Study Shows Megayacht Industry Thriving in South Florida

The Marine Industries Association of South Florida (MIASF) commissioned a study of the impact of the megayacht industry on South Florida. The study, completed by Thomas J. Murray & Associates, found that a median-sized megayacht (140 feet) spends $2 million annually, providing $146,000 in state and local taxes, and $362,000 in total federal taxes. With the number of megayachts having increased by 53 percent over the past five years, the economic impact from this segment is growing quickly. The study indicates that 13,000 new megayachts have been constructed since 1997, and more than half of those were built after 2007. About 46 percent of these megayachts have been constructed in Italy.

Phil Purcell, CEO and president of MIASF said the number of megayachts on South Florida waterways has increased in 20 years from 800 to 1,800, taking over much of the available dock space, but also creating a cluster of skilled workers. Florida is attracting megayachts due, in part, to the 2015 refit and repair tax cap, and the creation of the Foreign Trade Zone for recreational boating. The tax cap resulted in more big repair jobs coming to Florida, with an average cost of $66,000 per job, but climbing to as much as $2.7 million. The Foreign Trade Zone allows for foreign boats to be sold in Florida. Purcell said the number of boats longer than 65’ has doubled along with the sales price.