Reposted by Vacation Max
A New Dawn For Timeshare Published by: Mary Ann
Over the past two years, the economic depression has had an undeniable unenthusiastic effect on the tourism industry. But nonetheless, experts maintain that despite tougher era, the timeshare segment of the industry was able to endure the market collapse better than probable.
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 really a strategy (wittingly 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 probable due to the prepaid nature of timeshare, was also not able to paralyze the industry. Renting vacation units in timeshare resorts became a well loved use instead to hefty hotel rooms and provided relief to timeshare owners during era of weak economic conditions.
Naturally, reduced consumer costs affects vacationers too, although this is I don’t know 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 (unenthusiastic or positive) on the industry as it influenced many vacationers to go for 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 well loved travel destinations like Mexico, China, and parts of Europe. Back in February, Wyndham Worldwide Corporation opened its first alternative in Maryland, Wyndham Vacation Resorts at National Harbor. The eleven-tale 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.
Further, hospitality titan Marriott launched a new timeshare property in Florida, Marriott’s Oceana Palms located in Palm Beach District, on January 15, 2010. To date, the development has one 19-tale tower composed of 75 units, with more to be added. Once completed, the alternative should have a total of 169 units.
Experts believe that the US economy is starting to slowly pick up, and is probable continue to do so this year. 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.
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