Luxury on a Budget

Multinational Monitor, May/Jun 2009

SOS. ALL HANDS ON DECK. Batten down the hatches. The luxury yachting industry has hit rough recessionary waters. Really rough. The biggest boat builder in the United States filed for bankruptcy in June. In Europe, two yacht-builder powerhouses have keeled over since April.

No matter. At least one entrepreneur sees smooth sailing ahead - in timeshares. Alberto Castagna, the luxury guru at Italian yacht-maker Rodriquez Cantieri Navali SpA, has just put out to sea the first of 10 luxury boats that will offer five -week timeshares at $2.8 million apiece.

Twenty different owners have already signed up. The Ocean Emerald, the first of the seven-deck yachts, will cruise the Mediterranean and Caribbean with a seven-member crew.