Luxury yacht makers get that sinking feeling

A slashed bonus is one thing; a depleted expense account another. But, even in these times of strife and slimmed-down pay packets, what self-respecting City hotshot can be expected to do without a yacht?

The prospect of credit crunch belt-tightening hitting yet another of the staples of the super-rich lifestyle was raised yesterday as luxury yacht makers admitted that discounts are now available.

On offer in Canary Wharf yesterday, for instance, was the Manhattan 66, a two-year-old model which under normal circumstances would fetch £1.25m. But these are tough times and the boat's maker, Sunseeker, said it was offering discounts of at least £100,000. All it wanted was a client willing to buy – and buy fast. For £1.15m, a purchaser would enjoy a little slice of floating luxury, with three air-conditioned cabins finished in cherry satin wood and a boat customised with a special silent generator room for quiet running.

But business appeared less than frenetic. A reception event aimed at luring City workers attracted only a small crowd who included a few local families and a group of curious tourists, happy to sample the free bucks fizz and canapés.

One man who might have splashed out was Alex Woods, 44, a financial analyst. But he said: "Bonuses are down and there is genuine fear of jobs going. People are much more careful now, and they don't want to be seen to be ostentatious." Then he paused, shooting another glance at the quayside. "Although they are rather lovely, aren't they?"