APSA Founder Member: Mike Simpson

APSA: When did you join APSA and why did you join?

Mike Simpson: I was one of the first people to join APSA and have continued to support the Association over its 10 years history.

APSA: What led you to work in the Superyacht industry?

Mike Simpson:  I was born in Tunbridge Wells in the UK, and I started sailing on the English south coast as a teenager. When I left the British Army, it was sailing that brought me to Asia. For about 10 or 12 years before that, I had been travelling in different parts of the world on foot and by boat, and I ended up in Greece running a yacht charter fleet.

In 1980, I went to Taiwan to build a yacht for myself and my girlfriend to sail around the world. Supervising the construction was made relatively easy for me as I spoke Chinese, and at the time a fully equipped yacht could be built for around USD55,000.  I reached Singapore on my first attempt and Hong Kong on my second but each time a ‘dockwalker’ fell in love with the yacht and made me an offer I couldn’t refuse. On the third attempt I ended up selling my yacht in Singapore again and received an order for another yacht. So, the penny finally dropped and I realised that I had stumbled on a business opportunity!

APSA: What is the focus of your work and experience in the Superyacht industry?

Mike Simpson: In 1984 I decided to put my global cruising plans on hold for a while and set up a yacht business in Hong Kong. That business was Simpson Marine, which over the years the company has evolved into Asia’s largest yacht sales, charter and service company spanning seven countries and counting 11 offices and service points. Having begun by selling Taiwanese built yachts from Ta Chiao on the Tamsui River near Taipei I took on the dealerships for HiStar motor yachts in Kaohsiung and Tashing sailing yachts in Tainan. Within a couple of years, I took on the Hong Kong dealership of Beneteau, the world’s leading boat builder. Then we moved to motor yachts when an Australian businessman (who headed up Hutchison Whampoa) approached me to wanting to buy as 70ft motor yacht, and that was the start of a very successful relationship with Azimut and Benetti.

Today’s business is still very much skewed towards motor yachts, but these days the company represents leading luxury Italian motor yacht builder Sanlorenzo and its Bluegame subsidiary, along with Aquila power catamarans and UK-based Fairline motor yachts. Last year the Asian market accounted for 23.5% of Sanlorenzo’s total global sales, demonstrating strong growth of the Asian market since we took over the representation of the brand back in 2015. As a result, many new yachts were delivered in 2021 including new models of the Alloy, Sanlorenzo SX112, Sanlorenzo SL102 Asymmetric and the SD96 among others, and the numbers keep expanding over time.

The company now has a team of 120 professionals that includes specialist yacht brokers, engineers, and support staff. Our team works closely with yacht owners, captains, and other brokerages around the world to present buyers with a wide range of choices. We cover all aspects of the purchasing process from independent sea trials to after-sales refit or repairs, and we have our own service centres attached to many of our offices.

APSA: What area of the Superyacht industry is your speciality?

Mike Simpson: I attended the very first international boat show in Shanghai some 20 years ago, and it was easy to see the importance of building early connections with the Chinese market. At that time, the market didn’t exist. I did sell some boats to Mainland buyers, but they kept them in Hong Kong, as there were no marinas in China. The situation has now changed, and there are now marinas along the coastline in Tianjin, Dalian, Qingdao, Ningbo, Xiamen, Shenzhen, Shanghai, Guangdong, and Hainan.

In order to sustain and develop the business, we have focused on selling large motor yachts and we’ve had great success with Sanlorenzo, whose combination of cutting-edge design and exceptionally high quality has struck a chord with Asian buyers. In 2015 a shift in the market became evident, and we sold a Sanlorenzo 46Steel which is still in Hong Kong and that was followed by another 46Steel delivered to Taiwan to a keen fisherman who was very impressed with the large aft cockpit and drop-down transom to use as a fishing platform. More recently, we sold the 500EXP and The Alloy Superyachts (delivered in Asia 2021) and recently commissioned a 52Steel superyacht, with more large projects currently ongoing.

Asian buyers are learning fast about new trends in yachting, yacht design and water sports. They are much more sophisticated and knowledgeable than before, and want to take full advantage of all that the sea has to offer. On a positive note, during the pandemic lockdowns, we have witnessed a growing appreciation of yachts and the yachting lifestyle. These days superyachts are packed with features including beach clubs, swimming pools, health spas, water toys and diving equipment. There is also a growing interest in cruising to other parts of Asia and beyond. Expedition yachts are an increasingly popular choice, even in Asia: we have a Chinese client that built a Sanlorenzo 500XP Explorer yacht with a helicopter deck and storage space for a three-man submarine.

APSA: What interests do you have outside of the Marina industry?

Mike Simpson: Aside from boats, I am also passionate about flying my vintage aircraft, which I keep in a hangar in the south of England.

APSA: Where are you based now and what do you enjoy about Hong Kong?

Mike Simpson: Fortunately, I derived great satisfaction from sharing my passion for the sea with others, and from helping others to realize their own ‘sailing dreams.’ I have recently purchased my own sailing yacht a Beneteau Oceanis 46.1 sailing yacht called Freedom. There’s no better way to unwind after a busy week at the office than relaxing on the sea. I also still have the vintage Windy speedboat that I use to commute from my residence in Lamma to the office in the Aberdeen Marina Club. I count myself very fortunate to be able to go boating twice every day on my way to and from the office, while I am in Hong Kong.

APSA How has the superyacht industry changed over the years and how do you see it moving forward in the future?

Mike Simpson: Superyacht ownership and charter are the growing markets in Asia. Our charter division Simpson Yacht Charter has registered 600 charter days booked in Hong Kong alone in 2020, and similar results in 2021. The company also had numerous short-term charters in Thailand, accounting together for over 1,000 charter days sold throughout Asia in 2020. Our Yacht Care and Management teams welcomed several new yachts into the fleet last year, with the Hong Kong division welcoming eight new Sanlorenzo yachts it will further expand in 2022.

In Southeast Asia, the Thai market is showing signs of recovery and delivered positive results in 2021, with a strong beginning of 2022 expected based on current business volume. Additionally, new yachts will be arriving shortly in Singapore and Indonesia, and could spark a surge of interest in these countries. Singapore is the hub for yacht refits and logistics, and Simpson Marine is well-positioned to help our superyacht owners go cruising in the beautiful waters of Indonesia, Thailand, and Malaysia which are only a few days away from the Lion City, where our new Piero Lissoni designed Sanlorenzo SEA flagship office is based.

APSA: How do you see the superyacht industry moving forward in the future?

Mike Simpson:

As a founding member of APSA, I am is pleased to witness the association’s growth and expansion. We as a company firmly support APSA’s mission of bringing together key stakeholders in the superyacht industry around Asia to promote APAC as a cruising destination for superyachts with the necessary logistical and Government support. We need more marinas and repair/refit yards, and better local crew training, but we also need regional governments to understand the potential of this amazing industry and to provide their support in facilitating cross-border cruising with friendly tax, immigration, and operating regulations for superyachts.

Around the region, taxes, overregulation, and lack of infrastructure have been the key impediments to growing the yachting industry in the region. Cambodia currently has 145% tax on imported yachts. Indonesia has a generous three-year cruising permit for foreign-flagged yachts; however, these yachts cannot be chartered. To operate commercially, yachts need to be imported and fly the Indonesian flag, requiring a 75% tax. Myanmar has a 40% import tax on yachts. In Vietnam, the Ana Marina in Nha Trang is well set up and just the kind of facility that is needed to promote the yacht market there. Prior to the Covid-19 lockdowns, Vietnam’s economy was growing at record pace, and taxes on yachts in Vietnam are “realistic” at about 20%.

The Asia-Pacific offers some of the world’s most spectacular, undiscovered cruising grounds in the world but relatively few yacht owners cruise these waters. This is probably due in many cases to the lack of marinas and repair facilities, particularly in the remoter areas, but Government support is also needed to develop and promote these destinations. I hope that with the on-going dedicated work of APSA and their many initiatives, this will change in time and the improvements in the facilities, infrastructure and regulations will keep pace with the growing number of superyachts coming to Asia for our mutual benefit.

Simpson Offices established in the Asia region, China and overseas

1995 Port Dickson (Malaysia)

2000 Singapore

2003 Langkawi (Malaysia), and Monaco offices

2003 Phuket (Thailand) and Charter Branch

2004 Pattaya (Thailand) and Taipei (Taiwan)

2010 Shenzhen (China), and Service Centre

2010 Penghu (Taiwan)

2011 Jakarta (Indonesia)

2012 Sanya (China)

2012 Bali (Indonesia)

2013 Kaohsiung (Taiwan)