Revenue From Timeshare Market Increases

Revenue from the timeshare market increased by close to 70 percent during the 2005/2006 fiscal year, "substantially" exceeding expectations, according to Minister of Financial Services and Investments Vincent Peet.

Government officials had projected that collections in this area would have climbed to $600,000 during that period, but that figure ballooned to $813,647.10.

In 2004/2005, revenue was $483,250, according to the minister.

He said that while no new timeshare properties were added in 2005, the application submitted by Taino Beach Resorts in Grand Bahama is currently being reviewed.

Additionally, he said the first 100 percent fractional timeshare resort, the 80/50 Club in Exuma, is expected to open for business in late 2006.

Baha Mar is also expected to have a "significant" timeshare component, according to the minister.

Kerzner International’s fourth quarter results for 2005 indicated that company officials had already begin planning the next phase of their Harborside timeshare development, only months after laying out the welcome mat on the resort’s latest expansion.

At that time, Howard Karawan, president of Kerzner International’s Destination Resorts Segment, revealed that Harborside’s first phase was already sold out and that its second phase was 37 percent purchased.

According to the most recent statistics, The Bahamas welcomed an estimated 40,000 timeshare visitors over the past year.

"The American Resort Development Association indicates that the typical timeshare purchaser spends approximately $3,600 per one week during their stay at a timeshare property," Minister Peet told House members.

"As such, timeshare visitors alone contributed an estimated minimum of $144,000 million to the Bahamian economy, based on a one-week stay only, although a substantial number of timeshare visitors stay up to three weeks."

Based on the minister’s figures, the timeshare industry directly employs a minimum of $2,000 full-time Bahamian workers.

"The year 2006/2007 should be exciting for the timeshare industry in The Bahamas. The launching of the amended Timeshare Act is the number one priority for the timeshare department," the minister said.

"In addition, the department has met with representatives from Marriott Resort and Bella Vista Group (affiliated with Four Seasons Hotel), all respected companies, who have expressed an interest in operating timeshare properties in The Bahamas."

House members also heard that the Island Seas timeshare property in Freeport, Grand Bahama has submitted plans to expand its existing timeshare property.

"They have recently begun construction and estimate that approximately $4 million will be invested to add an additional 50 units to the resort. Approximately 250 Bahamians will be employed in the construction and operational phases," Minister Peet added.