Most yachts spend far more days in the marina than at sea. Charter puts some of those days to work. For many owners in Thailand, charter income offsets a meaningful share of the running costs, and a yacht in regular use with a professional crew is often better maintained as a result.
Charter also changes the nature of ownership. This guide explains how it works in Thailand and how to decide whether it suits you.
The legal basis
The first question is whether your yacht can legally charter in Thailand. Foreign flagged yachts of 24 metres and above can now operate charters under a licence introduced by the Ministry of Transport, carrying up to 12 guests, with VAT of 7% on the charter fee and corporate income tax on charter income. Smaller yachts generally need Thai registration and a Thai company structure to charter commercially. Our guides to foreign flagged yachts and Thai or foreign registration explain the options.
What a charter management company does
A charter management company runs the yacht as a charter business on the owner’s behalf. The usual services include:
Marketing the yacht to charter brokers and direct clients, and managing the booking calendar.
Recruiting, employing and managing the crew.
Handling licences, insurance, compliance and the accounts.
Planning maintenance around the charter season and keeping the yacht to a charter standard.
Reporting to the owner on bookings, income and costs.
Management companies charge a fee, often a fixed monthly retainer, a percentage of charter income or a combination of the two. Charter brokers who bring bookings also earn a commission.
What makes a good charter yacht
Some yachts suit charter better than others. In Thailand, sailing catamarans and motor yachts with generous deck space, good air conditioning and shaded outdoor areas perform well. Water toys, a capable tender and a talented cook add to the appeal. A yacht based in Phuket, close to Phang Nga Bay and the islands, has the widest market. Our comparison of catamarans and monohulls looks at this in more detail.
The owner’s use
Charter means planning your own time on board around bookings. Most owners block out their preferred weeks in advance and release the rest to charter. Peak weeks in the high season earn the most, so owners who want Christmas on board should factor that into their expectations.
Wear and tear
Charter guests use the yacht intensively. Good management keeps it in excellent condition, with regular maintenance and a refresh of soft furnishings and equipment. Budget for this as part of the charter plan.
Is it right for you
Charter suits owners who see the yacht partly as an asset to be used and who are comfortable sharing it. It is less suited to owners who want the yacht available at short notice or who treat it as a private space. A reputable management company will give you a realistic forecast of income and costs before you decide. Our guide to the cost of owning a yacht in Thailand helps frame the numbers.
Questions people ask
Can I charter my yacht in Thailand?
Yes, if it meets the legal requirements. Foreign flagged yachts of 24 metres and above can charter under the Ministry of Transport licence. Smaller yachts generally need Thai registration.
Does yacht charter cover the cost of ownership?
Charter can offset a significant share of running costs. How much depends on the yacht, its location, its crew and the number of weeks booked.
How much do charter management companies charge?
Fees vary. Common models are a monthly retainer, a percentage of charter income or a mix of both.
