The number of yachts calling at Gibraltar has dropped in recent years, but long term prospects for the sector are bullish.

The Rock is well established in the yachting world but has lagged behind the sharp growth witnessed in neighbouring marinas.

According to the Department of Trade, Industry and Telecommunications, yacht calls have hovered between a high of 4623 in 2003, to a low of 3619 in 2005.

The main reason is the temporary loss of berths as major new developments including Ocean Village, on the site of the old Sheppard’s Marina, start to take shape.

There has also been a trend toward longer occupancy, with visiting yachtsmen extending their stays here.

But with new expanded and improved marina capacity due to come on stream in the coming years, investors believe Gibraltar can expand its share of this lucrative market.

The new luxury marinas planned for both sides of the Rock will help achieve this. They include Ocean Village, a re-vamping of the existing Marina Bay, new berths at The Island in Queensway Quay and, in the longer term, major new facilities as part of the East Side Development.

Gibraltar’s solid reputation in the provision of ancillary services - from the provisions of stores and spares, to yacht registration – will also help.

So too will plans announced earlier this year to re-vamp the local shipyard and re-focus it to target the super yacht repair market.

The idea is to turn the yard into a premier repair centre for these luxurious vessels. Gibraltar’s strategic location means the yard is well placed to tap this market as yachts move from summer in the Mediterranean to winter in the Caribbean.