Friday, June 30, 2006

Malta Tourist Authority Takes On The Timeshare Touts

Too many incidents of tourists being confronted in the street while on holiday in Malta has led to the Maltese authorities taking action against the timeshare companies who employ sales staff to seek out possible visiting buyers.

Complaints have risen in recent years from holiday makers who have had their time on the island spoiled by being approached on a daily basis to attend presentations - that can last up to four hours -in the hope that some will buy into holiday property ownership and timeshares.

But the Malta tourist authorities have seen the damage it is doing to the island's economy, and have decided to act.

'It has come to the stage in Malta', comments Roger Munns of Malta travel guide YourMalta, 'that some holiday makers are being approached on a daily basis - sometimes twice a day - by timeshare touts who get paid a commission for every potential buyer they persuade to take to a presentation. As well as the feeling of not being able to go out without being accosted by these people some were giving verbal abuse to those who declined, or simply followed them down the street after being told no - and hounding tourists'.

With the tourism market vital to the Malta economy, the Malta Tourist Authority recognised that some visitors would be so put off the island by high pressure sales people that they wouldn't return - potentially losing Malta millions in lost revenue from repeat visitors.

'In today's world,' explain YourMalta, 'Malta has to compete with new destinations in Europe as well as Spain and her islands. Cheap Malta flights aren't in themselves enough to sustain tourism at reasonable levels anymore, although this will be welcome, but the trick of sustained tourism is to have repeat business, and timeshare touts bothering visitors to the island are enough in some cases to make sure that repeat visits don't happen.'

The legislation the tourist authorities needed to be able to protect the tourists has recently been passed, and the Malta Tourist Authority is planning to outsource security patrols to police the timeshare touts. And in a clever move designed to enforce the legislation effectively, the Malta Tourist Authority are being paid around 3000 Euros for each rep the timeshare companies employ for a bond that will allow them to work in a regulated way. Instead of waiting to take each incident through the courts the MTA will be fining the companies found breaking the rules and taking the money out of the deposited bond money, with the timeshare companies having to make it up immediately to the required amount.

Thursday, June 29, 2006

What Time Is It? It Is Timeshare Time!

Many owners of timeshares are looking at selling them, or renting them out at reduced rates. This could be a much cheaper alternative to luxury hotels.

Moreover, many of these timeshares have full kitchens, and sometimes 2-4 adjoining bedrooms, pools, playgrounds, arcades, washers & dryers and more; helping you reduce your food and entertainment costs as well. For example, with RCI.com, a major timeshare company, you don't have to be a member to get access to all of their reviews of properties. Most of us have had the "pleasure" of sitting through, at least, one timeshare presentation…but don't knock it…sitting through the presentation in itself is another cost-saving strategy. One hour at a presentation, even if you don't purchase a timeshare, could save you over 50% on your hotel costs. And you usually walk away with vouchers for local entertainment, like horseback riding, scuba lessons and theme park discounts. So try a timeshare today.

Wednesday, June 28, 2006

Marriott Plans St. Kitts Timeshares

Marriott International plans a vacation timeshare development on St. Kitts, its fourth timeshare property in the Caribbean.

Marriott's Marriott Vacation Club International will develop the complex on the same property as the St. Kitts Marriott Resort & Royal Beach Casino. The eight, three-story buildings will contain a total of 88 two- and three-bedroom timeshare units. The timeshares will sell for $16,400 to $69,500 per week, depending on the size and season.

Marriott Vacation Club International also has two timeshares on Aruba and will open one later this year on St. Thomas. Marriott International also operates 15 hotels in the Caribbean.

Marriott (NYSE: MAR) entered the timeshare business in 1984 when it acquired a resort on Hilton Head Island. It now runs about four dozen timeshare properties throughout the United States, Europe and Asia.

The company gets about 25 percent of its income from continuing operations from its timeshare business.

In addition to the St. Kitts property, Marriott expects to bring properties on line this quarter in Kapalua, Hawaii, Miami Beach and San Francisco.

Tuesday, June 27, 2006

Fire And Rain At Timeshare, Cause For Refund?

Callicoon - First, there was fire. Yesterday, the Villa Roma Timeshare Resort was hit by flooding.

A flash flood hit the timeshare resort at about 1 p.m. Debris from upstream washed uprooted trees and branches down Jones Creek, which runs through the resort property. The debris hit a hallway bridge that connects a block of timeshares to the building that houses the indoor pool, game rooms and clubhouse.

The force of the debris sent water blasting through one wall and out the other side, back into the creek.

The hallway bridge was closed for renovations from the April 12 fire that destroyed the timeshare resort's main building.

Guests watching from the adjoining glass-walled hallway were transfixed by the high, dark water rushing past.

"It was so scary. It was like a little tsunami," guest Tracey Lutz said. "It made a big pop, and then the water was rushing through."

At that point, everyone ran for the game room - uphill.

As the flood started, Susie Miller of Montgomery said, her sons, 11-year-old Anthony and 10-year-old Joseph, were in the hallway with their 7-year-old cousin, Luis Bruce, watching the rushing water. They realized the water looked bad, and the older boys told Luis to run. Then the hallway wall gave.

It was scary, Luis said. "And there was a kid on the (shuttle) bus, crying."

The Ernesto building, which houses one wing of timeshares and abuts the creek, was evacuated. A propane line broke, and workers were fixing that by mid-afternoon.

The floodwater washed across the property, leaving mud piled in the bumper-boat pond, on the bocce courts and in the outdoor pool, turning it deep brown. But the rec building was OK. Kids played in the game room and swam in the indoor pool as men on excavators cleared branches from the creek.

Operations Manager Luis Alvarez said there were more than 700 guests in the timeshares and a smattering of hotel guests yesterday. Other timeshare buildings also had some flooding. The Villa Roma should be back up to speed for the busy July 4 weekend, Alvarez said.

Timeshare owners, such as Miller, were angry after clerks told them they couldn't get a refund for lost amenities. Miller pays $600 per year in maintenance fees for a double unit. Margaret Goolic of New Jersey, who has been coming to a Villa Roma time share for 10 years with her husband, wants a refund for her timeshare.

"For the rest of the week, what are we supposed to do? Sit in our rooms and watch TV with the kids?" Goolic said. "We could do that at home."

Monday, June 26, 2006

Hotel Inventory Slips 5% As Condos, Timeshares Expand

The number of Hawaii hotel rooms dropped another 5 percent in 2005 while the number of timeshares, condominium hotels and even rented rooms in private homes continued to grow, according to a new state report.

The rate of decline slowed, however, from 2004, when the number of hotel rooms fell 11 percent.

The number of timeshare units rose 16 percent last year and so-called "condotel" units were up 9 percent. The shift in supply and increase in demand also pushed hotel room rates up, with 47 percent now charging more than $251 a night, up from 44 percent in 2004. Ten percent cost $500 or more per night, up from 8 percent in 2004.

For the first time, the report also made note of the number of hotel room conversions during the year, with 511 rooms being switched to condos.

Hawaii had 72,889 rooms available last year, up 275 from 2004, according to the state Department of Business, Economic Development and Tourism's annual Visitor Plant Inventory report, which is to be released next week.

According to estimates, another 7,000 units -- approximately half of them condos and half timeshares -- will be added by 2010.

The numbers confirm the continued segmentation of visitor accommodations, the increased interest by visitors to find alternatives to traditional hotels and erosion of the market share held by full-service hotels and resorts. The increase in timeshare and condotel developments, in which visitors own the rooms in which they stay, is likely to add to the continuing debate on whether expansion of that market is good for Hawaii.

The fractional ownership model has been a shot in the arm for owners and operators of aging, outdated buildings, who can finance upgrades by selling individual rooms for upward of $200,000 or more. Investor confidence in Hawaii also is at its strongest level since the 1980s. More than $3.5 billion in hotels have changed hands since 2003, with an estimated $1 billion in room renovations.

"For the first time, we have visitors who have some element of ownership in Hawaii," said Joe Toy, president of Hospitality Advisors, a Honolulu-based travel consulting firm. "There is a chance that they would bring a better sense of stewardship and pride than other hotel visitors who come in for brief periods."

But on the downside are millions in lost tax collections that aren't applied to condominiums and a tightening hotel inventory than makes it challenging for visitors to plan trips.

"The issue of visitor capacity is going to become more pressing," Toy said.

Maui County commissioned Toy to review the impact of hotel conversions on the Valley Isle and expects to initiate or change county laws based on the results of his study.

Another trend documented by the new state study found that more visitors are staying in "individual vacation units" -- rooms in private homes and vacation rentals advertised online.

Between 2004 and 2005, these accommodations increased 31 percent to 2,438 units from 1,867 in 2004. On Oahu, there are 316 such units, a 16 percent increase from 2004; Big Island, 756 units, up 70 percent; Kauai, 763 units, up 35 percent; Maui, 570 units, 4 percent; Molokai, 30 units, down 3 percent; and three on Lanai. Timeshare still putting up the money.

Friday, June 23, 2006

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.

Wednesday, June 21, 2006

Tips On Buying A Timeshare

Do not consider timeshares a financial investment. They are a method for buying future vacations.

Never purchase a timeshare without having a lawyer review the contract.

Resist high-pressure sales tactics and free gifts that entice you to sign on the spot.

Never purchase a timeshare without first visiting the property. Look for signs of good property management.

Make sure the timeshare is associated with an exchange company if you want to trade in your timeshare.

Make sure the time-share will meet your needs 10 or 20 years down the road as the vacation needs of your family evolve.

Understand that timeshare maintenance fees may increase over time.

Tuesday, June 20, 2006

Why Timeshare Owners Buy Multiple Weeks

More than 68% of timeshare owners own more than one week. Although the vast majority of first-time owners purchased retail, from the developer, most 2nd and 3rd week buyers have learned a valuable lesson and looked to the timeshare resale market.

Recent interviews of timeshare buyers by Jack Smith, founder of independent timeshare consulting firm Timeshare Days, and author of Timeshare Nights, reveals key reasons for purchasing multiple timeshare weeks.

"Most of the timeshare owners that I interviewed said that the number one reason for purchasing more timeshare was that they really enjoyed timeshare vacations and didn't want to go back to the "old" way of renting a hotel or motel," says Schreier. "They said that despite what people who 'don't get' timeshare say, it's a great product."

While many owners choose to own in a few different locations worldwide, one of the participants owns six weeks at two resorts not even 3 miles apart from each other in Orlando. "Living in Central Florida, that surprised me," said Lisa, "but then you realize that for many people, this really is the vacation capital of the world."

"Like all businesses, the key demographics of the timeshare business are changing -- we're so happy Jack is helping us to better understand the wants and needs of a new breed of timeshare buyer."

This is the best of of a series of research reports that Mr. Smith will be authoring. His next piece investigates timeshare "resorts" that aren't really resorts at all, a common scam among less-than-conscientious timeshare developers.

Friday, June 16, 2006

Timeshares Put Squeeze On Hotels

For months, Orlando hoteliers have worried about a pair of seemingly conflicting facts. On one hand, they keep hearing estimates of record numbers of tourists coming to the state. On the other, their occupancy rates are falling.

Where, they ask, are all these people sleeping?

Cars? Campgrounds? The homes of friends or relatives? Timeshares?

The answer appears to be: timeshares.

In 2001, 10 percent of Orlando visitors stayed in timeshares. Last year, that number had increased to 15 percent.

That steady shift in sleeping preferences could have significant ramifications, not only for hotel-occupancy rates, but for the county's resort tax. The pool is used to pay for things such as the convention center and is being eyed for the new downtown performing-arts center and an arena for the Orlando Magic.

Because timeshares count as real estate, they generally are exempt from the tax, a 5 percent charge on short-term rentals. The exemption, however, does not apply to those units rented out like hotel rooms.

Overall collections have remained strong in recent months, but hoteliers have warned that it's only because they've been raising room prices to offset declining occupancies -- and that there are limits to that tactic.

"That has played itself out," said Ron Caimano, a longtime hotelier and general manager of the Embassy Suites hotel at Jamaican Court.

Last year, the average price for a hotel room in Central Florida surged nearly 6 percent over the previous year. And it's up 9 percent through the first three months of the year, according to Smith Travel Research, a Tennessee-based company that tracks national hotel trends.

Still, Orange County's resort-tax shepherd isn't ready to sound the alarm. Though collections took a 2.1 percent dip in March, they are still up 3.1 percent for the first six months of the fiscal year.

"I'm not going to say it's threatening the resort tax. But everything that is a change in the market, we are going to pay attention to," Comptroller Martha Haynie said. "It is such a critical revenue source."

Watching that shifting marketplace, Haynie said she'll take a look at how her auditors are deployed, perhaps to keep a closer eye on timeshare operations that are taxable.

'A lot of timeshare'

As far as hoteliers are concerned, every person who buys a timeshare is one fewer potential customer for the area's 110,000 hotel rooms. Further, those tourists are guaranteeing that their many future trips will be hotel-free.

"There's a lot of timeshare out there. And there's a bucket load more of it coming," said Caimano, who also is on the board of directors for the Central Florida Hotel & Lodging Association.

Among those leaving the ranks of hotel guests last year was Valerie Hines, 36, of Kenosha, Wis.

After years of staying in hotels in the Disney and Universal areas, Hines and her husband decided early last year to take the plunge and buy into the Disney Vacation Club.

"The fact that we went so much -- it just made sense," said Hines, who already has trekked back to Orlando half a dozen times since buying the Disney timeshare. "In the long term, we knew we'd be saving quite a bit."

The timeshare trend might be good for visitors, but hoteliers and the county's resort-tax collectors are worried.

Hotel-occupancy rates have been on the decline since August of last year and are down 7.6 percent through the first three months of this year, according to Smith Travel.

Just as timeshares are capturing a larger piece of the tourist pool, hotels are watching theirs shrink. Last year, 62 percent of visitors stayed in hotels, compared with 67 percent the previous year, according to D.K. Shifflet & Associates, a travel-industry consulting company in Falls Church, Va.

"The condos, the timeshares -- everything is an alternative to hotels," said Scott Brush, a Miami-based hotel consultant. "It's got to have some effect on the hotel business."

Long time in the making

It is a shift that has been taking shape for some time. Ironically, it has been assisted by the hotels themselves -- most of them rent lobby space to timeshare marketers, who troll for customers. Some hotel chains also see the benefit of the transition because they own some of Orlando's timeshare resorts.

From 2001 to 2005, the number of timeshare units jumped to 19,099 from 15,157, a 26 percent increase, according to the Orlando/Orange County Convention & Visitors Bureau. Hotel-room growth, on the other hand, has been fairly stagnant during the same five-year period, growing only 2 percent.

"We're starting to see the outcome of all that development that's taken place," said Kelly Repass, the bureau's research director.

Though timeshares -- typically sold in one-week increments -- are generally exempt from the resort tax, there are exceptions.

Some resorts, particularly those owned by larger hospitality companies with enormous booking engines, treat unsold units as hotel rooms, making them taxable. The same goes for individual owners who rent their timeshares to friends, family or strangers.

It is not known what percentage of resort-tax collections come from such rentals. But there is little reason to think the county is getting everything it has coming to it.

"It's difficult to track this. We have to rely on folks to be honest," said Claudia Rilea, an audit supervisor in the Orange County Comptroller's Office. "There can be so many private transactions that go on."

And there are likely to be many more in the years to come. Time sharing has come a long way from its shadier, early days, in part because of the legitimacy granted by hospitality heavyweights -- Disney, Marriott and Hilton, for example -- that have gotten into the business.

"The acceptance by the consumer marketplace is so much greater than it was even five years ago," said Ed Kinney, a vice president with Marriott Vacation Club International, which has 1,900 units in the area and 200 others under construction.

Secondhand timeshares

It isn't just the resorts themselves that are experiencing a surge in sales activity. More often, consumers are seeking out timeshares on the secondhand market -- free of the high-pressure tactics used by many resorts.

Tom Yeary has been running the Timeshare Store, an Orlando real-estate company specializing in resales, for more than a decade. In the early days, it was just Yeary and his wife. But they've added five employees through the years to keep up with the demand.

"We sell more every year," Yeary said. "I went from five days a week to seven days a week keeping the office open."

And although hoteliers and tax collectors may lament the rise of the timeshare beast, it isn't a bad development for the tourism industry as a whole. After all, the purchase of a timeshare essentially guarantees a tourist will be back time and again.

Consider Cindy Bartz, 49, of Wichita, Kan.

Before buying a timeshare five years ago, she and her husband traveled to Orlando about once every two years, staying at a variety of midrange hotels.

Now, they come at least twice a year. And all that money they used to spend on hotel rooms isn't staying in Kansas.

"We end up spending more on food, souvenirs, collectibles and that sort of thing," said Bartz, a respiratory therapist. "If anything, we spend more with our timeshare."

Thursday, June 15, 2006

Viva Timeshare! Bluegreen Enters Las Vegas

The Boca Raton-based timeshare resorts and communities firm said the land is near the intersection of Tropicana Avenue and Paradise Road.

Bluegreen said it to begin construction on the resort property and open its initial timeshare sales operations in Las Vegas during the third quarter.

"Establishing a presence in a mega-market like Las Vegas is a key strategic growth initiative for Bluegreen Resorts," said George F. Donovan, Bluegreen president and chief executive officer. "Las Vegas attracts approximately 43 million visitors a year and is one of the top three prime western markets for timeshare sales."

Bluegreen said it plans to build a seven-story resort with about 240 two-bedroom timeshare units for availability through the Bluegreen Vacation Club in the fourth quarter 2007.

Planned resort amenities include a pool, spa, game room, pool bar and heath club.

Also, Bluegreen said it has negotiated an option to buy an additional 4 acres of adjacent land, already entitled for development of 240 more timeshare units.

In addition to building resort timeshare units, Bluegreen said it also plans to develop about 48,000 square feet of commercial space for a restaurant and retail center and an 18,000-square-foot preview center.

Bluegreen said it expects to start its Las Vegas sales operations in July. The company predicted the sales and marketing efforts in Akita Plaza to initially employ about 45 associates.

Bluegreen said it is also pursuing marketing opportunities with a variety of local timeshare businesses.

Tuesday, June 13, 2006

Join A Timeshare Tribe

Tribewanted.com is a new concept in timeshare vacations that combines the traditional location-sharing arrangements with a tropical island. The catch is that all participants in the "tribe" are responsible for overseeing the eco-friendly development of a Pacific Island. Essentially, it's a real life variation on Survivor, with teamwork, construction and a tropical island, but without the contests and voting, though there will be a documentary crew on site taking weekly videos of the people and the project.

For $220 to $660, you can join for 1-3 years and visit the island, near Fiji, for 1-3 weeks (airfare is not included). During your visit, you will be filmed while you participate in the development of a sustainable timeshare village community. Broadcasts will be put on the Tribewanted website for other participants to view. The fact that members must work together in the building process and the development process - from selecting island locations to which buildings will have solar panels - is where the "tribe" concept comes from. There will be a local tribal chief overseeing the project.

500 timeshare people have signed up so far, and there is room for 5,000 to work on the project in total. It seems like a good choice for the adventurous, but not the ultimate in comfort yet, if you prefer to take more relaxing timeshare vacations.

At the end of the three year building period - which is when Tribewanted.com's lease on the island expires - the island will be returned to the local community. Depending on what kind of work is done by the "tribe," it could be Fiji's next hot timeshare resort, or it could just be some fun memories for those who participated.

Monday, June 12, 2006

Phil Mickelson Buys Penthouse Timeshare

Phil Mickelson has not yet won the Claret Jug although the American now owns timeshares with a view over the Old Course at St Andrews.

Mickelson put down $3.4 million for nine weeks use annually of a penthouse at a private club and timeshare residence, a spokesman for the US golfer said Friday at Westchester Country Club, where he is competing at the Barclays Classic.

His rooms will look down upon the first and 18th holes of the Old Course. The six-storey building is currently a dormitory for the University of St Andrews and renovation work is expected to be completed in 2008.

The next British Open at St Andrews will be in 2010, the 28th time it is staged at the Scottish course.

The 35-year-old Mickelson has twice won the Masters, his second green jacket coming last April in Augusta, and took last year's US PGA Championship.

The closest he has come to lifting the famed jug awarded to winner of the British Open was in 2004 when he finished third.

There is nothing like a Scottish timeshare!

Friday, June 09, 2006

Timeshare concept Hits Water Here New business Aims To Cut The Cost Of Boating

You've heard of a timeshare condominium. How about a timeshare of a boat?

The trend has been taking off in East Coast vacation havens such as Miami, Cape Cod and Virginia Beach, even in other countries such as Great Britain. Now, one local business hopes Rochester's proximity to Lake Ontario will bode well for the concept here.

The Fleet Boat Club so far is offering timeshares in two power boats — a 21-foot Monterey open bow and a 23-foot Chris-Craft cuddy cabin. A sailboat will be added this summer.

Ken Dens, a boat owner for 17 years, opened the business last month at Southpoint Marina on Irondequoit Bay in Penfield.

Dens said he brought the concept to Rochester because there is "not one right boat."

"Different boats are needed for different things," Dens said. "Sailing, fishing, and other activities require different kinds of boats."

Memberships range from $2,800 to $3,650 a year and can be bought for one, three or five years. Weekday-only timeshare memberships start at $1,800.

The idea is that a timeshare offers more flexibility and guaranteed time than renting a boat — and is more cost-effective than a loan for a $20,000 to $30,000 boat plus the cost of renting a slip.

"Owning a boat is a fairly expensive proposition," Dens said. "It can cost up to $8,000 a year for five years."

But Dave Willis, general manager of Bryce Marine in Greece, said that timeshare boating companies often show inflated costs for owning a boat.

"From a business perspective, timeshare boating is more logical in a year-round market," Willis said. "It will be much more difficult in Rochester because this is a seasonal market."

Kyle Schmackpfeffer, who recently sold his boat, which cost $6,000 a year to maintain, thinks timeshare boating is worth a try. He said he enjoys the Monterey because of its powerful V-8 engine and the spacious cockpit.

"It's great not having to take care of a boat," Schmackpfeffer said. "Before I had to hook my boat up to the truck. Now I just drive down to the marina and go."

Members of the Fleet Boat Club must be at least 25 years old and have a New York state boater safety certificate. If business takes off, the timeshare club plans to add locations on Canandaigua Lake and Sodus Bay.

Thursday, June 08, 2006

Timeshare For Sports Suites Spreads Across California

Just one year after Owner's Pass, LLC opened for business in the San Francisco Bay Area, Owner's Pass today announced that it offers timeshares of luxury suites in sports stadiums throughout all of California. Today most sports suites are sold as complete seasons affordable only to large corporations and the very wealthy and are often under-utilized. With Owner's Pass, small and mid-sized businesses can afford to entertain clients, prospects, employees, and recruits in luxury suites at a variety of sporting events year-round.

By offering timeshare packages for luxury suites, Owner's Pass dramatically lowers the entry price compared to full suite ownership and helps companies create a package of games that spans the entire calendar year and all pro sports. For example, an Owner's Pass package can be customized to a company's schedule and locations to include a few games at each of the San Francisco Giants, Los Angeles Dodgers, Los Angeles Lakers, San Jose Sharks, and San Francisco 49ers, to name a few.

"We use our Owner's Pass timeshare to entertain clients at the Dodgers, Angels, Lakers, Clippers and Kings," said Art Boren, President of Pacific National Group. "Owner's Pass helps us get the most out of our investment because we can choose the games that work with our schedule and even switch games if our schedule changes. Without the timeshare option, the cost of a luxury suite would have been prohibitive."

Traditional full-suite memberships are estimated to have less than 50 percent utilization. Owner's Pass offers scheduling flexibility so companies can select and change games to suit their needs, leading to a 100 percent utilization rate among Owner's Pass members. In addition, full suite memberships purchased directly from a venue only offer events during that particular sporting season, whereas Owner's Pass members enjoy sporting events year round with one membership.

"Timesharing is a proven business model that has been successful for other expensive assets such as vacation real estate, corporate aviation, and, luxury yachts. We saw the opportunity to extend that model to sports where companies were losing tens of thousands of dollars to under-utilized suites," said John Arledge, CEO and founder of Owner's Pass. "It has struck a chord with companies across the state. Every one of our first-year customers renewed and in just one year of operation we're now meeting demand for sporting events across all of California's major sports venues."

Owner's Pass currently offers timeshare packages of luxury suites including all of the following teams and stadiums:


-- SF Giants -- AT&T Park
-- Oakland A's -- Oakland Coliseum
-- Golden State Warriors -- Oakland Arena
-- San Jose Sharks -- HP Pavilion
-- SF 49ers -- Monster Park
-- LA Dodgers -- Dodger Stadium
-- LA Angels -- Angels Stadium
-- LA Clippers -- STAPLES Center
-- LA Lakers -- STAPLES Center
-- LA Kings -- STAPLES Center
-- Anaheim Mighty Ducks -- Arrowhead Pond
-- San Diego Padres -- Petco Park

Pricing varies by region due to cost variances of the underlying leases; however, Owner's Pass offers timeshare memberships with as few as five events beginning at $25,000. Memberships can be customized with any number of games and ratios of sports. All timeshare memberships include preferred parking, premium catering, open bar, and options for playoffs, special concerts and entertainment events. Without Owner's Pass, a luxury suite for only one stadium and one season is approximately $200,000 per year, and owners do not benefit from the multi-sport, year-round, flexible schedule.

Tuesday, June 06, 2006

Resort Company Plans Condos, Timeshares, Hotel In Sedona

It's a rare find by any measure: 21 acres of buildable land in the heart of a renowned tourist destination.

ILX Resorts bought the scenic land in Sedona last fall for $8.4 million from the federal government. Now, the timeshare resort company, which owns the abutting Los Abrigados Resort & Spa, wants to cash in on the valuable site of scenic red-rock vistas.

It announced plans to build 90 timeshare units, a 12-unit hotel and nine luxury condominiums as well as a public park.

Company executives expect the proposed development, called the Villages at Heritage Park, will be the resort company's largest project.

On Friday, ILX Resorts filed with the city of Sedona an application to change the community's master plan, needed to accommodate the development. That triggers a months-long public vetting process that could stretch to mid-2007 or longer before a shovel of dirt is turned, said John O'Brien, Sedona's community development director.

Executives of the Phoenix company say they are familiar with the Sedona community's concerns about the impact such a development could have on the exclusive area.

Chief Executive Officer Joseph P. Martori said the timeshare project would include an "inviting design" that touches on the area's history. And in a nod to the community's concerns about growth, Martori said about 60 percent of the development will be left as open space. The company did not reveal an estimated project cost.

"We know there is a no-growth element in the community," Martori said. "I think it will defy logic if they turn this down."

The jewel of the public space will be Heritage Park, a public park that will include a former U.S. Forest Service ranger station. Also, several acres of open space will be kept as natural preserves.

ILX Resorts also bought an additional acre of land where it plans to build a small facility for Sedona Project, a consortium of Colorado State University, Northern Arizona University, the University of Arizona and other universities seeking to research agricultural and environmental sustainability.

The new timeshare resort will share common-area amenities such as a lobby and restaurants with the company's abutting resort, Los Abrigados Resort & Spa, according to Chief Financial Officer Margaret Eardley.

"That area in particular is considered the heart of Sedona," said Barbara Litrell, president of Keep Sedona Beautiful, a community organization. "We want to make sure it is consistent with the environment and the surroundings. ... We would hope they do the right thing."

O'Brien said the public will have ample time to weigh in on the development, which he described as the city's largest commercial project in about three years.

ILX Resorts' filing triggers a 60-day review period to allow all interested parties to comment on the proposed plan change. The city's staff will later review the plan and comments.

A City Council vote is scheduled for September.

If the company wins a master plan change, it then must seek zoning allowances for timeshare units, a hotel and luxury condominiums. The city may not vote on any zoning changes before summer 2007, O'Brien said.

ILX Resorts, along with partner James Bruno Enterprises of Chandler, emerged as the winning bidder for the prized site after last year's federal auction held by the U.S. General Services Administration.

The site includes a former U.S. Forest Service ranger station southeast of the city's intersection of Arizona 179 and Arizona 89A.

The federal government auctioned the land to raise money for other administrative facilities at another site. Looks like Yogi might be buying a timeshare after all.

Monday, June 05, 2006

Timeshare - A Solution Or A Problem

Over the years we have all sat back and read numerous 'letters to the editor' written mainly by visitors from the UK, and who have come to Malta looking for a peaceful holiday but instead have experienced various incidents of harassment, been sworn at, or on occasion, even threatened with physical violence by some timeshare representatives.

The major and professional timeshare resort operators have found a different method of marketing and are selling their product very successfully, instead of the now familiar outside public contacts (OPCs) harassing our guests on every street corner. The timeshare touts, or again as they are better referred to by most visitors, lager louts, have, over the years, done untold damage to the tourism industry and they have got a lot to answer for.

The only people who are still holding back from addressing the problem of OPCs are some of the timeshare resort owners who are hiding behind these marketing firms run mainly by doubtful characters and thereby allowing this arrogance to carry on unabated.

In real life there should be no need for any new laws - does it need an 'act of Parliament' to be courteous to our visitors? If these resort owners/operators use the same standards of service in procuring timeshare sales as they offer in their resort/hotel's facilities, there will be no issue. They are the ones who are accepting double standards and are ultimately benefiting from these sales and it is they who should act more diligently and be held responsible.

The Government has recently proposed a new law under the Malta Travel & Tourism Services Act (Cap. 409) to regulate timeshare promotion, however this is Malta and things are done to appease half a dozen individuals, who have friends in high places.

I read through a draft copy of this bill and regret to note that if and when implemented all it will do is play for time and give more space to the timeshare owners - there is not one clause that will change the poor mentality of the OPCs, and they will carry on chasing visitors on our streets.

The predominant objection has recently appeared to be the MEPA permits for placing some booths in prominent tourism areas. The idea behind these booths is to restrict the OPCs to selling timeshare within a prescribed number of metres, and although this situation is not perfect, it is the lesser evil.

This would have stopped our visitors from being harassed on our streets and will again stop the harassment of those tourists who refuse to agree to play one of their silly scratch card games or whatever other incentive they offer.

This scratch card method, along with free bus time-tables, are used to get our visitors to accompany the representatives to one of the timeshare complexes to receive their "prize" but where, in reality, they are then treated to a few hours of 'hard sell technique' in the hope that they will buy a timeshare slot in their resort.

Again, all these sales techniques are currently carried out under licence by the Malta Tourism Authority. Some of these visitors are stopped by as many as six different sets of OPCs in a half-kilometre stretch, and that is when the clients generally lash out. Even if the OPCs' approach is polite, repeating the same "thank you but no thank you" message six times every few metres, it leaves the clients exasperated and, on many occasions, they understandably lose their temper.

The only solution is for the buck to stop with the resort owners/operators who must stop hiding behind marketing companies and be held responsible for the way in which their particular resort is marketed.

We cannot continue to allow these owners/operators to use the excuse that timeshare produces 10 per cent of the tourism market, as a reason to harass the other 90 per cent of tourists who are not associated or interested in timeshare.

Timeshare may well suit many people and certainly seems to be lucrative for the hotel owners/operators and it does bring many people back to Malta year after year.

So if the product is so good then why do the timeshare sales people not just say "we are selling timeshare in whatever resort, would you be interested in coming to have a look?" Some of the timeshare resort owners have succeeded. What are the remainder waiting for? If one has faith in one's product, then one should have no hesitation in promoting that product truthfully from the start. It would be very interesting to find out from the relevant authorities what tax contribution these OPCs are paying into our tax system.

Friday, June 02, 2006

Commission Acts To Address Gaps In The Timeshare Directive

The Commission is today launching a wide public consultation on the Timeshare Directive (94/47/EC). Timeshare contracts entitle consumers to spend a period of time (at least one week) in a holiday property for at least three years. The Timeshare Directive sets minimum standards for consumer protection throughout the EU, such as ensuring that consumers receive adequate information on the property. The legislation also seeks to prevent “pressure selling” by allowing for a cooling-off period where withdrawal is possible and money deposits are not allowed. However, some operators have introduced new timeshare-like products which take advantage of regulatory loopholes, leading to a number of complaints by consumers. “Consumers should have every confidence that they will not be taken for a ride if they opt for a timeshare formula or similar products” said Health and Consumer Protection Commissioner, Markos Kyprianou. “I want to make sure that unscrupulous traders do not take advantage of potential clients – many of whom sign up to these products after falling in love with a holiday resort.”

Since the Timeshare Directive was adopted in 1994, a number of new products have come onto the market, such as contracts which are similar to timeshare, but where the contract is for 35 months (so-called “timeshare-like products”). Other new products include “travel discount clubs”, whereby consumers pay a membership fee – sometimes as much as €20,000 - to access a booking site promising discounted air tickets and accommodation. However, some consumers are finding that the accommodation does not reach the standards promised. These new products fall outside the scope of the Directive and allow some operators to take advantage of regulatory loopholes.

The 9-week consultation is being launched along with a discussion paper, which explores a series of timeshare-related regulatory problems - identified in close cooperation with key industry and consumer groups. These mainly concern the scope of the timeshare legislation, including issues such as re-sale and exchange of timeshares. Other issues addressed include information requirements, professional and financial requirements of operators, systems of arbitration and redress, and criminal sanctions for infringements.

The Timeshare Directive is one of the eight directives which are encompassed by the review of the consumer acquis, which is currently being undertaken by the Commission. Cross-cutting issues will be examined in a horizontal context. However, some of the problems related to timeshare and certain other holiday products require more urgent action. This is why the Commission has decided to launch a separate consultation on the review of the Timeshare Directive.

On the basis of the outcome of the consultation, the Commission will come forward with proposals to address any existing gaps.