Can someone help please,i would like to know if RDO or TATOC can help me.Basically RP in Tenerife told us that we had to buy a another week so that they would put 2 weeks that we already own into RCI points and that they would sell new week for us.We have not paid for this week yet.They are now saying that they will take us to court for non payment for this new week.It took us nearly 4yrs to get rid of a week they gave us with 2 weeks we wanted 4yrs ago.We told them just to take original week back,in the end they said they would sell it for £140,funny they sold it next day.Still waiting for the money.Now with this new week,we think we are going to end up back to square one.Should have learned from first time,they had us in their office for over 5 hrs plus back and forward over a few days.Is there any way out of this please help.

Updates with details on government plans for hotel, background)

CARACAS (Dow Jones)--Venezuela moved to seize the Hilton resort on the Caribbean island of Margarita, a swanky beach-side hotel which recently housed Libyan leader Moammar Gadhafi and Zimbabwe's Robert Mugabe.

President Hugo Chavez ordered the nationalization of the resort, which is owned by local firms facing troubles with the government's financial oversight body. The resort, which is managed by Hilton Worldwide, has 280 rooms and 154 time-share suites, according to the presidential decree ordering the takeover.

With an estimated 8 million timeshare owners worldwide holding rights to weeks purchased in 5400 resorts spread across 100 countries; it is unlikely for the flames of holiday ownership to be quenched any time soon. However, in this global economic crisis everyone is always looking for the best deal they can get. The internet is now the number one medium for obtaining up to the minute information leading to securing the product you want at the price you want to pay. All too often the scenario, however, is a million miles away from sitting in the comfort of your own home browsing through the countless websites that specialise in Timeshare.

The reality of the matter is that countless sales are made when we are relaxing on holiday. We are bombarded with information when we have already bought in to the location, weather, culture and the people. Who wouldn’t in their right mind look at an opportunity to buy in to this, especially when you are given a tour of these
5 star luxury resorts, with fantastic facilities, attentive staff and spectacular settings?

There are many incentives to get you going and for many they are proud owners within weeks of returning from their holiday, looking forward to when they can return to “their property”

For many, this serves them well for many years even, in some cases, with the title deeds being handed down to siblings who have also enjoyed many years of hassle free holidaying. For others, however they can, very quickly, become a financial burden. So what do they do?

A spokesman for FHP Holiday Group explains “Timeshare resale enquiries have hit an all time high. I think the current economical climate has a lot to do with it. The problem starts when owners contact the resort to try to sell it back. All too often they are informed that the resale value is nothing like what they originally purchased it for but they will happily take it off their hands thus negating the ever increasing maintenance fees.

“That’s where we come in. As a Timeshare Reseller we specialise in matching potential purchasers to buyers. People generally know whether they are buying or selling, that they will always get a better deal if going through a third party reseller rather than the resorts directly”

So if you are looking either to sell your timeshare or to purchase one, think on when your approached, whilst sipping your margarita on a sun drenched beach under the shadow of a palm tree, by someone offering a free holiday if you accompany them to the nearest resort!

Goldman Sachs is upgrading Wyndham Worldwide (NYSE:WYNStock Charts and Research Links: 17.45, 1.19) to Buy from Neutral with a $26 target (implying 60% upside).

Firm notes their recent meeting with management suggests a focus on 1) shifting the company to a recurring and high margin business model; 2) selling off existing timeshare inventory; and 3) managing the selling process for distressed timeshare, condos, and apartments as timeshare weeks without taking on capital exposure. Over the next several quarters they expect Wyndham to continue to push itself towards becoming a fee for service company while in the meantime, generating significant cash flow as it moderates its timeshare development activities.

Catalyst
As WYN continues to surpass earnings estimates and transition towards becoming more fee driven, they expect investors will give the company credit for the strong assets on its balance sheet and more fully value the shares. In Goldman's view, investors may not be applying high enough multiples to these segments given their individual intrinsic value and sustainability of earnings; however, as these divisions demonstrate more consistent performance, they expect a revaluation. In addition, firm's new analysis on the timeshare segment suggests significant "hidden" value exists. Although the value of timeshare may be debated given the current trajectory, they expect less debate as to the significant cash flow to be harvested from past investments in this segment.

In Goldman's view, Wyndham's timeshare segment appears to the most underappreciated of the three. Rather than use their traditional EV/EBITDA approach to value this segment, they undertook a discounted cash flow assuming it will complete its construction in process but will not begin any new projects. Firm estimates that even if Wyndham does not commence any more timeshare projects and sales continue at current levels, Wyndham's equity could be worth $26 share in 12 months.

Significant FCF over the next several years
As Wyndham continues to invest less in timeshare Goldman expects that its free cash flow should pickup significantly over the next several years. While they assume that Wyndham will not exit the timeshare business, it currently has enough inventory to sell for the next five years at current sales rates, thus they do not anticipate the company will need to spend on new inventory until 2011 or even beyond. This could create a period of several years where the company generates several hundred million dollars of free cash annually.

We’ve always been tempted to sit through a timeshare presentation to score some freebies, but we usually realize that having a good time and a relaxing evening is better than a stressful 90-minute hard sell. However, if you want some free stuff, or are really interested in vacation ownership, now is a good time. Timeshare sales are down big time, and some experts are thinking that things will drop 30 percent from 2008 numbers.

Marriott’s timeshare group, for instance, is cutting prices and slowing down their plans to expand. They are even thinking about selling some of their prime land—might be worth taking a look if you’re looking to build your own vacation home. Wyndham is doing the same thing, despite being the largest seller of timeshares in the country; they are cutting 40 percent of their sales. The salespeople trying to get rid of these properties might be getting desperate, so beware their hardcore pitches.

It’s pretty obvious that when times are tough, people stop going on vacation, and it’s especially hard to continue to pay for that vacation when you don’t get to use it. We’re not too keen on the same-place-every-year idea, but if we could score a cheap week in paradise, we might just get ready to write that check. Only make sure if you do bite, that you pay attention to the maintenance fees. Sometimes those fees ruin the deal that you think you’re getting, free 3-day cruise for attending the sales pitch or not.

Despite tighter credit markets and high unemployment rates, the U.S. timeshare industry continues to demonstrate its resilience.

Although overall sales continue to reflect the national trend of lower consumer spending, timeshare owners continue to enjoy their pre-paid timeshare vacations, with an 80 percent occupancy rate and an 86 percent product approval rate. This compares with a 60.4 percent hotel occupancy rate, according to Smith Travel Research.

"The downturn in our economy has hit the tourism industry particularly hard; the timeshare segment, however, due in part to its pre-paid nature, is better equipped than most to weather a downturn," said Howard Nusbaum, president and CEO of the American Resort Development Association (ARDA). "The good news is that timeshare owners are still vacationing, and occupancy remains strong. Coupled with our industry's emphasis on new efficiencies and improvements to our business model, we will come through the current downturn and be ready to meet the expectations of customers."

Preliminary 2009 second quarter research indicates that nine out of 10 owners were current on monthly payments, a .2 percent increase over the preceding quarter. Sales efficiencies have improved, as measured by Volume Per Guest (VPG) of $2,043 that was up by two percent from the previous quarter level.

In addition, use of exchange options that offer timeshare owners the ability to trade resort destinations other than those of their "home resort" location are also strong, demonstrating that owners continue to enjoy their timeshares.

Several leading timeshare developers agree with Nusbaum's outlook. "We've had the best summer on record, and sales continue to be robust. Just because the economy has slowed doesn't mean we have stopped doing what we do—we've taken a closer look at how we can refine our processes and products to deliver memorable vacations that families want to come back to year after year," said Don Harrill, president and CEO of Holiday Inn Club Vacations.

"At Disney, we have confidence in vacation ownership. In fact, we're enlarging our footprint outside of the Orlando area by the opening of our newest resort in California and developing one in Hawaii," added James M. Lewis, president of Disney Vacation Club.

Sergio Rivera, CEO for Starwood Vacation Ownership said, "Closing rates have held up better than expected given the discretionary nature of the product. This supports our belief that consumer dynamics will be strong over the long run."

This comes as no surprise to David Palmer, CFO of Diamond Resorts International. "Our closing rates this year are identical to those last year, and our collections remain strong. Additionally, our diversified cash flow business model has allowed us to substantially decrease our reliance on the capital markets."

Most developers report that decreased sales, in part, are a result of purposely slowed sales to maintain a healthy cash flow during the tightened credit market environment. In addition, the industry expects to limit new construction until inventory levels are reduced.

"An increase in volume aided by improving consumer sentiment and recovering capital markets will accelerate absorption," said Nusbaum. "Most of all, demographics are on our side, with baby boomers and succeeding generations eager to purchase a piece of flexible vacation real estate, allowing them the better vacationing and the undeniable value proposition that timeshare offers. Our industry is primed to fulfill the increased consumer demand for quality vacation experiences."

Holidaymakers are said to be looking more to non-eurozone destinations such as Morocco now.

British timeshare owners are now looking to looking at non-eurozone destinations like Morocco and Turkey for their travels, it has been said.

Global sales director at Cheapflights.co.uk Francesca Ecsery revealed her organisation has seen a rise in non eurozone searches with people looking more at Turkey and Morroco.

Other destinations that are proving popular include those that are not too far from the typical places that travellers go to, that are easy to access and are cheap.

She said that flight comparison sites helped consumers by making it easier for them to search for the latest deals.

A report from Which? recently found that Travelsupermarket.com was easiest to use with good fare results on its deals.

It took a score of 84 per cent with its user-friendly pages and good fare results based on its deals with 39 airlines and online agents.

Skyscanner.net, meanwhile, scored 76 per cent with Flightchecker.co.uk named as the most disappointing site.

When weekly maintenance fees for The Point at Po‘ipu on the South Shore grew over 50 percent in just two years, timeshare owner Myra Orta became livid.

“They’re going to bleed us dry,” she said, directing her ire to the property’s management company, Las Vegas-based Diamond Resorts International.

Not only did fees double from $695 in 2001 to over $1,400 per week in 2009, owners complain they have little to no say when it comes to maintenance and management fees, as the majority of Vacation Owners Association and Association of Apartment Owners board members are also employees of DRI.

“With that, they effectively control all economic decisions of The Point at Po‘ipu,” three-week deeded timeshare owner Richard Batchelder said Friday.

The board members were “duly elected” by owners and the election was in accordance with Hawai‘i law, said DRI Executive Vice President and General Counsel Elizabeth Brennan in a phone interview last week. There are three “developer reps” on the five-member board and the reason they unanimously voted to up maintenance fees, she said, was largely due to high operational costs and the need for the budget to cover expenses.

“The increase is because the cost of doing business in Hawai‘i has increased tremendously,” Brennan said.

Expenses include electricity, freight, employee wages and benefits, taxes and other operating costs.

Batchelder disagrees.

“The high cost of living has nothing to do with the administrative cost,” he said.

There was some $1.5 million in “pure profit” based on “management or administrative fees” in 2008 and 2009, said Batchelder, who attended the Aug. 21 board meeting in Las Vegas.

“And they’ll do the same thing in 2010,” he said.

Batchelder and Orta are part of a group of “concerned deeded owners” who “mean business” and are united in an attempt to take back control of their properties, Orta said.

Less than 10 percent of the property is actually owned by DRI, they said.

“It’s a matter of the owners taking legal steps to bring the management company to the table to get something done,” said Janas Consulting Management Consultant Mike Givens, who touts over 35 years experience in the visitor industry. “As long as the majority of owners desire to do so, they can remove management.”

With a sold-out resort and some 10,000 owners sharing over 90 percent of the property, the coup is definitely feasible, he said, acknowledging the “spitfire” group of some 230 owners that has already formed.

“We have to kick out the management company,” said Orta, secretary of the newly formed organization.

Brennan said all money is accounted for and that DRI is following all relevant laws.

“We take our customer service seriously; it is very important to us,” she said. “We want to make people happy.”

When asked to specify what maintenance fees were being used for, Brennan said employee salaries are largely the reason for the major increases.

For example, salaries and benefits in 2006 cost some $3.5 million, but in 2010 they are expected to cost approximately $5.5 million.

“We have to keep in competition with other resorts and hotels,” she said.

Prior to 2006, staffing was lower, which caused check-in time to be slower than what timeshare owners expected, she added.

“Staffing levels increased due to owner demand,” she said. “We had to accommodate check-in times.”

In addition, as the property continues to age, more maintenance staff is required which, in turn, boosts fees even higher, she said, leading to a department which costs roughly $1.8 million per year.

Brennan said over the past five years there was a 31 percent increase in utility costs, which are projected to come in at some $1.9 million in 2010. New flat screen TVs, small appliance replacements, new carpet and upgraded fire alarms are just a few other reasons she cited for growing fees.

The total operating expense are approximately $15 million a year, Batchelder said.

“We are attempting to get other management companies on Kaua‘i to give us bids, but the board will not approve this,” he said.

The bottom line, however, is the “management or administrative fee” which the owners do have a say about, Givens said.

“We’re getting a black eye from a management company that doesn’t even come from the island and lacks the ‘ohana,” he said. “It’s a growing problem. They’re raiding the piggy bank and not being fair.”

Hanalei Bay Resort, whose management company is Florida-based Celebrity Resorts, and Ka‘anapali Beach Club, managed by DRI, are enduring similar complications.

The good news, Givens said, is that it “can be nipped in the bud,” but will take progressive efforts from owners.

“We have a full customer service department here to ensure that the Po‘ipu owners concerns are met,” Brennan said.

A phone number has been set up specifically for The Point at Po‘ipu owners, according to Brennan. The number is 800-332-3120 and information can also be obtained online at www.diamondresortshoa.com.

“You hate to see this,” Givens said. “You don’t want to treat people this way.”

Bryan Lunt, Chairman of the Absolute World Group said: “Fractional ownership is the perfect antidote to the current financial climate and makes so much sense."

The Registry Collection®, the world’s largest luxury exchange programme and one of the Wyndham Worldwide family of brands (NYSE: WYN), today announced the affiliation of Absolute Developments to its programme, adding six new resorts to its global network of luxury properties.

“We are delighted to welcome Absolute Developments to The Registry Collection,” said Geoff Ballotti, President and CEO, Group RCI, parent company of The Registry Collection. “This relationship not only provides us with an opportunity to work with one of the leading developers of mixed-used resort operations in Asia, but also marks a significant achievement in securing the first properties for The Registry Collection in Asia. Thailand in particular is home to a wealth of five-star resort developments and idyllic beach locations which have succeeded in attracting international jetsetters for some years, and these six properties will help to give our members the luxury travel experience they expect from The Registry Collection.”

Analysts report that investment in Asian real estate has increased by more than 40 per cent this year with wealthy buyers returning to Asia raising levels of cross-border activity. Buyers are following global trends of looking for increased value in their spend which is a strength of the product.

“The fractional concept is relatively new to Asia and Absolute is bringing its expertise of shared-ownership, great brand strength and sales and marketing expertise to Thailand. We believe Absolute will be very successful in this fast-growing market and are thrilled to be partnered with them,” Ballotti added.

Bryan Lunt, Chairman of the Absolute World Group said: “Fractional ownership is the perfect antidote to the current financial climate and makes so much sense. Buying fractional allows you to actually purchase your dream holiday home, hassle-free, for only the time you would use it. We offer a stunning collection of properties, all exquisitely furnished with exclusive benefits such as the use of speedboats, spas, golf equipment, luxury airport transfer and the privilege of membership. Our target market is a discerning purchaser seeking high quality accommodation and excellent service.

The Registry Collection Programme provides members with access to an elite global network of the very finest vacation properties at some of the world’s premier destinations, as well as personal concierge services that are available 24-hours a day. More than 160 properties available through the programme are either accessible for exchange or under development.

“The Registry Collection complements our offering perfectly. Should our owners want a change from Thailand, through our affiliation they can choose to exchange stay periods in their owned property for stays in properties worldwide which are associated with the programme, confident that their experience and accommodation will be of the same high quality as their owned resort. Other benefits include the use of the programme’s 24/7 concierge services, and access to its Collection Partners luxury leisure and travel services. We are delighted to be working with them.”

The newly affiliated properties are located in Thailand and include two resorts from Absolute’s partnership with the world leading yoo brand, yooPhuket and yooSamui, as well as Absolute Platinum Suites, Absolute Beach Resort at Nakalay Bay, Absolute Bangla Suites and Absolute Villas at Palm Grove, Jomtien. Of these properties Absolute Bangla Suites and Absolute Beach Resort at Nakalay Bay are opening this year and yooPhuket is now in launch phase.

“We are very proud to add this calibre of development to The Registry Collection,” said Jonathan Back, Managing Director, Group RCI, EMEAI. “Our goal is to offer our members the finest vacation destinations in the world. Working with affiliates like Absolute Developments ensures that our members receive exactly the world-class luxury travel experience they desire. The style, feel, design and location of these properties are in essence what The Registry Collection is all about. We are very pleased to be able to announce Absolute as our first affiliate in Asia and look forward to working with them to achieve strong growth throughout the region over the next few years.”

About the properties

yooPhuket – an Absolute development in partnership with YOO. yooPhuket is a spectacular collection of stylish mixed use apartments and penthouses situated between three of Thailand’s leading Golf courses and a mere 10 minute drive to the island’s best beaches. It will offer all the services and facilities visitors would expect from a world-class development. Launching Q4 2009.

yooSamui - an Absolute development in partnership with YOO. yooSamui is an exclusive boutique beachfront mixed use development located at the southern tip of Koh Samui, Thailand's third biggest island. yooSamui sits on the water’s edge and commands some of the most relaxing views in the world. Launching Q3 2010.

Absolute Beach Resort at Nakalay - located at a private cove of Nakalay beach on the Western coast of Phuket Island. The resort offers beachfront luxury studios, one and two-bedroom apartments and penthouses with stunning panoramic views of the Andaman Sea and jungle-clad mountains. Opening Q4 2009.

Absolute Bangla Suites - the stylishly contemporary designed boutique resort hotel is situated in the heart of Phuket’s nightlife, dining, entertainment and shopping hub in Patong. It will offer a selection of 27 studios, nine junior suites, seven executive suites, and two grand suites, many with private terrace jacuzzis. Opening Q3 2009.

Absolute Signature Villas at Palm Grove, Jomtien - a boutique hotel in Na-Jomtien, only 15 minutes’ drive from Pattaya. Its Private Pool Villa Suites nestle among lush tropical gardens and furnished in the Thai contemporary style and offering a first class service. Now open.

Absolute Platinum Suites - comprised of exclusive studios, one and two-bedroom suites, Absolute Platinum Suites is located in the popular tourist resort of Jomtien, Pattaya. This stylish resort boasts a 60m swimming pool and also offers guests a first class concierge service and premium facilities. Opening Q3 2010.

About Absolute Developments

Absolute World Group of Companies is Asia's market leader in mixed-use resort development, as well as an international company offering a range of integrated services including a worldwide network of international estate agencies and a vacation club used by thousands of members. It has offices in Thailand, China, Russia, Europe and Hong Kong, and employs more than 850 staff.

Absolute Developments deals with high-end luxury resort destinations including private pool villas, boutique resorts and multi-storey condominiums. The Absolute World Group has wide-ranging experience in property development, hotel management, fractional vacation ownership and rentals.

Absolute Developments is committed to delivering heavenly resort destinations, from conception to completion and beyond, with the added value of its dedicated turnkey resort management service.

About yoo

yoo is an international branding, design and investment property company enhancing the quality and adding value to development projects in major towns and cities across the world.

The brand is represented by five core design teams – yoo inspired by Starck, Jade Jagger for yoo, wanders&yoo, Kelly Hoppen for yoo and the yoo Design Studio; all of whom increase value and sales velocity through market leading design, branded marketing and by maximizing media exposure.

Over the past 10 years yoo has been working across the world with international partners on a variety of landmark buildings and large residential projects throughout Asia, Australia, Europe, North and South America and the Middle East. yoo is involved in the development of 10,000 apartments currently under construction valued at $7 billion.

About The Registry Collection

The Registry Collection Programme is a global network comprising over 35,000 members and more than 130 affiliates on five continents. More than 160 properties available through the programme are either accessible for exchange or under development. As the world’s largest luxury exchange programme, The Registry Collection Programme provides members with access to an elite global network of the very finest vacation properties at some of the world’s premier destinations, as well as personal concierge services that are available 24-hours a day. From condo hotels and high-end fractional resorts to private residence clubs and fractional yachts, The Registry Collection Programme facilitates exchanges around the world and redefines the vacation experience for owners and developers. The Registry Collection Programme is offered by Group RCI, the worldwide leader in vacation exchange and the European leader in vacation rentals and one of the Wyndham Worldwide family of companies (NYSE: WYN).

Property timeshare purchases in the US have fallen the most this year since the industry first became popular in the 1970s as buyers desert the sector.

Sales are expected to be down 30% by the end of the year compared with 2008, according to the American Resort Development Association (ARDA).

Howard Nusbaum, president of the Washington based trade group said that the market will remain challenging for the next 18 months as research shows that timeshare has lost its appeal.

‘Timeshares are just very, very discretionary items. It’s the perpetual vacation. Buyers are pre-paying for the ability to take a vacation every year. Under current economic circumstances people are more reluctant to pay for that,’ said Chris Woronka, an analyst at Deutsche Bank Securities in New York.

US timeshare sales dropped 8.5% last year to $9.7 billion from a peak of $10.6 billion in 2007, excluding the luxury fractional business and private residence clubs, according to a study by Ernst & Young for ARDA.

The decline was the industry’s first since 1975 and is being driven by tighter credit, a higher personal savings rate and the loss of 6.9 million jobs since the recession started in December 2007.

Last month Marriott International, the largest US hotel chain, said it will cut prices, halt development at some residential resorts and at some luxury fractional ownership properties, and sell some undeveloped land.

‘We have enough inventory to last a few years.

Prices are not likely to turn around in the near term. Given the development risk, we plan to complete the inventory we have under way, but not develop any more,’ said Laura Paugh, senior vice president of investor relations at Marriott.

Wyndham Worldwide, the largest seller of timeshare vacation units, said it expects sales in 2009 to be down as much as 40%.

There is much debate as to whether the sector can weather the downturn sufficiently to attract investors back.

‘The main obstacle for the industry is that there will be a semi-permanent reduction in demand because developers would sell to people with relatively low credit scores,’ explained Woronka.

‘That won’t be possible anymore.

Your pool of buyers will be much smaller from now on,’ he added.

Starwood Hotels & Resorts Worldwide saw timeshare sales fall 48% in the fourth quarter of 2008. It has closed nine sales centres and cut 900 jobs.

‘Our sense is that the timeshare industry is less optimistic about any near-term recovery than is the hotel industry, as the timeshare industry’s hands are tied by the availability or lack of financing,’ said Patrick Scholes, senior equity research analyst at FBR Capital Markets.

However Paugh is confident that the good times will return.

‘I don’t think timeshares are out of style. Customers really do like it,’ she said.

We are happy to announce the launch of a new website which provides impartial, free of charge help and information for Timeshare consumers.

Over the years there have been a number of questions and issues that seem to be raised time and time again. The idea of this website is to bring together a body of information that will provide answers to these questions in a clear and understandable format.
Moreover, if the consumer is unable to find the information they require from the website, we have formed a dedicated Consumer Assistance Team who will be able to answer consumer questions either via email or the telephone.

Whilst the website is still in its infancy, there is already a large amount of content dealing with the most pertinent aspects of the Timeshare and holiday industry. This information will be constantly updated and we hope it will soon become the most comprehensive source of Timeshare knowledge anywhere on the internet.

U.S. vacation timeshare sales may fall the most this year since the industry gained popularity in the 1970s as consumers forgo spending to ride out the recession.

Sales may drop 30 percent this year from 2008, said Howard Nusbaum, president and chief executive officer of the American Resort Development Association, a Washington-based trade group. The market “will be a challenge for at least the next 18 months,” Patrick Scholes, senior equity research analyst at FBR Capital Markets & Co. said this month.

“Timeshares are just very, very discretionary items,” said Chris Woronka, an analyst at Deutsche Bank Securities in New York. “It’s the perpetual vacation. I am prepaying for the ability to take a vacation every year. Under the current circumstances, people are more reluctant to pay for that.”

U.S. timeshare sales dropped 8.5 percent last year to $9.7 billion from a peak of $10.6 billion in 2007, excluding the luxury fractional business and private residence clubs, according to an Ernst & Young LLP study prepared for ARDA. The decline was the industry’s first since 1975 and is being driven by tighter credit, a higher personal savings rate and the loss of 6.9 million jobs since the recession started in December 2007.

Marriott’s Charge

Marriott International Inc., the largest U.S. hotel chain, said last week it will take a third-quarter pretax charge of $760 million in its timeshare business. The company will cut prices, halt development at some residential resorts and at some luxury fractional ownership properties, and sell some undeveloped land.

“We have enough inventory to last a few years,” Laura Paugh, senior vice president of investor relations at Marriott, said in a telephone interview. “Prices are not likely to turn around in the near term. Given the development risk, we plan to complete the inventory we have under way, but not develop any more.”

Wyndham Worldwide Corp., the largest seller of timeshare vacation units, in December said it would cut 40 percent of those sales in 2009.

Timeshares give owners the right to use a property for a set period of time each year, typically a week. Fractional ownership plans usually offer longer stays at a property and tend to include more services and amenities, according to ARDA.

For hotel companies, the businesses can build customer loyalty, Marriott’s Paugh said.

‘Buy the Hotel’

Timeshares first emerged in the 1960s, according to Group RCI, Wyndham’s vacation rental and timeshare unit. According to RCI’s Web site, a hotelier in the French Alps marketed the world’s first timeshare development with the slogan, “No need to rent the room, buy the hotel -- it’s cheaper!” The concept moved to the U.S. in the 1970s, initially in Florida, the state with the most timeshare resorts, according to RCI.

“The main obstacle for the industry is that there will be a semi-permanent reduction in demand because developers would sell to people with relatively low credit scores,” said Deutsche Bank’s Woronka. “That won’t be possible anymore. Your pool of buyers will be much smaller from now on.”

Starwood Hotels & Resorts Worldwide Inc., the third-largest U.S. lodging company, may also have to “recognize significant timeshare impairments” since it has more high-end timeshares than Marriott, David Loeb, an analyst at Robert W. Baird & Co., said in a note this month.

Demand Drops

Starwood’s fourth-quarter timeshare sales fell 48 percent, the company said in January. It closed nine sales centers and cut 900 employees from the division since the start of 2008.

K.C. Kavanagh, a Starwood spokesman, declined to comment.

“Our sense is that the timeshare industry is less optimistic about any near-term recovery than is the hotel industry, as the timeshare industry’s hands are tied by the availability -- or lack -- of financing,” Scholes said in a note this month.

On Sellatimeshare.com, a one-bedroom, one-week timeshare at the Marriott Aruba Surf Club is being offered for $25,900.

The Web site includes the testimonial of a client who sold her unit at the Renaissance Aruba Beach Resort and Casino for $5,000.

On Timeshareadventures.com, a two bedroom, two-bath one- week timeshare at Marriott’s Canyon Villas at Desert Ridge in Arizona was for sale for $25,000. The annual maintenance fees and taxes are $900. The property includes a golf course, tennis courts and spa.

Plenty of Ads

A one-week, every-other-year unit at Marriott’s Ko Olina Beach Club timeshare resort in Oahu, Hawaii, is advertised for $15,999. The annual maintenance and taxes on the two bedroom, two bath are $728.

Mark Massarelli, who runs Dynasty Limousine in Boston, has been trying to sell one of two timeshares in Hollywood, Florida, that he and his sister inherited from their mother. He has been advertising a one-bedroom, one-bath unit on Craigslist.org for six months. It’s at a full-service oceanfront property with access to an 18-hole golf course.

Massarelli, 46, hasn’t received any inquiries even after cutting the price twice.

“I am offering it at $3,995 but its value right now is probably around $8,000,” Massarelli said in a telephone interview. “I tried to sell it a couple of times for a higher price but nobody bit. The maintenance and taxes on the unit are getting expensive. So I cut the price to attract more buyers, but nothing so far.”

Hotel Deals

The average sales price for timeshares in the U.S. climbed to $20,152 in 2008 from $15,790 in 2004. Occupancy remained little changed from 2005 to 2008 at about 82 percent, according to Ernst & Young. Average maintenance fees increased to $646 from $471 from 2005 through 2008.

“This year in particular, timeshare sales are down because hotel deals have been so good,” said Woronka. “Owners may think ‘I could have stayed at a luxury hotel for $150 a night and I am paying much more for this timeshare.’”

The luxury timeshare segment, where units can sell from $100,000 to more than $1 million, also is being hit, according FBR’s Scholes.

Demand for such rooms “was soft in 2008 and weakened further in 2009,” Arne Sorenson, Marriott’s president and chief operating officer, said on Sept. 23.

“I don’t think timeshares are out of style,” said Marriott’s Paugh. “Customers really do like it. But the returns we currently receive on our investment are disappointing. For us it’s probably not the place we want to put our money.”

Wyndham Worldwide Corp., the franchiser of Days Inn hotels and Super 8 motels, plans to buy more brands or acquire the operations of struggling competitors, Chairman and Chief Executive Officer Stephen Holmes said.

“There’s quite a bit of distressed real estate,” said Holmes, 52, in a Sept. 28 interview at Wyndham’s Parsippany, New Jersey, headquarters. “It’s an opportunity to add new brands or convert underperforming hotels” to a Wyndham brand.

The U.S. recession may cause as many as one in five hotel loans to default through 2010 as companies spend less on travel and perks, according to Kenneth Rosen, who heads the University of California’s Fisher Center for Real Estate and Urban Economics in Berkeley.

Wyndham has more than doubled in New York Stock Exchange composite trading this year, increasing the company’s market value to $2.9 billion. Marriott International Inc., the largest U.S. hotel chain, gained 43 percent in that period while Starwood Hotels & Resorts Worldwide Inc., the U.S. owner of luxury brands including St. Regis and W Hotels, rose 85 percent.

“They have stepped up the caliber of their management team recently,” said Patrick Scholes, senior equity research analyst at FBR Capital Markets & Co. “Financially, they are also in a better position than at the beginning of the year to accomplish some of these plans. There are a lot of independent hotels looking to become part of a larger reservation system.”

Microtel Purchase

Wyndham, which operates about 590,000 hotel rooms around the world, reported second-quarter earnings that beat analysts’ estimates after focusing on services for travelers taking shorter vacations.

In June 2008, the company agreed to buy Global Hyatt Corp.’s Microtel Inns & Suites and Hawthorne Suites hotel brands to add 5 percent more rooms. Wyndham sees potential in adding hotels, particularly under its namesake brand, Holmes said. The company had about $174 million in cash as of June 30.

“There used to be a lot of private equity money chasing transactions and some firms were paying a price that didn’t make any sense to us,” Holmes said. “Obviously, these firms aren’t as active anymore.”

Holiday Homes

Wyndham, the largest seller of timeshare vacation homes, also intends to add to that business by converting whole ownership projects into timeshares, according to Holmes.

“The whole ownership market is the hardest hit,” said Scholes. “Converting a whole ownership project into a timeshare project allows the whole pizza pie to be broken up into affordable slices.”

U.S. timeshare sales dropped 8.5 percent last year to $9.7 billion from a peak of $10.6 billion in 2007, excluding the luxury fractional business and private residence clubs, according to an Ernst & Young LLP study prepared for the American Resort Development Association in Washington.

In December, Wyndham said it would cut 4,000 jobs as it restructured its timeshare unit. The company said it would halt some construction and eliminate some sales offices and marketing programs.

“If credit markets stay where they are right now, which is open and somewhat fluid, I don’t anticipate us to have to make any further cuts,” said Holmes.

What did you do on your summer vacation? For many kids, the typical back-to-school question conjures memories of water sports, camping, s'mores and sing-alongs. But there's something even more appealing about summer vacations: according to the U.S. Department of Education, vacations can actually make kids smarter.
The study found that children who travel over summer break did better in reading, math and general knowledge than their peers who didn't vacation. The Dept. of Education conducted a series of analyses to determine the relationship between summer vacations and academic achievement in children entering first grade. The results revealed that children who traveled with their family over summer vacation scored higher on academic achievement assessment tests than those who did not travel.

"The data is clear - and gives hard-working parents another reason not to put off a summer vacation trip," said Dr. Bill Norman, Clemson University. "Providing kids with the experience of travel broadens their horizons and opens up their minds to learning."

VacationBetter.org - an American Resort Development Association's (ARDA) resource that educates families and consumers on vacation ownership - emphasized how timeshares can help provide regular stability to summer vacations.

"The timeshare industry has always touted the importance of regular vacations for health and wellness," says Howard Nusbaum, president and CEO, American Resort Development Association (ARDA). "This study gives families yet another strong reminder that taking vacation has benefits beyond the actual week or two of vacation."

Over a lifetime of escapes to the Oregon coast, it remains as breathtaking to you as ever, but with every visit you're saddened by yet another loss of what was so enchanting in your youth.

In the Eisenhower era you loved riding to the beach in your dad's Nash sedan, sipping 7-Up in the backseat to keep from getting carsick over the winding Coast Range road. The drive seemed endless, but upon arrival you were immediately spellbound -- not just by the natural wonders along the ocean but also by the charming coastal commercialism of the funky fifties and sixties.

You were fascinated by the warm saltwater pool in Newport's Nye Beach Natatorium, the clam fritters at Seaside's Crab Broiler, the cheese curds at Bandon's cheese factory and the delightful whimsy of Pixieland amusement park near Otis.

All are gone now. So are countless other unique old attractions, replaced by what sometimes seems like 300 miles of coastal condos, casinos and plasticized franchise joints just like the ones back home.

But you could always take solace in the survival of a few hardy relics. Foremost among them was a blast from the past called the Shamrock Lodgettes at Yachats on the central coast. The Shamrock, still operating today, features a cluster of cozy log cabins that have lured tourists off Highway 101 since the early 1950s.

Each features knotty pine details, hardwood floors, stone fireplaces, kitchenettes, picture windows and carports big enough for Dad's big bathtub-shaped Nash Ambassador. The five-acre property has been expanded in recent years to offer more updated accommodations, but every time you have taken your children and later your grandchildren there, you have always stayed in the old cabins, even though they have seemed increasingly in need of repair.

Frommers, the respected travel resource, confirms your deep affection for the place, saying it "bewitched us the first time we saw it."

And this explains the deep sense of melancholy you feel today upon hearing news about the Shamrock. It will close forever at the end of October. The owners, financially pinched after buying the place just before the recession rolled in like a sneaker wave, will tear down the old structures and redevelop the place with timeshare townhouses.

It's understandable, given the circumstances. But that doesn't make it any easier to swallow.

Mercifully, there still remain some vestiges of mid-19th century commercial charm on the Oregon coast. You can still dine, for example, at the 63-year-old original Mo's in Newport or the 65-year-old Spouting Horn in Depoe Bay, and you can still go to the 70-year-old aquarium at Seaside and the 77-year-old Sea Lion Caves attraction near Florence.

You hope they'll be around forever. But given what's happening to the beloved Shamrock Lodgettes, you're thinking you should go back sooner rather than later.

Recent Florida state legislation offers important protections for timeshare owners, according to the American Resort Development Association.

In addition to ensuring that timeshare owners will not pay tax on timeshare exchange transactions, the HB 61 bill codifies a common industry practice regarding the taxation of transient stays at timeshare resorts and allows timeshare developers to offer “debt cancellation” products.

Though no state or jurisdiction currently collects a tax on timeshare exchange, it has become an increasing concern as state and local governments seek new revenue to fill ever-growing budget shortfalls.

Florida is the third state to pass legislation specifically protecting timeshare owners from taxes on exchange—one of the major attractions for timeshare buyers. HB 61 protects the ability of Florida timeshare owners to effectively use the exchange process by preventing taxes that could raise the cost and lower the desirability of exchanges into the state.

“For 40 years, ARDA has worked with federal and state government officials in support of legislation to protect consumers,” said Howard Nusbaum, ARDA president and CEO. “The value of our industry rests in the continued trust of our owners and members.”

ARDA, along with its Resort Owner’s Coalition, has advocated that state legislation guarantee timeshare owners are protected from such taxes.

“Without the consistent and strong support from sponsors, Sen. Mike Haridopolos and Rep. Steve Precourt, HB 61 could not have been enacted,” said Jason Gamel, VP of State Government Affairs of ARDA. “This ARDA-backed measure clarified the existing tax status of exchange, which had been questioned by some jurisdictions as they searched for revenue in a down economy.”

Marriott International Inc (MAR.N) said it would cut prices and scale back development plans for its luxury timeshare segment, resulting in a $760 million charge, because of soft demand in this business.

The operator of the Marriott and Ritz-Carlton hotel chains plans to sell a portion of its fractional ownership inventory. Marriott also expects to lower prices of its residential units, convert certain proposed projects to other uses, and sell some undeveloped land.

Demand for Marriott's luxury timeshares has weakened significantly in the past year, the Bethesda-based hotel operator said, citing a weak economy and a large supply of high-end residential real estate on the market.

"We believe the discounted prices will help (Marriott) generate sales activity and sell its remaining inventory," JPMorgan analyst Joe Greff wrote in a research note.

Marriott's timeshare segment accounts for 5 percent of the company's earnings before interest, taxes, depreciation and amortization, down from 25 percent in 2007, FBR Capital Markets analyst Patrick Scholes said in a note.

The luxury segment only accounts for 10 percent of all of the company's timeshare earnings, Scholes added.

Marriott is taking the impairment charge in the third quarter ended on September 11. The charge will be noncash except for about $45 million that will be funded over the next two to three years and was already included in Marriott's spending forecasts.

Customers of Marriott's luxury timeshare segment, known as the Ritz-Carlton Destination Club, can buy three- to five-week intervals or purchase residential units outright.

Marriott said it had increased returns on its traditional U.S. timeshare business by cutting costs and delaying new projects.

The company said it expected profitability to improve at the timeshare segment, with cash flow there positive in 2009 and increasing in 2010.

Marriott said North American revenue per available room, or RevPAR, fell 19 percent in the third quarter, better than its previous outlook of a 20 percent to 23 percent decline.

The timeshare industry has been pummeled during the past year as consumers have curbed spending on travel. But even though the market has been experiencing some tough times, demand is expected to return.

The need to drive sales these days is paramount, and an over-reliance on building in markets such as Orlando, Hawaii and Las Vegas have caused a glut of product. With all the news out there in regard to the trouble timeshare developers are having, it’s no wonder investors are skittish about building new resorts. But like anything seen on the evening news, there are two sides to every story.

In fact, timeshare experts cite there are still myriad opportunities out there for developers to create winning products. And only a few markets are overbuilt. Developers only need to find the right markets to put their product in. Realizing this, Group RCI recently commissioned a study to better understand the supply-demand equation to more effectively pinpoint the best places for development.

“Yes, we are seeing saturation in places such as Las Vegas or Orlando, but there is great depth for development in other markets,” said Gordon Gurnik, President, North America, Group RCI, which is owned by Wyndham Worldwide.

The results are somewhat surprising. Incredibly, when looking at the top 100 tourist destinations in the U.S., 27 do not currently contain any resort timeshare projects. This includes nine urban destinations and 18 vacation destinations.

Gurnik cites people’s desire to stay closer to home as a strong business driver for timeshare projects. Take the Adirondacks, for example. This tourism region in New York State, just a few hours’ drive from New York City, hasn’t much timeshare development at all. Yet it’s a favored destination for getaways for city-folk looking to restore and refresh. The same is true for areas outside Atlanta, Dallas and more.

“We know it’s going to be a little time before the economy comes around, but it is still a great opportunity for those looking to use real estate to create vacation ownership opportunities to create return as a developer,” said Gurnik.

According to the survey, the penetration rate among all households in the U.S. is 3.9 percent when it comes to timeshare. More relevant, said Gurnik, is that it’s just 5.4 percent among households with incomes over $50,000. They’re the ones most likely to purchase a timeshare. That equates to 56.6 million households.

If the overall depth of the timeshare market is 10 percent, the remaining market depth for resort timeshare ownership among income-eligible households residing in the U.S. is about 2.7 million. It is 5.5 million if using the 20 percent scenario. This means that 45 percent of the market remains at a 10 percent penetration rate, and that 62.5 percent remains at 20 percent.

With an average purchase price per interval of $25,000, a 10 percent penetration rate will generate demand for about 4.1 million additional intervals and a gross sales volume of $100 billion. At a 20 percent penetration rate, these figures would be about 8.2 million intervals and a gross sales volume of about $200 billion.

There are currently 1,640 resort timeshare projects in the U.S, according to the survey, containing about 179,220 units for an average size of 109 units. Currently the top 100 destinations for resort timeshare ownership in the U.S. generate 80.5 percent of the 6.75 million purchased intervals. The remaining 19.5 percent are scattered over a wide variety of locations throughout the country. That means there is plenty of opportunity in untapped markets. Top untapped urban markets include Los Angeles, Chicago, Dallas, Atlanta, Denver, San Antonio, San Francisco, New York City, Boston and Seattle. Untapped vacation markets include: Long Beach, CA; Albuquerque, NM; Savannah, GA; Niagara Falls, NY; Boulder, CO; Jacksonville/St. Augustine, FL; Anaheim (Disneyland), CA; Monterey/Carmel, CA; Nashville, TN; the Oregon Coast; and Austin/Hill Country, TX.

“People are looking for something convenient for them, a product with good value and amenities at a reasonable price point. For us, this survey was about pairing up those people with where you can put locations to appeal to them,” said Gurnik. “People are more cost-conscious and want to make sure if they are purchasing timeshare they will actually use it and that it meets needs of family.”

The timeshare development industry in Australia will continue to grow because of high demand, particularly from American timeshare owners, says Group RCI.

Brands such as Disney and Marriott would do well on the Gold Coast, suggested chief executive officer Geoff Ballotti.

Speaking at an Australian timeshare conference, he said Australia is Group RCI's most demanded place out of its 4,400 timeshare resorts, Gold Coast News reports.

And it is not just Australian timeshare resorts that look set to grow, with Mr Ballotti pointing out that the timeshare industry overall is moving against the worldwide downward trend.

Once people have become timeshare owners they will take their holiday no matter what, he explained.

RCI offers timeshare owners a choice of hundreds of Australian resorts, from Queensland to New South Wales and Western Australia, to the Sunshine Coast on the east.

Publishers of timeshare and fractional ownership trade and consumer magazines confirm new USA based editor as company continues to rapidly expand its global presence

Perspective International Ltd first published their trade magazine in November 2005 and in just four years has grown to become the most read independent trade magazine for shared ownership globally, reaching more than 20,400 subscribers each month and positioning themselves as media sponsor at 18 major industry conventions worldwide including official distribution to all delegates.

After a short trial online whilst building circulation ahead of official launch, their sister publication for consumers launched in print in January 2009, yet aptly named Owners Perspective Magazine has already secured marketing deals with leading industry companies and distribution deals with UK supermarkets, selected hotels and resorts and has been chosen by British Airways for worldwide distribution in all of their first class airport lounges, and Virgin Atlantic, Emirates Airlines, American Airlines and BMI in Europe.

“We have found that our consistently rapid expansion through recent and ongoing sales and marketing efforts has created the need for additional support in our team and so we have been looking to bring in experienced professionals as part of our expansion strategy – Matt McDaniel who has been writing for us regularly for the past year or two already has the previous experience we need to take our publications even further and are extremely pleased to welcome him onboard.” Said Paul Mattimoe, CEO, Perspective International Ltd.

Matt began his career in publishing 20 years ago in Philadelphia. He moved to Miami in 1997 to work for Interval International, where he served as Vacation Industry Review editor-in-chief until 2005. While at Interval, Matt was integral to reinvigorating the look and readability of Vacation Industry Review, substantially enhancing its editorial content, and increasing its relevance to readers.

Matt left Interval to pursue other writing opportunities, most recently as an independent writer and PR consultant for companies within and outside the shared-ownership industry. Matt's clients have included the American Resort Development Association, Disney Press, and Toronto's National Post, as well as Interval and Perspective & Owners Perspective Magazines. Over the years, Matt has developed a rapport with timeshare, fractional, condo-hotel, exchange and finance professionals around the world.

"I am thrilled to join the Perspective International team," said Matt. "Perspective Magazine and Owners Perspective Magazine have become the top independent shared-ownership trade and consumer magazines, respectively. I look forward to contributing to their continued success and growth."

Matthew McDaniel can be reached at editor@perspectiveinternational.com and welcomes any feedback and suggestions for editorial content.

For more information on advertising opportunities for both the trade and consumer publications visit www.perspectiverates.com for access to our comprehensive media center.

Industry specialists have responded to recent comments that fractional may not be the best way to buy overseas property due to current economic conditions.

Linda Travella, media spokesperson for the National Association of Estate Agents (NAEA), recently commented: "I don’t think that fractional is necessarily the way to go because of the recession." Citing falling prices for whole ownership, she argued that it is easier for buyers to pick up bargains overseas and, even if not as luxurious as fractional offerings, she felt that sole ownership still gives an affordable route to overseas ownership and the prospects of better returns.

The comment follows an NAEA warning for consumers to also ensure their fractional purchases are not actually ‘dressed up’ timeshare schemes, as reported on Newskys.

However, shared ownership commentators have argued that, during the recession, the value of fractional ownership is actually magnified.

Paul Doyle of The Crane, a fractional ownership resort in Barbados, responds:“The main arguments for fractional ownership for many remain the same in difficult economic times, and in fact take on even more weight, given that potential owners are watching their finances even more carefully. Fractional properties are still available for a fraction of the cost of purchasing a residence outright, and owners are able to buy only the amount of time they wish to use each year (and not worry about the rest of it). People are still buying fractional because the desire to vacation is as strong as it ever was.”

Fractional consultant David Disick agrees: “I think today's buyer realises that actual vacation home use is rarely more than a few weeks in a year. Accordingly, they similarly recognise that fractional ownership makes sense, especially in the current economic climate, where a lower price point is appealing.”

Part of the value-add with fractional can be the exchange element of the purchase, with Doyle noting: “Potential buyers who wish to enjoy holidays around the world can benefit from the opportunity to exchange their fractional units for other vacation destinations using one of the established exchange companies.”

Surveying the market in the Middle East, Jeff Tisdall, Middle East managing director for Group RCI,agrees, noting that they have seen increased exchange activity over recent months: “The cooling of the Dubai property market and the approaching completion of flagship tourist developments has ironically created significant opportunity and intensified interest in vacation ownership and private residence clubs. Today’s market for leisure real estate is quickly moving from its investor orientation of recent years towards an end-user and leisure focus. By creating ownership interests that offer an annual allotment of personal usage to match consumer needs, shared ownership is the ultimate end-user product.

“We have certainly observed a heightened interest in vacation ownership, fractional and private residence clubs. Positively, shared ownership owners continue to travel during market downturns as they have already purchased at least one shared ownership interest and therefore own an asset which they can exchange for vacations worldwide. Interestingly, we have seen an increase in exchange activity by our Middle East members over the last 12 months.”

Another benefit of fractional is identified as access to locations you otherwise still wouldn’t be able to buy into, and demand is still present for these offerings. Consultant Dick Ragatz, writing in Vacation Ownership World, notes that "more than three in four fractional developers felt that the sales performance was as good or better than that of whole ownership developers in their local market area., While sales were down last year and there were fewer projects in active sales, sales are still being made in the so-called iconic locations that will always have a highly perceived value. They are situated in places with limited land being sold at very high prices."

Les Milton, chairman of The Fractional Ownership Consultancy, adds that an additional attraction of fractional is the ‘hassle-factor’: “During recessionary times, buyers prioritise what is important to them, and many decide they no longer want the costs and hassle associated with whole ownership purchases.”

Ultimately, Brad Lincoln, CEO of fractional consultants The Best Group, argues that the decision whether to buy fractional or not shouldn’t rest on a decision over the concept – it is all about finding the right way to buy the right property: “The first piece of advice I would give any buyer is not to buy a ‘fraction’ – rather buy the place they want to own. It’s not about buying into a concept - it’s all about access to the dream home. It should be ‘I want to own a villa in Provence, not ‘I want to own fractional property’. So, ask how often you will realistically use the property and how much you can afford to spend. Then go and see where the value is – look at full and fractional ownership, and make an informed decision.”