The Superyacht Economic Segment in Malta: 2022
Salient points
In 2022:
- The total direct economic contribution to the economy generated by the superyacht economic segment amounted to around €61 million.
- The largest share of this contribution was derived from Value Added Tax associated with superyacht purchases for which a VAT-paid certificate was registered, followed by yards and refit operations.
- Shipyards allocated the greatest share of their workforce to superyacht services, while marinas had the lowest number of Full-time Equivalent (FTE) employees dedicated to this segment.
Marinas achieved the highest total direct economic contribution per FTE, followed by shipyards and professional service firms, highlighting the capital-intensive nature of certain activities within the superyacht satellite industry.
1.0 Introduction
The aim of this study was to calculate the total direct economic1 contribution of the superyacht2 segment in Malta.
The study combined data collected through a census-based survey of companies engaged in superyacht-related activities, direct consultations and existing Structural Business Statistics (SBS) data to assess the contribution of the superyacht economic segment in Malta. The survey covered 90 entities identified as being active in superyacht-related activities, including refit yards, marinas, agents and service providers. The data collected included revenue, employment, and expenses attributable to superyacht services.
Superyacht specific data is not readily identifiable within SBS outputs. For this reason, additional data collection had to be carried out with industry stakeholders to generate the superyacht segment. This data was further supplemented by administrative data sources and financial statements.
1 Includes Gross value added, Value added tax and fuel excise duty but does not include tourism spillovers and other indirect effects.
2 A privately owned, professionally crewed luxury yacht measuring 24 metres (79 feet) or more in length.
2.0 Results
The results include statistical estimates that accurately reflect the scale and relative importance of superyacht-related activities, while remaining subject to the usual limitations inherent in estimating specialised economic segments.
2.1 Total direct economic contribution per segment
Superyacht-related activities contributed around €61 million in total direct economic contribution in Malta.
The largest share of this contribution was derived from VAT3, mostly associated with superyacht purchasing and registration followed by activities classified under yards and refits operations. Other ancillary4 activities contributed to eight per cent of the total economic contribution, followed by agents and marinas which contributed to similar levels of value added, each accounting for roughly six per cent of the total.
3 The contribution of VAT was derived from records of superyacht purchases for which a VAT-paid certificate was requested following payment of VAT in Malta.
4 Include crew supply, fuel supply, retail, surveyors, charters and Transport Malta.
2.2 Employee benefits expenses
Employee benefits expenses include wages, salaries and the employers’ share of social security contribution.
Chart 2 below illustrates the share of Employee benefits expenses attributable specifically to superyacht-related activities. These shares reflect only the portion of wages attributed to superyacht activities within companies reporting some level of activity in this segment and therefore do not represent the wage structure of the entire industry.
The chart depicts how superyacht-related employee benefits are distributed across each segment, expressed as a percentage of the total wage bill within relevant companies.
Chart 2 compares Employee benefits expenses across different segments, distinguishing between costs related specifically to superyacht services and those related to other business activities. Yards and refit operations companies had the highest employee-related costs for superyacht work, followed by company service providers (CSP)/Law/Accounting firms5. In contrast, marinas reported the lowest costs in this category.
5 As with other segments, CSP/law/accounting firms are included only insofar as their activities are at least partially related to superyachts, which is particularly important given the size and diversity of these industries relative to the narrow superyacht segment analysed.
2.3 FTE employees related to superyacht activities
The number of employees in FTE represents the total employment within the Maltese geographical area adjusted for working hours, so that part-time and full-time workers are expressed in terms of equivalent full-time positions.
Among companies reporting activity in the superyachts segment, shipyards allocated the largest share of their workforce to superyacht-related work. This was followed by firms in the CSP, legal, and accounting segments. In contrast, marinas allocated the lowest number of FTEs specifically to superyacht services.
2.4 Total direct economic contribution per segment per FTE
By relating total direct economic contribution to the number of FTEs dedicated to superyacht-related activities, the analysis allows labour productivity to be assessed across each segment. This permits comparisons of how effectively firms convert one unit of labour into economic output highlighting differences in business models, operational scale and economic contribution across the superyacht service value chain.
Chart 4 shows variations in total direct economic contribution per FTE across the segments servicing superyachts. Marinas recorded the highest total direct economic contribution per FTE. Yards and refit operations, along with CSP, legal and accounting firms, also demonstrated high productivity per employee, consistent with the technical or professional nature of their work and the higher-value services provided. In contrast, agents and ancillary service providers recorded lower total direct economic contribution per FTE, which may reflect labour-intensive activities that generate lower margins.
2.5 Employee benefits expenses per FTE
This indicator provides a measure of the average cost of labour per employee. This allows for comparison across segments to identify differences in wage intensity, labour cost structures, and compensation levels, possibly giving a hint into the varying skill requirements and operational characteristics of the businesses operating within the superyacht service segment.
The results indicated clear variation in the cost of labour across segments. Yards and refit businesses recorded the highest Employee benefits expenses, reflecting the demand for highly skilled technical labour such as engineers, electricians and specialist mechanics. Agents and professional service firms also showed above average compensation levels, reflecting the administrative and regulatory expertise required in these roles. In contrast, marinas and ancillary service providers reported the lowest employee cost per FTE, which aligns with a greater reliance on operational and customer facing roles that generally require lower wage levels within the maritime industry.
2.6 Gross value added to Labour cost ratio
Chart 6 compares Value Added per FTE employee with employee benefit expenses per FTE and derives a Value added to labour cost ratio. This ratio provides an indication of how much Value added is generated for each unit of labour cost and serves as a measure of labour cost efficiency rather than pure labour productivity.
The results highlighted the capital-intensive nature of certain activities within the superyacht satellite industry. Marinas displayed the highest value generation relative to labour costs, while yards, refit operations, agents, and other ancillary activities showed lower ratios, reflecting a higher labour cost intensity.
2.7 Share of total direct economic contribution generated by superyacht activities
The percentage contributions shown in Chart 7 consider only companies that generate part of their activity from providing services to superyachts. For these companies, the chart illustrates the share of total direct economic contribution arising specifically from superyacht-related services, as opposed to their other respective business activities. This approach helps to illustrate the relative economic importance of superyacht-related activities within the broader business operations of these companies.
3. Data collection, Sources and Methodology
This study provides a satellite-type estimation of the superyacht segment, developed in the absence of a dedicated statistical classification. Superyacht-related activities are identified using available industry and administrative data, allowing the estimation of the segment’s direct economic impact on the Maltese economy.
Population
The focus of this work was on companies providing services to superyachts. The target population was identified through consultation with industry and sector stakeholders, including The Malta Chamber, Superyacht Industry Network Malta, Malta Maritime Law Association, and Yachting Malta Ltd, resulting in 90 entities. The population was grouped into:
- Yards / Refit;
- CSP / Legal / Accounting firms;
- Marinas;
- Agents;
- Other ancillary activities.
Data collection
Data was collected through a census-based survey of all companies in the population, covering:
- Company activity and involvement with superyachts;
- Employment and hours worked linked to superyacht services;
- Turnover and revenue breakdown by service and customer residency;
- Expenses and employee benefits related to superyacht activities;
The questionnaire design was discussed with stakeholders to ensure relevance and clarity. VAT data were provided by the Malta Tax and Customs Administration (MTCA). Data on fuel volumes consumed by superyachts were obtained from the Regulator for Energy and Water Services (REWS), while the corresponding fuel excise duty was calculated using information supplied by MTCA.
Data quality
1. Business activity data
Data obtained from all segments provided valuable insights to the operations, structure and dynamics of the superyacht niche economic activity. Survey response rates varied across segments, as shown in Table 1. While completion rates vary across the categories, these differences should not be interpreted as a reflection of cooperation or willingness to participate.
| Segment | Response rate | Net turnover weighted response |
|---|---|---|
| Yards/Refit | 75% | 92% |
| Agents | 57% | 78% |
| Marinas | 71% | 43% |
| Other ancillary activities | 50% | 38% |
| CSP/Law/Accounting firms | 18% | 10% |
2. Value Added Tax (VAT) data
The contribution of VAT was derived from records of superyacht purchases for which a VAT-paid certificate was requested following payment of VAT in Malta. Although this may not capture all superyacht purchases, the request for such a certificate is common, as it provides an official proof of payment and is widely regarded as an official confirmation of good business practice and compliance.
3. Fuel Excise Duty
Superyachts over 24 meters in length were identified by matching vessel names registered with REWS against online registers and other public sources. Cases with some degree of uncertainty were excluded, which may result in a modest underestimation of the final figures.
Grossing up
Survey responses were used to calculate the share of company activity attributable to superyachts, projecting estimates of Gross value Added, employment, total expenses, and Employee benefits expenses. Due to the niche nature of the economic activity, expert judgement was applied in a systematic way for non-response cases. This was applied by using input from sector experts with direct knowledge of the superyacht segment in Malta, to ensure accuracy of estimates. Figure 1 shows how GVA estimates were derived from different data sources.
Notes and Conclusion
In 2022, superyacht-related activities in Malta generated an estimated €61 million in total direct economic contribution, with the largest contributions arising from VAT payments and yards and refit operations. Employment and labour costs varied across segments, reflecting differences in workforce allocation and operational models, while labour productivity per FTE was highest in marinas.
This analysis focused on direct contributions and does not include indirect effects, such as tourism-related spending by crew and passengers, or broader economic interactions. Repeating this analysis in future years would allow the NSO to monitor trends, improve data reliability, and facilitate international comparisons for the superyacht segment.
Annex 1 – Definitions
Superyacht – A privately owned, professionally crewed luxury yacht measuring 24 metres (79 feet) or more in length.
Gross value added (GVA) – The value of output at basic prices less intermediate consumption at purchase prices. It is a measure of value generated by the production of goods and services.
Total direct economic contribution – Includes Gross value added, Value added tax and fuel excise duty but does not include tourism spillovers and other indirect effects.
Full-time Equivalent (FTE) – Represents the total persons employed in the Maltese geographical area adjusted for Hours worked, so that part-time and full-time workers are expressed in terms of equivalent full-time positions.
Employee benefits expenses – Total remuneration, in cash or in kind, payable by an employer to an employee (regular and temporary employees as well as home workers) in return for work done by the latter during the reference period. Employee benefits expenses also include taxes and employees’ social security contribution retained by the employer as well as the employers` compulsory and voluntary social contribution.
