ASSUME NOTHING!
Operating cost contribution / owners obligations / rights
Living on Raffles is totally tax but not cost free with each owner paying an annual contribution to the ships total operating costs. Projected currently (based on a heavy fuel cost of €350/ton) as about €10.7 million total PA, in 2011, this equals €625 per m2 of apartment / penthouse space / per year. A detailed breakdown and explanation of all operating costs is provided to owners well before Raffles operation starts, but they are always fully transparent and do not include any element of profit (based on a 1 year guarantee).
The per m2 / year contribution does not vary with the deck level of the apartment or its size or its price and is paid annually in advance to Raffles Ltd. so that a standard 120m2 apartment will pay about €75,000 a year and a 410m2 penthouse €256,250 (both of which include the separate storage areas).
Currently operating cost contributions on similar ships, which however the occupants do not legally own, (only lease an apartment on), are as much as €1,400 per m2/year, or two times higher than on Raffles and with virtually no expenditure transparency available to the lessees. In addition on all the other ships the facilities provided such as restaurants, spas, etc. are run to provide significant profit margins to the ships owners / management company, and not as on Raffles to your benefit as the (only) owners.
Note that Raffles operating costs are projected by FVH based upon best available information at this time to qualified and experienced ship managers as well as published information on such items as port charges and fuel prices. They may be adjusted up or down as information is obtained during the construction period, with fuel cost today the obvious major variable! However all cost calculations / projections are always available to all owners and any adjustments / revisions that are necessary while Raffles is being assembled will be continuously explained to all owners.
Once in operation all of Raffles cost of operations are of course always available to all owners 24-7 on the ships intra net, with their allocation and day to day management vested in the Captain and his staff including a full time qualified accountant carried on-board and working with the owners committee.
The owners on-board committee will receive monthly, unaudited electronic statements and the ships / Raffles costs / accounts are audited annually by Ernst & Young.
Some costs such as fuel and port charges are effectively allowances with the Captain advising owners on a weekly basis the amount remaining for the balance of that years operation and what this means. For example spending one month in Monaco could “use up” 6 months of port charges “allowance” while steaming at 14 knots, not 6 to 8, can mean using 3 to 4 times the amount of fuel allowed for the year!