Timeshare Consumer Guide
Summer News Letter

August 2008

Timeshare Today - A snapshot of emerging markets

The success of vacation ownership in the United States is a well-chronicled case study. The establishment and expansion of the industry in other parts of the globe, however, still remains a work in progress. To that end, there is great cause for optimism through development and growth of vacation ownership in the Middle East, Asia, and Australia.

The Middle East - Hot Opportunity

In terms of tourism, the Middle East is currently the "hot" global market. Tourism growth has been particularly rapid in developing countries, with the fastest average growth in arrivals in the Middle East region. These countries are not only recognizing the development potential of travel and tourism and therefore investing heavily in new infrastructure and facilities, their citizens are also seeing rapid economic growth boost their incomes beyond the level where international travel becomes both a feasible and desired option.

At no place in the region can this statement be more easily recognized than the city in which it was made. Dubai, located in the United Arab Emirates, is awash with huge regional projects. But the middle east is not just about Dubai. Vacation ownership in the region as a whole, is set to experience significant growth during the years to come. It will no doubt take its place on the global stage as more and more developers and consumers focus on the concept and the variety of vacation alternatives available in this part of the world, with its world heritage sites, fabulous beaches, and exciting cultural experiences.

China - Poised for Dramatic Growth

Asia is another region where vacation ownership is emerging. Two countries stand out in particular for the potential in the market place: India and China. An analysis of the timeshare market in China suggests that the industry is poised to begin a cycle of long-term sustainable growth. There is a growing Chinese middle-class population interested in domestic and international travel with their increased vacation time. Internationally, there is a global awareness of China as a world-class tourism destination, and the 2008 Olympics in Beijing will only help to heighten this awareness. it will be crucial for industry professionals to work hand-in-hand with the government to assist China in developing a well-balanced regulatory framework that will help fuel the growth of the vacation ownership industry, while protecting consumer interest.

Australia - Timeshare Growing by Leaps & Bounds

Another region showing tremendous growth in vacation ownership products is Australia. although not a new market as such, it has emerged as one of the strongest regional leaders in vacation ownership in the past few years, with abroad range of tourist options here, from ski, seaside, and urban resorts. This country rates high on most destination "wish-list" surveys, but its geographic isolation poses challenges for tourism efforts. The median stay for visitors is 10 days, but tourists fro Europe stay in excess of 20 days. Today, vacation ownership is the fastest-growing segment in Australia's tourism industry, recording growth of 10 percent per annum in each of the past five years. The acceptance of timesharing is reflected in increasing satisfaction levels. In the past six years, the number of timeshare owners has increased by 50 percent to more than 125,000, the number of resorts has increased from 57 to 73. The Resale Company Travel & Leisure Group is set to open an office in Australia to assist buyers and sellers.

A Global Phenomenon

The markets described above are just three areas that show tremendous possibilities for the industry's growth. And they are not in isolation. Other markets in which vacation ownership looks to have a great future include other countries in Asia (Indonesia, Malaysia, the Philippines, and Thailand), as well as "new" European markets such as Croatia, Hungary, Slovenia, and Slovakia. Whatever way we look at it, vacation ownership is emerging as a truly global industry.

Marriott's Dubai Venture

Dubai Festival City raises the bar on Arabian hospitality, as UAE plans to set guidelines for the growing sector. In a defining moment, for the high growth hospitality sector in the UAE, Omar Al-Futtaim, CEO of Al-Futtaim Group and J.W.Marriott Jr., Chairman and CEO of Marriott International Inc., announced a joint venture agreement to launch the first Marriott Vacation Club in the Middle East - and the largest outside North America. Mr Al-Futtaim said: "this partnership is the realization of a vision and ideals backed by long-term performance, and Dubai Festival City is a natural choice for this timeshare resort which matches our established brand values and that Marriott Vacation Club will raise the bar and change the landscape of the hospitality sector in Dubai". The proposed 320 two-bedroom and three-bedroom unit resort will be located in Dubai Festival City's elegantly chic, bustling waterfront urban community, already recognized as a market leader which captures the ground breaking 21st century spirit of Dubai. The timeshare resort will be constructed, in four phases, along the Dubai Creek. Mr Marriott said "The Middle East traditions and culture have always generated interest among people all over the world and, at Marriott, we are delighted to be able to provide a window to this culture through Marriott Vacation Club, Dubai Festival City.

Clearer Rules Soon - Throughout the EU

The timeshare holiday rights of some 1.5 million European families will soon be better protected. A draft EU directive, unanimously approved by the EU internal market committee in June updates rules that are 14 years old so as to address consumer concerns and revitalise a business that is performing below potential. The revised draft directive, which supplements the general rules introduced by the recent directive on unfair commercial practices, will cover both timeshare packages and new products, that so far have escaped any legislation. Consumers will be better protected by rules that clearly state their rights, and will find it easier to go to court. Honest operators will no longer have to face unfair competition from fraudsters. However, purchasers and sellers should still maintain a vigilance and only deal with companies who are registered with OTE.

Redefining Timeshare Exchange - DAE 10 years on

Dial An Exchange (DAE) is determined to put real value back into the timeshare exchange system, for both owners and industry partners. The growing recognition that DAE is receiving is underpinned by their absolute single-minded approach to the core values upon which the company was founded. "Simplicity, transparency and focus on customer service and satisfaction are at the heart of our success and always will be" said Co-founder and CEO, Francis Taylor. "Our leading edge technology plays a significant role in our ability to deliver a simple and effective exchange system, but it's the personal attention to our customer and partner relationships that will continue to make us stand out. What the industry has needed for some time is for a more simplified approach to the exchange process that helps owners understand what they own and how to get more out of their vacation ownership. Each market has its own unique way of doing business and rather than adopting a one-size-fits-all approach, we look at the specific needs of each region on its own merits and develop initiatives to suit. For example, to accommodate the particular needs of the Asian market, where a high proportion of consumers take shorter breaks, we will soon be offering split weeks with 3 and 4 day stays, available in our exchange system" he said. There is no doubt that the timeshare consumer finds it difficult to understand all the rules, trading powers, demand tables and other factors that have, over the years, complicated the exchange process. DAE has created a level playing field for owners, enabling them to see live availability and book instantly on the DAE website, thus making the exchange process simple and transparent. The consumer no longer has to wait for a response based on a set of complex rules. DAE offers unprecedented freedom of choice for individual owners and industry participants alike. By offering a real alternative to other exchange programs, better customer service and low cost exchanges, they are helping change the face of the industry by putting the value proposition back into timeshare exchange.

Diamond Resorts - A Commitment to Simplicity, Choice and Comfort

Diamond Resorts International chairman and chief executive officer, Stephen J Cloobeck, is running in high gear since acquiring Sunterra last spring. As he describes it, Diamond discovered a king's ransom of jewels just waiting to be polished. Not a speck of dust had settled after the transaction before Cloobeck announced Diamond's new strategy. "We are very excited about this acquisition, which will enable Diamond Resorts International to build on our position as a world leader in the vacation ownership industry to create the largest, pure-play vacation ownership company in the world," he said in spring. "With over 25 years of experience and a successful track record in the development, management, marketing, and sales of vacation ownership properties, we are uniquely positioned to capitalize on Sunterra's assets and enhance its position globally. We want to make it easy for owners and members to choose when, where, and how they will vacation. And our guests will have the assurance that whatever Diamond location - or combination of locations - they select, will provide them and their families with a consistently superior level of hospitality."

There are also quite a few gems among the more than 35 European locations Diamond has acquired. Among Cloobeck's favourites are Broome Park Golf & Country Club, a 17th-century Jacobean mansion located in Kent, and the 11th-century country house - Thurnham Hall - to the north. Another European resort worthy of remark is La Residence Normande in Connelles, France. Situated 90 minutes south of Paris within a secluded, wooded country estate, this collection of characteristically French provincial, chateau-style chalets is close to Monet's Garden at Giverny, and to Rouen, where Joan of Arc met her end. Cloobeck makes it clear that Diamond's highest focus is maintaining customer satisfaction. The company can point to a customer approval rating that has grown since the change in ownership.

Group RCI announces Milestone

Holiday Clubs

Bear in mind these are not Timeshare ownership and must be avoided or looked at very carefully to avoid spending money on a dubious product.

Previous Editions:
July 2005 Newsletter
June 2005 Newsletter
August 2005 Newsletter
September 2005 Newsletter
October 2005 Newsletter
November 2005 Newsletter
January 2006 Newsletter
February 2006 Newsletter
March 2006 Newsletter
April 2006 Newsletter
May 2006 Newsletter
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September 2007 Newsletter
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