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 AIF’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.