subject: The Rebirth Of The Timeshare Sector [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.
Although significant drop in sales was experienced by the timeshare industry in 2008 and 2009, many developers point out that this was part of a strategy (purposely reduced sales) whose aim was to maintain cash flow in the face of the severing credit market condition. Not being able to paralyze timeshare development, the higher default rate among timeshare owners and the growing number of owners seeking relief from their obligations over the past years was rather expected given the prepaid nature of the program. In a weakening economy, renting vacation units in timeshare resorts became a widely-accepted alternative to costly hotel vacations and provided a significant amount of relief to timeshare owners who are in dismal economic straits.
However, lesser consumer spending affects vacationers too, although this could be one of the reasons why the timeshare industry was able to wrestle against the economic slump since vacationers were inclined to use timeshare units (either owned or rented) as a substitute to pricy hotel rooms. Another factor to be considered is the rising fuel prices that force many vacationers to prefer closer destinations.
ARDA Chief Executive Officer, Howard Nusbaum, once predicted that timeshare sales were going to remain dreary in 2010. But despite this, new resorts are continued to be built in the U.S and all over the world, especially by larger developers. In fact, numerous timeshare resorts are set to open this year in the country, with more in popular travel destinations like Mexico, China, and parts of Europe. Back in February, Wyndham Worldwide Corporation opened its first resort in Maryland, Wyndham Vacation Resorts at National Harbor. The eleven-story property conforms to the new trend among timeshare owners to stay in urban areas inside the country and already has more than 75% of the 250 units 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.
