Charter services for multiple charterers – news on cabin charter

Moores Rowland Partners Tax Column

Contribution by Dr. Ezio Vannucci and Dr. Andrea Barabino

So-called cabin charter is an innovative concept in the yacht charter industry. Unlike traditional charter, where a single client takes the entire vessel, this model allows multiple guests to share the same boat. Each guest purchases (by signing an individual contract) the use of a portion of the vessel - generally a cabin - or, more simply, a seat/place on board.

The regulations governing crewed charter fall within the scope of the Recreational Boating Code, which defines charter as the provision of a recreational craft, or part thereof, for recreational purposes. A key factor distinguishing charter from hire is the presence of a crew: in a charter, the vessel remains under the charterer’s control and is operated by qualified personnel. The real turning point came with the recent ministerial clarifications regarding the charter of vessels to multiple users/charterers, under the so-called ‘cabin charter’ model.

With this clarification, the Ministry of Infrastructure and Transport (MIT) has confirmed that the regulations governing “cabin charter” fall within the scope of the Recreational Boating Code and are therefore fully operational and applicable to charter contracts as well; consequently, multiple contracts may be entered into for as many charterers as there are, regardless of whether the vessel is fitted with cabins or not.

Of particular interest is the clarification contained in the MIT’s note, which reiterates that the cabin charter contract is not comparable to the passenger transport model, which expressly requires the provision of a service connecting two or more predefined locations, thereby indirectly confirming that the so-called ‘transport contract’ promoted in France by an association operating in the yachting sector does not comply with Italian legislation.

The Ministry has also clarified that the ‘cabin charter’ arrangement is possible regardless of whether the vessel has cabins in the technical sense; rather, the term refers to the fact that the vessel is chartered to several parties at the same time. The ‘cabin’, therefore, is no longer necessarily a closed physical space, but can represent any part of the vessel; in practical terms, this means that even vessels without cabins - such as inflatable boats or open boats - can operate under this arrangement. Following this clarification, the way is now clear for a new business model as an alternative to traditional yacht charter. Indeed, it is now possible to offer a significantly more accessible service on the market through the cabin charter model, as it is aimed at a wider range of clients.

However, safety requirements remain unchanged. The charter operator must ensure the vessel is in good working order, that the required safety equipment is present, and that there is adequate insurance cover for passengers. An essential element of crewed charter is the presence of qualified personnel on board. Recent reforms to professional qualifications in the yachting sector have simplified the process of obtaining licenses and made them more accessible, thereby promoting the growth of the charter industry. The crew thus becomes not only the guarantor of safety, but also an integral part of the experience offered.

Crewed yacht charter now represents one of the most significant developments in the yacht charter industry. Thanks to a clearer regulatory framework and a more flexible interpretation, this model is proving to be the ideal solution for combining accessibility, affordability and innovation.

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