Advertisement
Advertisement
Current rules mean an individual with a yacht helmsman’s licence issued in Hong Kong or Macau is not permitted to sail the vessel to the Pearl River Delta. Photo: Edward Wong

Hong Kong and Macau-registered yachts may be permitted to sail in China’s Pearl River Delta

Proposal seen as creating a boost in sales of vessels although there are concerns that smugglers and mainland tax evaders may take advantage

Guangdong is considering allowing yachts registered in Hong Kong and Macau to sail in the Pearl River Delta, state media has reported.

If the province opens up its waters and marinas, industry insiders on the mainland expect a boost in yacht sales but are concerned that smugglers or pregnant mainlanders could take advantage of the travel pass.

"The authorities of the three areas have been studying for years the feasibility of a cross-border sailing scheme, first suggested by the Guangdong government," said Sunny Tao, a senior salesman with Simpson Marine, one of the mainland's biggest yacht broker companies.

"However, they have made no progress because of concerns about smuggling, marine damage and the difference in taxes between the areas."

The Guangdong Maritime Safety Administration was drafting a yacht-management regulation that would allow Hong Kong and Macau boats to access its waters and marinas, according to a China News Service report.

The Guangdong maritime authorities had held several talks with their Hong Kong and Macau counterparts and were studying the idea of introducing a yacht pass for travel between the regions, the navigation department of the bureau said.

Department director Wu Jiansheng said the idea, if realised, would be a significant step in promoting economic development.

Zhou Mingyao, a propaganda officer at the bureau, told the that detailed rules for the cross-border scheme were under discussion although no launch date had been set yet.

Tao said that if there was agreement there would be many obstacles to overcome. "We definitely welcome it as good news that will drive China's yacht market," he said.

"Our company sold about one billion yuan [HK$1.26 billion] of yachts to mainland clients last year. If the policy is put into use, I believe a 20 to 30 per cent growth in orders would follow."

The mainland yachting industry, worth 4.15 billion yuan at the end of 2013, is booming on the back of rapidly rising domestic demand, state media says.

But very few wealthy Chinese people actually buy these sailing boats. The regulations are restrictive and do not encourage yacht ownership.

For example, a person licensed as a yacht helmsman in Hong Kong or Macau cannot cruise to the Pearl River Delta or waters farther away.

Tao said that if a cross-border sailing scheme for private boats was allowed, "many mainlanders would buy and register their boats in Hong Kong but sail in Guangdong, instead of paying tax to the mainland government".

He explained that the mainland demanded a 43 per cent import tax for yachts, while the tax was much lower in Hong Kong.

"Besides, how would the authorities prevent pregnant mainlanders from visiting Hong Kong or smugglers from going to Guangdong via private yachts?" he asked.

On January 1, a swimmer died off Shenzhen's Dameisha beach, possibly killed by a Hong Kong-registered boat that was sailing there illegally. The boat had not undergone border inspection when it entered local waters, the Shenzhen Maritime Safety Administration said.

 

This article appeared in the South China Morning Post print edition as: Hong Kong yachts may be allowed in delta
Post