Charter Fleets Navigate Through Uncertainty Waters

In our country, as the sea became more noticed over time, the passion for it began to increase.

With boat purchases and the integration of new marinas and harbors into the system, our coasts experienced their busiest seasons, especially in the last two years.

Those who could not own a boat or those who left their dreams to time preferred to rent boats.

This practice, which is very common worldwide, has also reached a sought-after level on our country's coasts.

Locals joined foreign charter companies. Foreign staff trained local staff over time.

The sector offered the world navigation opportunities within our unique beauties, with its inventory and workforce capabilities.

Our companies began to become the stars of domestic and international maritime fairs.

Reservations made from these venues and through digital platforms started to be completed even before the season began.

Those who thought they could not spare enough time to cruise with their boats rented out the boats they purchased to charter companies.

As business developed, new boats joined the fleets.

Of course, they would use their boat during idle weeks and cover their expenses and make money the rest of the time.

Those who made this choice also multiplied over time.

Some boat owners established their own individual companies and entered this lane on their own.

Charter fleets increased their boats, tried to upgrade their models while also adapting their personnel structures to developing conditions.

Outside the fleet, they also made personnel employment sustainable with maintenance and repair work taken from outside.

All developments came, came and got stuck on a virus, small in itself but with a huge impact on the world.

Now what is being discussed is how to get out of this situation, how long the epidemic will last, and what its effects will bring about.

Everything goes no further than speculation.

The current cost of the negativities that showed themselves at the very beginning of the season has also been high.

What about the situation of those who trusted in positive developments and bought and brought boats this year, especially those who used credit?

What about the situation of those who made season preparations and got buried in expenses without even operating their boats yet?

Will those who finished their preparations and just as they were about to launch their boats, stopped and continued with winter storage, perhaps even as summer storage?

What about the companies whose future income was cut off sharply with the season's maintenance and repairs?

The situation of continuing winter contracts made with marinas through monthly contracts due to uncertainty?

Relations with banks, with marinas...

The state extended the certificates of marine vessels, seafarers and companies for a period of 3 months.

What needs to be done and what measures need to be taken to prevent this unexpected crisis from causing permanent damage to the sector?

The duration of the crisis cannot be predicted.

Could there be a sudden improvement? 

It doesn't seem very likely?

In such situations, the seas, which should be the safest harbor, are under prohibition.

Even if there is some relief, how will international transportation work? Will planes carry passengers in the same crowded arrangement as before?

If they cannot, what level will transportation costs reach?

Uncertain, uncertain, uncertain...

There are those who state that all of this can suddenly turn into an opportunity, they do exist: 

In the event of relief in the crisis, customer preference indicators in Tourism may shift towards boats rather than hotels.

After all, instead of places with high circulation like hotels, why not take blue voyages with familiar friends and relatives.

These statements are uplifting, in days when we need it.

We received information from two companies and one boat owner regarding these matters.

Since the situation and statements of other players in the sector may be similar, we settled with them.

MIKNATIS YACHTING

Zafer ÖZNUR

“We were expecting the impact of these negative developments in the world on Turkey. This was inevitable.
The developments started following the CNR fair. The process that began with the painful loss of our martyrs was followed by the spread of Corona. 
After these developments; Especially since our Turkish customers are more panicked, they are directly canceling their reservations made for 2020. 

In contrast, our foreign customers are not as panicked as we are. Some prefer to remain silent and wait until now, while others are postponing their reservations to later months of 2020 or to 2021 because they think the situation will last long. 

Currently, new customer demand has decreased to almost nothing.
As a company, we are trying to take measures as much as we can. 

We are working with limited hours. That is, a 4-hour workday. 

During the remaining time, we warn all our employees about living in isolation. 

It is beneficial to rest and keep the immune system strong. We don't work on weekends. 

We routinely carry out disinfection work inside and outside the company. 

We constantly use masks and gloves. 

We avoid having more than two personnel working in the same place as much as possible.
The positive aspects of the measures; resting the personnel and being able to isolate them from the epidemic.

The negative aspect is that our work takes longer than it should due to the reduction in our working hours.
For the 2020 season, we believe that everything will start to improve in July.

From this date onwards, we think there will be some activity for the charter season, although a bit late.

In Marmaris, the charter season closes every year with Marmaris International Race Week and the Göcek race.

However, this year, we anticipate that the occupancy rate may be high in November as well.
During this period when there is no circulation in terms of business, working with a large team involves significant financial obligations.

For these to be overcome with minimal damage, government support is essential.

Of course, there must be assistance that is not merely in words...
We applied for support from the government for our employees and it was approved.

However, the government's assistance is very limited, so as a company, we will support our employees in every way possible to the best of our ability.

Unfortunately, banks are more of an obstacle than a support. We had a brief meeting with the marina we operate in, and they said they would provide support during this period.

In the coming days, charter companies will gather for a more detailed meeting."

YELKENLI YACHTING

"We did not think that this epidemic, which started in China at the beginning of March, would become so large and last so long. 

During the CNR fair and the two weeks following it, reservations from our Turkish guests in particular had increased. 

Following the negative developments in Italy and the detection of the first patient in Turkey, reservations decreased visibly. 

At the beginning of April, requests started coming from guests whose charter dates were approaching to postpone to later dates. 

Due to decreased demand, companies involved in this sector began to experience financial problems. 

Charter companies are offering new solutions to avoid canceling existing reservations.

We are helping our guests change their reservation dates according to the availability of our calendar. 

We are transferring reservations to another available week within the same year, provided it is on the same boat.

As a company, all our employees are staying at home, waiting for the epidemic to end so we can welcome our guests on our boats again.  

Meanwhile, we are researching different options and making preparations to ensure hygiene rules are maintained in the most appropriate way when we resume service. 

We want to overcome the financial problems caused by the pandemic with minimal loss through the measures we have taken, and as a Sailing Yacht company, remain standing even if the pandemic lasts longer

and serve our guests again in better days.

We are closely following the developments. 

Going to sea is currently not possible due to the halt of Charter companies' activities because of the restrictions. We hope that with the pandemic being brought under control, these restrictions will be reduced in summer

and it will be possible to go to sea again. 

Since the beginning of the pandemic, we think that being on a boat could be the most suitable option for getting through this difficult period for those who have the opportunity, both in terms of isolation and being alone with nature, finding peace

. 

We see from reservation requests we have received from some of our guests in recent days that they are planning monthly rentals instead of weekly for this summer. 

From this we understand that our sea-loving guests share the same views as us.

We expect permission to be granted as soon as possible for going to sea while complying with the necessary rules. 

We believe that a family spending their time in isolation on a boat rather than sitting at home would pose less of a threat to public health. 

We expect the government to continue its support by expanding it.

We expect flexibility from marinas and banks regarding payments.

When the epidemic is brought under control and we resume service, we expect marinas and all businesses related to the sector to pay attention to hygiene rules

and take necessary precautions.” 

BOAT OWNER

Cüneyt FİLYOS

“During these difficult days affecting our country and the entire world, our Maritime Tourism has also entered a period of uncertainties.

As is known, Maritime Tourism in our country has made rapid progress in the last 2 years.

However, the Corona Virus outbreak that has been evident since the beginning of 2020 has caused unexpected developments in the sector.

During the winter months, season reservations that began especially at domestic and foreign Boat Shows first decreased, then came to a standstill.

Those like us who rent out their boats through Charter companies completed the maintenance work on our boats and launched them, anticipating work that could materialize in April due to Easter Holiday.

Just as we made these expenditures, performed these procedures and the boats were launched, the crisis erupted.

Then the Quarantine days began.

Those like me whose age exceeds 65 can no longer go to their boats, the deficiencies and things to be done remain as they are.

On top of that, my 3-week reservation at the beginning of May was cancelled.

Meanwhile, I didn't feel comfortable taking deposits from those who wanted to make 3-week reservations in August, considering the uncertainty.

If conditions improve, perhaps I can do something in September and October.

I make my marina agreements between November-April because my boat works during the summer season, it doesn't lie idle.

In this situation, I had to make a 1-month contract.

If the uncertainty continues, monthly agreements will continue and these agreements, which are expensive compared to annual ones, will open deep wounds in the portfolio.

On this matter, we will experience firsthand how Marina managements will treat their customers of many years.

Our payments are in foreign currency basis and there is no need to explain the point we have reached.

If this situation prolongs, it will open big wounds.

Expenses are high, there is no work.

Our government is talking about relief packages but it hasn't been possible to hear anything related to our sector so far.

The only regulation made for tourism; postponement of the accommodation tax imposed this year.

Quarantine will not be applied to Agricultural Workers so we won't go hungry in the summer months. A good decision.

For me to be able to do business in the summer months, I need to complete the remaining work on the boat.

I applied to the District Governorate, I requested permission. I received a negative response.

What is it, sir; they are supposedly thinking about our health. For our health to be good, our stomachs need to be full too.

In this situation, I am having people under 65 do the work that I do myself, that I can do, at extra cost.

In these difficult and costly days, may God help us all."

Uncertainty, uncertainty, uncertainty... 

Uncertainty that tests the limits of tolerance.

What will time show, what will it make us experience?

Our wish for it not to prolong, not to increase the average vessel age of fleets in the world market with orders to be placed in the coming years.

We hope that the uncertainties will end soon and the sector will be clear.