Core Insights - The development of China's yacht economy is still in its early stage characterized by "supply not meeting demand" despite favorable conditions such as a per capita income of approximately $13,500 and good port infrastructure [2][3] - The yacht industry has a long supply chain involving design, manufacturing, sales, consumption, supporting services, and infrastructure, which can significantly contribute to economic growth and job creation [1][2] Industry Overview - China's shipbuilding industry has a dominant global position in bulk carriers and oil tankers, accounting for over 50% of the global shipbuilding market, while the yacht manufacturing sector lags significantly behind, with a projected output value of only 12.8 billion yuan ($1.9 billion) in 2024 [2][3] - The yacht ownership in China is around 45,000 vessels with only 15,000 berths, which is drastically lower than the United States' 11.67 million yachts, indicating substantial growth potential [2][6] Economic Impact - The yacht economy can help bridge the manufacturing gap and push the shipbuilding industry towards higher value-added products, enhancing the overall economic structure [3][5] - The yacht manufacturing sector is expected to stimulate various high-end industries, including composite materials, precision instruments, and smart navigation technologies, contributing to a more integrated manufacturing and service economy [5][10] Service Consumption Potential - The yacht economy is poised to significantly boost service consumption, which currently accounts for only 17.9% of China's GDP compared to 45.8% in the U.S., indicating a vast potential for growth [6][7] - The development of the yacht economy can enhance high-end tourism, professional services, and training sectors, creating a ripple effect across various industries [7][10] Employment Opportunities - The yacht economy is expected to create numerous job opportunities across manufacturing, maintenance, and service sectors, with examples from regions like Zhuhai and Sanya demonstrating significant employment generation [14][15] - In comparison, the U.S. yacht industry saw employment rise from 691,000 in 2018 to 812,000 in 2023, showcasing the sector's capacity for job creation [14] Infrastructure Development - The growth of the yacht economy necessitates upgrades to infrastructure, including ports, waterways, and public facilities, which can enhance local economic attractiveness [16][17] - Successful yacht economies, such as those in Monaco and Cannes, serve as international benchmarks, attracting investment and talent while improving urban landscapes [16][17] Policy Recommendations - To fully realize the potential of the yacht economy, targeted policies should be implemented during the 14th Five-Year Plan period, focusing on top-level design, market access, and innovation encouragement [2][18] - Recommendations include lowering market entry barriers for yachts and enhancing public marina access to promote widespread yacht consumption and industry innovation [17][18]