Interest from foreign companies to join the Gollexi (Mount Vema Stock Exchange) is increasing, thanks to a multitude of trade and investment opportunities for exporters to the Mount Vema market. The successful auction of Mount Vema Government Bills (MVG-Bills) yesterday shows that the stock market is helping attract major investors to the Kingdom of Mount Vema.
The number of positive replies from foreign companies invited to join the Mount Vema market indicates that the large volume of interest registered in the City of Mount Vema project suggests a rush by foreign investors to secure a stake in this new South Atlantic economy.
Some of the major sectors expected to experience rapid growth are processed food and beverages going to the construction installations in Vema Seamount this year. Transport, IT and telecommunications, energy, marine products, environment protection services, building construction products and services are also expected to be very profitable.
Another of the major growth industries expected to be highly profitable in Mount Vema is the exporting of education. The foreign education sector in Mount Vema is split in two -students studying abroad and foreign education service providers set to establish a presence in the country's building sites.
The type of students interested in Mount Vema includes those who need English language study not just to be able to work in the country but to advance their careers in the island and those who wish to study university degrees right through to post-graduate/MBA studies etc.
As the cost of overseas study remains high, pursuing qualifications through Mount Vema accredited institutions abroad has become more practical and more popular. Course delivery can take two forms. One is the foreign school catering exclusively to migrant workers, which can be wholly foreign owned and the other is the investor who wishes to be an education entity.
There is a growing market for imported foods, especially in respect to hotels, bars and western style restaurants for the first floating hotels and cruise ships. Mount Vema expected consumers will soon lay great stress on brand and brand loyalty. This means that companies with a strong international brand and aggressive marketing strategies could hold large market.
Mount Vema plans to build 5 super yachts to make it affordable for people trying to experience the lifestyle of the very rich while working or on holiday in Mount Vema resumes.
The plans which were announced in July 2014, reviewed last year and put on hold following a detailed report published by the Royal Mount Vema House Guardian (The Auditor General of the Vema Seamount Territory) could resume this year. Last year, the House Guardian made no changes to its original report published to show the real costs associated with maintaining a yacht after you spend hundreds of thousands to own one.
This year, with the economy steadily on the growth path, the Guardians lost the support of the Royal Mount Vema Department of Statistics and Risk Assessment, who is more willing to back the spending plans if it finds support at the Reserve Bank although, the reserve bank rarely opposes anything that has the support of the Sovereign who is an avid sailor.
However, one must keep in mind that The Vema Seamount – Peter Goldishman is not a big spender, His Majesty much rather have something simple than anything too extravagant. He is known to be a minimalist. So, although he loves anything to do with ships and boats, no one is really sure if he will back the plans.
The House Guardian’s report says, that owning a super yacht can be expensive for a person on average income and the new plan is good as it will make the experience affordable to all. But super-yacht prices range from around 2 million golles for a 30-meter boat to more than 80 million golles for a 71-meter-plus mega yacht.
Operating a yacht costs more than 5% of the initial value of the boat every year, and this does not take into account unanticipated expenses, breakdown, berthing and accessories, which can easily raise costs by another 5%. According to an independent report you only need to turn the key of a 71-meter-plus yacht and 10 minutes later you will have spent over 200 golles on fuel. Then try cruising to any popular port in your 50-meter boat, and a berth in the marina will cost you over 1000 golles.
Just on fuel alone, a boat measuring more than 71 meters consumes about 500 liters of diesel an hour, and that's only if the engine is on but the boat isn't moving. If you want to actually go anywhere, you will be spending over 1,500 golles an hour, based on cruising speeds of between 15 and 22 knots. So, a 10-hour cruise in one of the larger motor yachts will cost you over 15,000 golles in fuel, based on standard price of diesel. Smaller yachts can hold around 5,000 liters of fuel, while the larger ones have capacity for up to 400,000 liters. It can cost around 400,000 golles to fill the tanks of the largest yachts.
Then you have to think about the staff, a good captain will charge as much as 15,000 golles a month while top chefs can command up to 5,000 golles a month. Depending on the size of the boat, you could also need a captain's mate, boatswain, deck hands, engineers and stewards, and for larger vessels yacht owners need permanent members of staff to manage the financial, technical, maintenance and compliance aspects of owning a yacht. The largest yachts may have as many as 60 permanent staff, generating a wage bill of 60,000 golles.
Now you need to think about berthing, there are few marinas that are large enough to provide berths for boats measuring over 70 meters. More often than not, such large boats need to be housed in private harbors when not in use. Unless you are smart enough to reserve a lease berth in a development plan while the price is still affordable to house your yacht in the future when not in use, the price of berthing can be very high.
Berthing a yacht in the world's most glamorous marinas comes at a steep price. Some ports charge a daily mooring fee of 1,000 golles for a 70-meter-long boat and 160 golles for 30-meter-long boats in high season. Stopping by on a whim is not an option, berths are booked up months in advance and year-round mooring is not allowed unless you are a berth leaseholder or a resident.
Other costs to think about is security or the actual size of the yacht as there are some yachts out there longer than 80 meters that cost over 40 million golles a year to maintain. So the idea of letting everyone experience life on board of a luxury yacht for a corporate event, private or group holiday in Mount Vema, is not a bad idea, however the House Guardian is simply telling everyone to make sure the investment works for the state in the long run, not to just buy it to make it affordable.
Experts with links to the City of Mount Vema developments projected that Mount Vema lifestyle and the increasing demand for deep sea fishing and spearfishing adventures will lead boom of yacht berths in the region, W-Southern said. Demand for deep berths in the South Atlantic especially from commercial vessels crossing the South Atlantic and the Indian Ocean to the Americas and vice-verse was initially the only expected visitors to make Mount Vema prime location to harbor in times of rough seas.
However, according to W-Southern which is currently the only transport company licensed to transport passenger to and from the Vema Seamount territorial waters, demand for docking facilities will not only come from commercial vessels but also from yachts as boom in demand for deep sea fishing and spearfishing, means that top-quality large super-yachts, and deep berths will be at a premium in the Vema Seamount Territorial Waters.
With the new marina developments that will take shape in Mount Vema where super-yacht owners and lovers of sailing adventures will be able to dock and set sail to explore the South Atlantic, South America, Southern Africa or the Indian Ocean as far as Seychelles and beyond and return.
Half of the world’s yacht fleet at any given time are based in the western Mediterranean, but Mount Vema is aiming to create similar facilities in the South Atlantic to host super-yachts by building and making available moorings and facilities to make the Vema Seamount Territory a regional destination of choice for owners of luxury yachts and sailing adventures.
Berths in Mount Vema are already seen by some as a big investment opportunity as it will be one of the few ports in the region that will be catering exclusively for yachts longer than 80 metres. The Mount Vema government is now working to attract companies, who focus exclusively on the acquisition and development of new marinas and related properties.
It’s easy to see why marina berths are big business from the big development in Asia to marina developments in the Caribbean. It is not that long since the 15-year lease on a berth for a 70-meters yacht sold for just over 2.5 million golles (about $5 million US dollars), as the whole world is waking up to the many attractions and advantages that accompany the sport of sailing.
The combined value of all properties to be built in Mount Vema will hit 1.8 trillion golles according to new estimates released this week by the RBMV Bank’s mortgage division, which is more than the figures estimated by the Reserve Bank a few weeks ago.
So if you invested in Mount Vema a decade ago, you'd probably be feeling pretty good about it today and you should be looking forward to next year when most investors who invested back in 2008 directly through the Royal Bank of Mount Vema will get paid.
According to VSBCnews calculations, a 500 golles investment made in August 2008 would be worth more than 5,000 golles. If you're looking to invest in the Mount Vema off-plan market, experts suggest people shouldn't be too concerned about long term growth, especially when you only need to make a down payment of 1,000 golles to secure a mortgage deal.
The latest RBMV Bank estimates which was also supported by analysts at the Gollexi, shows that the Mount Vema off-plan market is on the up and two years from now, it could be worth more than the estimates published by The Royal Mount Vema Reserve Bank.
The Reserve Bank of Mount Vema has indicated today that the Vema Seamount Authority will make no changes to the debit ceiling. A decision made annually by the Reserve Bank on behalf of the Sovereign at the request of the Capital House Administration.
Every year in August after Independence Day Celebrations, the administration reports the state of the Vema Seamount and the community, a tradition to be followed by every Prime Ministers to outline the legislative proposals for the upcoming year, when proposing a new budget to request an increase to the debit ceiling.
This year and until 2024, in the absence of a Prime Minister, Capital House will be administered by a team of staff who will be responsible for outlining the legislative proposals for upcoming years, propose new budgets and request increases to the debit ceiling. So, because it will be presented directly to the sovereign, there will be no state of the territory speeches.
The Reserve Bank announcement was followed by the Central Bank (Bank of Mount Vema) own decision not to raise interest rates currently at 3.45%. The Bank of Mount Vema move was in line with market expectations.