Yacht Charter Bookings with Free Cancellation and Reduced VAT due to Covid-19 Sanitary Crisis

16 April 2020

At YACHTS INVEST, we are following closely the evolution of the quarantine and other restrictions imposed by European Authorities due to the Covid-19 pandemic. Indeed, the extended measures, announced by the French President Mr Emmanuel MACRON on Monday, April 13th, comprise the extension of confinement till Mid-May. Moreover, the EU Commission Authorities have strongly suggested putting on hold the vacation plans for travellers wishing to visit Europe in summer of 2020.

While some EU countries are considering lifting their restrictions, others, like France, are afraid that this might be an invitation for the virus to return.

However, the pandemic in France seems to subside, slowly but steadily. But for those of us working in the yachting industry, much depending on touristic flow, caution is mandatory.

What will happen to yacht charters in the South of France this coming season?

In absence of a certain forecast, yacht brokers doubt whether there will be at all consistent demands for yacht charters. Countries having a coastline on the Mediterranean Sea, such as Spain, France and Italy, are significantly affected by the Covid-19 pandemic, and recent announcements evoked the shutdown for tourism till September… This will have notable repercussions on the yachting industry.

“Hope for the best but prepare for the worst” – seems to be the right wording for the current state of things. We understand that the bulk of yacht charter clients, as well as yacht buyers, are likely to postpone most of their yachting activities till probably next year.

Yachting industry professionals foresee the negative economic impact that Covid-19 will cause. Therefore, we have endeavored to obtain the following incentives in terms of reduced taxation and free-of-charge cancellation on yacht charters:

  • The FIN (Federation des Industries Nautiques), the prominent French Yachting Association, has recently obtained the suspension of the governmental project aiming to increase the VAT implementation on yacht charters. Since long, the French Ministry of Economy and Finance has been striving to implement the full 20% VAT rate for all yacht charters embarking in France. This postponement will give a break to the yacht charter sector and will save employments.
  • For our valuable customers who will be able to plan their yacht charter this summer, we offer penalty-free cancellations on full-rate charter bookings made till 31st of May 2020, which should help boat Owners to minimize their losses, while still providing a quality cruise vacation to most of our destinations.

Thus, we want to reassure our customers who are keen to get on and help you book your yacht charter vacation. All charter customers will be able to cancel booked yacht charters without penalties and benefit from the same reduced taxation as in previous seasons.

We wish you and your family to stay safe, and we look forward to overcoming this unprecedented crisis together. Stay tuned for more news.

The YACHTS INVEST Yacht Charter team.