in euros) of the Spanish recreational boating sector’s output has grown from 4.664 million in 2005 to 4,763 in 2009. The Gross Value Added (GVA) in 2005 was 1.057 million, rising to 1,079 in 2009. The number of direct jobs created rose from 15,000 in 2005 to 16,000 in 2009.
The economic multipliers for these figures show that that a multiplier of 6 greatly increases the employment figures (direct + indirect employment); the GVA has a multiplier of 5; and actual productive output has a multiplier of 3.61. The recreational boat sector is a sector with a high multiple effect due to the number and range of ancillary services and products supplied. See the graphs below for the multiplier effect and the overall impact on the Spanish economy. (www.charterworld.com/news, 22 June 2012).