Vacation ownership, often referred to as timeshare, has proven to be a lifeline for the hospitality and tourism industry over the years. In this series, we take a closer look at how vacation ownership is impacting the tourism industry in light of the downturn in the hospitality sector. Reports are from the recently held 12th Annual Vacation Ownership Investment Conference, at the Peabody in Orlando, Florida.
WHILE MORE THAN 70 per cent of United States residents are desirous of purchasing vacation ownership, or timeshare, in the Caribbean, only a few Caribbean countries are reaping the benefits of this sector within tourism.
Aruba, Curaçao and St Martin are among the top timeshare destinations; Mexico, The Bahamas and Santo Domingo are also popular.
One reason vacation ownership timeshare has not grown to its full capacity in the Caribbean has been legislation. The necessary legal framework, from a real estate viewpoint, is not fully in place. Consumer rights issues also play a role.
Ed Kinney, vice-president of corporate affairs with Marriott Vacation Club, said countries must meet certain criteria before the Marriotts brand enters the market.
When asked what it would take to penetrate Barbados, he said: “We need the right destination and the right piece of land. The desires of our guests must be met, and there must also be good regulatory structures and protection rights, bearing in mind the history of timeshare.”
He added, “We’ve always developed timeshare in islands where the physical structure was already there. All we had to do was develop what existed before. In this regard, the Caribbean has been successful for us.
“Even during tough economic times, vacation ownership exceeded our goals and we are continuing to look at all options in the region,” he pointed out.
In the past 18 months, Marriotts made a decision to cease new development. However, as consumer confidence returns, Marriotts will continue to add to its locations in Aruba, St Kitts and St Thomas.
Neil Kolton, Interval International’s director of sales and service for the Caribbean, noted that if the Caribbean is to attract big brands, there must be consumer protection plans in place.
“The Caribbean region is one of our most critically important markets, and most of our consumers say it is their number one choice.
“What is working in the Caribbean’s favour is more airlift, discount airlines, a favourable exchange rate, and value for the [US] dollar.
“There are lots of opportunities for timeshare developers in the Caribbean. You’ll see that countries such as Aruba, St Martin, the Dominican Republic, The Bahamas and the United States Virgin Islands play a great role in timeshare development in the Caribbean, yet there are other desirable markets,” Kolton said.
Richard Corso, chief executive officer of Royal Resorts Caribbean, further added that government support was vital to the growth of vacation ownership in the region.
“In the Dutch Caribbean islands, and in St Martin, we are seeing major support from governments,” he noted.
Speaking on Development Opportunities In Mexico And The Caribbean, John Small, chairman of ResortCom International, said The Crane Resort was a good example of starting small and growing big.
He too also stressed the importance of a supporting regulatory framework to the success of vacation ownership.
While Marriotts (the first brand to enter the timeshare industry in 1984), has been successful in penetrating some Caribbean markets, other brands have not been so successful.
Marriotts has developed the Ritz Carlton Club and Destination Club in St Thomas, St Kitts and Aruba as well as other resorts in Abaco in The Bahamas.
“The industry is full of promises. We have weathered the economic downturn and for the past 12 months, we are beginning to see more sales,” Kinney said.
• Next week, we continue our series on vacation ownership.
