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.

What to Expect at a Timeshare Presentation

Going in we are not really sure what to expect at a timeshare presentation. With a little knowledge and a lot of truth-telling, we EASILY survived a timeshare presentation! Granted, we spent a sleepless night beforehand worrying about the upcoming event and imagining our 10 year old becoming unglued. We strategized, planned and IT WORKED.

TIP #1

Do not lie.

Don’t lie about your income, don’t lie about your profession, traveling habits or anything else. You don’t need to. There is no obligation to buy. As such, you can be honest. It relieves stress not to lie. You also don’t need to lie about your level of interest. Presentations are done by nice people : they will pair you up with someone you could relate to – if you are 50-something loner, they’ll send a young thing to get your juices flowing; do not fall for that 😀
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Westgate Planet Hollywood Lawsuit

On February 10, 2014, a Federal Court in Las Vegas, Nevada, will hear testimony from Westgate Resort owners seeking justice.

Fuoroli v. Westgate Planet Hollywood Las Vegas, LLC (link to court docs)

From the official court documents:

Plaintiffs allege that Westgate made the following misrepresentations in the timeshare sales negotiations:

the property would be a pet friendly environment (doc. # 1 at ¶ 21), when in fact it is not (id. at ¶ 22);
daily maid service would be included (id. at ¶ 19), when the purchase included only weekly cleaning (id. at ¶ 20);
the timeshare would book a fixed unit during New Year’s Eve each year (id. at ¶ 23), when in reality the plaintiffs were purchasing neither a fixed unit nor the right to reserve any unit on New Year’s Eve (id. at ¶ 25).

Plaintiffs also contend that Westgate made false and misleading statements with regard to all of the following: the cancellation period for timeshares under Nevada law (id. at ¶ 35); the financing package used to purchase the timeshare (id. at ¶¶ 36–44); and, the completion date of the hotel (id. at ¶ 47).

From these facts, plaintiffs have alleged seven claims for relief. Ultimately, plaintiffs contend that “the contract drafted and presented by Defendants was materially different than the terms upon which Plaintiffs and Defendants had agreed during the sales presentation, [and] there was no meeting of the minds as to the terms of the purchase contract signed by Plaintiff[s] and, therefore, no contract was formed….” (Id. at ¶ 26)

After 5 years, this suit is finally going to be heard. The case starts at 9 am, and anyone can attend if they wish.

All eyes will be on the Nevada court to see how this class action lawsuit against Westgate is handled, as it is sure to set a precedent for other timeshare cases.
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