subject: Timeshare During The Market Timeout [print this page] The global economic downturn of the past two years has undoubtedly cast a negative effect on the tourism industry. Despite this huge setback, experts have found that the timeshare industry fared better than expected, and is in fact slowly regaining its pre-recession levels.
2008 and 2009 saw a considerable drop in sales in the timeshare industry, coupled with more and more timeshare owners losing the ability to maintain their properties and wanting to exit their contractual obligations. But despite these, developers point out that the crash in sales was actually a strategy (purposely reduced sales) that aims to maintain the flow of cash in the face of tightening market condition. The exodus of owners from their contracts, although expected due to the prepaid nature of timeshare, was also not able to paralyze the industry. Renting vacation units in timeshare resorts became a popular substitute to hefty hotel rooms and provided relief to timeshare owners during times of weak economic conditions.
Naturally, reduced consumer spending affects vacationers too, although this is perhaps one of the reasons why timeshare industry was able to resist the economic downturn since vacationers became inclined to use timeshare units (owned or rented) as an alternative to expensive hotel vacations. Rising fuel prices also had effect (negative or positive) on the industry as it influenced many vacationers to go for closer destinations.
Despite the prediction of ARDA's Chief Executive Officer, Howard Nusbaum, that timeshare sales will most likely remain flat in 2010, new resorts continue to be built, especially by larger developers. In fact several U.S timeshare properties are set for opening this year, together with many others in popular destinations like Mexico, China, and parts of Europe. One good example is Wyndham Worldwide Corporations launching of Wyndham Vacation Resorts at National Harbor, the timeshare chains first resort in Maryland, in February. The developments location conforms to the new trend among timeshare owners to stay in urban areas inside the country. To date, more than 75% of the eleven-story propertys 250 units have already been sold.
Marriott also launched a new timeshare property in Florida, Marriotts Oceana Palms located in Palm Beach County, on January 15, 2010. Currently, the development has one 19-story tower composed of 75 units, with more to be added. Once completed, the resort should have a total of 169 units.
With experts believing that the US economy is starting to slowly recover, so too will timeshare get back on its feet. Although the timeshare industry was slow to feel the effects of the economic depression in the country, it should not take long for it benefit from the improving economic situation.
