Timeshare Owner Appeals For Tax Rate Cut

A timeshare owner protested the highest tax rates in the county Wednesday night during a public hearing on county real property tax rates for the 2007 budget – which does not include any reductions for timeshares.

Part-time Kihei resident Richard Ellis said the tax rate on his timeshare condominium “is not” a real property tax rate.

Ellis and his fellow timeshare owners pay the highest real property tax rate, $14 per $1,000 valuation.

But he said a homeowner living right next to him qualifies for the lowest rate, $3.50, which Mayor Alan Arakawa has proposed to cut to $2.14.

Ellis disputed the argument that timeshares generate more profits than hotels and said they do not have amenities that hotels provide.

But hotel/resort properties are taxed at a lower rate, $8.30.

Ellis was one of two people to testify at the Maui County Council public hearing on real property tax rates for the fiscal year 2007.

In the council Budget and Finance Committee’s continuing review of the proposed budget, Chairman Dain Kane proposed a higher tax rate for homeowners, $2.50, but recommended the council also increase the home exemption by $100,000 to offset soaring property values.

Council members offered no comments during the hearing on what actions they may take on tax rates or other measures affecting real property tax revenues.

During the hearing, the only other person to speak was Haiku resident Melissa Prince, who said she is with the tax reform group COMET, or the Committee For More Equitable Taxation.

She said the group believes that the county’s circuit breaker option for low-income homeowners and increased homeowner exemptions fall short of what is needed to provide tax relief.

They “are not tax reform,” Prince said, and called for lower tax rates as the primary way to relieve soaring tax bills.

She said there also needs to be tax relief for landlords who offer long-term affordable rentals, which do not qualify for the lowest tax rate.

The rate for improved residential properties is $5.86, with both Arakawa and Kane recommending slight cuts in the rate but no exemptions for long-term rentals that don’t qualify for the homeowner rate.

After the hearing, Prince said that COMET considers the mayor’s and Kane’s proposals “diddling” with taxes

Although no one appeared at the hearing Wednesday, the Hawaii Committee of the American Resort Development Association provided a written statement urging a reduction in the tax rate for timeshares. The committee is the trade organization for the timeshare industry in Hawaii

It called for a tax rate that matched the rate for hotels and resorts, noting that timeshare users also contribute to the economy with their spending.

“Timeshare units comprise only about 8 percent of the total visitor accommodations on Maui, but bring over 100,000 visitors who spend over $150 million in Maui’s economy annually,” the organization said.

Timeshare Tricksters Still Rampant Today

They use some of the oldest tricks in the book, but timeshare scam operators continue to ensnare thousands of British holidaymakers each year.

While there appears to be a greater awareness that timeshare scams still exist, scammers are devising increasingly ingenious timeshare scams to combat this growing awareness.

People were misguided in thinking that timeshares were good investments. Most people only get back 20% of the price paid, when they sell their timeshare, says the report.

Common scams include enticements such as 'free' holiday offers using scratch cards, a disregard of current cooling-off rules, and 'cheap' loans that turn out to be expensive on return to the UK. All timeshare scams.

"Buying a timeshare is a crap shoot, with companies using unethical selling techniques to tie people into deals on the spur of the moment.

But, even when a timeshare company is legitimate, there are high management fees, and problems selling make buying a timeshare for some people a stressful and expensive process.

The Timeshare Directive offers a degree of cross-border protection to consumers.

If you sign a timeshare contract in the EU or European Economic Area (including the Canaries, pus Cyprus and Malta, " it must conform to a number of rules such as a minimum 10-day cooling-off period.

However, the directive has only limited powers, primarily because the legal definition of a timeshare is currently very narrow.

Legally it only covers contracts of more than three years and a minimum period of a week.

This means that companies have started selling timeshare schemes of under 35 months -with the option to extend for more years - and 'time' on narrow boats and cruises, said the report.

Share schemes and property bonds are also not covered by existing legislation, and neither are boats or cruises.

One attraction of timeshare investing is that the cost of future holidays is paid upfront with a lump sum. However, there are often high additional charges.
The most common way for people get stung is with high maintenance fees, which are paid to a management company that runs the resort. The timeshare owners or tenants have little or no control over fee hikes.

Timeshare Employer Offers $250,000 For Missing Orlando Woman

An employer of a missing woman offered a $250,000 reward for the safe return of the woman three months after she mysteriously disappeared in Orlando.

Timeshare and real estate mogul David Siegel made the offer with the Kesse family outside his company Monday.

Siegel said the reward money is on behalf of Westgate Resorts Co., which is the timeshare company that employed Kesse.

"He said you can call it a timeshare reward or you could call it a timeshare ransom but the money is only for Jennifer's safe return," Local 6 reporter Louis Bolden said.

"I've been watching this family for three months standing on street corners and beating the bushes and doing everything they can to get her back and I feel terrible what they are going through and I wanted to put up this reward," Siegel said.

"Obviously, (Siegel) has a very big and warm heart and understands that abduction of a human being is a very serious act," Jennifer's father, Drew Kesse, said Monday.

The timeshare collected reward will be available for one month, Local 6 News reported.

On May 24, Seigel will pull the $250,000 reward for good, Bolden said.

The Kesses have set up a tip line at (407) 722-2162.

The timeshare reward has nothing to do with Crimeline, but the family also said residents may also phone tips to that number at (800) 423-TIPS.

Newport Timeshare Set To Re-Open After Fire

Guests staying at a Newport timeshare are evacuated after fire breaks out inside.

It happened Saturday night at the "In A Long Wharf."

Though the fire was contained to three timeshare units, four floors of the building sustained damage. Timeshare guests were temporarily moved to the Fairfield Resort across the street. The inn is re-opening this morning, and some guests who arrived in the city by the sea aren't letting the fire spoil their timeshare vacation.

Don Guarino, Timeshare Guest:

"Well I don't think they want us to go in the building if they thought it would catch fire again. So, Ii'm not really worried about it. "

No one was hurt, but the flames caused about half a million dollars in timeshare real estate damage.

The cause of the timeshare fire is under investigation.

Timeshares On The Rise Once Again

According to a United States’ survey, timeshares are becoming increasingly popular among Americans, something that is borne out by local timeshare properties on Grand Cayman.

Fully 14 per cent of active leisure travellers in America are now interested in purchasing timeshares according to the Yesawich, Pepperdine, Brown & Russell/Yankelovich partners 2006 National Leisure Travel Monitor.

“This represents a four–point increase over the percentage recorded in 2005, and translates into a potential market of 9.2 million households on a national basis,” said a press release.

Chairman of the Board of Morritt’s Tortuga Club Ltd., Morritt’s Grand Resort Ltd. and Morritt Properties (Cayman) Ltd. Steve Minotakis said timeshares are certainly on the rise. Morritt’s Tortuga has been in existence since 1989. It is based on 100 per cent timeshares.

“We are very excited for the future. We see the trend of timeshares continuing if not increasing,” he said.

“There is value in Morritts and in Grand Cayman,” he said, explaining that owning a timeshare becomes a family event and a tradition that can be passed onto the next generation. The Morritt’s Resorts are exclusively timeshares.

“Sales are actively growing for a number of reasons,” he said.

“Timeshares are more popular now and people know what they are and the value that they offer.”

Hurricane Ivan gave the developers an opportunity to improve the wooden structure at Morritts Tortuga, he said.

Morritts Tortuga consists of 120 units, with an addition of up to 80 units being built. It originally had 177 units.

Morritts Grand Resort has 40 units operational. In another five to seven years this will be extended to 65 or 70 units.

Eventually there will be about 265 timeshare units between the two resorts.

Of the 160 units on stream between the two Morritt’s properties, they are between 70 per cent and 75 per cent sold to membership.

Mr. Minotakis asserts that the very fact that Morritts Tortuga is in re–development phase is an indication that it is not only building a better product for its clients, but of adding on extra units for future clients for which they have seen a need.

Typically 80 per cent to 85 per cent of owners are US citizens.

Pre–construction sales are getting more brisk as construction progresses with Morritts Tortuga, he said. Meanwhile the resort continues to look for a timely insurance settlement.

Initially, the under–insured Indies Suites cast a dark shadow over timeshares on Grand Cayman, he believes, but most people will realise that not all companies are like that, he said, explaining that Morritt’s has adequate insurance, a board of directors, regular business meetings and actively strives to keep its clients happy.

Tom McCallum of the Reef Resort agrees that timeshares are indeed becoming increasingly popular. Making up part of the resort are 30 two–bedroom condos dedicated to timeshares – they are 70 per cent sold out on average during the year.

The Reef Resort also offers varied investment options, from individual weeks, through quarter shares, to whole ownership options and will have 83 condos in all when development is finished.

Timeshare owners at the resort can come and use their share, rent it through the resort, or exchange it through an international exchange network.

The Reef consists of a mix of studio suites, one and two bedroom luxury condominiums.

Mr. McCallum said that if guests like to return to a timeshare resort, while the cost of hotel rooms go up every year in line with inflation, buying a timeshare allows the buyer to lock in the cost, with only maintenance payments going up in line with inflation.

Reef Resort timeshare owners get a special deal, in that when the contract ends, in 2050, the property will be put on the open market when the owners will get 80 per cent of the proceeds.

Timeshares are more a lifestyle than real estate decision for buyers, he asserted.

At the Grand Caymanian Resort, Stephen Taylor, one of the owners of the marketing company contracted by the resort, Back to Cayman Ltd., said 99 per cent of its timeshare membership is US based.

“The market continues to grow and grow as word gets out about the value in timeshares,” he said.

What had been negative in the past has now become a stable product in which people’s confidence has grown. There is also much more familiarity with timeshares now, he said.

Between membership and members’ friends the resort is pretty full most of the time, along with some other guests.

The resort consists of 40 two–bed units for which a section can be locked off to make a studio bedroom and a one–bed apartment.

In the next couple of years it is hoped to break ground for the next phase (a mirror image of the first), something that is testament to the demand for the more or less exclusively timeshare property.

Membership in the first phase is over 50 per cent sold out. When this reaches 75 per cent work will begin on Phase Two. If there is availability on rooms they can be rented out at a nightly rate also.

In the five years the resort has been open the curve in sales has been rising faster in more recent years, said Mr. Taylor.

Although sales are still very good, the number of tourists coming here affects the timeshare resort, as it means there are not as many to show around the property, but as numbers pick up it should bring things back to pre–Ivan levels, he said.

80% Vote For Shopping Timeshare Holidays

Research to be unveiled at a major leisure real estate industry symposium in Dubai on 29 April will confirm that the vast majority of Gulf Arabs rate shopping as their number one priority when they go on holiday. No wonder therefore that the malls of the region are flourishing and increasing in parallel with the number of mixed-use real estate developments.

The research was commissioned by RCI Middle East, part of the global RCI Global Vacation Network, the largest vacation exchange and vacation rental organisation in the world and conducted across a sample of nationalities including Saudi Arabians, Kuwaitis, Emiratis, Iranians and Egyptians.

According to Ms Vivienne Noyes-Thomas, Managing Director of RCI Middle East, “the main purpose of the research is to quantify the potential pan-Arab market for luxury timeshare, fractional ownership and other types of shared ownership in leisure developments in the region. There are numerous superb timeshare projects in the planning stages, but now we can qualify what the consumer is really looking for and what this product can deliver in increased returns for developers and operators.”

A preview of the findings reveals that the potential value of this timeshare market, Arab nationals purchasing various types of shared ownership, is conservatively estimated at well over US$1 Billion. “The research is still being finalised so it’s too early to be fully precise at this stage”, said Ms Noyes-Thomas, “but this news will be welcomed by the many industry delegates already signed up for our Symposium, ‘New Horizons in Shared Ownership’, taking place at the Burj Al Arab.”

Whilst more familiar timeshare models are well represented in the research, other new products are also explored. Possibly one of the most exciting of these is the new trend for what is known as religious timeshare. A number of major projects are already underway in the Islamic centres of Makkah and Madinah and the research indicates these are likely to be highly popular amongst Muslim pilgrims.

Other more broadly based examples include the new Fractional Ownership category. Typically this is characterised by upscale properties such as exclusive villas, apartments or even yachts that appeal to discerning buyers seeking longer periods of ownership. Findings indicate a desire for periods of 2 - 3 months, giving the potential for say 4 owners to share the rights to an individual property.

Another pattern that the study has quantified is the regional preference to holiday close to home. The domestic tourism market in Saudi Arabia is understandably vast, with nearly half the Saudi respondents expressing a preference to holiday within the Kingdom. But the market potential is also significant in the UAE where a large proportion of nationals claimed to holiday at least three times a year.

Not surprisingly, timeshare destinations in the UAE are also very popular choices for all those interviewed. Most respondents expressed confidence in Dubai as a place to make a timeshare purchase, far more so than present capacity allows, thus providing a reassuring note for developers planning to include this model in the many mixed-use projects coming on-stream in the Emirate.

Expedia and Hyatt Extend Long-Term Timeshare Partnership

Expedia, Inc., the world's leading online travel company, today announced that it has extended its partnership with Hyatt Hotels & Timeshare Resorts. The new agreement builds on 10 years of association between the two companies. Under it, Expedia® and Hyatt continue not only as distribution partners, but also as marketing partners.

From being the first hotel company to join Expedia in a marketing partnership to being the first to participate in our direct connect program for hotels, Hyatt exemplifies the long-term, mutually beneficial relationships Expedia strives for with our partners," said Paul Brown, president, Partner Services Group, Expedia. "Expedia is increasingly strengthening its hotel supplier relationships through long-term contract commitments, helping our partners to expand their businesses, and ultimately bringing value and convenience to travelers."

This agreement expands Hyatt's current partnership with Expedia, allowing Expedia to better market and distribute Hyatt timeshare inventory. Hyatt will benefit from new business terms plus Expedia's online travel expertise and broad reach, while Expedia customers gain broad access to Hyatt inventory and rates.

Said Tom O'Toole, senior vice president, Strategy and Systems for Global Hyatt Corporation: "We have enjoyed a long and fruitful relationship with Expedia, and this agreement further solidifies our relationship. We are pleased to be working closely with Expedia to build business for Hyatt timeshare properties."

Easy Online Timeshare Resales At .coms

For years and years the big question between timeshare owners has been how to sell their timeshare weeks. As there are only a few companies that run a affordable resales operation it has often been impossible for owners to sell.

The Internet giant EZTimeshare has provided a timeshare website where sellers can list their weeks for sale and buyers can browse the enormous range offered and find the timeshare that best fits their need without paying out expensive commissions and listing fees.

One couple told us of their experience owning a timeshare in Orlando for 10 years. They had advertised thier week with a resale company in the paper but had heard nothing for over a year. The couple's son put in on Many sites just before Christmas and within a week they sold it for a fair price and were really happy with the deal.

The Internet site, which has been online since 2002 is an excellent site for finding the best timeshare deals around.

Local Hotels Reflecting New Trends In Timeshare Tourism

Bermuda’s hotel sector is reflecting new trends around the Caribbean with its shift towards condo hotels, timeshare and fractional ownership for holidaymakers.
That’s the view of global financial company KPMG following a region-wide hotel and tourism conference held in Bermuda at the start of the month.

The company revealed the results of its banking investment survey to delegates at the Tenth Annual Caribbean Hotel and Tourism Investment Conference held at the Fairmont Southampton Hotel.

Commenting on the results, KPMG’s Steve Woodward said: “While the survey was primarily on the Caribbean region it is interesting to note the number of similarities facing lenders in the competing jurisdictions.

“Issues such as hotels with condo, timeshare or fractional elements are a ‘hot topic’ across the region and this is consistent with Bermuda’s current environment.”
The business practice director said: “Tucker’s Point Club was Bermuda’s first fractional ownership development, and a number of other local hotel operators, such as the Fairmont Southampton, Ariel Sands and the Wyndham Hotel have recently announced major re-developments which include some element of fractional ownership scheme, condo hotel, private residence or vacation club in their plans.”

He said the increasing popularity of condo hotels, timeshare and fractional ownership showed a trend towards higher quality tourist expectations and said this was attractive to hotel operators looking to diversify and improve what they have to offer.

Mr. Woodward added: “The payback period from a timeshare scheme is usually shorter and there will be other benefits to the hotel as owners make use of the hotel’s facilities including restaurants, bars and spas.”

Timeshare Thoughts

A survey by Yesawich, Pepperdine, Brown & Russell/Yankelovich Partners found that 14 percent of leisure travelers are interested in buying a timeshare, up from 10 percent last year. That translates into a potential market of 9.2 million households.

State, Timeshare Group Spar Over How To Count

A long-running discussion between the state and the timeshare industry on the methodologies they used to calculate spending concluded that there were differences that couldn't be reconciled.

The two groups crunched the figures again and, while they came up with new numbers, they still didn't agree; the state said $90 and the industry group $111.

"There's no way to reconcile," said Pearl Imada Iboshi, the chief economist of the Research and Economic Analysis division of the Hawaii Department of Business, Economic Development and Tourism.

"We have agreed to disagree," she said. "We figured out what the differences are and figured we can live with them."

The state and the American Resort Development Association Hawaii have gone back and forth on who had the right numbers after they came out with conflicting reports on the scope of timeshare visitor spending two years ago.

At stake was the credibility of both agencies. Some believed ARDA had an agenda because it was championing the cause of timeshare visitors and trying to prove that they were not cheapskates, as timeshare detractors have sometimes claimed.

The resort association's report said time-share visitors spent about $160.10 a day during their vacation. State economists calculated that each timeshare visitor spent about $112.

The source of the problem was found to be the maintenance fee, an average of $600 annually, that timeshare owners paid. ARDA included this as a more than $30 expense per day for each visitor while the state didn't include these numbers.

"The question was whether or not to include maintenance fees and it merited a fair amount of discussion," Iboshi said.

With Hotels Out Of Reach, Timeshare Is In

When hotel rooms cost a pretty penny, it makes sense to buy the room itself — or a portion of it — rather than merely renting it. That is the principle on which the timeshare industry works, and these days the business is booming. Many leisure travellers, fed up with ever-rising hotel tariffs, are investing in buying timeshares in resorts instead.

Says Radhika Shastry, director, global business group, at Resort Condominiums International (RCI), a company which enables timeshare owners to swap ownership rights in various resorts: “The increase in hotel room rates across the country is certainly one of the key factors driving growth in the timeshare industry in India.”

Five-star rooms at business or leisure destinations that used to cost under $ 100 before 2002 now cost 30-80% more, depending on season and location. “In such a volatile market situation, a timeshare owner benefits. More so when the timeshare owner looks at availing himself of a family holiday irrespective of lean or peak season,” says Faizan Pasha, director of sales and marketing for The Luxury Club in Mumbai, an upper-end timeshare company.

Clocking in a sales volume of Rs 250 crore in the year to December, 2005, the timeshare industry has been growing at over 20% annually in recent years. India currently has over 200,000 timeshare members, owning pieces of 65 RCI-affiliated resorts. The business is adding 12,000 customers annually. Globally, timeshare is a US $10 billion industry, with over seven million members, with more than 5,425 resorts in 115 countries. “We are adding a substantial number of members every year. Growing at a compounded annual growth rate (CAGR) of over 20% since 2002, we expect to continue this growth for another two or three years. Infrastructure development is expected to happen in the interiors of the country, where hospitality players don’t have a strong presence. This will help further accelerate growth in the coming years,” says Shastry.

Offered generally for a 25-year period, timeshare membership costs differ from company to company. Prices for a week’s ownership – which entitles the owner to spend a week at the resort every year for 25 years – could range from Rs 55,000-70,000 for a lower-end resort to nearly Rs 192,000-200,000 at more upmarket ones. Membership at The Luxury Club’s Mumbai and Ahmedabad hotels starts from Rs 2.5 lakh and goes up to Rs 6.25 lakh for a 25-year period. It works out to Rs 80,000-120,000 for a five-year tenure.

Besides the one-time membership price there is an annual maintenance charge (AMC) that varies from company to company. This charge is incurred whether one uses the facility or not. The Luxury Club charges an AMC of Rs 7,000 for its Mumbai property. It is Rs 4,500 for the Ahmedabad hotel.

Though timeshare members are spread across the country, the western region, with close to 42% of membership, dominates the industry, followed by the southern, northern and eastern regions.

The average age of time-share buyers is in the range of 35 to 40 years. However, the last few years have seen a younger crop of timeshare buyers emerging.

How time-share works

Timeshare developers sell vacation ownership interests in one-week intervals or as packages of points that can be used to reserve resort accommodations anywhere in the world. Members share in the occupancy rights of a property and, therefore, pay an annual maintenance fee after the initial purchase.

Timeshares can be purchased for cash, or financed through loans. The cost of a timeshare depends largely on location, the unit size and the season you buy it for
Timeshare resort amenities sometimes rival those of top-rated resort properties and may include children’s activities, swimming pools, tennis, jacuzzi, golf and bicycles as well as spa and exercise facilities.

Silverleaf Resorts, Inc. Adds To Timeshare Destinations With Colorado Hotel Acquisition

Silverleaf Resorts, Inc. (AMEX:SVL) today announced the acquisition of Pinnacle Lodge, (http://www.pinnaclelodge.com) a 64-room timeshare hotel located in the Winter Park area of Colorado for approximately $3.6 million. The property will continue to be operated as a timeshare hotel as well as a destination for current Silverleaf members while the Company assesses the possibility of other acquisitions in Winter Park.


The Pinnacle Lodge joins Silverleaf's growing list of timeshare vacation properties in destination areas. The purchase of the Pinnacle Lodge is a strategic acquisition by Silverleaf as it is focused on providing its members with quality accommodations at affordable prices in some of the finest vacation destinations in the country. Only a few miles from the famed Winter Park and Mary Jane ski resorts, Pinnacle Lodge guests are surrounded by a year-round, high country playground that is unmatched in natural splendor.

"Colorado has always been a popular vacation destination for Silverleaf's members," said Sharon K. Brayfield, president of Silverleaf. "With Intrawest and Orvis' recent involvement in this popular area, we expect Winter Park to gain in national recognition as a destination." Our members can enjoy access to year-round outdoor activities, including major ski resorts, golf courses, fishing, and hiking. Located within a 1.5 hour drive of Denver this timeshare property provides us with an affordable and easily accessible entry point into an increasingly popular timeshare destination."

“Timeshare & Fractional Deals,”

This year’s conference will feature a session titled “Timeshare & Fractional Deals,” which will educate attendees on the opportunities associated with investment in the vacation ownership industry.

As a Strategic Partner of the Caribbean Hotel Association (CHA) and a Board Member of the Caribbean Tourism Organization’s Education Foundation, Interval has been a long-time supporter of the tourism and timeshare industry in the Caribbean. Interval is committed to understanding the unique needs of the Caribbean region and providing products and timeshare programs tailored to this market.

"Interval continues to be a very valuable Strategic Partner of the CHA based on the quality and caliber of their operations and their dedication to the Caribbean hospitality industry," said Sanguinetti. "The enduring commitment of companies such as Interval allows us to meet our long-term objectives in the region."

In the Caribbean, Interval is the leading provider of quality timeshare vacation ownership exchange services. For its current roster of Caribbean timeshare resort developer clients, and new entrants into the timeshare vacation ownership development industry, Interval offers a range of services including program design, sales and marketing support, reservations, travel and timesharefinancial services.

Timeshare Firm Loves The Beach

Ask George Donovan, president and chief executive of Bluegreen Corp., about Myrtle Beach, and he almost won't shut up.

Donovan's Florida-based timeshare company is so impressed with Myrtle Beach that Bluegreen is opening two properties this year, doubling its number of resorts here.

Myrtle Beach is the top market for Bluegreen, which runs timeshares in 31 cities.

"It is hard to fathom how strong [Myrtle Beach] is. It is absolutely a phenomenon," Donovan said. "I see a real bright future."

Last month, Bluegreen opened the Carolina Grande Timeshare Resort at 25th Avenue North in Myrtle Beach.

And later this year, the Sea Glass Tower will debut. Bluegreen bought that building, formerly The Yachtsman Resort at 14th Avenue North in Myrtle Beach, last year and is renovating the interior into timeshare units. Snags in construction have delayed the opening. It was originally going to open this spring.

Bluegreen also owns Harbour Lights in Fantasy Harbour and Shore Crest in North Myrtle Beach. It has 442 employees along the Grand Strand and Donovan expects that number to swell to 650 by year's end.

Bluegreen is one of several timeshare companies capitalizing on the beach boom and the surging popularity of time shares. Marriott, Sheraton and Burroughs & Chapin Co. Inc. also are opening new units along the Grand Strand.

Timeshares pumped $1.9 billion into South Carolina's economy in 2002, according to a study by PricewaterhouseCoopers for the American Resort Development Association. With 12,100 units, South Carolina was second only to Florida in the number of units in 2002, the latest year data is available.

Last year, Bluegreen, based in Boca Raton, Fla., ranked No. 48 on Fortune's list of America's 100 Fastest Growing Companies and landed in the No. 57 spot on Forbes list of the 200 Best Small Companies.

Donovan didn't make Friday's ceremony in Myrtle Beach, but he talked with The Sun News via telephone last week during a break from the American Resort Developers Association convention in Las Vegas. Donovan is on the ARDA board of directors.

Question | Timeshares have experienced huge growth in recent years. Do you think it will continue?

Answer | We are in a lot of markets, and Myrtle Beach is by far our biggest and best market. And there is no sign of any problems. Market penetration is light. And Myrtle Beach serves a huge market.

Q. | You had planned to open Sea Glass tower this spring. Is a date set?

A. | That appears to be the fall. We are doing extensive interior renovations. We are replacing the elevator systems; reconfiguring most of the rooms. ... It's a great building. It's been there quite some time. There is nothing harder than renovation. Things pop up here and there. Just the normal stuff - it adds up.

Q. | You mentioned that Myrtle Beach is your best timeshare market. What makes it so good?

A. | I've developed here since 1984. My feeling about the Myrtle Beach market: It's about as strong a market as I have ever seen. It's been pretty stable growth. It just doesn't weaken.

As a testament to that, our second timeshare was ShoreCrest. The first was in Gatlinburg, Tenn.

Q. | What makes Myrtle Beach so strong?

A. | It benefits from huge populations. Not just the Carolinas, but Ohio and the mid-Atlantic. Myrtle Beach is very, very convenient to get to for huge populations. You've got the natural feature of the beach and all of the supporting facilities. There is so much for people to do.

Q. | What are your future plans in Myrtle Beach?

A. | There will be a period of absorption after all the recent expansions. We will focus on the sale of inventories we just built. We will probably not initiate any more development of a consequential size for two or three years.

But we won't be totally dormant. We'll add amenities. We have four acres that we bought last year at Harbour Lights.

Q. | What are the trends in the timeshare industry; in other words, what do guests want? How is Bluegreen responding?

A. | That is a changing environment right now, and a healthy one. Guests want more experiences. It's not just wanting a two-bedroom, two-bath unit. They want activities that go with it.

We are thinking about white-water rafting and other similar activities. We are beginning to see this younger vacationer who wants that.

Recreational vehicles - we think there is a market for that.

Q. | Several of the local RV parks have recently been sold to developers who plan to build condominium towers. And isn't adding RV spaces contradictory to your core business of providing timeshare units?

A. | Our business is to provide people with fun vacations.

The state and federal governments aren't setting aside land anymore [for RV parks] and the existing government parks are not very well maintained. We think there is an opportunity to build environmentally sensitive, well-maintained RV parks.

Q. | Myrtle Beach is going through a transition with The Pavilion closing and new properties opening. Where do you think Myrtle Beach is headed?

A. | Real estate recycles. Myrtle Beach is a perfect example of a very viable market. I think it is healthy.

Q. | Has the timeshare industry overcome the bad perception created by pushy sellers?

A. | It's a hard lesson because that reputation has stuck for many, many years. It was deserved, frankly. The industry was dominated by marketing companies that didn't have long-term visions. The methods to make sales were questionable.

As you know, we are in Las Vegas at the ARDA convention. There are 4,000 people here, including lenders, hotel companies. The top five in the industry are hotel companies.

We are proud of where we have brought it. It is a totally different mind-set. Customers are treated with dignity.

We had an independent, third-party research firm who talked to people who did not buy. When it came to the sales process, more than 70 percent said it was fine. It was not because we were doing anything wrong. We watch that very, very closely, and keep timeshare a good thing.


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Fire Destroys Portion Of James City County Timeshare Resort

A fire completely destroyed a 14-unit building of a timeshare resort complex early Sunday.

The building was part of the 256-acre Powhatan Plantation, a guarded timeshare resort close to Williamsburg.

Alexis Herr and her husband were in the building next door to the fire. They were awoken by the blaze. Herr said they grabbed whatever they could and evacuated.

"I was pretty scared; I thought it was a thunder storm. We grabbed a couple of things and bolted," said Herr.

It took 50 firefighters about two hours to extinguish the blaze, which was reported just after 3:30 a.m., James City County Fire Chief Buster Canaday said.

Firefighters say ten had to be rescued from second-story timeshare balconies by ladder, and two people jumped from their balconies.

Some residents suffered minor injuries, but no one was taken to the hospital.

Fire also damaged eight cars parked near the building.

Harry Myrin, the timeshare resort's interim manager, said the resort provided displaced guests with other places to stay and was working to provide transportation home for those whose vehicles were destroyed.

"We're blessed that everyone got out," Myrin said.

Investigators are working to discover the cause of the fire.