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November 2008
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ARDA Headlines
ARDA-New England Winter Regional Meeting
2009 ARDA Awards Nominations
AIF Releases 2008 Financial Performance Report
Forget about Spring Cleaning—Let the Spring Shopping Begin…
Industry News
"Disney's Splashy Hawaii Theme Resort Set to Open in 2011"
"Renting a Villa, Not a Dump"
"Timeshare Industry Seeks Relief"
"Financial Crisis Has Not Taken Its Toll on Caribbean and Mexican Destinations Just Yet"
"Resort Hopes to Break Ground Next Spring"
"Fla. Group Buys David Walley's in Carson Valley"
"Career Essentials Should Emphasize Vacation"
"Silverleaf Resorts Inc. Reports Third Quarter 2008 Results"
"'World's Best Golf Course' Approved -- Complete With 23-Acre Eyesore"
"How Timeshares Shore up Tourism"
"Many Working Harder to Hold Onto Their Jobs"
"RCI Signs Timeshare Affiliation Deal With Salwan Property Management"
"Timeshare (Vacation Ownership) -- Reliable or Risky?"
"Hotel Industry Giants, Including Disney, Marriott, Hyatt and Hilton, Make Over Timeshares"
ARDA News
ARDA-New England Winter Regional Meeting
December 1-2, 2008
Mohegan Sun
Uncasville, CT
Register now!
2009 ARDA Awards Nominations
Nominations are now being accepted for the 2009 ARDA Awards Program! The early-bird deadline for submissions is Friday, December 19, 2008. Final deadline is Friday, January 9, 2009. For more information about the awards program, eligibility, judging opportunities, etc., please visit the awards page at www.arda.org/awards.
AIF Releases 2008 Financial Performance Report
The ARDA International Foundation (AIF) has just released its Financial Performance 2008: A Survey of Timeshare and Vacation Ownership Companies Report. The 2008 survey was updated to collect additional sales information, FICO scores, and receivables portfolio performance. By conducting this report annually, the AIF provides timely information that permits companies to compare operations to industry benchmarks, a reference for tracking trends, and a resource for potential industry entrants and others seeking to better understand the timeshare development business. To purchase a report, please click here.
Forget about Spring Cleaning—Let the Spring Shopping Begin…
The AIF is pleased to announce that the Convention Auction is back! Before, during, and following the 2009 ARDA Convention, you may shop for your summer vacation, accessories, artwork, and even business-related service & products—all while raising money for industry education and research.
The auction will run March 23-April 14, 2009, on-line access at http://aif.cmarket.com/. Bid on or donate items anytime, anywhere! Gain exposure for your company by donating an item to the auction; please contact Darla Zanini, RRP, at dzanini@arda.org or 202/207-1078 for more information.
Industry News
Disney's Splashy Hawaii Theme Resort Set to Open in 2011
Honolulu Advertiser (HI) (10/17/08) Dingemann, Robbie
Despite a slump in Hawaii's tourism industry, Walt Disney Parks & Resorts is proceeding with a hotel-timeshare development at Ko Olina on Oahu's Leeward Coast. The resort is on track for a 2011 grand opening, boasting 350 hotel rooms and 480 timeshare units. Jay Rasulo, chairman of Walt Disney Parks & Resorts, has declined to say how much the company intends to spend on the project. However, earlier estimates placed the figure in the $800 million range. The company will employ as many as 1,000 people at the site. Disney's investment in Hawaii comes at a time when many other destinations are seeing a delay in new construction. For instance, Bloomberg News reports that more than $10 billion in hotel and casino projects with 10,000 rooms have been delayed on the Las Vegas Strip. According to Rasulo, Disney decided to move forward with the Hawaii property because it fits well with the company's emphasis on family vacations. Rasulo concludes, "Hawaii is a long-term family destination. There are always economic ups and downs, and we have confidence in Hawaii as a continued family tourist destination for the long term."
Renting a Villa, Not a Dump
Wall Street Journal (11/05/08) Nassauer, Sarah
Renting a vacation home may be more affordable and provide more space and privacy than most hotel rooms. However, some travelers still hold back out of fear they will fall prey to the phenomenon industry known as "SNAD," or rather "significantly not as described." Now, the various hospitality companies are searching for new ways to make booking a vacation rental less mysterious and more reliable. The industry is also wagering that the often lower cost of staying in a vacation home will hold particular appeal as the economy continues to take a turn for the worst. Homeaway Inc., the world's largest vacation rental booking company by the number of properties listed, is taking steps to increase reliable user reviews on its Web sites to boost consumer confidence. Tripadvisor,meanwhile, plans to add vacation-rental reviews to its site by the end of December. In October, a trio of rental booking companies--Mountain Reservations, Rooster.com and Mexican Destinations--joined their inventory and launched VacationRoost.com. The booking Web site says customers will get such "hotel-like amenities" as check-in, cleaning services, 24/7 service and maintenance, and the ability to book a rental with a credit card. In late 2007, Group RCI--a vacation-rental and timeshare-swapping company owned by Wyndham Worldwide, entered the U.S. market with Endless Vacation Rentals. It offers round-the-clock assistance over the phone, full refunds on canceled reservations, and free over-the-phone concierge service in multiple languages. Finally, Travelocity.com confirms that it has about 1,000 condos, bed-and-breakfasts and vacation-rental properties on its site today versus only about 200 two years ago.
Timeshare Industry Seeks Relief
Orlando Sentinel (FL) (10/29/08) Clarke, Sara K.
The American Resort Development Association has petitioned the federal government to guarantee timeshare mortgages in return for an insurance fee. While ARDA says sales of timeshares are holding up amid the ongoing economic turmoil, companies are finding it tough to turn their investment-grade paper into cash. Timeshare companies fund further development by selling mortgage notes in the securities market or by borrowing against them. Both approaches. however, are problematical at the moment with investors. ARDA President and CEO Howard Nusbaum remarks, "We're not looking for a bailout. All we're saying is that our business is being unfairly hurt because the credit market is locked up." In a recent letter to the White House Counsel of Economic Advisors, ARDA said the country's timeshare developers are facing a "very significant and immediate liquidity crisis." ARDA issued the insurance proposal in response to a Bush administration request for public comment from business groups on how the global credit crisis was affecting their industries. Nusbaum concludes, "We have a history of performing well. We're just trying to express that to the market."
Financial Crisis Has Not Taken Its Toll on Caribbean and Mexican Destinations Just Yet
Travel Daily News (11/05/08)
A recent study, dubbed "Future Timeshare Buyers 2008 Market" profile prepared by Ypartnership for Interval International, revealed that although Europe continues to be the preferred international destination among 72 percent of leisure travelers interested in purchasing vacation time, nearly one quarter are interested in visiting the Caribbean and about 15 percent are interested in Mexico. Overall, Mexico, the Caribbean and Canada are the fastest-growing vacation ownership venues in the world outside the United States. These destinations are still enjoying their fair share of timeshare guests, too. Problem spots remain, though. Richard Corso, CEO of The Royal Resorts, notes that the island of St. Martin has seen a sales decline of nearly 20 percent as well as slower pace of development. He adds, "Twenty percent is not that serious, but we're more worried about how one third in receivables of the portfolio is doing. . . . Timeshare is extremely versatile. People are flipping back into whole ownership at the time-being as timeshare sales continue to decline." Jim Walters, vice president development at Glacier Lake Development Corp., is looking forward to a better 2009 thanks to timeshare resorts in Mexico, Central and South America. He remarks, "Over there, they have access to money. They can build and finance themselves though this credit issue is alien to them."
Resort Hopes to Break Ground Next Spring
Wisconsin Dells Events (11/07/08) James, Kay
The Wisconsin Dells Plan Commission gave its approval to specific plans for the initial phase of the Silverleaf Resort on the old Artist Glen property. Officials hope to break ground for the new timeshare resort by the end of April. Silverleaf is looking to build a $90 million resort with 632 timeshare units, along with a 15,000-square-foot activities center and a welcome/sales center of the same size. It should be noted that the resort will not be built all at once. How fast the various phases of the timeshare buildings are erected will depend on sales. The first phase will involve the building of an access road to Highway 13 that would be connected to the Wisconsin Dells Sports Center, part of the Chula Vista Resort. The initial phase will also include up to four buildings of timeshares, the sales center, the member services building, a registration/activities facility, a swimming pool and other recreational amenities.
Fla. Group Buys David Walley's in Carson Valley
KCRA-TV (Sacramento, CA) (11/05/08)
Celebrity Resorts has completed its acquisition of David Walley's Hot Springs Resort & Spa in Nevada's Carson Valley. Terms of the deal were not disclosed. Celebrity Resorts President and CEO Jared Meyers states that the purchase will enable his company, a Florida-based timeshare developer and manager, to expand its presence in the western United States. David Walley's was originally built in 1862 by David and Harriet Walley. Over the years, such noteworthy guests as writer Mark Twain, Presidents Ulysses S. Grant and Teddy Roosevelt, and film legends Clark Gable and Carol Lombard stayed there. Ten years ago, Illinois-based Quintus Resorts bought Walley's and undertook major expansions, including the addition of timeshare condos.
Career Essentials Should Emphasize Vacation
Fort Myers News-Press (11/04/08) Hunsinger, Dana
Vacations are vanishing for a growing number of American workers. Only 14 percent of Americans will get a vacation of two weeks or longer this year, reports Take Back Your Time, an initiative created to challenge the epidemic of overwork, over-scheduling and time famine in U.S. workplaces. Other findings include 28 percent being able to take no vacation time whatsoever and 24 percent only getting one week or less off. John de Graaf, executive director of Take Back Your Time, remarks, "At a time when polls show American stress levels at their highest ever recorded, Americans more than ever need some time for rest and recuperation." Unlike 127 other countries, the United States currently has no minimum paid-leave law. Australians have four weeks off by law, the Europeans five weeks and the Japanese two weeks. De Graaf observes, "Time off is essential to health." Indeed, men who do not take regular vacations are 32 percent more likely to suffer from heart disease than those who do. Women, meanwhile, are 50 percent more likely.
Silverleaf Resorts Inc. Reports Third Quarter 2008 Results
Centre Daily Times (PA) (11/04/08)
Silverleaf Resorts Inc. confirms that vacation Interval sales rose 5.6 percent to $66.8 million during 2008's third quarter, while total revenues climbed 1.3 percent to $68.4 million. According to the company, the increase in vacation interval sales is mainly due to favorable sales mix of higher-end products along with increased tours. Silverleaf CEO Robert E. Mead states, "We continue to be challenged by current economic conditions, coupled with the negative impact from Hurricane Ike on our September sales. However, in spite of these events, our sales have continued to increase. Furthermore, we are also extremely pleased by the progress we have made in improving the credit quality of our new originations while prudently managing our liquidity through controlled and measured growth." Dallas-based Silverleaf currently owns and manages an undisclosed number of timeshare resorts with a broad variety of country club-like amenities, including golf, swimming, tennis, boating, and a myriad of organized activities for children and adults.
'World's Best Golf Course' Approved -- Complete With 23-Acre Eyesore
Guardian Unlimited (UK) (11/04/08) Carrell, Severin
Real estate mogul Donald Trump has won permission to build what he calls "the world's greatest golf course" in Scotland, which will feature high-rise timeshares and an eight-story hotel on an ecologically sensitive stretch of dunes overlooking the North Sea. Trump's most famous opponent, fisherman Michael Forbes, was the target of abuse from Trump in 2007 after refusing repeatedly to sell his home. The residence is located on the resort's land, and Forbes still intends to stay put. He states, "They reckon the construction will last 10 years, but I'll never ever sell to that loudmouth bully." The resort covers 2,000 acres. It will have a couple of 18-hole championship courses, four blocks of 950 timeshares, 500 so-called "exclusive" homes, 36 villas, a golf academy and staff housing. Conservationists were angry when ministers overrode legal protection for a legally protected system of naturally shifting sand dunes that is central to Trump's vision. The plan is for the "back nine" holes of the main 18-hole course to be built over about one-tenth of the dunes. Trump has refused to move that section of the course, overruling his own environmental experts in favor of an all-or-nothing stance. Inspectors, in turn, subsequently ruled that the damage to the dunes was outweighed by the resort's substantial value to the Scottish economy.
How Timeshares Shore up Tourism
Virginia Gazette (11/01/08) O'Donovan, Bill
Timeshares have capitalized on the vacation market by targeting people who ski, go to the beach, or travel to destinations like historic Williamsburg, Va. In fact, state tourism officials credit timeshares with propping up the local destination tourism market, describing them as the silent economic engine that props up visitation seven days a week--as opposed to a couple of nights in traditional hotels--with nearly 250,000 visitors annually. The article's author writes: "They have been the fastest-selling segment of the hospitality industry," adding that timeshares may even flourish during the ongoing economic downturn. Jeffrey Hobson, operations director of Manor House at Ford's Colony in Virginia, remarks, "The traveling public is discovering this. For people who are okay with being somewhat self-sufficient when they're traveling, timeshares present a tremendous value. Because we are very competitive with hotels, and at times less expensive." In addition, the industry has branched out from the notion of visiting one's timeshare every year. For years now, owners have been able to trade their unit for a timeshare elsewhere. Consequently, more people are visiting places like Williamsburg who may have never gone there otherwise. In such areas, timeshare resorts have also emerged as big-time employers. As far as Williamsburg is concerned, timeshares are in the top 10 for employment in the community, right up there with the College of William & Mary and Anheuser-Busch.
Many Working Harder to Hold Onto Their Jobs
Belleville News-Democrat (IL) (11/04/08) Goodman, Cindy Krischer
For many U.S. workers, the economic downturn has quashed such luxuries as vacations, flexible working arrangements and telecommuting. In particular, parents are postponing the possibility of cutting back to part-time work hours, staying home with the kids or taking a sabbatical. John Challenger, CEO of Challenger, Gray & Christmas, states, "Holding onto your job right now is more important for many than getting more work/life balance. This is not the right time to be negotiating those sorts of things." Of course, the economy will determine where things head from here. For the time being, "people are working longer, harder and turning themselves into a jack of all trades," Challenger observes. Miami advertising agency owner Len Dugow notes that instead of making vacation plans, many find it "easier to sneak away for short weekends." These new trends have startled younger workers who entered workplaces with expectations for balance. In turn, Florida-based life coach Drazia Rubenstein worries that workplace changes are coming at the expense of self-care. She remarks, "It's not smart to sacrifice the things that are important to your well being."
RCI Signs Timeshare Affiliation Deal With Salwan Property Management
AME Info (UAE) (10/29/08)
RCI, the world's largest timeshare exchange company, has signed an affiliation agreement with Salwan, a property management company and a subsidiary of Dubai Properties Group. Under terms of the deal, the RCI Points exchange program will be offered to the owners at Salwan Hotel Apartments. The property boasts 80 one-, two- and three-bedroom timeshare units, all equivalent to five-star hotel accommodations. Located in Dubai's sought-after Jumeirah Beach Residence, the timeshare resort offers beach access and is located close to designer shopping and fine dining. Group RCI President and Chief Executive Geoff Ballotti states, "Our global reach serves as an added incentive to future Salwan owners who will have access to the largest portfolio of vacation resorts in the world and be supported, both on-line and by dedicated, multi-lingual vacation guides in our call centers across the globe."
Timeshare (Vacation Ownership) -- Reliable or Risky?
Summit Daily News (CO) (10/15/08)
The American Resort Development Association (ARDA) was formed more than three decades ago to establish timeshare guidelines and regulate an industry with huge potential. Today, ARDA has nearly 1,000 corporate members ranging from privately held firms and publicly traded companies to international corporations. Members include some of the world's best-known hospitality brands, including: Disney, Four Seasons, Marriott and Starwood. ARDA members have worked diligently with federal and state government officials over the years in support of legislation that protect consumers from unethical sales behavior. According to a recent ARDA report, 4.7 million households owned one or more U.S. timeshares totaling 6.5 million intervals owned as of Jan. 1. There are currently more than 1,600 timeshare resorts nationwide, representing 180,200 units. Since 2003, ARDA research shows that timeshare sales have seen compounded annual growth of 13 percent. In 2007, there were approximately 551,500 timeshare intervals sold for an average price of $19,216 each, confirms a study of the U.S. vacation timeshare industry conducted by Ernst & Young, LLP. ARDA President and CEO Howard Nusbaum remarks, "The continued growth of the timeshare industry in today's economy is a direct indication of strong consumer satisfaction and demand. [Timeshare], with its flexibility and spacious accommodations, continues to be a preferred travel choice for American families."
Hotel Industry Giants, Including Disney, Marriott, Hyatt and Hilton, Make Over Timeshares
New York Daily News (10/10/08) Rich, Jason R.
Big-name international brands such as Disney, Marriott, Hyatt, Starwood and Hilton currently dominate the timeshare industry, offering new perks and superior value than at any time in the concept's history. Disney Vacation Club President Jim Lewis comments, "Timeshares are a great alternative to purchasing a vacation home since you are not responsible for the cost of maintenance." Selling real estate in timeshares can be a profitable way for developers to turn a profit, particularly condos in hot vacation spots or hotel rooms at resorts. Under such an arrangement, several people buy one property and share it. Prices range from $8,000 for a small unit in Florida to more than $30,000 for vacation rights at a top resort with golf courses and other amenities. Timeshares are now more closely regulated by state consumer officials. Among those who love the concept is Dr. Tina Discepola, a physician from Westchester. She and her family signed up for a Disney timeshare eight years ago. She recalls, "While we were on our first family Disney World vacation in Orlando, we had an experience that was beyond anything we ever expected. We met with a representative from Disney Vacation Club, listened to their sales pitch, and signed up that day." Timeshares there start at about $18,000, plus a sliding monthly fee based on the number of points racked up for using the place. One important benefit, Discepola notes, is that her family can stay at several Disney-owned resorts. She concludes, "There is tremendous flexibility in terms of when and where members can travel."
Abstract News © Copyright 2008 INFORMATION, INC.
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