Timeshare Industry Continues Strong Growth with 2005 Sales of 8.6 Billion, According to Ernst & Young Study

4.1 million households own timeshares in U.S.; Occupancy rates far exceed hotels

Timeshare sales climbed nine percent during 2005 to $8.6 billion over 2004 sales of $7.87 billion, according to a study of the U.S. vacation ownership industry conducted by Ernst & Young, LLP and released today by the ARDA International Foundation (AIF). The survey of 596 timeshare resorts throughout the country also showed increases in new owners, higher prices, and occupancy rates that far exceed U.S. hotels.

As of January 1, 2006, there were 1,604 vacation ownership resorts operating in the U.S. There are a total of 4.1 million U.S. timeshare owners, up from 3.87 million in 2005, 3.4 million in 2003 and three million in 2002.

“Timeshare continues to lead in the hospitality sector with steady growth, due in large part to the industry’s constant innovation developed in response to consumer demands to tailor vacations to meet lifestyle needs and travel dreams,” said Howard Nusbaum, president and chief executive officer of ARDA. “Vacation ownership offers unparalleled flexibility, amenities, spacious accommodations, services and luxury—all features travelers have come to expect.”

The number of timeshare units in the U.S., as of January 1, 2006 was 154,439, with 22,424 newly constructed units in 2005 and an additional 23,578 expected to be constructed this year. Occupancy at U.S. timeshare resorts averaged 82 percent in 2005, compared to a 67 percent occupancy rate for U.S. hotels during the same time period.

Florida has three times as many timeshare resorts as any other states. The top 10 timeshare resort states accounted for 65.5 percent (1,051) of resorts in the country, with Florida accounting for 378 resorts, or 23.6 percent. Trading places with South Carolina, California jumped to second place with 123 resorts, and South Carolina followed closely with 117 properties. The other top 10 states are Hawaii (92 resorts), Colorado (77), Nevada (60), North Carolina (55), Texas (54), Missouri (49), and Arizona (46).

The average price of a timeshare interval or points equivalent in 2005 was $16,278, an increase from $15,789 in 2005.

When asked which single characterization best described their resort location, almost one third (32 percent) of study participants responded “seaside/beach location,” followed by regional resorts at 14 percent and golfing at 10 percent.

The American Resort Development Association is the Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has nearly 1,000 members ranging from privately held firms to publicly traded companies and international corporations with expertise in shared ownership interests in leisure real estate. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).

The ARDA International Foundation (AIF) conducts research and develops education programming for the timeshare industry. The Foundation’s mission is to “support, conduct, and disseminate research and technical studies that will enhance and improve knowledge for the public and the industry, and develop educational resources that will optimize value, operations, acceptance, and service for the industry and the public.”

IT'S one of the fastest growing sectors in the tourism market, but timeshare in Australia still remains concentrated among two major players: Trendwest South Pacific and Accor Premier Vacation Club.

With an estimated increase in timeshare owners of 10 per cent a year in the past five years, the industry is attracting buyers who spend an average of $15,260 on their initial timeshare purchase, according to industry research.
The Australian Timeshare and Holiday Ownership Council predicts the ownership base of 125,700 will more than double over the next decade.

Accor Asia Pacific's recent buyout of APVC joint-venture partner Becton for about $38 million means the company is now owned outright by the accommodation giant with plans for better links with Accor's hotel business.

The move is also expected to boost occupancy growth in Accor hotels.

The innovation of moving away from week-long shares in a particular building by Trendwest and APVC has seen timeshare appeal to a new market with babyboomers using their holiday credits to take shorter breaks in a wider variety of properties.

APVC has been responsible for much of the industry's most recent growth, developing 11 resorts across Queensland, NSW and Victoria in the past six years.

Its point system gives its more than 15,000 members access to more than 2200 resorts throughout the world.

In Australia, there are 16 properties, including its latest acquisition, the historic Grand Mercure Mt Lofty House in the Adelaide Hills, which it bought for more than $5 million.

APVC chief executive officer Martin Kandel said there were plans to build new self-contained apartments on the site, in keeping with the character of the original building, for timeshare club members.

According to Mr Kandel, the points system has been well accepted because it offers flexibility in the product and length of stay.

"We see people taking a lot more three-day breaks and they want to use different locations," Mr Kandel said.

He also said timeshare had strong appeal for babyboomers.

"There are a lot of folks over 55 who are semi-retired or retired and starting to travel a bit," he said.

The average spend for a APVC purchaser is about $17,500.

Mr Kandel said it was common for existing members to increase the number of points they own.

According to research commissioned by the Australian Timeshare and Holiday Ownership Council, Trendwest South Pacific Pty Ltd is one of the largest active timeshare developers in Australia.

It also uses a holiday credits system and is affiliated with exchange company RCI.

Trendwest paid almost $33 million for a Sydney CBD building last year, which has since been renovated to become the Trendwest Sydney.

At the time, the company said the purchase marked a move in acquisition strategy towards more capital city purchases, to compliment Trendwest resorts in Lakes Entrance, Coffs Harbour, Port Macquarie and Port Stephens.

According to the ATHOC study, among the older timeshare companies are Classic Holidays, which manages 11 resorts mainly on the Gold Coast, and Holiday Concepts which has 12 resorts, largely in Victoria.

But growth in Australia's timeshare industry still lags behind the world growth figure of 12 per cent a year.

While flexibility is adding to the appeal for consumers, there are still issues such as the limited pool of investors for resales and the fact the purchaser never owns a property, which is still seen as a turn-off by some would-be buyers.

AN Everton Hills couple has been left about $4200 out of pocket in an overseas timeshare scam.

Ray and Rhonda Keuning have long been fans of timeshare, a form of holiday property ownership that entitles them to use a property for a specific period during the year.
They bought their first timeshare more than 10 years ago and have since added to their portfolio with three different properties.

"We've always liked it (timeshare) and on our world holiday used 12 weeks," Mr Keuning said.

But when they got a call from a Spanish company offering to buy one of their holdings for $13,000 ($22,171) a week, they decided to sell two.

When the couple agreed to sell, they received an emailed contract that had to be signed and returned. But to seal the deal, they also had to send a $2500 evaluation fee.

Once the money was transferred they heard nothing more from the scammers.

Australian Timeshare and Holiday Ownership Council president Ramy Filo warned owners to be alert to the scam.

Mr Filo said anyone contacted by callers offering to buy their timeshare should check their bona fides with the Australian Securities and Investments Commission.

The opening of the luxury Paradee Resort and upgrades to three other resorts are repositioning Samed island in Thailand as an up-market leisure destination. The six-kilometre island, located 72 kms southeast of Pattaya in the Gulf of Thailand has long been popular. Accommodation options have now developed well beyond simple beach huts.

The Paradee Resort at the southern tip of Samed will be fully operational by November 1. The four-star Le Vimarn Resort, which has just finished upgrades.On the same beach, the four-star Ao Phrao Resort will refurbish next year.

Also, in the calibe of new upgrades are the three-star Sai Kaew Resort in the northeast of Samed island and the Mooban Talay Resort at the northern end of the island.

"New resort facilities on Samed island now offer a much wider range of options at the middle and upper end of the market that weren`t there a few years ago," said Mr Chanchai Doungjit, director of the Tourism Authority of Thailand`s Rayong and Chanthaburi office, which is responsible for marketing this part of Thailand`s eastern seaboard. "The fine sand beaches, coral coves and seafood that Samed is famous for are still there. Now guests can enjoy them while staying in international-class resorts."

Mr Luzi Matzig, group managing director of Asian Trails, a major inbound tour operator in Thailand, said Samed`s advantage was that visitors didn`t need to fly to reach it. The fact that it is less than three hours` travel time by car and boat from Bangkok also helps. "I recommend Samed to repeat visitors to Thailand who have perhaps seen other famous places in Thailand already," he said. "It`s ideal for honeymooners, couples and families on shorter stays."

Etihad Airways has triumphed at the World Travel Awards (WTA), for winning the title for being, the world’s leading new airline for the third year in a row and the award for the world’s leading flat-bed seat.

“It is incredible to think that Etihad Airways is not even three years old, yet we have achieved so much in that time. Etihad now operates services to 35 international destinations across four continents, offering Guests the award winning flat-bed on many of the routes,” said HH Sheikh Ahmed bin Saif Al Nahyan.

“Being a world-class airline is more than just the destinations we fly to, and Etihad has gone to great lengths to ensure our Guests, whether travelling in diamond, pearl or coral zones, receive the very finest hospitality and service,” continued HH Sheikh Ahmed bin Saif Al Nahyan.

“Abu Dhabi’s ideal location, together with Etihad’s expanding network of destinations, will ensure more Guests will choose to fly with us, increasing tourism and business in the UAE,” concluded HH Sheikh Ahmed bin Saif Al Nahyan.

Jet2 confirmed it would offer more low cost fares than any other airline in Manchester on both business and leisure routes, with the announcement of six new routes to major European cities. These new flights will commence in spring 2007. The routes will complement the airline’s existing exciting city destinations: Amsterdam, Budapest, London, Milan, Nice, Pisa, Rome and Valencia alongside a wide range of sun and ski destinations.

Elsewhere, Jet2.com will increase its French portfolio three-fold with the introduction of two new routes in addition to its popular Nice service.

Philip Meeson, boss of Jet2 said: "Where airlines such as BA have continued to disappoint the travelling public by pulling routes like they are going out of fashion, we will succeed where they have failed. We have more low cost fares than any other airline from Manchester and an unrivalled mix of city, sun and ski destinations. Business, leisure and overseas property owners alike will be delighted with our news that they can travel to fantastic European cities on a budget and we urge them to book now for our lowest fares at Jet2."

Nakheel, the UAE property developer, welcomed the King of Malaysia, Tuanku Syed Sirajuddin, to the Nakheel Sales Centre as part of a high profile delegation to the UAE. His Majesty Tuanku Syed Sirajuddin was greeted by Chris O’Donnell, Nakheel Chief Executive, and Manal Shaheen, Director Sales, Marketing & Customer Service.

The King received a tour of the Nakheel Sales Centre, including a look at the project models, and a theatre presentation about Nakheel`s developments such as The Palm, The World and Dubai Waterfront. The King was also treated to a boat trip to The Palm Jumeirah where he expressed admiration for Nakheel’s vision in creating such iconic developments.

Chris O’Donnell said: "We are honoured that such a prestigious guest has shown such a keen interest in Nakheel`s developments. Nakheel has attracted worldwide attention with its iconic projects that have become benchmarks in property development and this has resulted in huge interest from all over the world."

"During the boat trip to The Palm Jumeirah, His Majesty expressed great interest in the reclamation process, and was genuinely astounded by the rate of progress of the island; he was amazed that just five years after placing the first grain of sand in the Arabian Gulf, we had come so far and The Palm Jumeirah was fast becoming a reality."

Luxury travellers spending more to keep things real new research shows

New research shows that the luxury travel market continues to grow, with the world’s most affluent choosing to spend more on holiday experiences that offer them authenticity. ILTM’s research for 2006 provides a comprehensive overview of trends and spends in the luxury travel market.

In a survey of 400 travel suppliers who cater for the needs of the uber rich around the world, 70% agreed that their clients are looking for a more authenticity from their travel experiences, and a further 59% stated that holidays need to be more experience led and enriching than ever before.

The luxury travel market also seems to be glowing with health – both numbers of clients and their spending is well and truly on the up. Almost three quarters of respondents experienced double-digit growth in client numbers over the last 12 months, with 67% having similar levels of growth in client expenditure over the same period. Almost a third of those surveyed noted major increases in client spending of over 20%. This contrasts sharply with the growth in global travel across all sectors, currently standing at around 4.5% for the first four months of 2006, and which is also displaying a gradual slow down.1

Interestingly though, as the affluent traveller increasingly looks for something ‘real’ in their travel plans, they move further away from needing the security of familiar luxury brands. This year less than half of respondents agreed that their clients found reassurance in luxury brands – in last year’s research the figure agreeing was 65%. What’s more it seems that the presence of the latest technology is not as vital as it used to be, as 74% of those questioned felt that high tech facilities weren’t high up on their clientele’s list of priorities for a luxury holiday.

One of the other outcomes of the research is that the uber affluent are now travelling much more ‘en famille’, with 50% of respondents noticing this as a growing trend. Older, and therefore more financially secure parents, increased personal wealth, smaller, carefully planned families, a culture of ‘treating’ as well as sizeable monetary gifts from baby boomer grandparents all combine to create a new ‘family luxury’ trend.

New Marketing Manager for ILTM Tim Latimer commented, "As the luxury travel market continues to go from strength to strength, ILTM provides an excellent opportunity for companies to showcase their product to the most high calibre buyers. By maintaining the quality of those buyers, ILTM can ensure value is delivered - both in terms of the return on investment for exhibitors, but also the quality and scope of networking opportunities for all attendees and industry information to be gathered from both the conference and the show itself."

As Sunterra Corp.'s efforts to restructure its far-flung time-share vacation empire continue, several investor lawsuits alleging financial improprieties are pending in federal court in Nevada.

The North Las Vegas company, which had headquarters in Orlando until 2002, last week said it would try to sell its European division. At the same time, it is restating earnings from the division following an investigation of its financial operations.

Sunterra's European operation -- 30 resorts in six countries -- is the focus of three investor suits brought against the company.

"Our complaint alleges that the company misstated its financial operations including income tax in Spain," said Phillip Kim, an attorney with the Rosen Law Firm in New York. Rosen alleges that Sunterra filed "misleading financial results" from 2002 to 2005, and that the value of its stock was severely impacted as a result.

"Since we filed the complaint, we've come up with proprietary information that the company's improper practices in its foreign operations run deeper than what the company has set forth in its filings," Kim said.

Sunterra spokeswoman Marilyn Windsor said the company has concluded that it underpaid withholding tax in Spain, resulting in about $4 million in tax-related charges. Sunterra hasn't filed financial results since the December quarter, after the European problems were revealed.

Sunterra, with 5,000 employees, is one of the world's largest vacation-ownership companies. It has nearly 100 branded or affiliated resorts in the United States, Canada, Europe, Mexico and the Caribbean, including six in Central Florida. Windsor said about 80 percent of its business is domestic.

Last spring, Sunterra hired Chanin Capital Partners to review its European operation after firing its accountant, Grant Thornton LLP. Following completion of an investigation into the European problem, Sunterra fired its president and chief executive officer, Nicholas Benson.

Last week, Sunterra's board reduced the compensation package for its interim CEO, James A. Weissenborn, saying the cut would help align management and shareholder interests.

And it is working with Merrill Lynch & Co. to consider alternatives for its business outside Europe. In July, Sunterra said it would consider a variety of options, including sale of the business.

WHEN a couple walked into a Thomson travel agency in Kent in September 2004 and asked about a group booking to mark a retirement association’s silver jubilee the branch manager could barely contain her excitement.

Marie Carpenter, who has worked at the agency in the Hempstead Valley Shopping Centre for the last eight years, instantly realised Gerald Benham, chairman of the Kent Active Retirement Association, and his wife were no ordinary customers.

Two years later their group has filled the 1,250-passenger Thomson Celebration ship for a 10-day cruise to Spain and Portugal, which, valued at more than £840,000, has smashed Thomson’s previous record for a single booking - ­a trip to Egypt for 200 bridge players.

“It was a gamble, but it paid off. At first when something as big as this comes along, you have to tell yourself not to get too excited,” said Carpenter.

That first visit from the Benhams was just the start of the hard work for the agency, which had to market the cruise to the association’s 75 member groups.

Bookings opened in April last year and the final cabin was filled just four weeks ago. It was the first full ship charter for Thomson Cruises.

Carpenter said Benham chose the branch because he was impressed by the service on a previous visit.

“Good service pays off every time,” she said.

Thomson refused to reveal how much the branch made, but it is not believed to have been the usual 10% Thomson Cruises pays.

Managing director of Thomson Cruises David Selby said the booking was an example for other Thomson shops. “We have always felt there are incentives and group bookings out there for the taking.”

Having waved the ship off from Southampton on Sunday, Carpenter admitted to feeling a little flat this week. “It was a fantastic moment to see the cruise sailing off but it feels quite strange because it's all over now.”

Divi Corporation, which recently closed their operation on Cayman Brac - the Divi Tiara Beach Resort - has confirmed that the property is for sale and that there are several interested parties.

VP Sales and Marketing, Mark Steward, told Cayman Net News that Divi is entertaining several offers at this time from a variety of entities.

He said there were a couple of interested parties from the Cayman Islands, a couple from Bonaire and people from Europe, all with good price offers. However, nothing had been decided and new offers would be considered.

Mr Steward said that some were interested in the business as a whole and some were interested in the land. A few making offers were looking at turning the property into an upscale boutique resort, which would run its own private plane service.

This type of clientele would be the most beneficial to the Island - the high caliber, low density, high profitability market, thought Mr Steward.

"I think the best option for the Brac would be for someone with ten million to put into the property on top of the purchase price," he said, and suggested that the new owners would probably need to rebuild the whole thing.

"For a start, it would need a huge pool and spa - make it into a mini Ritz Carlton, with perhaps fifty to seventy-five rooms at $1,000 per night. These were the types of things that we thought of. Cayman Brac is not a mass market Island."

Mr Steward pointed out that with fifty-nine rooms and twelve timeshares at Divi Tiara, they were never full, at most filled thirty to forty rooms, and quite often had only a few people booked.

"This would happen year in and year out. We would drop the rates down to where we were getting $20 a room, though in the package, you couldn't tell."

He maintained, as Divi had in their press release following the sudden closure, that the biggest challenge for any resort on Cayman Brac was air scheduling.

"If the airlift issue could have been fixed, we could have made a go of the hotel," he said, adding that Divi Tiara had lost ten groups this year because they had long stops on Grand Cayman.

When the groups found they had to change to Cayman Express Service, which runs Twin Otter aircraft, they immediately cancelled. What was needed was at least two non-stops out of Miami or New York, leaving about noon or 1:00 pm, according to Mr Steward.

The Saturday morning Miami-Brac jet flight does little good for the Brac because it leaves too early. If passengers are not coming from the Miami area they either have to overnight there or go through Grand Cayman.

"The Express does not take the place of the jet service. There are just some people who are not going to get on an Express flight. People who don't like flying just aren't going to do it."

Asked why the closure was so sudden and without warning to the staff, he said that if they told staff they were going to close, "either they would leave or slow down, and the clients would start to suffer quickly".

He said they looked at every possible scenario, but were facing a mandatory investment into the property to bring it up to standards required by the Cayman Government, which would cost them about US$350,000. They had been given until 31 October.

The Department of Tourism had given them a list of improvements, and much covered the same issues as last year, said Mr Steward, who added that some of the regulations were overly intrusive.

Last year, they had had to change the bedspreads and the drapery and had put in a new walkway to replace one that was not to standard. Mr Steward claimed that Divi had looked at every method possible to get more people to the Brac.

"We love the Cayman Islands and have put a tremendous amount of money and focus into filling the Brac hotel, especially in the four years that I've been with the Corporation," he claimed.

"We have nine resorts and that one (Divi Tiara) is so difficult to fill. We have begged the tour wholesalers to pick it up, but they have brought no business. They say there is no demand for the Brac."

The other issue with promoting the property, other than flight times, is lack of activities. "If they're not going to dive, then what?"

Mr Steward said they had tried to promote rock climbing, and a local climber, John Byrnes had even trained two of the dive staff as guides. They had tried to encourage people to go and see Bat Cave and do bird watching.

"Divers Alert Network (DAN) is located near to us. We said, let's go and do medical conventions."

However, Mr Steward said that every convention was stopped due to the airlift.

He claimed that the only other hotel on the Island, the Brac Reef Beach Resort, was given preferential prices on airfare within packages.

"We went to CAL and were told that we would never get the same air rates as the Brac Reef because of their special relationship. We were given an air contract but could never compete with the Brac Reef packages. Government was limiting competition," claimed Mr Steward.

All vacationers that were booked with Divi and want to switch to the Brac Reef or to Carib Sands or Brac Caribbean are being accommodated, and Divi is paying the difference in price, he said.

Timeshare owners were given three choices: they could continue to stay at the Divi Tiara timeshare units and use the facilities at the Brac Reef; they could transfer the rest of their contract to the Divi resort at Bonaire; or they could join their Vacation Club, through which they could choose any Divi destination each year.

Divi Tiara has twelve timeshares, six of which have recently been totally refurbished. Divi has work permits for staff to finish the other six.

"We are presently investigating whether we can sell the timeshares or not, but will more than likely end up keeping them. They and the hotel are on two separate parcels of land," explained Mr Steward.

Divi Staff will be paid all their entitlements and should receive their cheques on Thursday 21 September.

"Of course we feel badly for the staff - they are caught in the middle of this - but businesswise, it made no sense to keep the Tiara open. There has to be a major shift in the situation before it becomes a viable destination," said Mr Steward.

HOTELIER Accor Asia-Pacific has paid about $38 million to buy Becton Property Group out of the holiday timeshare company they jointly established seven years ago.
The buyout would set the stage for Accor Premiere Vacation Club (APVC) to expand internationally, beyond its recent push into New Zealand and Bali, said Michael Issenberg, Accor Asia-Pacific's managing director.

"Initially, we are going to launch in Bali and then we are targeting other parts of Asia later next year, and what Becton might bring to the party outside of Australia was not really relevant, so we decided if we were going to expand the business - we should own it wholly," he said.

"They didn't really want to sell ... but they understood and we are parting on most favourable terms."

Becton chief executive Hamish Macdonald said APVC was "not an easy start-up, but it's been quite robust for some years now".

However, it did not integrate well with Becton's core businesses in development, construction, retirement and funds management.

"We were aiming for a bigger strategic alliance with other parts of our business, and the business didn't grow that way," he said.

APVC had found it easier to buy properties rather than develop them itself.

Mr Macdonald said in a statement yesterday that APVC had been "a sound investment".

"However, whilst it has made a positive contribution to profit in recent years, the strategic alignment and integration synergies have not developed to the degree we expected when we entered the joint venture," he said.

"As APVC evolved, it did not require the development expertise we had anticipated at the commencement of the JV (joint venture)." In July, APVC announced a gross annual revenue of more than $100 million, as the timeshare industry became the fastest-growing segment of Australia's tourism industry.

The previously tarnished 1970s timeshare model was transformed by the start of this decade.

Under the new model, timeshare purchasers are not locked in to a set time-slot in a certain property, but instead can stay in a range of resorts and locations.

APVC's portfolio yesterday increased to 16 properties, with the $5 million purchase of "one of Australia's most historic boutique hotels", Mount Lofty House in the Adelaide Hills.

Meanwhile, Queensland Fair Trading Minister Margaret Keech yesterday warned of an "international timeshare re-selling scam which has just hit Australia". "Spanish scammers call timeshare owners out of the blue, offering to buy the timeshares on behalf of their clients," Ms Keech said.

"A generous offer is made and a contract sent to the owners.

"However, in order for the deal to go through, they must first send an evaluation or administration fee by money transfer.

"Afterwards, the owners hear nothing back and the advance, often totalling a few thousand dollars, is lost."

The industry body for the $700 million sector, the Australian Timeshare and Holiday Ownership Council, said anyone buying or selling timeshares should check with the Australian Securities and Investments Commission on the bona fides of the people they were dealing with.

Hilton Hotels Corp. (HLT.N: Quote, Profile, Research) said on Thursday that it plans to build a 161-unit timeshare property in New York City, scheduled for completion in early 2009.

Construction of the 28-story building, located on West 57th St. between the Avenue of the Americans and Seventh Ave., is slated to start next January, the company said.

Hilton currently operates timeshare units on two floors of the New York Hilton hotel, but said this latest project will be the first newly-built timeshare in Manhattan.

Sunterra Corporation Engages Chanin Capital Partners to Sell Sunterra Europe; Forms Strategic Alternatives Committee; Restructures Interim Management's Compensation to Align With Shareholder Interests; Hires Veteran Accounting and Restructuring Specialist as COO
Press Release: Sunterra Corporation
September 15, 2006
LAS VEGAS, NV -- The Board of Directors of Sunterra Corporation (Other OTC:SNRR.PK) yesterday announced that the company has put its European operations up for sale. The Board made its final decision to sell the business based on its and management's determination that the European operations were not strategic, and Chanin Capital Partners' conclusion that the best strategic alternative was a sale. As a result, the company has engaged Chanin to begin the European sale process immediately. To facilitate this process and the overall strategic alternatives review and implementation, the Board formed a Strategic Alternatives Committee and appointed John Ziegelman as its Chairman. The company also announced that it has restructured interim management's compensation and named Steven Varner, a Managing Director at Alvarez & Marsal LLC, as interim Chief Operating Officer, replacing Keith Maib.

European Operations to be Sold as Going Concern

Earlier this year, Sunterra retained Chanin to assess, value and assist the Board of Directors in considering strategic alternatives with respect to the European operations. During this same time period, the European business has been streamlined and restructured. Unprofitable marketing and sales channels have been eliminated and ongoing general and administrative expenses have been greatly reduced.

As a result of the above and in connection with Chanin's recommendation to sell the business, the Board has officially put the subsidiary up for sale. The streamlined Sunterra Europe -- its member base, inventory, management contracts, property, plant and equipment, and re-focused sales and marketing organization -- will be marketed by Chanin beginning immediately. During the course of its advisory work, Chanin was approached by several potential strategic acquirers expressing their interest to pursue a transaction for Sunterra Europe. Chanin has commenced the formal sale process for Sunterra Europe, including further discussions with these potential acquirers, and will solicit additional interest.

For more, go to. http://www.thetimesharebeat.com

A new study conducted by Ragatz Associates of timeshare buyers has learned that people buying into timeshare overwhelmingly believe that their decision to buy accentuates the vacation experience.

The study, which was released by The American Resort Development Association International Foundation (AIF), polled existing timeshare buyers and found that 75.7 percent said owning a timeshare makes them more excited about their vacations. Additionally, 68.4 percent said owning a timeshare increased the amount of time spent vacationing a year. These results were released in the survey: Resort Timeshare Consumers: Who They Are, Why They Buy.

Howard C. Nusbaum, ARDA’s president and CEO said he is not surprised by the high level of satisfaction because the typical timeshare offers considerably more space and amenities than a hotel room. By having multiple bedrooms and a full kitchen in a timeshare, the entire vacationing paradigm is changed and therefore affects the buyer’s perception of the experience.

“We are finding out that going on vacation is about rejuvenation with families and bonding. Sitting at a table in the kitchen [in a timeshare] is bonding, whereas everyone eating out of a pizza box on a hotel bed is not,“ said Nusbaum. “Timeshare reflects the way we live.”

Dave Matheson, VP Corporate Communications with Starwood Vacation Ownership, is also a father of four kids ranging in ages from preschool to high school. With such a large brood, and the need to recharge his batteries while on vacation, he said staying a hotel is just not a practical possibility.

“If we all go away and stay in a hotel it is not a relaxing experience for me or my wife,” said Matheson. “With a timeshare my older kids can sleep in while we get up with the younger ones and make breakfast.”

According to Nusbaum, other reasons that play into the high level of excitement surrounding the timeshare vacation are timeshares provide a better way to enjoy downtime and that timeshares offers higher control for owner’s over their lives. Since timeshare vacations are an annual or more frequent experience, Nusbaum said people look forward to that getaway throughout remainder of the year. “Families know they have vacation currency and that anticipation of the next trip carries the vacation throughout the year,” said Nusbaum.

Additionally, the study noted the average timeshare visitor spends 8.6 nights per vacation in the resort area where their timeshare is located. The average timeshare visitor party spends $1,334 per timeshare vacation—an increase of 10.7 percent since 2002 the survey found. The average size of timeshare visitor parties is 3.8 persons.

Matheson believes more of this money is staying on site at resorts that utilize a mixed use model; that is, resorts that have both a hotel and timeshare component. “When we build a vacation ownership resort next to an existing Starwood property we have found it increases the value of the vacation to our owners,” said Matheson. “Our hotel owners benefit from having the hotel in that package next to it.”

The hotel usually has additional added amenities such as golf courses, more restaurants, spas and retail outlets. Together, Matheson said the varied components all play into adding to a more multi-dimensional getaway.

Of all owners, 35.8 percent personally used their own timeshare purchase during the past 12 months, while 47.4 percent exchanged or space banked it, 4.4 percent rented it out, and 2.9 percent gave it away. Nine and a half percent of time owned by all owners went unused during the last 12 months.

The study investigated the usage of vacation ownership based on surveys of 938 recent timeshare buyers and 1,547 owners who purchased prior to 2005.

Two more condominium developments have passed architectural review by the Lake Delton Village Board.

Developers of Pinnacles of Highland Water Development on Bunker Road and Glacier Canyon Timeshare Condominiums Phase II on Hillman Road both received approval recommendations from the Plan Commission to the Village Board, and then approval at the board meeting.

Pinnacles of Highland Waters Development engineer Tomas Toro told the board there are plans to have as many as 230 units, 20 units per building. Parking will be determined when a set number of units have been determined, Toro said.

There will also be two retention ponds and three putting areas, Toro said.

Village Engineer John Langhans said there is a lot of green space in the development and all architectural standards have been met with the plans. The building height is 53 feet, but Langhans said that will be discussed in another section of the development's approval.

A roundabout will be used at the entrance of the development, and Langhans asked Delton Fire Chief Andy Schultz if an emergency vehicle could navigate in a roundabout. Schultz said as long as the roundabout was 50 feet radius.

Toro said the radius was 45 feet, and Schultz told him the village ordinance said it must be 50 feet, which Toro said he would change.

Langhans said ends of streets in the development would have to either be cul-de-sacs or hammer heads. Developer James Dresser asked if instead of doing that, could they instead put down one layer of asphalt on the entire road so the road loops. The plan commission did not have a problem with that.

Dresser said the development would be a gated community for active adults 55 and older, and would possibly be rental units one day.

The plan commission recommended approval to the village board, contingent on changes to the roundabout and other fire code items.

Trustee Tom Diehl was concerned about parking at Glacier Canyon Timeshare Condominiums Phase II.

"On your two-key condos on a busy night you fill all your parking in dark green (on the development plans)...I'm only bringing it up so that we don't get blind-sided that suddenly, we're short of parking," Diehl said.

Langhans asked the general engineer of the development Scott Anderson where the overflow parking would go. Anderson pointed to an area on the map and said it would go there.

Architect on the project Ray Bolton said the idea is people will check in and go down the corridor to their timeshare.

Also included in the new phase of the project would be a connecter that will go across the canyon and a 20foot wide fire lane and two additional fire hydrants.

Langhans said the architectural standards were met for the project.

The plan commission voted to recommended approval to the village board.

Also at the plan commission meeting, project manager for Renaissance on the Lake Gary Woolever asked the board to approve putting a pool along the lakeside of the development because some early buyers of condos there indicated they would like a pool next to the lake. The matter was tabled until an artist's rendering could be seen of what it might look like from the lake.

At the board meeting, both the Pinnacles of Highland Waters and Glacier Canyon Timeshare Condominiums Phase II were approved.

Suspicious bags led to brief shutdowns of an airport and major train station Monday, demonstrating the nation's heightened sensitivity to security threats on the fifth anniversary of the 9/11 terrorist attacks.

No genuine threats were found after the incidents in Long Beach and New York. An airliner flying from Atlanta to San Francisco was also diverted.

Authorities at Long Beach Airport blew up a suspicious package found in a rental car, airport spokeswoman Sharon Diggs-Jackson said. The airport was closed for about two hours.

The suspicious carrying case was destroyed as a precaution by a bomb squad.

"You never know what's in there, and you don't want to risk anybody's safety," said Sgt. Paul Patterson of the Los Angeles County Sheriff's Department.

Authorities in New York City briefly evacuated Pennsylvania Station and suspended all train service in and out of the busy hub because of a suspicious bag that later was determined to contain only trash.

The incident occurred minutes before a ceremony in lower Manhattan commemorating the terrorist attacks on the World Trade Center and as President Bush visited a firehouse whose members were among the first responders when the twin towers were hit.

In Long Beach, Anthony Gasparino, 31, was not upset that he had to wait 90 minutes to turn in his rental car before catching a flight to New York City.

"Not on Sept. 11," Gasparino said.

Elsewhere, a San Francisco-bound United Airlines plane was diverted to Dallas as a precaution after an unclaimed BlackBerry was found on board, federal authorities said.

Officials had also found and removed an unidentified backpack from the plane, Flight 351, before it left Atlanta, said Transportation Security Administration spokeswoman Yolanda Clark.

Flight 351 reached San Francisco International airport more than 2 1/2 hours late.

ARUBA--The consequences of the latest amendments of the Admittance and Expulsion Ordinance LTU in Aruba can be catastrophic for the timeshare industry. Tourists who were allowed to vacation for three consecutive months in Aruba before these amendments can suddenly stay for only 30 days effective July 1.

Some of the amendments in the LTU have been reversed meanwhile, but that could not take away concern among timeshare owners.

The executive committee of the Aruba Time Share Association (ATSA) sounded the alarm soon after it learned of the amendments in the LTU. Minister of Public Health, Environment, Administrative and Immigration Affairs Candelario “Booshi” Wever (MEP) then ordered Rudolph Kelly, head of IASA, which is in charge of border control, to exempt passport holders of some countries from the 30-day limit.

The maximum consecutive stay for holders of passports from Canada, European Union countries, the United States of America, the United Kingdom, Switzerland and Japan is 180 days for the time being. Residents of Venezuela, however, can only stay for 30 days max.

After the United States, Venezuela was the country that produced the most visitors for the island this year till the end of May. While fewer visitors in general came to Aruba during that period, the Venezuelan market showed a growth of 3.29 per cent compared to last year.

Residents of Argentina and Brazil, also a substantial growth market, are also not allowed to stay longer than 30 consecutive days in Aruba.

The hotel association AHATA, ATSA and DIMAS discussed the consequences of the new LTU rules at the office of Aruba Tourism Authority (ATA). It disturbed Jan van Nes, general manager of Playa Linda Resort and chairman of ATSA, that there had been no deliberation with the tourist sector on the considerations of limiting the maximum allowable consecutive stay in the LTU.

“This proves that there is no coherent tourism policy at all. Each ministry that has common grounds with tourism does its own thing,” said Van Nes.

He emphasised that the timeshare market was important for Aruba. The island has 16 timeshare resorts with about 3,000 rooms altogether. This number is still growing with the expansion of Marriott and Divi and a few other current projects.

About 250,000 timeshare owners or their family members and friends spend their vacations in Aruba on a yearly basis. That is 30 to 40 per cent of the total number of visitors.

About 80 per cent of the timeshare owners are from the United States and Canada; 10 per cent from Venezuela, 15 per cent from other Latin American countries and 5 per cent from other parts of the world. There are as many as 80 nationalities in the data base of Playa Linda.

The average timeshare owner stays in Aruba two weeks, but there is a considerable group that spends more than 6 weeks in their accommodation during the winter.

Sixty per cent of the timeshare visitors are repeat guests, people who come back every year and who are often declared goodwill ambassadors by the Ministry of Tourism. Twenty per cent of these are family members and friends of the owners and 10 per cent people who spend vacations in Aruba via the international timeshare exchange programme.

ABTA has been forced to defend changes to its code of conduct that prompted its withdrawal from the Office of Fair Trading’s Consumer Code Approval Scheme.

Changes that came in on September 1 mean ABTA no longer provides blanket consumer protection and can no longer be approved by the OFT.

Former Agents Council member and Travel Counsellors chairman David Speakman criticised the ‘spin’ ABTA used to conceal from the public the fact it has taken away the consumer safety net.

But ABTA insists its decision to stop paying out to customers who use agents who take holidaymakers’ money but do not make a booking, means it still protects the holidays of customers whose booking has been made.

A spokesman said: “It’s unusual for us to refund customers. We enable them to continue with their booking by paying ABTA suppliers. These changes mean the authorities will be forced to investigate people who commit fraud and sell holidays that do not exist.”

But Speakman said under dynamic packaging a growing number of customers, who have booked through an ABTA agent believing they are safe, will be unable to get any redress from a supplier.

“What people book is so complex now. ABTA is effectively saying: ‘If you have booked with an honest agent and your money has been passed on to the supplier, you have legal redress, but that redress might be abroad where there is no jurisdiction.’”

Freedom Travel Agents Consortium general manager Trevor Davis said: “The most important thing is to continue to get the message out there that ABTA agents offer protection.”

ABTA was in talks with the OFT about withdrawal for a month before its new code came into effect. Agents who applied for a licence to show the code logo will receive a letter telling them not to use it.

BEACON HILL--The building has been demolished, the debris has been cleared, and the site is now a vacant space as Caravanserai Beach Resort awaits its building permit to start work on its US $25 million upgrading.

The Island Council is expected to debate the issuance of a building permit to the resort on Monday, September 25. Government’s Committee of Experts has completed its report on the resort’s request and submitted it to Environmental Development and Property Management Commissioner Roy Marlin last week.

This committee report and other relevant documents will be passed to the Island Council for a decision on the permit. Resort General Manager Ron Verhaar told The Daily Herald, “We are hoping for good news on September 25.”

The first section of the existing resort building was demolished two months ago to make way for 42 ocean view timeshare units and 12 hotel rooms. This phase will include the hotel and timeshare units, an infinity edge pool, a children’s pool and a Jacuzzi.

This phase, the second phase of 20 full-ownership condos scheduled to commence in April 2007, and some 66 present rooms will increase the resort’s room inventory to more than 200 rooms, bringing it into consideration for the casino licence it has so far been denied by Government.

Two more Grand Cayman timeshare operators are lawsuit defendants after cases were filed in Grand Court recently.

Morritt’s Properties Ltd., operator of Morritt’s Tortuga Club and Morritt’s Grand Resort, and Grand Caymanian Resorts Ltd, operator of The Grand Caymanian Beach Club and Resort, have both been sued by persons or entities that provided employed or managerial services.

The two cases come in the wake of the collapse of the Indies Suites timeshare operation after it sustained serious damage in Hurricane Ivan. That collapse led to a high profile legal action initiated by timeshare owners, and a subsequent call for government regulation of timeshare operations.

Leader of Government Business Kurt Tibbetts has said that the government has asked Attorney General Sam Bulgin to look into the possibilities of regulating the timeshare industry.

In the case concerning Morritt’s filed on 18 August, accountant and former employee Robert White is suing two Cayman companies, Morritt Properties (Cayman) Ltd. and Morritt’s Shopping Centre Ltd., as well as David Morritt personally.

In Mr. White’s statement of claim filed by the law firm Campbell’s, he said he agreed in writing on 1 January 2003 to act as the Chairman of the Board of Morritt Properties Cayman Ltd. and of a company called Global Resort Management Inc., which is a U.S.–based resort management company. As part of his employed duties, Mr. White was also to organise, negotiate and manage a two–phase shopping centre and apartment development in Colliers.

Global, along with Mr. Morritt and Morritt Properties Ltd, was also named in another lawsuit filed in Florida by Mr. White.

Mr. White was employed with Morritt’s/Global through December 2005, one year before his employment contract was to expire. His dismissal from the company is a matter dealt with in the Florida lawsuit.

In the action filed in Cayman, Mr. White is seeking other agreed–to benefits from the defendants, including a 7.5 per cent share in Morritt Properties (Cayman) Ltd, a 7.5 per cent beneficial interest in the real property underlying Morritt’s Shopping Centre, and 7.5 per cent of the net operating profits can capital of Morritt’s Shopping Centre.

In the other timeshare lawsuit recently filed, Thompson Resorts Ltd. and Grand Caymanian Operations Ltd. are suing Grand Caymanian Resorts Ltd. and Grand Caymanian Beach Club & Resort Ltd.

The Statement of Claim, which was filed by the law firm Walkers, seeks the sum of US$56,954 for Thompson Resorts Ltd, which was engaged as the manager and exclusive marketing agent/manager for The Grand Caymanian Beach Club and Resort from 28 April 2000 until October 2000.

The amount claimed represents alleged unpaid amounts in commissions, corporate services and out–of–pocket expenses.

Subsequently, on 16 October 2000, Grand Caymanian Operations Ltd. was engaged as the manager and exclusive marketing agent/manager of The Grand Caymanian, an arrangement which continued until December 2001.

The claim seeks the amount of US$628,959 in alleged unpaid fees for marketing, management, rental commissions, out–of–pocket expenses, sunset tours and corporate services.

The claim also seeks damages, interest, costs and further or other relief.

Hyatt Minimizes Travel Hassles With Airport Luggage Handling and Onsite Storage Services

TSA-Approved Service Provides Luggage Storage and Transportation for $10 per Person

Beginning this month guests staying at select Hyatt Hotels & Resorts in North America can check in their luggage and receive airline issued boarding passes before leaving the property for the airport. The cost of the service is $10 per person and includes storage, transportation and check-in of up to two pieces of luggage. The service is made available through Hyatt's partnership with Baggage Airline Guest Services (B.A.G.S.), and is supervised by the Transportation Security Administration.

"Hyatt is delighted to provide another industry leading initiative to reduce hassles for travelers," said Matt Adams, vice president of operations for Hyatt Hotels & Resorts. "Combined with boarding pass printing stations in lobbies, web check-in, PDA check-in and check-in/check-out kiosks, Hyatt continues its focus on helping guests ease the burdens of travel."

Depending on location, guests can check their luggage at the hotel up to two hours prior to flight time or as long as 24 hours before departure. Once check-in is complete at a Hyatt property, guests can head to meetings or the airport free of luggage, picking it up at baggage claim in their final destination. Hyatt's B.A.G.S. service processes the luggage through airport security screening.

The service is available with travel on Airtran, American Airlines, Continental Airlines, Delta Air Lines, JetBlue, Northwest Airlines, Song, Ted, and United Airlines.

Hyatt properties in Boston, Dallas, Denver, Miami, Orlando, San Diego, Seattle and Tampa will initially offer the service. Throughout the remainder of 2006 and into 2007 additional Hyatt properties will begin to offer it.

One of the most respected analysts, Rick Munarriz, at one of our daily reads, The Motley Fool, just added his 2 cents on the state of the destination club industry.

Nothing too much new for readers of Helium Report, but he did ask a good question:

When will the big guns get in the business?

It's clear that in the timeshare industry, companies such Marriott, Disney and others brought their track records in managing hospitality businesses, their access to capital and their reluctance to tarnish their own hard-earned consumer brands - and the category grew in size and stature.

The destination club industry is currently being defined and built by entrepreneurs, with the team at Exclusive Resorts the first to get to the status of "big gun". Others from the current roster of clubs will also probably get there.

But what will it take for a large player from an adjacent business, such as Starwood or Intrawest, to jump in? Probably several factors, including a willingness to handle the balance sheet implications of heavy investments in real estate, a clearer picture of the regulatory environment affecting clubs, and confidence that they can compete with the entrepreneurs that have blazed the trail. Unless of course they decide to partner with or acquire one of them.

P.S. The Motley Fool has always set a high bar in terms of disclosure. Here's a summary of ours:

The principals and employees at Helium Report do not have any financial interest or ownership in any of the companies that we profile (although one is a member of one of the destination clubs). We do have advertising relationships with many of the companies that are also featured in our editorial coverage. We encourage consumers to do their own research before making these 'six figure' decisions. We hope that Helium Report will help in that process.

Cendant now known as Wyndham Hotel Group

A temporary sign on the door at Cendant in Aberdeen is the only visible indication the company has changed its name.

But soon, a large sign will go up near Eighth Avenue and people will know the Aberdeen call center, located at 1910 Eighth Ave. N.E., as the Wyndham Hotel Group.

"We really want to let people know who we are," said Mary Job, the director of customer service and group sales for the company. "The new change is exciting for us."

The Cendant Corp. recently announced it was breaking into a few companies, including Wyndham Worldwide. Sue Haaland, site director in Aberdeen, said the change allows each new company to focus specifically on what it is designed to do.

For Wyndham Worldwide that means the development and performance for its hotel chains, its vacation exchange and rental businesses, and its timeshare resorts.

In Aberdeen the focus will be on the hotels, and the company will be called the Wyndham Hotel Group. The call center will continue to take reservations and customer service calls and handle group services and trip rewards for eight hotel brands, including Days Inn, Super 8, Ramada and most recently, Baymont Inn & Suites.

"Really for our location we didn't see any significant changes," said Haaland, who has worked for the company for more than 20 years and was there when it was still the Super 8 brand and franchise system about 12 years ago. "We're still doing the same thing as we were before."

The Super 8 franchise began in Aberdeen more than 30 years ago. About 12 years ago, the franchise brand was sold to Hospitality Franchise Systems Inc. In 1998, HFS and CUC International Inc. merged to create Cendant. Now, the company has a new identity.

Job said the change allows the company, which employs about 400 people, to focus on new opportunities.

"From a company standpoint, there's more emphasis on growth on the hotel side," she said. "We're excited about it because we have a clear focus."

The name change officially took effect Aug. 1, but the Wyndham Hotel Group will celebrate with a grand opening from 10 a.m. to 2 p.m. Tuesday. Lunch will be served, door prizes will be handed out and tours will be given. Information about the company will also be available.

In addition to handling normal working duties, Job said the Wyndham Hotel Group will also continue giving back to the community through the different charities and events it supports.

"We do give a lot to the community," she said. "It's important people know where we're located and who were are."

New concepts in timeshare coming to San Antonio

Web Posted: 09/08/2006 10:26 PM CDT

Rachel Stone
Express-News Business Writer

A new high-rise under construction in downtown San Antonio is expected to feature many of the amenities common to other downtown condo high-rises, which are tacking on luxuries such as rooftop gardens and pools, valets, and exercise rooms.
But this new residence, Fairfield San Antonio at La Cascada, isn't really for locals, and it's not just condos.

The 10-story tower is under development by Fairfield Resorts Inc. and is the newest addition to the company's portfolio of more than 70 timeshare resorts around the world.

Fairfield is expected to open the 100-unit urban resort next summer.

"We're very excited to be coming to San Antonio," company spokeswoman Lisa Burby said. "We responded to where our owners want to go, and Texas and San Antonio is definitely a destination they wanted."

Timeshare, a vacation option that in the past has come under fire because of scammers and unethical sales tactics, has gained more respect in the last decade or so. The attitude adjustment came as major hotel chains started flying their flags over timeshare resorts.

Timeshare allows vacationers to buy the right to spend a set amount of time at a vacation property, either with a percentage ownership or a long-term lease. With timeshare, the purchase is not so much of a specific, physical property but of time at a resort.
San Antonio has drawn several big names in timeshare over the past few years, and some new concepts in timeshare are coming here soon.

Fairfield San Antonio at La Cascada for example, will be the first resort the Wyndham Worldwide-owned company has built in an urban setting.

The company found that timeshare buyers wanted big-city vacation amenities such as Broadway road shows and major league sports.

"It's a new trend for us," Burby said.

The company also is planning urban resorts in San Diego and San Francisco.

Another development, Villa Verona, is a "private residence club" that San Antonio-based RTK Development is planning alongside its ultraluxurious Piazza San Lorenzo condominiums, which RTK is planning on Soledad Street downtown.

Timeshare prices there are set, for now, at $140,000 for a two-bedroom, $195,000 for a three-bedroom and $280,000 for a four-bedroom. Owners get a one-tenth-share interest in the property and pay annual fees of $6,500, $7,500 or $9,000, depending on the unit.

The residence club is a new concept in timeshare, in which owners choose 14 days in the first half of the year and 14 days in the second half. The club also will set aside 10 units for last-minute vacation plans. Subject to availability, owners may stay at one of the 10 units for up to a week without paying extra.The annual fees cover valet, housekeeping, gratuity and a stocked fridge, among other luxuries.

John R. Kazanjian, the company's chief executive officer, said he expects that Mexican nationals will buy as much as half of the time at the resort.

Los Angeles-based HollyHills Development also is planning downtown timeshare condos.

The plan calls for 17 stories of luxury at 120 Villita, which is a one-story office building now. The development will include timeshare, several condos and retail at street and river levels.

"Timeshares will take up the vast majority of it," said T.J. Connolly, HollyHills' spokesman.

HollyHills doesn't expect to start on that project until 2010.

Coming sooner is the company's Briggs Ranch Grand Vacation, which is under development near U.S. 90 West and Texas 211. The company broke ground on the 58-acre 1,000-unit timeshare resort in June. The resort will include a 2-acre water park and is near the Texas Golf Club, which is considered one of the nation's best public courses. HollyHills is spending $2.5 million to update the course, including $1.2 million for 75 state-of-the art golf carts with wireless Internet and global positioning systems.

"Would this work in Peoria, Ill.? Probably not. But it can work in San Antonio," Connolly said. "You can play golf almost any day of the year here."

Prices at Briggs Ranch start at $4,990 for one week every other year, and top out at $20,000, which might include two weeks in a four-bedroom unit. All timeshares include golf and discounts at the clubhouse.

The first 100 units are expected to open in January, and HollyHills plans to add 100 or more every year until the development is finished in 2014.

Other new timeshare developments in San Antonio already are on line.

Hyatt Vacation Club has had so much success with its Wild Oak Ranch in Northwest San Antonio near Loop 1604 and Highway 151 that it has added a new sales office downtown, which could employ as many as 30 seasonal workers.

The Hyatt compound includes an indoor-outdoor pool, water park with water slides, shuffleboard, horseshoes, a game room, a media room, a fitness center and a 27-hole golf course.

Prices range from $6,350 for one week every other year to $43,500, which could pay for as many as six weeks of vacation time per year. The prices include a certain number of points each year that can be used for time at other resorts or at Hyatt hotels. The high-end packages include enough points for as many as six weeks of vacation.

A franchisee of Shell Vacation Systems has opened five timeshare units at its Salado Creek Villas, near Harry Wurzbach Road and Loop 410.

The Villas, owned by franchisee Gary Beckley of Winnipeg, Ontario, is a renovation of part of Hill Country Inn and Suites hotel, which he expects to complete in 2011.

"It's a work in progress," he said. "We add units every month."

Part of the complex will remain a hotel. The company also works on the point system and packages start at close to $10,000.

Beckley is in the hotel and timeshare business in Canada, but the Salado Creek Villas is his first project in the States.

Financial experts say timeshares aren't usually considered good real estate investments because they depreciate quickly. But they can make sense for people who like to vacation extensively at the same location.

"The real bargains are in the resales," said William Rogers, founder of Timeshare Users Group, a user-owned consumer group based in Orange Park, Fla. "The savings can be 50 percent or greater."

Rogers started the group in 1993 after he and his wife got duped in a timeshare exchange.

The most important thing about buying a timeshare, he said, is to make sure you understand exactly what you're getting before putting up the cash or taking out a loan.

"Education before you buy instead of after you buy. Unfortunately, that's not always the way timeshare sales go," he said.

A POTENTIAL merger between Kuoni and First Choice now appears unlikely following the resignation of Kuoni chairman Andreas Schmid.

Schmid resigned after a “fundamental difference of opinion with the board on issues relating to the management of the company”, believed to be caused by his determination to pursue a merger with First Choice.

It is claimed that he failed to inform chief executive Armin Meier of merger talks until a very late stage, having already secured himself the chairmanship of the merged company. Kuoni refused to comment on the allegations.

Talks between the companies have been suspended and, with Schmid’s resignation, industry observers now believe a deal is unlikely, certainly under the arrangement Schmid proposed.

“If the chairmanship was to come from Kuoni then it would have been a First Choice-led business with a First Choice chief executive,” an expert said.

“It seems unlikely Kuoni would want to give up control. Ownership for the Swiss is much more important than it is for the English.”

Meanwhile, Kuoni’s UK division’s year-on-year bookings were up by 2% for the first six months of the year. Turnover rose by 1.9% to £138 million, although pre-tax profits reduced from £10.2 million to £9.7 million.

The UK figures include a small North American business. Managing director Sue Biggs said she was “happy with the performance against the backdrop of difficult trading circumstances in the UK”.

She cited the recent spell of good UK weather and political problems in the Middle East as having hit long-haul holidays due to price reductions in the short-haul market.

The Maldives, Thailand and Mauritius are performing well while Sri Lanka, Egypt and the US are taking longer to recover, Biggs added. Direct sales in the UK have hit 54% following the introduction of online dynamic packaging booking technology Wizard DIY.

Overall, group turnover increased by 11.2% to £755 million with gross profit up 9.4% to £160 million. Gross profit margins declined from 21.5% to 21.2%.

RIVAL airlines have failed to join Ryanair in a £3.3 million lawsuit against the Government over losses incurred by stricter security measures.

British Airways, Virgin Atlantic and BMI are concentrating on getting schedules back to normal following last month’s alleged terrorist plot and have refused to join the Irish carrier in compensation claims.

In submitting his claim to the Department for Transport, Ryanair chief executive Michael O’Leary said: “The value of the claim is more than £3 million and reflects Ryanair’s losses from cancellations and lost bookings over the week of August 10-16.

“The purpose of this claim is to encourage the DfT to restore UK airport security to the effective IATA norm, and to prevent similar breakdowns at UK airports during future security scares by putting in the necessary police and army personnel to carry out the extra security checks,” said O’Leary.

Any proceeds from a successful claim would go to charity, he added.

The DfT rejected Ryanair’s lawsuit, saying: “We continue to face a serious security threat and we will not compromise security.

"We do not believe Ryanair has any legal grounds. Aviation security measures are directed under the Aviation Security Act 1982, which does not have provisions for compensation.”

NERVOUS tour operators are considering slashing capacity in beleaguered Turkey following the Bank Holiday weekend’s terrorist bombs.

The highly-profitable destination has long been considered a key growth market by operators determined to find additional good value product as dynamic packaging encroaches on their traditional haunts.

Capacity for Federation of Tour Operators’ members – which include the big four – has grown from 584,000 passengers in 2001 to 839,000 in 2005. This year’s capacity was cut to a still healthy 700,000 following an avian flu outbreak at the start of the year. Thomas Cook was among the first to reduce capacity.

The weekend’s attacks left 22 people injured in Marmaris, including 10 tourists. In Antalya, three were killed and more than 20 injured, and six people were injured in Istanbul.

A group calling itself the Kurdistan Freedom Falcons has already claimed responsibility, warning operators and holidaymakers: "Turkey is not a safe country, tourists should not come to Turkey."

Turkey specialist Jewel in the Crown is among operators warning of future cuts. Managing director Platon Loizou said: "I won’t keep my present numbers in Turkey."

Anatolian Sky has yet to decide on capacity, but managing director Akin Koc said: "We’d rather focus on the safety of customers, if that means the same capacity or less rather than growth, that’s what we’ll do."

Libra Holidays sales and marketing director Paul Riches said: "We’ll have to wait and see the reaction longer term – and hope there are no other bombs."

Major operators said it was too early to decide on next year’s plans.

A Thomas Cook spokesman said: "Turkey is a key destination for us."

First Choice product director Jeannette Linfoot added: "We believe Turkey will continue to be popular."

FTO director-general Andy Cooper predicted growth to Turkey would be hit next year.

Meanwhile, Turkish Culture and Tourism Office director Cengiz Donmez said the country was considering a promotion campaign for 2007.

Indio's share of the tourism pie has grown with the opening of WorldMark Resort by Trendwest.



As one of Trendwest's more than 65 resort locations across the country, South America and Mexico, the new addition will help put Indio on the map as a vacation getaway, city and resort, officials say.

The scene on any given day at the new resort is one of relaxation and fun.

Teens giggle as they float on inner tubes along the lazy river.

Music blares from speakers.

Sunbathers tan their bodies as young adults splash in a pool nearby.

"It's a beautiful place. It's just breathtaking, the views are just so nice," said Indio Mayor Pro Tem Ben Godfrey, who has been out to the new resort.

It's located off Golf Center Parkway, next to the Golf Club at Terra Lago, and stretches across 27 acres with Indio Hills and the Little San Bernardino Mountains in the background.

Currently, about 125 of the 282 units in the first phase are complete. The resort will be 100 percent complete in about 12 months, said Adalberto Lugo, the resort manager.

City seeing dollar signs

Not only do city officials appreciate the boost the Mediterranean-style resort may give to Indio's tourism, but also they look forward to the transient occupancy tax, or TOT, it will add to the city's coffers.
"TOT is an important component of the city's budget," said Mark Wasserman, assistant to the Indio city manager.

The city collects 10 percent on all hotel room rentals. That generates about $1 million a year.

Timeshare resorts such as WorldMark are not required to pay a bed tax, but the company proposed the tax agreement to offset development costs.

Under the agreement, the company prepaid a lump sum of about $3.5 million in permit costs that the city will repay over a few years. Also, Indio will refund to the company 45 percent of taxes collected from the resort for the first 10 years.

After that, however, the city will collect the full amount of tax generated by the resort.

Wasserman said more than $500,000 a year in bed taxes is expected. But because not all 453 units are complete yet, it's hard to tell exactly how much will be generated.

The company will make four bed-tax payments a year, the first coming after September.

Rick Lawler, a WorldMark resort timeshare owner, has stayed at the WorldMark resort in Palm Springs but not in Indio yet.

"I can't say that the TOT at Indio would stop us from vacationing there, but if we were to plan a vacation to that general area of the nation, it would certainly be a factor in our considerations," he wrote in an e-mail to The Desert Sun.

However, if faced with a high TOT, he said he could choose to conserve his spending at local businesses and simply stay at the resort.

"Government gets the money, business gets the shaft," said Lawler, a Washington resident.

Almost full occupancy

Lugo said the resort is running at about 95 percent occupancy. "It's been very popular with the WorldMark owners. So far it's been extremely successful," he said.
WorldMark isn't a typical timeshare resort where people pay for weeks at a particular location. Instead, they buy credits that can be used at any WorldMark resort in the company's portfolio.

For example, $10,000 to $12,000 worth of credits on average can get someone a two-bedroom unit for one week during prime season at most WorldMark properties.

All the units in Indio face pools in the resort's interior and come with barbecue grills.

There's also a fitness room and a recreation room with pool tables and an arcade.

"You really don't need to bring anything but yourself," Lugo said.

Economic impact study on tourism in Australia shows surprising results

The Timeshare Industry has emerged as the fastest growing segment in Australia’s tourism industry, and is being hailed as a crucial contributor to the continued survival of regional towns, from employment and training opportunities, to investment and development of Hotels and Resorts.

They are some of the key findings of the first major study into the economic significance of the $700 million a year Australian timeshare industry just released by the Australian Timeshare Ownership Council (ATHOC).

The (Gold Coast based) players in the Australian industry are Accor Premiere Vacation Club (APVC), who have invested heavily in Australia and New Zealand in 2005/06, Trendwest South Pacific, RCI, Interval International, Classic Holidays, Holiday Concepts and I.C.E Asia Pacific (cruise timeshare holidays).

The Economic Significance of the Australian Timeshare Industry report, compiled by the Australian Economic Consultants Group, highlights the importance of the industry, which employs 5900 people at 73 resorts throughout Australia and involves more than 125,000 owners to the economies of regional areas, and predicts further stellar growth in the coming years.

The report also finds that timeshare industry, has in place a code of practice, provides training and dispute resolution services and it finds only 6 per cent of owners are dissatisfied with timeshare, with the satisfaction rate in Australia now amongst the top rating in the world.

AEC group principal Carey Ramm said timeshare was becoming an increasingly important component of Australia’s tourism industry. ``It is the fastest growing segment of the tourism industry, both nationally and globally, recording growth of 10 per cent per annum in each of the past five years, and employs thousands of workers, both directly and indirectly, across Australia’s regions,’’ said Mr Ramm.

``The growth potential of the industry cannot be underestimated, with a possible doubling-tripling in size over the next 10 years, going a long way towards meeting the need for accommodation in Australia. However, the industry needs to be taken seriously and its economic significance, particularly to regional economies, acknowledged.’’ he added.

ATHOC president Ramy Filo said that in line with the rising satisfaction levels, there had also been resurgence in the timeshare industry in Australia over the past 5-6 years. "In the past six years the number of timeshare owners has increased by 50 per cent to more than 125,000, the number of resorts has increased from 57 to 73, and the average annual net sales of timeshare has grown to $173 million," said Mr Filo. "And it’s those with higher incomes who are the buyers. Compared with all Australian households, timeshare owners are more affluent, with a distribution toward the upper income brackets."

Silverleaf Resorts, Inc. Announces New $128 Million Securitization with UBS

Silverleaf Resorts, Inc. (AMEX:SVL) today announced the August 29, 2006 closing of a term securitization through its newly-formed and fully consolidated special purpose finance subsidiary, Silverleaf Finance V, L.P. ("SF-V"), a Delaware limited partnership. SF-V was formed for the purpose of issuing approximately $128.0 million of its Timeshare Loan-Backed Notes Series 2006-A ("Series 2006-A Notes") in a private offering and sale through UBS Securities LLC ("UBS"). The Series 2006-A Notes were issued pursuant to an indenture between the Company, as servicer of the timeshare loans, SF-V, as issuer, and Wells Fargo Bank, National Association, as indenture trustee. The Series 2006-A Notes were issued in seven classes ranging from Class A through Class G notes with a blended coupon of 6.7%. The Class A through Class G notes have been rated Aaa, Aa2, A2, Baa1, Baa2, Baa3, and Ba2 respectively by Moody's Investors Service, Inc., and have a final maturity of July, 2018.

The Series 2006-A Notes are currently secured by approximately $125.3 million in timeshare loans sold to SF-V by the Company and one of its other fully consolidated special purpose finance subsidiaries. The cash proceeds from the sale of the timeshare loans to SF-V have been primarily used to pay down $93.2 million in consolidated indebtedness to senior lenders. Approximately $24.8 million of the proceeds received by SF-V from the sale of the Series 2006-A Notes is being set aside for 90 days to finance SF-V's purchase of up to $33.0 million in additional qualifying timeshare loans from the Company. All funds set aside for this purpose that are not used by SF-V within 90 days to finance the purchase of additional qualifying timeshare loans from the Company will be returned to the holders of the Series 2006-A Notes as a distribution of principal.

Thomas Morris, SVP - Capital Markets commented, "We are very pleased once again to be able to access the term securitization market. This form of low cost, fixed rate financing continues to be an integral part of our business strategy to lower our overall cost of capital. This transaction has allowed us to lower the cost of this debt from 8.0%, floating, to 6.7% fixed. We are also pleased with the confidence UBS has in our ability to continue to execute our business plan in underwriting such a transaction".

Based in Dallas, Texas, Silverleaf Resorts, Inc. currently owns and operates timeshare resorts with a wide array of country club-like amenities, such as golf, clubhouses, swimming, tennis, boating, and many organized activities for children and adults. For additional information, please visit www.silverleafresorts.com.

This release contains certain forward-looking statements that involve risks and uncertainties and actual results may differ materially from those anticipated. The Company is subject to specific risks associated with the timeshare industry, the regulatory environment, and various economic factors. These risks and others are more fully discussed under the heading "Risk Factors" in the Company's reports filed with the Securities and Exchange Commission, including the Company's 2005 Annual Report on Form 10-K (pages 22 through 30 thereof) filed on March 17, 2006.

For more information or to visit our website, click here: http://www.b2i.us/irpass.asp?BzID=1358&Nav=0&S=0&L=1

Completes $90 Million Makeover; Joins Hyatt's List of Exceptional Properties in Florida

Chicago-based Hyatt Hotels Corporation will assume management of the 501-room Bonaventure Hotel and Conference Center located in Weston, Fl. just minutes from Fort Lauderdale, effective September 1, 2006. The hotel, which is to be renamed Hyatt Regency Bonaventure Conference Center and Spa, recently underwent a comprehensive $90 million renovation of the guestrooms and conference center.

"We're excited about bringing Hyatt into this exclusive community with a newly renovated hotel," said Chuck Floyd, president and chief operating officer, Hyatt Hotels Corporation. "Flying the Hyatt flag in this exclusive area is an important business move for Hyatt, and we intend to establish ourselves as an integral contributor to the community."

"We are delighted to welcome Hyatt to Bonaventure," said Tom Ireland, president of Bonaventure Hotel Associates, Ltd. "Branding our hotel with the prestigious Hyatt name is an outgrowth of our commitment to provide our guests and business clientele with a superior lodging, meeting and banquet experience. Hyatt is recognized globally as being synonymous with elegance and attentive service, qualities the upscale Southeast Florida market demands. We are confident that the Hyatt Regency Bonaventure Conference Center and Spa will prosper under Hyatt's managerial excellence."

Hyatt Regency Bonaventure Conference Center and Spa offers four-star accommodations with a brand-new state-of-the-art conference center covering 100,000 square feet of meeting space. Hyatt has been working in conjunction with the hotel's owners and their design team to create a fresh and modern guest experience while adding amenities and services that Hyatt customers have come to expect.

Spacious British Colonial style guestrooms and suites are filled with high-end amenities. Services such as high-speed Internet access, 32' LCD TV, and luxurious bath amenities are in each guestroom.

The newly renovated conference center offers 50,000 square feet of meeting space accompanied by 50,000 square feet of pre-function and outdoor event space. Three newly designed ballrooms with room for 2000 attendees, one amphitheater, three executive boardrooms, nine additional conference rooms and 19 breakout rooms with high speed Internet access throughout all make it Florida's premier meeting venue.

Business and leisure guests alike can enjoy all the amenities of this 23-acre property offering access to two 18-hole PGA championship courses, 15 clay tennis courts, deep-sea fishing, airboat rides as well as world-class beaches of Fort Lauderdale, which is just a short drive away. The hotel offers four dining options, including Banyan Restaurant, Cabana Bar & Café, Bar Zen and a steak house restaurant, which will be opening in mid October.

Hyatt Regency Bonaventure Conference Center and Spa is proud to offer the Elizabeth Arden Red Door Lifestyle Spa. This brand-new facility opened its doors earlier this month and is the first Red Door Destination Spa in the United States. The Red Door Lifestyle Spa is dedicated to offering relaxation and rejuvenation of the mind, body and spirit through a complete program of personalized well-being.

The hotel is located in the community of Weston, which is in Western Fort Lauderdale along the southeastern coast of Florida and is 15 miles from the Fort Lauderdale International Airport. Hyatt Regency Bonaventure Conference Center and Spa is three miles from the Sawgrass Mills outlet mall, Florida's largest retail and entertainment complex offering more than 350 stores, popular restaurants and multiplex cinemas. Guests can begin making reservations at Hyatt Regency Bonaventure Conference Center and Spa effective September 1, 2006 by calling 1-800-233-1234 or logging on www.hyatt.com

CityMark has submitted its plans for developing five square blocks of downtown Oceanside.

The project has been the subject of three public meetings, but submitting the plans makes official the San Diego-based company's proposal for a complex of condominiums, retail spaces and a hotel.

CityMark filed the plans at City Hall on Wednesday, showing a project with four-to eight-story buildings – 45 feet to 85 feet tall – although the public was told in the meetings that the buildings would be no higher than seven stories.
The project would have 231 condominiums, 48,000 square feet of commercial businesses, a 124-room hotel and 977 parking spaces. Also included is 70,000 square feet of open space.

Named One Mission Plaza, the project would span three blocks along Myers Street, bound by Seagaze and Civic Center drives, and two blocks on the east side of the railroad tracks bound by Seagaze and Pier View Way.

The CityMark project adjoins a seven-story, 128-suite Fairfield Resorts time-share project under construction by Cendant Timeshare Resort Group of Florida, and a 289-room Westin luxury hotel proposed by S.D. Malkin Properties of San Diego.

The Malkin project on two downtown blocks also would have a 47-room boutique hotel and 48 time-share units.

CityMark representatives could not be reached for comment yesterday.

Jane McVey, city director of economic development and redevelopment, said she expects the processing and environmental review of the project to take more than a year, with groundbreaking possible in spring or summer of 2008 and completion in 2010.

McVey expects the project would be done in phases, block by block.

The project does not need approval of the state Coastal Commission, McVey said. Such approval often adds to the time needed for a project.

McVey said the application documents filled more than six boxes.

At the public meetings, architects presented plans for varying designs including mission, traditional brick, contemporary and “beach cottage.”

The corner of Pier View and Myers is to include a large open plaza.