After the Storms: Timeshare Industry Remains Strong in Orlando

In the aftermath of a rare series of hurricanes, the Florida sun shines brightly on Orlando timeshare resorts. The properties rebounded quickly and were “open for business” just days after the storms.

One measure of the industry’s rapid recovery was the rate at which travelers returned to Orlando Florida: resort occupancy has rebounded to above normal levels over the same period in 2004, as timeshare owners continued to visit Central Florida. This resilience is owed in part to the fact that timeshare owners have prepaid for their vacations and tend to take them.

“We experienced an unprecedented number of hurricanes in Florida this year, two of which directly impacted Central Florida. While some resorts suffered minor cosmetic damage, all the vacation ownership resorts in Orlando are and have been open for business. Sales remain strong in the area, and Orlando remains the most sought-after destination for timeshare owners,” said Thorp Thomas, senior vice president of Starwood Vacation Ownership, Inc., and chairperson, American Resort Development Association (ARDA) Florida State Committee.

The hurricanes had no lasting impact in other key segments of Orlando’s hospitality industry either. Theme parks such as Walt Disney World and Universal Orlando opened the day following each of the storms, with all rides and attractions fully operational. Orlando represents approximately 50 percent of timeshare sales in the state. Florida is, by far, the leading state for U.S. timeshare sales, accounting for approximately 25 percent of the nation’s total.

Timeshare, one of the hospitality industry’s fastest growing sectors worldwide, provides owners access to fully furnished apartments for one week per year in perpetuity. It’s increasingly appealing to consumers because they can purchase future vacations at current prices, while eliminating the burden of year-round ownership. The average price for a week of timeshare use worldwide is approximately $10,600.*

TIMESHARE FACTS

Global Market

During the past 10 years, U.S. timeshare has enjoyed double-digit annual growth. Worldwide, vacation ownership has seen similar success.

From 2000 – 2003, timeshare sales grew 40 percent worldwide.

Approximately $9.4 billion in worldwide sales were recorded in 2002.

Nearly seven million consumers around the globe own 10.7 million timeshare weeks.

The main locations for timeshare resorts are North America, Europe and Latin America, accounting for 31 percent, 25 percent and 16 percent of worldwide sales respectively. Other timeshare locations include Asia, Africa, the Caribbean and the Pacific.

Florida Timeshare

In the U.S., the majority of timeshare resorts are in Florida (366), followed by California (125) and South Carolina (119).

Central Florida accounts for approximately 50 percent of Florida timeshare sales. Florida, in turn, is responsible for about 25 percent of national sales.
The timeshare industry made a $7.9 billion economic impact on Florida’s economy in 2002, according to a study issued earlier this year by ARDA’s research and education arm, the ARDA International Foundation (AIF). The study was conducted by PricewaterhouseCoopers.

Combined direct and indirect economic impacts as well as fiscal contributions for the industry in Florida totaled $7.9 billion of output; 99,500 full and part-time jobs; $3 billion in salaries, wages, and related income, and $1.1 billion in tax revenue during 2002, the AIF study found.

Bright Future

Timeshare today enjoys an unprecedented 85 percent satisfaction rate among owners.

Emerging travel trends show consumers want to personalize and take charge of their vacations more today because their time is increasingly precious.

Timesharing is a way for travelers to literally own their vacations; experts predict timeshare will continue to thrive.