Neven Grubišić: Have we reached the limit in nautical tourism?

Although the media is reporting on a very good tourist season this year in Croatia, some other indicators have also started to appear. Or at least in certain sectors of tourism..

Nautical tourism is renowned as an elite branch of tourist activity in Croatia and every year it records growth in all aspects: growth in supply, growth in arrivals, but also growth in prices. The number of vessels on the Adriatic, the number of charter vessels for rent and the number of berths increased. But does our sea have any limits and how far could it go?

Impressions from the "field" speak in favor of the fact that some limits have already been reached. Namely, today it is practically impossible to find a small, hidden cove where you can anchor your boat, without at least a dozen boats around you. In sheltered bays for the night, the crowd is even more crowded.

Boaters who visited us twenty years ago remember the experience of anchoring in a deserted bay and point out that there is no money that can be used to pay for such a vacation. But today such a thing is just a dream...

Decline in boat rental prices

In order not to talk only about impressions, let's look at some real statistical data. Agency for yacht rental Yacht-Rent updates the movement data every few days price and occupancy of the vessel in the charter and that on a sample of approximately 85% of all charter vessels in Croatia. Such a large sample gives a very good picture of the real situation and fairly accurate average values.

The price per vessel could be misleading considering that there are different types and sizes of vessels for rent. Therefore, let's look at the weekly price of the boat rental, but per person. The price per person is calculated by dividing the price per vessel by the maximum number of persons on the vessel, which then gives a more realistic representation.

The graph shows that this price has been constantly increasing with the exception of the COVID-19 situation. However, this year represents a turning point, as the first drop in charter prices in history is now being recorded.

Decrease in charter fleet occupancy

We can try to look for the reason for this year's drop in charter prices in the percentage of occupancy or booking indicators. It follows from the graph that after 2022, bookings have been in decline for two years in a row, so the decrease in prices could be explained by the reaction of charter companies to the decline in bookings.

The reason for the low occupancy this year can be found in the fact that the European Football Championship and the Olympic Games were held, which probably took over some of the nautical guests. However, occupancy was also lower in 2023, so these are probably not the only reasons.

An increase in the number of vessels for rent

The constant increase in the number of charter vessels should perhaps be taken into account as a reason for the decrease in occupancy. They are usually management companies  charter fleets are also representatives of ship manufacturers, so it is in their interest to sell as many ships as possible and earn a commission from the sale. As an additional investment incentive for the buyer of the boat  they include these same ships in their charter fleets.

However, one could say that they are "sawing the branch they are sitting on". A large number of vessels on a small coastal or island water area causes large crowds at anchorages and in marinas, which greatly spoils the pleasure of summer vacations.

And just because the supply of vessels on the market increased, there was a reaction of price reductions, as charter companies increased their own competition by adding new vessels.

However, it is noticed that even the lowering of prices this year did not stop the drop in bookings, so the question arises whether this is the moment when the limits have been reached.

According to some sailors, even lower prices would not motivate them to spend their holidays in crowds and on a coast full of boats without the opportunity to find a place for solitude and relaxation at sea. Guests who recognize quality are ready to pay for it.

Once an elite form of tourism, nautical tourism has today turned into mass tourism because the average price per person per night on a boat is approximately equal to the average price per person per night in an apartment. And since boat rental is affordable for a large group of guests, we often come across unskilled sailors at the helm, which increase the number of accidents at sea.

What to do next?

It is difficult to find a solution to a problem overnight, but to begin with it is important to admit that the problem exists. It is certain that a further increase in nautical supply and consumption of new natural resources would lead to the collapse of the nautical sector. Nature, seclusion and untouched coastline are what brought the first nautical guests to the Adriatic, not the large number of marinas and boats for rent that you can find everywhere in the world.

The Croatian charter offer will have to find a solution to this problem in one way or another. Until then, in mid-July and August, guests will have the opportunity to rent free sailboats with a 30-50% discount, if in the meantime the boat owners do not realize that it is unprofitable for them.

Author: Neven Grubišić, www.Yacht-rent.com / Photo: Oliver Sjöström, Pexels.com