Timeshare and the Economy

There is no doubt that the timeshare industry has a significant impact on the economy at regional, state, and national levels. The American Resort Development Association (ARDA), the national trade association that represents the vacation ownership and resort development industries, offers a detailed look at the direct and indirect ways in which the timeshare industry affects the economy through reports produced by its research arm, ARDA International Foundation (AIF). According to timeshare and the economyAIF’s most recent economic report, which is based on 2015 data, the timeshare industry provided:

522,782 jobs, an 8% increase over 2013

$28.1 billion in total labor income, a 19% increase over 2013

$79.5 billion in total U.S. economic output 

$10 billion in total spending by timeshare vacationers, 34% onside and 66% offsite

$10.2 billion in total taxes, a 21% increase over 2013 – 59% federal, 20% state, and 21% local

As you can see from the data above, the timeshare industry plays a major role in consumer and business spending in the U.S. The industry provides various full- and part-time jobs including jobs on the resorts themselves, sales and marketing, corporate operations, construction of new resorts, renovation of existing resorts, and vacation spending. These jobs generate over $28 billion in salaries and wages, and more than $10 billion in tax revenue per year.

While the timeshare industry has clearly had a positive impact on the U.S. economy as a whole, the local economic benefits also are substantial, particularly in Florida, California, and South Carolina, the three states with the most resorts, representing roughly 38% of all U.S. timeshare resorts. During their vacation stays, timeshare owners and guests spend money onsite at the resorts as well as offsite in the communities where the timeshare resorts are located. According to the Economic Impact of the Timeshare Industry on the U.S. Economy, 2012 Edition, cited in an article by the University of Central Florida’s media platform UCF Today, “timeshare visitors spent an average of $1,785 per travel party during their vacations in Orlando in 2011. Based on this spending level and an estimated number of travel parties, visitors spent an estimated $363 million at Orlando area timeshare resorts in 2011 and $1.3 billion at other businesses (outside of timeshare resorts), totaling $1.6 billion in consumer spending.”

If these numbers are any indication, we will continue to see a positive economic trend as it relates to the timeshare industry in the years to come.

Club Wyndham Desert Blue Access

We received the following submission from one of our users about their experience with Club Wyndham:

club wyndham “WOW! What a smooth talking, very likeable guy at Desert Blue in Las Vegas! We already have TWO timeshares, totaling 308,000 points that we rarely used, and somehow, this man talked us into buying an ADDITIONAL 154,000 points by telling us that our timeshare needed updating, we were paying too much in interest, we could rent our points for maintenance…blah blah blah. I am still within the timeframe to rescind, and probably will.

HOWEVER, I have 3 nights booked in Vegas in May. If I rescind, do I loose ALL my timeshare, or only the new contract? Does it revert back to the old stuff? Will they cancel my reservation? I have 8 people depending on that trip. I had already used this years points, and had borrowed 35,000 from next year, but if I get to keep the old, I still have enough to borrow from next year for the trip in May. I don’t really want to lose the old one, because its almost paid for.

I know without a doubt, that if we don’t rescind, we will not be able to keep up. Oh…and rent?? Forget it. They can get places in Vegas for CHEAP…through unscrupulous places that sell timeshares.”

RCI Cancellation Policy Experience

We received the following submission from one of our users regarding their experience with RCI:RCI cancellation policy

“I am very disappointed with their program. I was really looking forward to a vacation I booked in March 2016 for December 2016 but had an emergency with my son and he was hospitalized. So of course we have to cancel our vacation. We could not re-book, receive any of our money back or get some kind of RCI credit for future use. It really is sad that they would just take $500 plus dollars for something our family could not use after all because of a serious accident.

-Very disappointed member”

Anyone else have a similar experience with RCI or other timeshare exchange programs? What do you believe these companies should do in the event of a cancellation? Tell us about it!