October 18, 2019, 04:39:08

Timeshares growing in popularity

Started by Newshound, June 04, 2004, 20:33:52

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Study indicates timeshares growing in popularity  

A study conducted by PricewaterhouseCoopers (PwC) for the American Resort Development Association (ARDA) revealed that in 2002, timeshares generated $67 billion for the U.S. economy and created 222,500 direct and 253,600 indirect jobs, representing nearly $16 billion in payroll and related income.

"This comprehensive study confirms the timeshare industry's significant economic contributions and its prominence as a growing force within the hospitality sector," said ARDA President & CEO Howard Nusbaum. "The regions surrounding timeshare resorts benefit from the generation of a loyal base of repeat visitors, new jobs, and consumer expenditures, as well as the industry's elevated occupancy rates and overall stability."

The study, the largest and most comprehensive ever conducted by the ARDA, also revealed that timeshare owners spend nearly $1,784 per trip and that timeshares registered an average occupancy rate of 79% in 2002, compared with an average U.S. hotel occupancy of 59%. In addition, timeshare ownership contributed $3 billion for current resort operations and future maintenance and refurbishment of timeshare units and resort facilities.

PwC conducted the timeshare economic study during the fall of 2003 surveying 3,359 timeshare owners, 54 timeshare entities and two leading timeshare exchange companies.

Marcos Agostini, newly appointed chairman of the Caribbean Hotel Association Timeshare Committee, said Puerto Rico is well-suited for the development of timeshares.

Agostini, who is also director of the Caribbean-Latin American region for vacation-exchange company Interval International, said running a timeshare resort is complex, as it involves many aspects such as sales, marketing, and maintenance, but the ability and expertise of hoteliers in Puerto Rico could be applied to running a timeshare.

"Puerto Rico is a high-demand destination, and it has many experienced hoteliers who have demonstrated the island's potential for tourism and have transformed many big hotels into very successful operations," said Agostini.

Referring to Interval International's internal reports, Agostini said the Caribbean is an emerging market for timeshares. In fact, it is the third market chosen by prospective timeshare buyers, after Europe and Australia. He also said the Caribbean is the preferred travel destination for Interval International customers.

The timeshare industry has grown so fast in the Caribbean in recent years because more vacationers are realizing the region offers great value and a pleasant climate year-round. "Resort developers have recognized the need for vacationers to escape to the Caribbean and have built timeshare facilities to meet this need," said Agostini.

Timeshares' Economic Impact on the U.S. Mainland

Total direct impact

$17.2 billion of output*
222,500 jobs
$6 billion of income**

Total indirect impact

$27.1 billion of output
253,600 jobs
$10 billion of income

Total fiscal impact

$6.4 billion tax revenue*** *Includes timeshare owners' vacations, average expenditures per trip and total estimated spending.
**Resorts income.*** Includes timeshare property taxes and occupancy taxes for guests vacationing in rented timeshare units.
Source: American Resort Development Association 2004 Timeshare Economic Impact in the U.S.

Preferred International Locations to Which Interval Members Plan to Travel in Next Two Years*

Caribbean: 74.1%
Europe: 35.6%
Mexico: 24.5%
Canada: 20.6%
Asia: 9.9%
Central & South America: 6.6%
Oceania: 5.1% *Multiple responses permitted.
Source: Interval International 2003 Membership Profile