Yacht charter company Sunsail, which has operated in Palma since 2013, has announced that it is closing down its base here because the mooring fees are far too expensive.

The company has concluded that it is no longer financially viable to maintain its base in Palma. This is a very sad day for Palma in my opinion, when the largest charter company in the world leaves town.

“As we think towards the future of our brands we have had to review the profitability of our base network more closely than ever, and we can confirm that the business has made the difficult decision to close the Palma, Mallorca base as of the 31 December 2020,” says Simon Cross, president of Sunsail and The Moorings. “This tough decision has been taken to allow us to continue to successfully navigate these challenging times as a business whilst also reacting to suit market demand.

“We remain dedicated to creating the very best yachting holidays for our customers and will continue to add new and exciting bases to our comprehensive portfolio. We have a diverse range of destinations to choose from, and we are proud of the fantastic experiences we continue to offer our guests.”

Sunsail has 30 moorings for its Palma fleet and was having to pay 1,300 euros plus 21 percent IVA (VAT) per month for each one, taking mooring expenditure alone to over 80,000 euros per month.

The president of the APEAM Yacht Charter Association, Jose Maria Jimenez, says mooring rates in Palma are around 500 percent higher than in marinas in countries such as Croatia, Greece or Italy. And those countries reported a marked increase in yacht charter business this summer while Spain experienced a near 25 percent fall in the number of large charter and super yachts. Spain and its Port Authoritiesalong with private marina operators really does need a reality check on its charges.

Jimenez says that Sunsail’s decision is extremely worrying and could set a precedent. He says the port and marina authorities should address the issue and take proactive action to help the nautical industry in general by starting with the reduction of mooring fees.

Sunsail is a premium yacht charter brand which has a fleet of circa 500 yachts in 20 plus cruising destinations worldwide.