S’pore marinas must evolve beyond berthing to offer eco, lifestyle concepts: SUTL CEO

SINGAPORE - Long associated with the lifestyles of the ultra-rich in the West, luxury sailing has caught on in the Asia-Pacific and demand for yachts has jumped, with Singapore emerging as a leading hub for yacht services and berthing in the region.

But the Republic’s marinas will need to evolve beyond simply serving as berths to draw more yacht owners here. Instead, marina operators could position themselves as gateways to other regional destinations and platforms for eco-tourism, SUTL Enterprise chief executive Arthur Tay told The Straits Times.

The Singapore Exchange-listed company, which owns and operates One°15 Marina Sentosa Cove, plans to rebrand to better appeal to younger yacht owners and sailing enthusiasts, while enhancing the appeal and lifestyle offerings at its marinas to attract more visitors, following its $40 million acquisition of Marina at Keppel Bay in December 2025.

Mr Tay said younger consumers may not have the means to own boats, but have a stronger appetite for water-based experiences, creating new opportunities for the marina operator to broaden its sources of revenue through new lifestyle and services offerings.

For the full year ended Dec 31, 2025, SUTL’s revenue was 1 per cent higher than the previous year at $39.9 million. Net profit for the full year dropped 2 per cent to $8.3 million.

Rise of yachting tourism

But it is only in recent years that Singapore has emerged as a premier berthing destination in the region for yacht owners.

In the past, global yachting tourism was largely concentrated in the US and Europe, with Asian marinas serving mainly as pit stops for smaller dive and fishing boats.

Yacht ownership in Asia was limited, as such lifestyle pursuits were less prevalent then, Mr Tay said.

But the region’s wealth boom has since turned the tide, with more yacht owners emerging from Asia, particularly China, where the number of ultra-high-net-worth individuals has surged.

The Republic’s geographical location at the tip of the Malay Peninsula is seen as highly advantageous for its growing yachting and marina industries, as it is sheltered from turbulent winds and waters.

This allows it to capture yacht traffic from both the Strait of Malacca and the eastern coast of Malaysia and Indonesia, as weather conditions on the two routes alternate throughout the year, he said.

Singapore’s stability, along with its appeal as a destination for major events such as Taylor Swift’s The Eras Tour in 2024, has made it increasingly attractive to wealthy yacht owners, who value both safe berthing and vibrant lifestyle options, he added.

Sentosa Cove’s Customs, immigration and quarantine facility, launched in 2019 as the first for a private marina in Singapore, has also helped raise the Republic’s profile among Asian yacht owners by reducing immigration friction for sailors, who previously had to sail to nearby Sisters’ Islands first.

This is transforming Singapore into an ideal stopover for boats sailing to other nearby destinations.

At the same time, luxury boats have been getting larger.

From 2019 to 2021, SUTL invested about $7 million to upgrade Sentosa Cove’s 270-berth marina. Berths for superyachts at 24m and above were more than doubled from 15 to 32, while a new 4.5m-deep channel to accommodate yachts up to 67m in length was also developed.

Demand has since surged, with all berths at the marina fully leased and a two-year waiting list, Mr Tay said.

According to Mordor Intelligence, the Asia-Pacific yachting industry is expected to grow 71 per cent in revenue over the next five years, from US$2.21 billion (S$2.84 billion) in 2025 to US$3.78 billion by 2030.

Analysts said Singapore’s charter market could also see a compound annual growth rate of 7.2 per cent over the same period. It generated US$172.7 million in 2024.

Appealing to new users through eco-tourism

But the younger generation of sailors is also more environmentally conscious, meaning marina operators in a traditionally polluting industry will need to navigate new territory if they have yet to adopt more sustainable practices.

Encouraging the adoption of environmentally friendly boats that are powered by solar power, hydrogen and electricity is one way to move the needle, Mr Tay noted.

The company is also ensuring its own marinas are clean and non-polluting. Its Sentosa Cove marina is certified by the Global Sustainable Tourism Council for meeting high sustainability standards, and has also received the highest environmental certification from the Marina Industries Association for keeping its waters clean and “fish friendly”.

A coral garden, established inside the marina in collaboration with the National University of Singapore since 2018, is home to about 131 transplanted corals.

“As more people engage us to be marina developers, we will bring in more boat owners and members whom we will educate on the environment. We become part of a movement to contribute to public education on the seriousness of environmental protection.”

To sceptics, SUTL’s ambition to be an environmental champion may seem lofty, if not hypocritical, given that its main revenue contributors are mega yachts that generate significant carbon emissions.

But Mr Tay said his company has displayed a sincere commitment to raising the awareness of environmental issues through its conferences and outreach.

Since 2022, SUTL has organised the Blue Water EduFest, a Singapore-based conference that raises awareness of coastal conservation and eco-tourism in the region. It also holds regular beach clean-up events.

In 2023, the company launched a $250,000 fund to support marine research and conservation initiatives with institutions such as the Singapore Management University.

The 70-year-old, who has twin daughters aged 22, said the environmental challenges facing his children’s generation are a key motivation for his efforts.

“In the old days yachting was more of chartering a big boat to simply have food and drinks on the water, burning fuel in the process. Today the new generation wants to see nature and plant corals, and they feel the pain when they witness environmental damage.

“They are also very mindful – if you have a diesel boat, they do not want to charter it,” said Mr Tay, who is also the chairman and chief executive of the wider SUTL Group.

In addition to SUTL Enterprise’s core business of marina berth leasing and club membership, it also offers luxury yacht chartering as well as marina design and management consultancy services.

Rebranding and repositioning

Meanwhile, SUTL plans to jazz up Marina at Keppel Bay as a lifestyle-centric “city marina” after the acquisition is complete in July.

It will feature wellness and food and beverage offerings catering to a younger demographic, the bulk of whom would reside in the nearby Greater Southern Waterfront housing estates.

Mr Tay pointed to the growing problem of “white elephant” marinas around the world that have deteriorated and see little boat traffic.

“We are very mindful to build the right marina and ensure it remains top in class,” he said.

The outlook remains positive, with new marinas in Singapore and neighbouring countries set to double the company’s berth capacity and drive growth.

In Indonesia, SUTL manages a marina on Nirup Island, and is preparing to open a marina in Malaysia’s Desaru Coast. It will also complete the acquisition of an asset in Phuket in the south-east coast of Cape Panwa in the second half of 2026.

An avid diver who also owns a yacht, Mr Tay expects a nautical lifestyle to gain popularity among Singaporeans over the next decade.

“Already, more Singaporeans are travelling for winter sports, and I believe boating will see a similar rise in popularity. So my job is to make sure we create more marina settings to cater to that.

“Over 70 per cent of the world is covered by water, so there is so much to do out there. People should explore boating more and not just be constrained to land.”