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repealed, they must be observed as large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