Yacht sales experienced a "massive increase" due to Covid, but now some of those boats are being sold again.

Some pandemic-era yacht owners are headed back for dry land.

The yachting industry experienced a "massive spike" in sales due to the pandemic, according to Richard Allen, chief operating officer of Simpson Marine, a Hong Kong-based company.

""We've observed an increase in brokerage activity of boats being sold among people who have owned their boats for two years and are now looking to travel," he said to CNBC."

Paolo Casani, CEO of Camper & Nicholsons, Monaco-based yachting company, stated that the outcome was anticipated.

"In 2021, the global yacht industry sold more than double the number of yachts compared to 2019, according to the source. When this happens, they go to the market starting from a couple of years later."

Prices in the pre-owned market

Despite a decline in yacht sales since 2021, enthusiasm for yachting remains high, according to Casani.

"He stated that the industry is returning to 2019 and it is crucial to differentiate between brokerage and new builds because the demand for new builds remains high."

Prices for yachts on the brokerage market have decreased slightly from their pandemic-era highs, according to him.

""Prices remain high, but we anticipate a reduction in the gap between demand and offer by 2024," he stated."

Asia yacht growth 'less than expected'

Despite some yacht buyers in Asia not selling, they are upgrading to larger vessels, according to Allen.

He stated that some people have truly appreciated the boating lifestyle and are already upgrading to larger boats.

The next frontier for global yacht growth is Asia, a continent with increasing wealth and numerous island nations that experience year-round warmth.

According to Casani and Allen, who spoke to CNBC on April 26 during the second annual Singapore Yachting Festival, the yachting market in Asia is expanding.

For many reasons, including culture, lifestyle, and lack of infrastructure, the pace is "less than expected," as Casani stated.

He stated that although we have some doubts, Asia has immense potential.

The "rules and regulations" in the region are hindering advancement, according to Allen.

"To simplify boat movement between regions, we must address the inconsistencies in regulations," he stated. "For instance, a boat that is legal to operate in one country may not be permitted in another. These regulations create barriers, which we can refer to as 'red tape'."

The problematic visa requirements and high import taxes, which can reach 40% in some markets, are a concern for foreign boat crews, he stated.

"Governments need to be lobbied to simplify the importation of boats," said Allen. "Collaborative efforts by groups like ICOMIA with dealers are helping to ensure a stronger voice for the industry."

The International Council of Marine Industry Associations (ICOMIA) held a two-day conference prior to the Singapore Yachting Festival to discuss challenges facing the industry, including sustainable propulsion and the absence of marina infrastructure in emerging markets, such as Indonesia, Philippines, and Vietnam.

Beyond buying and charters

The global marine leisure market is projected to reach $46.5 billion by 2027, resulting in economic benefits through job creation and increased tourism revenue, according to Simpson Marine.

"Thousands and thousands of people are employed in the yachting industry, which involves building, supporting, and servicing boats," stated Allen. "This industry is a great opportunity for countries to embrace."

The yachting industry is becoming more accessible due to the availability of newer forms of ownership, such as fractional, or syndicated, ownership, where individuals can purchase a share of a yacht.

Instead of owning content, people are increasingly choosing flexible subscription models for entertainment, including music and television.

"Boat clubs have experienced significant expansion, according to Allen. Similar to joining a gym or golf club, members pay a monthly fee and have access to a boat for a specified number of days per week. This is particularly appealing to individuals who do not desire the responsibility of owning a yacht."