The U.S. Timeshare Industry In 2010
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The downturn in the US economy over the past two years has had an undeniable negative effect the tourism industry, but many experts maintain that the timeshare segment of the industry has fared much better than expected.
Although timeshare sales dropped significantly in 2008 and 2009, many timeshare industry developers point out that this was part of a strategy (purposely reduced sales) aimed at maintaining cash flow in the face of the tightening credit market situation.
Apparently, the higher default rate among timeshare owners and the growing number of owners seeking timeshare relief have not had a paralyzing effect on timeshare development. This is not surprising, given the pre-paid nature of timeshares. Renting vacation units in timeshare resorts, which has become a popular alternative to the high cost of hotel vacations in a weakening economy, also provides a degree of relief to timeshare owners who are in dire economic straits.
Lower consumer spending affects vacationers too of course, but this may be one of the reasons that the timeshare industry has been able to resist the economic downturn since vacationers tend to use timeshare units (owned or rented) as an alternative to costly hotel vacations. Rising fuel prices also mean that many vacationers choose closer destinations.
In spite of Howard Nusbaum’s (CEO of American Resort Development Association) prediction that sales will most probably remain flat in 2010, new timeshare resorts continue to be built, especially by the larger vacation ownership operators that dominate the industry. In fact, several U.S. timeshare properties are being opened up this year.
Wyndham Worldwide Corporation, for example, just launched the opening of a new timeshare in February – the Wyndham Vacation Resorts at National Harbor, the first time-share chain’s resort in Maryland. Wyndham Worldwide Corporation, for example, just launched the opening of a new timeshare in February – the Wyndham Vacation Resorts at National Harbor (a 300-acre waterfront community in Prince George’s County on the banks of the Potomac River) is the first Wyndham time-share property in Maryland. The location of this development conforms to the new trend among time-share owners to vacation in urban areas, inside the country. Over seventy-five percent of the 250 units in this eleven-story tower have already been sold.
Marriott has also built a new timeshare resort, Marriott’s Oceana Palms, situated in Florida’s Palm Beach County. Officially opened on January 15, 2010, the development now has one 19 story tower (75 timeshare units), but more units are planned to be added and the resort should have a total of 169 units when completed.
Experts believe that the US economy has started to slowly recover and will continue to do so in 2010. Although the timeshare industry was slow to feel the effects of the economic downturn in the United States, it should not take long for it benefit from the improving economic situation.
Tags: timeshare hawaii, buying timeshares, timeshare weeks, rci timeshares
Posted on: Wednesday, February 3, 2010 at 6:53 am 
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