RCI releases study on Middle East timeshare market

RCI has revealed the results of the first ever review of the Middle East timeshare market at the Cityscape Exhibition and Conference in Dubai.

Headlines from the report’s executive summary highlight the untapped potential for vacation ownership in the Middle East. Carried out by renowned industry research organisation, Ragatz Associates, the study highlights the huge potential the Middle East region offers property developers thinking of investing in the tourism industry.




Taking into consideration key factors like the number of inbound tourists and the number of income eligible households in the region, estimates show that potential sales of timeshare could exceed $2 billion dollars within seven years.

The Middle East currently has 31 timeshare resorts representing less than one per cent of the total number of timeshare resorts in the world. Most are located in Egypt. The report, however, predicts that United Arab Emirates, Bahrain, Oman, Jordan, Lebanon and Syria are all destinations with qualities that could support timeshare infrastructure and attract consumers.

RCI’s Director Middle East,Vivienne Noyes Thomas said: “The current explosion in leisure and tourism property development in the UAE and throughout the Gulf offers potential timeshare developers the opportunity to enter a rapidly developing industry from the outset and establish the concept of long-term holiday ownership, making timeshare a credible and attractive choice for the consumer.”

Over 6.7 million households worldwide own timeshare and resort timesharing and holiday ownership products are consistently the fastest-growing sector of the worldwide tourism industry. In contrast, a mere 31,180 residents of the Middle East own timeshare and over 92 per cent of what they own is located in Egypt.

For leisure and tourism developers, the timeshare model offers enhanced occupancy levels, secured revenue streams, increased profitability and returns on investment, with the opportunity to own the customer for the long term. RCI is the global leader in providing exchanges for owners of timeshare and holiday ownership products – a concept that is a cornerstone of the consumer proposition when selling timeshares. 30 years of experience at the heart of the industry brings unrivalled expertise to the table to support prospective developers and business partners.

The High Court in London has ruled that while protection given the public by Section 75 of the Consumer Credit Act 1974 does apply to domestic credit card transactions, it does NOT apply to overseas purchases.

The decision has major ramifications for UK consumers using a credit card to buy timeshare - or a holiday club membership -- abroad. The Office of Fair Trading (OFT), an independent government agency, is considering an appeal against the 'overseas' ruling.

Section 75 provides that for domestic credit card purchases with a cash price above £100 and not more than £30,000, the consumer is entitled to claim from the lender if things go wrong, namely, if the supplier breaches the contract or if there is misrepresentation.

The application of Section 75 to four-party, credit card transactions and overseas transactions has long been uncertain. The OFT sought to resolve the issue by way of a Court declaration.**

When a customer purchases goods or services using a credit card, there are typically four parties involved: 1) The cardholder, 2) The retailer, 3) The bank that issued the card, and 4) The bank acting on behalf of the retailer. Domestic transactions account for over 90 per cent of credit card spending by UK consumers -- in 2003 this amounted to more than £105 billion.

The majority of credit card purchases in EU states is made by UK consumers.

** A declaration is where a judge makes a ruling on a point of law that is the subject of disputed interpretation.