No matter how stable one can characterize himself in terms of life goals and ambitions, I’m sure, that everyone of us, in some corner of the brain, dreams of early retirement from that boring, life sucking career and disregard for the cozy suburban home containing a family of four and the country club that smells of cigars, fermented cheeses, and expensive perfumes. Instead, as the dream is want, we would jump at the first opportunity on a sailing boat or yacht, hopefully of our ownership, and sail the seven seas in search of the wind and freedom. What better way to spend your life “on the road”, cherishing the opportunity of new shores to explore, new cities to visit, and new local dishes to taste? Forget about the pension plan! Forget about the college funds for kids who will turn your life into a living hell once puberty starts kicking in.
Ok, let’s not be cynical, life is good either wayƢut how about those beckoning waves!?
It seems the call of the waves has enchanted Albanians to purchase their first yachts. Well, at least for those few who can afford them.
Two years ago, Menn Yacht Group, a Slovenian company that serves as a dealer for the nine Ferretti Group yacht brands in Central and Eastern Europe, but also other brands, had the idea, some would consider it a crazy one, to open an office in Albania with the intention to sell or rent yachts to Albanian customers. The initiative seemed crazy for various reasons. In 2007 Albania was still competing with Moldova for the title of the poorest country in the Europe, which could have been a compelling argument that Albanians were not ready yet to shop in the luxury market of yachts. In addition, the country was still suffering a three year ban for any kind of domestic motor boats as an attempt to cut traffic of illegal immigrants, drugs, and guns to the neighboring shores of Italy. Traffickers used very effective speed boats to smuggle their merchandise past the respective naval authorities of Albania and Italy. The government decided that the best way to crackdown on the speed boats was banning all motor boats on its coast, independently of motor power and purpose of use. The ban came to an official end in July 16, 2009. Indeed, it worked, but it also closed the window of opportunity for the development of a yacht market.
So why did “Menn Yacht” decided that three years was enough for Albanians to move from risking their lives crossing the Adriatic on a speed boat only to earn an extra fist of euros on the other shore to spend extravagantly in luxurious yachts and enjoy La Vita Bella?.
The answer is simple. For starters, no matter how poor the country, there will always be rich people there with money to spend. And I doubt there is a fresh new class of rich people out there that is more eager to spend then that of Albanians, not considering the Russian oligarchs of course. Second, despite the ban, the perspective is huge. Its enough to say that the Albanian coast is nothing short of a vacuum in an other wise exhausted Mediterranean market. And we are talking about a 400 kilometer long coastline with 240 days of sunshine.
“Menn Yacht” opened its office in Albania, in February 2008. 17 months later the company has already sold 4 yachts and counting.
“Up to now, we have sold 4 yachts for a total value of 6.5 million euro. The most expensive one was sold for 3 million euro and the cheapest one for 500 000 euro. All have been purchased by Albanian businessmen,” says Marin Shpati, “Menn Yacht” Sales Manager.
The company has also received a fifth order for a yacht worth 4.5 million euro.
The Slovenians are surprised at the sales, considered to be a success.
“What has surprised me most is that Albanians buy at the blink of an eye. I can say that the first yacht, with a 1 million euro price tag, was sold within 6 hours, which is a very short time of decision making for customers of this business,” says Mr. Shpati.
The company also offers yachts to rent with prices varying from 2500 euro to 5000 euro per day. They say they can provide up to 30-40 yachts for rent depending on the demand.
Five yachts sold and 10.5 million euro in sales doesn’t look like much when compared to the rest of the market. Nevertheless, it is still a success when considering the country’s past, its economy, the motor boat ban law, and the fact that the Albanian coast lacks the infrastructure for such items. In addition, the “Menn Yacht” venture in Albania started only a few months before the global financial collapse and the resulting economic crisis which is still ongoing. In a time when Sheiks and Russian oligarchs are tightening their belts to cope with their melting stocks, selling yachts in Albania becomes nothing short of an achievement.
The problem of “parking” your yacht and more
As mentioned above, the Albanian coastline is pretty much a vacuum. If all over the western coast of the Balkans you can find a marina in every bay or island in Croatia, Montenegro and Greece, in Albania one would be lucky to find a single marina.
And there is one, the Orikum marina, a small town south of Vlora, situated at the southern corner of Vlora Bay.
The marina is still under construction. It came to life from an initiative by an Italian investor, Giorgo Alfo. Designed as an overall tourist resort according to contemporary standards, it started construction in 1996. The construction was divided into two stages costing 6 million USD (in 1996 currency rates) with the goal to develop nautical tourism in the region. The marina itself was finished in 2004, concluding the first stage of overall construction. It also includes 2 buildings offering accommodations for a total of 60 rooms.
The marina is big enough to anchor about 620 sail boats and yachts and it can accommodate boats as long as 30 meters.
The location is great in a bay that offers plenty for exploration in the sea or on the land. Since its opening the marina has been frequented by many boats and tourists, all of foreign origin. Last year, the marina hosted 350 sail boats alone at various periods of the year. The number of yachts was much bigger.
Earlier this month, the Albanian government awarded a concession to the “Ener-Alb Projects” for the construction of a second marina for luxury yachts in Lalezi Bay, north of Durres, an investment worth 9.6 million euro. Its completion is expected within three years
Yet, one can easily argue the authorities are extremely late to profit from the opportunities offered by the county’s coastline. There are endless locations for marinas to be built in gorgeous bays and beaches yet to be conquered by concrete and the demand is certainly not lacking, neither from interested investors, nor from boat owners around the globe who wish to visit “mystic” Albania. But such investments should be accompanied by further investments on land to guarantee that visitors receive the service they require. Only this spring, Club Med pulled the plug on a tourist resort of 400 private villas in the Kakome Beach area, north of Saranda and only 7 nautical miles from Corfu. The resort started construction in 2004 only to immediately interrupt works due to a dispute with locals about land ownership rights and compensation. Land ownership is still a major problem in the post-communist Albania, where legislators themselves are lost in a web of conflicting laws. After 5 years of legal disputes in several trials, Club Med decided to let go of the project, marking its second failure in Albania, alas, not of their fault.
A similar event, this time under a scandal’s flash lights had World Bank apologize to the local community at Jali Beach for the destruction of their tourist resorts near the beach as part of a master plan strategy for the development of the Albanian Riviera. The Bank accused the government for not being transparent regarding property rights and owners’ compensations prior to the destructions.
In addition, it seems the current Berisha legislation, which just reconfirmed its mandate in the June 28th election, has its priority mixed in its parallel attempts to industrialize the country and develop tourism. Several industrial projects close to the coast are nothing short of striking blows to tourism opportunities. An industrial park and petrol pipeline in Vlora are considered to be major threats to the bay’s environment and ecosystem. The recent approval of a wind farm, the largest of its kind in the Europe, in the unspoiled peninsula of Karaburun, risks destroying perhaps the most pristine area in all of the Mediterranean region.
Despite such anomalies, the Albanian coastline remains a hidden treasure of investment opportunities. And, as the last corner of the Mediterranean awaits invasion, Albanians are for the first time raising their sails at the first hint of wind, ready to break the waves and become, for the first time, visitors in their own seas.
