South Africa's luxury boat industry turns to Europe as US market weakens

South Africa’s world‑renowned luxury catamaran sector — a $298‑million industry exporting 90% of its boats — is battling a sharp downturn as fluctuating United States tariffs unsettle its biggest market and force builders to seek new horizons.

Cape Town’s V&A Waterfront still sees sleek day‑cruiser catamarans glide out to sea each morning, but behind the scenes, the industry powering them is under strain.

US tariffs imposed in 2025 — swinging between 10% and 30% — have injected uncertainty into a market that once absorbed half of South Africa’s luxury boat exports.

Even after the US Supreme Court ruled the tariffs illegal in early 2026, hesitation among American buyers persists.

Kevin Knight of Knight Yachts says the instability has been damaging: “Trump has caused a lot of chaos in the world with the tariffs… it’s caused a lot of uncertainty in the market.”

Pivoting to new markets and new technologies

With US demand slowing, South African builders are turning toward Europe — a region accelerating its shift to renewable energy.

Knight Yachts, which specialises in electric‑powered catamarans, sees opportunity in this transition.

Co‑owner Allan Knight says innovation is moving fast: “There are new lithium batteries… new systems… it’s definitely a growing market… eco‑friendly and sustainable. I think it is the way of the future.”

Order books shrink, but production continues

Electrical specialist Robert Cook says the downturn is real but not catastrophic.

“The boat yards have received less orders… about a 40% decrease… but everyone is still building.”

Diversification into the automotive sector has helped his business weather the slowdown.

Reputation keeps the sector afloat

Despite the turbulence, South Africa’s catamaran builders remain globally respected.

The country produces around 275 luxury craft a year, second only to France.

Vanessa Davidson of the South African Boat Builders Export Council says the industry’s craftsmanship remains its strongest asset:

“We build boats that are durable… our quality has improved immensely. Every year, we are nominated and win boat of the year awards.”

Looking ahead

The sector hopes that its reputation for rugged, high‑quality multihulls — forged at the “Cape of Storms” — will help it navigate the current trade squalls and emerge stronger.