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.