Police officers stand beside a victim on a landing dock after a tourist boat crash on the River Danube in Budapest, Hungary. EPA
Police officers stand beside a victim on a landing dock after a tourist boat crash on the River Danube in Budapest, Hungary. EPA
Police officers stand beside a victim on a landing dock after a tourist boat crash on the River Danube in Budapest, Hungary. EPA
Police officers stand beside a victim on a landing dock after a tourist boat crash on the River Danube in Budapest, Hungary. EPA

Seven dead and many missing after tourist boast capsizes in Hungary


Nicky Harley
  • English
  • Arabic

At least seven people have died and more than a dozen are missing after a pleasure boat carrying South Korean tourists capsized on the flooding Danube in the Hungarian capital on Wednesday.

The boat was reportedly hit by another tourist vessel near the Hungarian parliament building, then turned over on the river, which has been flooding, with very strong currents, while a rainstorm enveloped Budapest.

Mihaly Toth, a spokesman for the boat's owner, told state television that the boat - the Mermaid - had sunk.

A massive rescue effort was under way with boats, divers, spotlights, and radar scanning along the river several kilometres downstream.

Police said the boat had been carrying 33 South Korean tourists plus a crew of two.

An ambulance spokesman told state television that 14 people had been pulled out of the water so far.

Seven of them have died, with the other seven suffering from hypothermia but stable. It was not immediately clear exactly how many of the remaining 21 people were still missing.

Dozens of emergency vehicles were visible on a stretch several kilometres downstream from the site of the accident, which happened shortly after 9pm. (1900 GMT).

The hours that have passed since the accident make it less likely that new survivors will be found in the central Budapest area, as the strong currents have carried people far downstream, emergency rescue chiefs told state media.

The National Ambulance Service was conducting searches on along stretch downstream from Budapest and on alert on the entire Danube stretch south of Budapest in Hungary, where all boat traffic has been halted.

Television footage showed the bank of the Danube closed off by police on the Pest side, across from the World Heritage site of Buda Castle.

The Danube's flooding and currents made rescue efforts extremely difficult, a rescue diver told the state broadcaster, adding that the waters of the Danube were only about 10-12C.

The boat was a 27-metre (89-foot) double-decker river cruise boat that can hold up to 60 people and was equipped with a 150-horsepower engine, its owner, Panorama Deck Ltd, told state media.

A shipping expert told state television that it was likely that the pleasure boat had collided with a very large vessel that had sunk it very quickly. The hull is yet to be found on the riverbed.

"We are mobilising every resource we have to protect human lives," they added.

The Mermaid had been in their fleet since 2003 and received regular maintenance, they said.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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