1201 15th Street NW, Suite 400 Washington, DC 20005

Transcription

1201 15th Street NW, Suite 400
Washington, D.C. 20005
202/371-6700
www.arda.org
2 • ARDA • 40th Anniversary • 1969-2009
ARDA’s 40th Anniversary
1969-2009
Supplement to Developments
Acknowledgments
Developments magazine brings you this special ARDA
40th Anniversary edition to celebrate the industry and
each individual who has helped shape our successes and
experiences over the years. This work would not have been
possible without the assistance of freelance writer, Christina
Wells, to whom nearly all of the pieces are attributed.
Thank you to the 40th Anniversary Chair Shelly Ginsburg,
RRP, for his leadership and guidance over this past year.
Most of all, a special thank-you to the AIF department,
Executive Vice President Darla Zanini, RRP, and Education
Manager Anna Chongpinitchai, ARP—without their
assistance in capturing countless hours of video
interview footage and then overseeing what final content
should be included, this project would have been
impossible. ARDA’s Senior Vice President of Special
Projects Stephany Madsen, RRP, offered valuable insight,
too, as she’s been here throughout the industry’s entire
development.
“We stand on the shoulders of giants.” This fact is obvious
in the collective memories and wisdom we have gathered
over the years. Numerous contributions from those whom
Christina interviewed and also separate pieces that
members submitted all come together in this one edition
to tell a wonderful story.
But, it’s not just a wonderful story—it’s a powerful timeline
of history that has brought us to where we are today and
will carry us well into the future. Many more heartfelt
experiences and video-clips are coming your way in a
gift DVD that will release at the 2009 ARDA Convention
in Orlando, and it will be available from ARDA throughout
the year.
I am honored to offer this 40th Anniversary piece and to be
with this industry at this point in time. Here’s to many more
wonderful years together.
—Kathryn Mullan, Editor, Developments magazine
Copyright 2009, American Resort Development Association (ARDA). All rights reserved.
Welcome
Forty years ago, two young HUD attorneys (William Ingersoll and Gary Terry) believed that the recently passed
Interstate Land Sales Act was a punishment to the land development industry because of the bad behavior of a
few. Many excellent and well-capitalized land developers’ businesses would be hurt by this legislation and needed
a voice to represent the industry’s interests before lawmakers.
With a little financial assistance and a lot of hard work and dedication, in 1969, the American Land Development
Association (ALDA) was born. Within a few years, ALDA was dominated by one of its Councils, the passionate and successful National Timesharing Council. By 1980, ALDA became American Resort and Recreation
Development Association (ARRDA), which then quickly morphed into ARDA. By its 20th anniversary, ARDA
truly became the collective voice of timeshare with the birth of ARDA-ROC (resort owners’ coalition), giving
timeshare purchasers a voice in the association’s advocacy.
At the heart of our association has always been and always will be the ability to come together to make a difference and really shape our future. What began as an intimate, twice-yearly set of meetings has grown into a large,
respected annual travel and real estate convention with a 2008 attendance of nearly 4,000 people, and an annual
fall leadership conference with the 400 most active members doing the important work: the governing board and
committee work of the association.
The once-fledgling industry association has grown to become the advocacy engine not only for the resort
development industry but also for the ability of families to enjoy better vacationing with all the protections of real
estate ownership. In the United States alone, the business of timeshare now represents billions of dollars in sales
revenue and ten times that in indirect economic impact. ARDA has become a formidable presence on Capitol
Hill, successfully lobbying to ensure the interests of timeshare developers, governing homeowners associations,
and the actual timeshare consumers.
As chair of the 40th Anniversary Committee and your association CEO respectively, we invite you to join us
on this trip down memory lane, as we reflect on the past 40 years of an industry and its gatherings, hear from
the pioneers who paved the way for success, and take what we’ve learned with a look toward the future. The
backbone of this industry is the entrepreneurial nature of the people working in it, and this is what gives us
great confidence in what’s to come.
Sincerely,
Sheldon H. Ginsburg, RRP
Chair, ARDA 40th Anniversary Committee
Chairman, Shell Vacations, LLC
Howard C. Nusbaum, RRP
President and CEO, ARDA
1969-2009 • 40th Anniversary • ARDA • 1
A R DA’ s 4 0 th A n n i v e r s a r y • 1 9 6 9 - 2 0 0 9
Contents
3
Trivia Quiz
4
Vacation Ownership: Through History’s Looking Glass
10
Industry Timeline: Timeshare Milestones at a Glance
12
Familiar Faces: Then & Now
14
Did You Know?
15
Notepage: Convention Memory Quotes
16
Owner Talk: Timeshare — Why Then, Why Now
18 Why Did Timeshare Succeed?
18 Highlights of Legislative Issues
20
Snapshot: Industry Experts Look Ahead
1
ARDA has been known by several names
since its inception 40 years ago. What was
the original name of our trade association?
2
What year did Marriott enter the
timeshare business?
3
What mountain range served as home to the
first timeshare resort?
4
RCI, the world’s first vacation exchange
company, was founded in what year?
5
What was the name of the legislation adopted
by ARDA in 1983, upon which many states
based all or part of their timeshare legislation?
Who was the first woman to serve on ARDA’s
Board of Directors?
7
What band has never headlined at an Interval
International convention party?
10
An accountant and a lawyer launched Interval
International in 1976. What were their names?
11
How many member companies does
ARDA have?
12
a. The Doobie Brothers
b. Hall & Oates
c. Fleetwood Mac
d. Chicago
a. Nearly 1,000
b. Nearly 450
c. Nearly 625
d. Nearly 850
U.S. timeshare sales surpassed what number
in 2007?
a. $10 billion
b. $7 billion
c. $3 billion
d. $8 billion
13
What hotel will host the 2009 ARDA
Annual Convention?
14
This gentleman was a founder of ARDA and
served as its first President.
15
True or false: ARDA’s initial role in the
timeshare industry was a lobbyist organization.
q True q False
In what year did Dick Ragatz present ARDA’s
first industry-specific research?
a. 1978
b. 1981
c. 1984
d. 1986
Answers
1. American Land Development Association
2. 1984
3. The Swiss Alps
4. 1974
5. Model Timeshare Act
6. Christel DeHaan
7. c. Fleetwood Mac
8. a. 1978
9. Deborah L. Linden (1993-1995)
10. Mario F. Rodriquez and Thomas J. Davis
11. a. Nearly 1,000
12. a. $10 billion
13. Orlando World Center Marriott
14. Gary Terry
15. True.
Who was ARDA’s first female Chairperson?
6
8
9
Trivia Quiz
You’re
in the vacation ownership industry, but are you well versed in its
history? Here’s your chance to find out. These 15 questions will
take you back a few years. Good luck!
Vacation Ownership:
Through History’s
Glass
by Christina Wells
F
orty-six years ago, timesharing made its
global debut in the form of a 13-unit ski
resort in the Swiss Alps. The developer’s name
was Hapimag, and this was the start of something
big. There are now 1,641 timeshare resorts in
the United States, generating timeshare sales
of $10.6 billion (in 2007). Currently, 6.5
million timeshare intervals are owned by 4.7
million households in this country (based on
most recent research figures). The industry has
come a long way.
This is the story of how vacation
ownership’s humble origins morphed
into a thriving industry. Here’s a
look back in time through the lens of
experience and lessons learned that
have built what is now ARDA and
today’s industry.
g The Early Years
Timeshare’s origins are rooted
in the affluence of post-World War II
America, which produced a population
in possession of the time and money to
be on the move. An expanding economy
fueled the development of vacation
homes and condominiums in a variety
of tourist destinations. Construction of
these projects proved highly profitable
and, unfortunately, attracted a number of
less-than-ethical land developers.
In reply, the government stepped in
to get some of these early business
entrepreneurs in line.
In 1968, Congress passed the
Interstate Land Sales Disclosure Act to
correct abuses in the interstate land sales
industry. This act required developers
of subdivisions with more than 50 lots
to register with the U.S. Department of
Housing and Urban Development and
provide buyers with a property report as
part of the sales process.
The mid-70s were marked by a
real estate recession in the
United States. Banks were
faced with numerous
overbuilt condominium
projects, primarily on
Florida’s coastlines.
Project conversions
turned these condos
into timeshare resorts and the U.S.
vacation ownership business had its
start. Unfortunately, this new industry
attracted some unsavory land developers
from the prior decade.
ARDA and an
Industry Come of Age
The latest research showcases
vacation ownership as a $10.6
“Like any fledgling industry,
we had image issues in the early
years,” agrees John Sweeney, RRP,
president of Global Resorts.
billion industry. Sales of the
George Donovan, RRP, says:
“[Timeshare] came to the United
States quite possibly for all the
wrong reasons because it was used
as a bailout for busted [condo]
projects. The lesson learned in
Europe and the lesson that applied
[here], was that this was a use
product, a fun product. It wasn’t
real estate but it was real estate,
and people weren’t buying it for
that reason. We had a lot of hard
work in front of us because it…
wasn’t an investment.”
in that time. We now have more
At times, timeshare’s
early years were marked
by desperation. The
challenges were often
overwhelming. Most
consumers did not
understand the product.
Aggressive sales and
marketing practices,
along with
product are up 66 percent since
2003 and the average size of a
resort has grown by 32 percent
than 1,600 timeshare resorts in
the United States enjoyed by 4.7
million owner households. These
are big numbers for an industry
with humble, and at times,
troubled origins. We’ve come a
long way since ARDA’s inception
40 years ago. Long-time ARDA
members take a look back at
the business and the trade
association that represents it.
“At the fall 1975 ALDA conference, Innisfree
and Carl Berry sponsored a timesharing
hospitality suite. Only Carl Burlingame, Gary
Terry, Jon DeHaan and I showed up. Carl and
Jon—after a few Scotches—pushed a reluctant
Gary Terry to have the association focus on
timesharing. It was the right push.”
Christel DeHaan
Christel House
. I’ve
ization
n
a
g
r
o
30
an
try for
red as
s
u
u
t
d
a
in
m
has
t of
in the
“ARDA
has a lo
clients
it
g
d
in
t
n
n
a
for
prese
growth
ilitator
c
e
a
h
f
t
been re
a
n
e
e
DA is
o I’ve s
ore. AR
m
years s
r
o
f
l
ess.”
otentia
ur busin
good p
o
f
o
h
growt
future
aka
ll Iman
moto
Mitche
o & Fuji
d
u
K
a
Imanak
“I went to my first ALDA meeting in 1969. We
were all in the land development business at that
time. We had image issues in the early years. We
overcame a lot of those. The brands came behind
the legislation and brought credibility with them.
Regulation was our blessing, not our doom.”
John Sweeney
Global Resorts
hallm “Consum
ar
e
must ks of our r protect
ion is
have
prod
u
o
the s
indu
stry,
ame ct. New p ne of the
we s
c
r
o
o
nsu
du
tuck
to ou mer pro cts today
John
t
r
e
c
princ
Bu
iples tion. As a
Hyatt rlingame
.”
n
Vaca
tion
Own
ershi
p, Inc
.
of people out
“In those early days, there were a lot
tactics tarnished
of the land business. Some of their
were unsure or
the industry name. To consumers who
lity companies
skeptical, the entrance of the hospita
helped legitimize the industry.”
Don Dubin
Welk Resorts
tales of under-capitalized developers,
turned off those who did.
Industry participants were hampered
by the lack of established operating
processes and pricing models, as well as
a long list of legal obstacles. There was
a constant struggle to find skilled sales
professionals. Marketing abuses attracted
the well-deserved wrath of legislators.
Financing was difficult to find. And
of course, the exorbitant cost of lead
generation brought some developers to
their knees.
There were any number of reasons
to give up, but timeshare’s pioneers
never did.
g The Turnaround
There was a period of time when
it was unclear whether the industry
would survive. One reason it did was the
willingness of its participants to come
together on issues of common concern.
The efforts to establish a legislative
framework that protected consumers
while allowing legitimate developers
to prosper serves as an excellent
example. ARDA played a pivotal role
in this process.
“ARDA has been hugely
influential in the legislative arena,”
says Keith Trowbridge, president
and owner of Executive Quest.
“Our trade association has lobbied
for the enactment of good vacation
ownership laws and stopped laws
that would be detrimental to
our business.”
“Some of my best memories of the
industry go back to the early days,
when as the newly hired director
of regulatory affairs for Interval, I
was part of the group that worked
on drafting the Model Timeshare
Act,” says Craig M. Nash, chairman,
president, and chief executive officer
of Interval Leisure Group. “It may
seem hard to believe today, but back
then, state congressional candidates
and attorneys general actually ran
on platforms to ban timeshare
completely. But through our work
with ARDA, we were able to build
credibility, as well as the foundation
for future timeshare laws.”
The 1983 Model Timeshare Act
was a pivotal moment for the industry.
Provisions of this Model Act can be
found in many state statutes throughout
the country.
“The Model Timeshare Act
played an important role in forming
a foundation of credibility from
which ARDA has been able to
approach legislators and regulators
and educate them about our industry,
its legal and public policy needs
and issues, and its commitment to
consumer protection,” says Rob
Webb, partner, Baker Hostetler
LLP. (See p. 18 for a full list of
timeshare legislation over the
last 40 years.)
industry,” says Webb. “Without
ARDA, our industry would not be
anywhere near where it is today. In
fact, this industry probably would
not exist if we did not have this
marketplace of ideas and focus
for action.”
Evolution continued as the vacation
ownership product itself began to
change. In 1974, RCI entered the
industry as the first exchange company.
Interval International followed in 1976.
Exchange added a huge level of flexibility
to the product in terms of both time
and location, responding to consumer
huge
has made a
ss
e
n
si
u
b
th
is
“Th
a lot of grow
n
e
e
b
’s
re
e
h
transition. T
for people
pportunities
o
e
g
u
h
d
n
a
of brands
he entrance
T
.
lf
e
ys
m
g
includin
acy. The
dustry legitim
in
d
ce
n
a
h
n
took the
has e
companies
se
e
th
f
o
n
t
participatio
s as to wha
ople’s mind
e
p
f
o
t
u
o
concern
”
as all about.
timeshare w
tler
J. Patrick Bu
ition
Club Acquis
Another critical step in enhancing
the credibility of vacation ownership
was the establishment of the industry’s
Code of Ethics in the 1980s. This
Code, sponsored by ARDA, served as a
statement by the industry that unethical
sales practices would not be tolerated.
“ARDA is the mechanism through
which we collaborate on legislative
issues and other matters of common
interest to the association and the
concerns about vacationing at the
same resort on the same week,
year after year. Now, vacation
owners could see the world
whenever they wanted.
“I remember presenting the first research on
the industry in 1978. Everybody in the room
had long hair, mustaches, and gold chains
around their necks. I was wearing a corduroy
coat with leather patches on the elbows. ARDA
conventions have always been marked by
sharing. We seek to share and understand what
others are doing. It’s not about ego but about
the true professionalism of a group of people.”
their vacation wanderlust,” says Group RCI’s CEO Geoff Ballotti.
Richard Ragatz
Ragatz and Associates
Industry transformation
continued as conversion projects
“Exchange was designed
were replaced by purpose-built
with two objectives in mind:
resorts. These properties often
to provide developers a unique
met or exceeded the standards of
marketing and sales tool, and
four-star hotels in terms of quality,
to offer variety and flexibility
space, and service. Another product
to condominium owners,” says
enhancement came in the form
Christel DeHaan, co-founder
of the floating-time alternative.
of RCI.
Owners were no longer locked
into a specific week and unit.
“The industry has changed
Points came on the scene next
and will continue to change,
adding even more flexibility. This
but exchange remains the glue
concept allowed redemption for
for timeshare owners
various types of accommodations,
to fulfill
resort locations, amenities, and
flexible days’ use, as well as
other travel services. Vacation
ownership was an increasingly
ss.
usine
b
s
sophisticated industry.
u
e
r
o
i
a
infect
imesh
t
y
r
t
e
u
“All of us knew that, at the
v
o
a
est ab r 30 years,
ing is
b
r
a
e
k
h
i
end
of the day, the product
s
l
e
“Time me what I
for ov nt point
d
e
v
l
had to stand on its own,” says
invo
e ask
iteme
Peopl
stayed om an exc
am
r
e
Franz Hanning, president &
g
v
’
o
I
r
hy
. Fr
nd a p of our
a
and w two things
t
c
CEO of Wyndham Vacation
u
is
a prod es the lives
e
t
I
a
t
Ownership. “At Fairfield,
and it
e
a
r
v
, we c ially impro
n is th the
o
w
s
e
i
a
v
e
we were relentless in
nt
of
y on
ther r
ubsta
The o
is trul
.
s
g
l
our efforts to make the
that s
r
n
a
i
e
i
r
r
m
a
reneu
custo
mesh
p
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t
e
r
e
t
features and benefits
v
n
e
belie
f the
o
”
.
e
t
g
of our product the
n
ed
nme
enviro
r
best. From lock-off
ille
Bob M tt
units and a pointsMarrio
based club to
e
Leisur
W. J
our Presidential
ohn
D
unn
inventory, we
Stev
a
“I have b
een in th
e industry
for 40 ye
ars. It has
c
hanged
significan
tly in that
ti
me. At firs
the busin
t,
ess was 1
00 percen
and mark
t
sales
eting driv
en. Now
is more fo
th
e
re
cus on th
e opportu
to deliver
nity
what the
salespers
has prom
on
ised. We
seek to d
the dream
e
li
ver
that the c
ustomer h
about in
eard
the origin
al
90-minute
presentati
on.”
Sue Kelley
Shell Vaca
tions
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9
continue this pursuit.”Timeshare’s selfimprovement era set the stage for its most
significant seal of approval: the entrance
of the hospitality brands. Marriott
took the step first in 1984 with the
purchase of a Hilton Head development
company, American Resorts. Marriott’s
participation provided an instant and
significant shot of credibility. Wall Street
watched with interest, lenders wanted
in and consumers were increasingly
ready to buy. In many ways, timeshare
had arrived.
“The entrance of the hospitality
companies helped legitimize the
industry,” says Dubin.
“We moved from an industry
with developmental hiccups to an
industry that was respected and had
prestigious company participation,”
says Christel DeHaan.
“The brands gave independent
developers a vision of how they
can organize their operations
and intellectual property into
quintessential timeshare brands,
which companies like Island One
Resorts, Orange Lake Country
Club [now Holiday Inn Club
Vacations/ Orange Lake Resorts]
and Shell Vacations have done very
successfully,” says Webb.
In the 90s, consumer demands
drove additional change. Fractionals and
private residence clubs made their debut,
as did vacation clubs of various forms.
With these luxury-tier products, owners
typically purchase accommodations with
related use rights in increments of more
than two weeks and sometimes as long
as three months. This type of ownership
is almost always deeded and offers an
affordable alternative to a second home. Deborah Linden, RRP, CEO of
Island One Resorts, notes: “Timeshare is
a great product that has evolved alongside
people’s vacationing needs—and that
makes it very easy for us to achieve
even greater things. We’ve touched
millions of lives—encompassing
several generations. We’ve opened
up a world of travel and escalated
people’s lifestyles. We will continue
to develop even more amazing
products and services that make
the timeshare industry stand
head and shoulders above the
rest in the leisure industry.”
“The continued
evolution of the
timeshare product,
even in today’s tough
economy is a direct indication
of strong consumer
satisfaction,” says
Howard Nusbaum, ARDA
president and CEO.
“Vacation ownership,
with its flexibility
and spacious accommodations,
continues to be a preferred travel
choice for millions of families.”
“The
indus re would
try
not b
eat
prosp today a
imes
n
ered,
d we
ha
i
ARD
w
f
i
o
t
uld n ring
had
A. [F
n
o
i
o
th
rst p
t bee
very
resid
n for ave
devo
e
n
u
A
t
]
t
LDA,
highe
Gary
perso
n
rr
[Terr
n
y] wa ow
rules oad, lead , and he
s
a
and
regu ing to ha lways to a
lation
ok th
ving
the n
e
s.”
Jon D
ecess
eHaa
ary
n
RCI,
co-fo
unde
r
g The Big Time
This year marks ARDA’s
40th anniversary. The rise of the
timesharing industry and the trade
association that represents it makes for
an impressive tale. While the numbers
tell a great story, many feel the best is
yet to come.
Since 2003, sales have seen
compounded annual growth of 13
percent. In that period, compounded
annual growth rates for sales price and
average resort size grew by six and seven
percent, respectively. Globally, there are
more than 5,000 timeshare resorts in
100 countries. And, of course, last
April nearly 4,000 attendees gathered
in Las Vegas for ARDA’s Annual
Convention. Now is the time to invent
the next 40 years!
“My first ALDA conference was in
1972, and I’ve attended almost every
one since. I was on the ARDA Board for
17 years, chair of the National Timeshare
Council, chairman of ARDA, and also
chair of various committees. This is to
demonstrate that I have great affection for
the organization, and I’ve seen it grow and
serve its members over the past 36 years.”
Carl G. Berry
Star Resort Group
Industry Timeline:
Timeshare
Milestones
at a Glance
In 1963, a developer named Hapimag built a
13-unit resort in Graubuenden, Switzerland.
This modest venture marked the inception
of the vacation ownership industry. Today,
timeshare stands as a $10.6 billion hospitality
giant. The industry’s nearly half-century
evolution includes a number of benchmarks
and milestones.
(Industry Trends, courtesy copyright of RCI University)
1960s
1963 – The first timeshare resort is built
in Switzerland—Hapimag’s Sut Baselgia
Resort, with 13 units
Trends: In the ‘70’s
• Geographic expansion
•Exchange companies are formed
•Industry is unregulated
•Secondary lenders begin to finance receivables
• Tax-ruling in U.S. stalls right-to-use concept
•Emphasis on sales, not vacation experience
•Industry consists of small regional developers
1970s
•In spite of difficulties, industry continues
to grow—number of resorts jumps from 45
to 350, timeshare owners go from 10,000
to 200,000
1968 – Interstate Land Sales Full
Disclosure Act passed in Congress
1969 – The American Land Development
Association (ALDA) is established
1970 – The industry’s first national “land conference” takes place
1974 – RCI, the world’s first exchange company, opens
for business; the first U.S. points-based program, Vacation
Internationale, Ltd., is established; the first national timesharespecific conference is launched
1976 – ALDA creates the Resort Timesharing Council which
becomes known as the National Timesharing Council; Interval
International opens for business
1978 – Richard Ragatz publishes U.S. Resort Timeshare Purchasers:
Who They Are, Why They Buy; Developments magazine is launched
In 1983, Marriott Corporation
was attracted to the
timesharing business by
American Resorts Corporation
and its Monarch at Sea Pines
Resort development at Sea Pines Plantation, Hilton Head Island,
SC. Monarch Resort had won four national awards in 1982 and
1983 for excellence in design, hospitality, and sales and marketing,
which attracted Marriott’s attention and led them to purchase
American Resorts. [Photo: Monarch at Sea Pines
receiving the National Nurserymen’s Award presented
by Nancy Reagan in the Rose Garden at the White
House. Receiving the award are founders of
American Resorts: Bob Miller, senior vice president
and chief financial officer (left), and Ed McMullen,
Sr., president.
1981 – Floating-time concept is introduced; regulators
establish rescission, disclosure, and escrow requirements
1982/83 – First purpose-built timeshare, American Resorts
1985 – ALDA becomes American Resort & Residential
Development Association (ARRDA); ARRDA helps organize
new association, AMDETUR, for resort developers in Mexico;
$1.0 billion in U.S. sales
1982 – International Foundation for Timeshare begin
1987 – First research study on fractionals is published
1983 – The Model Timeshare Act is adopted; ARDA-Florida
begins to form
1988 – ARRDA Education Institute (AEI) is created,
offering qualification and exam to award professional
designations; United States has approximately 1050
resorts, Europe has 450
1984 – Marriott becomes the first hospitality brand to
enter the vacation ownership industry; fractional sales
are introduced
1989 – ARRDA becomes American Resort Development
Association (ARDA); Resales Model Act passed
1980s
• Conversion of hundreds of
wholly owned condominiums
•Regulators require
consumer protection
• Average size of resorts increases,
scope of amenities increases
•Rise in purpose-built resorts
• “Floating time” offers new flexibility
• ARDA-Florida is formed
• First major hotelier entrant: Marriott
•Number of timeshare resorts
increases 400%
• Fallout due to recession/
image suffers
• Fractionals emerge and first
fractional research studies published
•Number of timeshare owners
increases 300%
• First urban timeshares – New
Orleans, San Francisco, London
•Industry surpasses one
million owners
•Sales volume increases 500%
Familiar Faces:
Craig M. Nash
Chairman/CEO
Interval Leisure Group
• Most major hoteliers enter or consider entry to
the industry
•Image begins to improve; marketing and sales
techniques improve
• ARDA actively forming state and regional
groups to foster grassroots action in legislative
arena (ARDA-Arizona, ARDA-California, ARDACarolinas, ARDA-Hawaii, ARDA-New England,
ARDA-Rocky Mtns, ARDA-Wisconsin)
• Product standards focus on vacation experience
•Increased use of clubs and points
• Major geographic growth
1990s
•Europe attempts to introduce self-regulation,
E.U. Directive
•South America experiences tremendous growth
Deborah L. Linden, RPP
President/CEO
Island One Resorts
Harry E. McCoy II, RRP
Senior Counsel
Ballard Spahr Andrews &
Ingersoll, LLP
1990 – The timeshare industry is growing at a rate of 15 percent
annually; $1.2 billion in U.S. sales; International Foundation for
Timesharing publishes first research study on the international
resort timesharing industry
1994 – The Model Vacation Club Act is adopted
1995 – The Vacation Club Model Act of 1995 is enacted; $1.9
billion in U.S. sales
Then & Now
J.P. Ottino III, RRP
Vice President, Corporate Development
The Berkley Group
John M. Burlingame, RRP
Senior Vice President
Hyatt Vacation Ownership, Inc.
2000 –$4.1 billion in U.S. sales; RCI launches its global
points-based exchange system
2001 – Organization for Timeshare in Europe releases first
study of timeshare in Europe
2005 – $8.6 billion in U.S. sales
2007 – $10.6 billion in U.S. sales; there are 1,641
timeshare resorts in the United States with 6.5 million
intervals owned by 4.7 million owner households
2009 – ARDA celebrates its 40th Anniversary!
2000s
Trends: In the 2000s
• Worldwide: over 6,000 timeshare resorts now exist and
approximately 6.2 million timeshare owners
•Impact of September 11th
• Consolidation and diminishing growth of entrepreneurial
small developers; many developers looking toward
international expansion
• Continued growth of points and clubs
• Growth of high-end fractional product
• Last of the top major hoteliers (IHG) creates marketing
alliance with timeshare company
Know
Did You
g In 1963, the first vacation
ownership resort was built
in Switzerland.
g ARDA’s first national conference
took place in 1970, under the
American Land Development
Association (ALDA) name.
g New Orleans hosted one of the
g From 2001 through 2008, the
ARDA International Foundation
has invested over $3 million in
industry research.
g Close to one quarter of all U.S.
timeshare resorts are located
in Florida.
g Ninety-nine percent of timeshare
resorts in the United States are
affiliated with Interval International
or Group RCI.
first urban timeshare resorts in
the United States.
g Developments magazine was
launched in 1978.
g The 2008 Annual Convention
Exchange Company Contributions
attracted nearly 4,000 attendees.
g There are more than 1,600 times-
hare resorts in the United States.
g ARDA has close to 1,000
g There are 4.7 million owner
households in the United States.
g There are 6.5 million timeshare
intervals owned in the United States.
g It is estimated that 8,000 new
timeshare units were built in 2008.
g More than half a million timeshare
intervals were sold in 2007.
g The average sales price of an
interval unit in 2007 was $19, 216.
g The industry is running at an
80-percent occupancy rate.
corporate members.
1976 – RCI goes international, opening an office in Mexico
1977 – Interval has 60 affiliated resorts and 10,000 members;
RCI automates exchange
1980 – Interval has 80,000 members and 250 resorts;
Interval installs an IBM computer; both Interval and RCI
install toll-free lines
1982 – RCI confirms more than 54,000 exchanges and
has 682 resort affiliates
1996 – Interval celebrates its 20th anniversary and services a
membership approaching 700,000
1999 – Interval welcomes its one-millionth member
2000 – RCI launches its global points-based exchange system
2002 – Approximately 851,500 timeshare intervals sold; RCI
reaches the three-million member mark
2003 – More than 3.3. million timeshare exchanges
are recorded
1984 – Interval hits the 500-member mark
2005 – IAC/InterActiveCorp acquires Interval International
1985 – RCI has 1,000 resort affiliates
1987 – RCI confirms 300,000 exchanges
1989 – Interval goes international opening offices in Europe,
Asia and Latin America; RCI has one million member families
1994 – More than 1.6 million timeshare exchanges are
recorded; RCI celebrates 20 years of exchange
1995 – RCI has two million member families
2006 – At its 30th anniversary mark, Interval has a
membership base of 1.8 million; Group RCI becomes part of
Wyndham Worldwide
2007 – RCI membership reaches nearly 3.7 million with 4,000
resorts in 160 countries
2009 – RCI celebrates its 35th Anniversary
ARDA Conventions:
Thoughts and Memories
We are not sure of the date of our
first American Land Development
Association (ALDA) convention, but
it preceded Gary Terry’s tenure. It was
held in a small hotel in Florida. There
were fifty people and no exhibits.
Barbara and David Nelson
Sea & Ski International
I attended my first timeshare conference
at Bal Harbour in December 1980. I was
impressed by the people I met at my first
timeshare meeting–they were committed
to a revolutionary way to deliver incredible
vacations. This network of people evolved
into a professional family that has grown
tremendously over the past three decades.
Deborah Linden, RRP
Island One Resorts
What I remember most is how many
industry leaders helped me when I got
into this industry. Deb Linden, Perry
Snyderman, Jeff Adler, Rip Gellein, Bob
Miller - these individuals spent time
with me and showed me their resorts
and projects. I am very grateful to them.
There is a willingness to be friends as
well as competitors in this industry.
John Burlingame, RRP
Hyatt Vacation Ownership
Every spring, thousands of vacation ownership
professionals gather for ARDA’s annual convention.
Some of these individuals have been doing so for
decades. Here, members offer their thoughts on the
event and share favorite memories.
I remember men smoking Marlboros.
People have BlackBerrys in their hands
now, but back then, it was cigarettes
and cigars. I was the second woman
after Christel DeHaan to serve on
ARDA’s Board. At my first meeting, the
cigar smoke made me nauseous and I
excused myself 45 minutes into it.
Things have really changed.
Merilee Elliott, IIDA
Merilee Elliott Interiors
My journey with ARDA started at ALDA. Then,
in 1980, as a young attorney, I was first given
the opportunity to discuss issues in front of
approximately 500 hundred attendees. It was
with ARDA I was able to begin interacting with
the early legal brain power of our industry—
people like Stuart Bloch, Bill Ingersoll, Harry
McCoy, Perry Snyderman, and others. And
it was with ARDA I found a forum that has
helped me develop my legal career assisting
resort clients with development of innovative
products, advancement of their ideas, and
growth of their businesses. Over all my years
and beyond, no other organization could have
(nor has) offered as much to me personally
and to our resort industry.
The conventions are invaluable for
me, as someone in the industry but in
Hawaii, it is the once a year opportunity
to get together and learn what everyone
else is doing on the mainland. It is
great to just catch up with friends
established over the years. Conventions
are a very important part of my ability,
but also for companies’ ability to
grow in the business.
Mark Wang
Hilton Grand Vacations Club
James J. Scavo
Weinstock & Scavo, P.C.
You have a great time at
conventions, whether you’re breakdancing at an Interval International
party or just experiencing the
camaraderie that exists within the
industry. The ARDA convention is
homecoming week for me.
Collin Knight
Fairmont Resort Properties
Owners Talk:
Timeshare—Why Then, Why Now
They saw, they bought, they enjoy. We talked to 10 timeshare families,
some of whom have owned for decades. We asked them two questions:
(1) “Why did you buy then?”
(2) “Why do you continue to be a vacation owner?”
Here are the many testimonies they have, which only confirm
the lasting value proposition of timeshare over the last 40 years
that will carry well into the future.
We bought our first timeshare in Pennsylvania’s Pocono
Mountains in 1978, just as we were planning to have a
family. The purchase was less expensive than buying a
second home and ensured that we would take an annual
vacation. Later, we bought two more weeks in the Poconos
and a week at The Trapp Family Lodge in Stowe, Vermont.
We own four weeks now and will give each of our children a
week as a legacy.
We have owned timeshare in Mexico, the Bahamas,
California, and Colorado. We bought to exchange and travel
all over the world. That’s exactly what we have done: we
have been to Portugal, Spain, the Canary Islands, Martha’s
Vineyard, Montana, Virginia, West Virginia, Orlando,
Sanibel Island, Canada, and Colorado.
Thelma and George Dowiak, owners since 1980
Valerie and Richard Traumer,
owners since 1978
I bought timeshare to lock in my vacation expense in
a preferred destination. The purchases—we own at four
different resorts—allowed my family to spend time in a
scenic area offering neighborhood activities that were
within driving distance of our home.
We own multiple weeks in California, Puerta Vallarta, and
Hawaii. Our purchases forced us to take a vacation every
year and allowed us to go to different places. I added up the
purchase price and maintenance
fees for each of our timeshares.
California costs us $700 a year,
Mexico totals $400 a year, and
Hawaii is $700 a year. I could
not go on this type of vacation
(discounting airfare) for that
amount of money any other way. I
would buy all over again, even at
today’s prices.
Robert Weir, owner since 1981
Our annual vacation time at Tortuga
Beach Club on Sanibel Island is a
favorite family tradition. Initially, our
three daughters joined us as youngsters.
Now they all come with their husbands
and children. An important factor is that
there are no unknowns. After all these
years, the quality of the resort and its
management remains high.
Richard Canale,
owner since 1979
The Shep fam
Sheldon and Pneena-Pearl Sheps,
owners since 1982
ily
I love dreaming about the possibilities of the best
vacations—owning a timeshare allows for a world of
opportunities. We can literally go anywhere we want.
We can take whatever type of vacation we desire. We can
stay and enjoy the Naples beach and dine at our favorite
restaurants, or we can explore a location that we have only
heard about distantly.
Karin Reinbold, owner since 1988
We bought two timeshares on Kauai so we could spend
two weeks in “paradise”. We almost always have friends or
family join us in Hawaii. We wouldn’t vacation any other
way. We have spacious units that sleep four to six people,
with a full kitchen. We keep going back every other year; we
both love Kauai and consider it our home away from home.
This year, my wife and I celebrated two very special
anniversaries: first, 40 years of marriage, and second
(almost as significant), 18 years of being owners at
Orange Lake.
Many changes have taken place during the course of the
past 18 years. Our teenage children, who always loved
our vacations at Orange Lake, are now married, and we
have two grandsons. Once again, excitement builds as we
prepare for our now annual “trek” to Orange Lake, our
second home. Seven-year-old Tristan and five-year-old
Tyner are as excited as our adult son. During these 18 years, we have made exchanges
to various resorts throughout the United States and
Canada. We also made exchanges to Spain and the Canary
Islands. Every exchange became a terrific
memory, but none can compare to the
location, amenities, facilities, and
courteous service of Orange Lake.
To celebrate our 18th anniversary,
my wife and I granted co-ownership
to our son, David, as we jointly
purchased a week at Orange
Lake, Vermont. This purchase
not only guaranteed that one
day David would have complete
ownership but also assured us
that our grandsons would one
day
be
owners,
too. y
l
i
gg fam
a
l
F
e
Th
Frank and Brenda Bale, owners since 1990
Sandy and Bob Hart, owners since 1990
Clint and I spent our
honeymoon in Park City, Utah,
in 1996 and immediately bought
our first timeshare. We knew we
wanted to return every year. We
grew to owning three weeks so friends
and family could join us. In 2002, we
decided to purchase partial ownership
in a slope-side resort, the Deer Valley
Club, which is close to Park City. Clint
and I now own two sections of the partial
ownership, allowing us a month in the
winter and a month in the summer. We took a couples vacation to Cancun and came home
When we can’t use all of our time, we pass
timeshare owners at the Royal Sands
it on to friends and they have loved our piece
Resort. At first I thought we
of paradise as well. We prefer the partial
were nuts and what were
ownership because we are able to keep all of our
we doing? The following
skis and clothing at the resort. Resort staff picks
two years we brought back
us up at the airport, buys our groceries, makes
our three kids and other
dinner reservations, etc. Clint and I truly feel
families. The whole family
that we are away from it all, without the
loves being there, and we enjoy
hassles of weight restrictions on our luggage,
spending family time together.
lost luggage, spending time deciding what
Since then, Lee County (Florida)
to pack, and worrying about maintaining
changed the school dates, which
a home from afar. We can get on the plane
The Long
affected our vacation plans. It is
o family
with a toothbrush and be off skiing the same day. not easy for us to switch our week
The tranquil summers are a well-kept secret. We have
because the Sands is now sold
looked into full ownership many times, but we can’t beat
out. We do plan on using our timeshare to travel to different
the best of all worlds this type of membership provides us. places, but for now Cancun feels like our second home.
Marti and Clint Flagg, owners 1996-2002,
Reed and Cindy Longo, owners since 2005
fractional owners since 2002
They saw, they bought, they enjoy.
Succeed?
Why Did Timeshare
by Rob Webb, Partner, Baker Hostetler
by Robert J. Webb, Esq./RRP
I
started working with the timeshare industry as a
law clerk in 1978, when one of my firm’s clients,
Kent Tyus, started his plans to create Orlando
International Resort Club, the first purpose-built
timeshare resort in Orlando. Our other early timeshare clients
included Kemmons Wilson (Orange Lake Country Club) in 1981
and Deb Linden (Island One Resorts) in 1982. Our first branded
timeshare client was Marriott Ownership Resorts in 1984.
There were several huge challenges for the timeshare
industry in the late 70’s and the early 80’s. For every
adequately capitalized, professional developer in the business
at that time, there were five lightly capitalized and marginally
ethical developers looking to make a quick profit, with no
concern whatsoever about long-term fulfillment of consumer
vacation expectations. In contrast to the informed and supportive lenders of today,
most of the early timeshare lenders were savings and loan
associations. These associations were making questionable
loans without understanding the risks and were often governed
by their desire to liquidate accumulated defaulted condominium
unit inventory. The industry in 1980 had only a small fraction of the
hospitality expertise that exists in timesharing today and none
of the hospitality brands. There was no real regulation of the
timeshare industry until Florida adopted its initial timeshare
law in 1981—and even that effort was so inadequate to address
the industry’s problems that it had to be completely overhauled
in 1983.
Perhaps the greatest challenge that the industry faced
in its early days was a fundamental lack of confidence in the
product that was demonstrated by so many of the industry’s
marketing and sales programs. There were many timeshare
salespeople, who used insulting promotions and high-pressure
sales tactics, because they did not believe that the product
Legislative Issues That Shaped the Industry
compiled by Stephany A. Madsen, RRP, ARDA Senior Vice President of Special Projects
1968 – Federal Interstate Land Sales Full
Disclosure Act passed, resulting in the formation
of the American Land Development Association
(ALDA) in 1969.
1973 – ALDA influences major overhaul of
Interstate Land Sales regulations. SEC issues
guidelines on condo-hotels. A few ALDA members
hold a tiny timeshare meeting in Chicago.
1976 – New Hampshire amends its land sales
and condominium laws to regulate timesharing.
1977 – South Carolina enacts the first standalone timesharing act.
1978 – ALDA weighs in when Section 530 of the
Federal Revenue Act establishes standards for
sales people as “independent contractors.”
1980 – Hawaii enacts its timeshare law. Nebraska
enacts timeshare law based on the newly
adopted ALDA/NARELLO Model Timeshare Act.
ALDA works with IRS and Congress on second
home tax rules. Beginning this year, ALDA and
Interval International and RCI staff spend the next
six or so years flying around the country to modify
poorly proposed timeshare bills.
1981 – California, Florida, Tennessee, and Virginia
enact their first timeshare laws.
1982 – Arizona, Connecticut, and Minnesota
enact timeshare laws. ALDA works with the
National Conference of Commissioners on
Uniform State Laws to adopt the Uniform Real
Estate Time Sharing Act. Expanded Truth-inLending disclosures adopted.
1983 – Alabama, Arkansas, Colorado, Georgia,
Louisiana, Maryland, Michigan, Nevada, Oregon,
South Dakota, and Washington enact first
timeshare provisions. Florida enacts major, tough
amendments to its 1981 timeshare act.
1984 – Bankruptcy Amendments and Federal
Judgeship Act enacted with provisions to help
protect timeshare owners during bankruptcy
proceedings. The Bahamas, Idaho, Kentucky,
Mississippi, North Carolina, Pennsylvania,
Rhode Island, and West Virginia enact timeshare
amendments to existing law or entire new
timeshare laws.
1985 – Iowa, Illinois, Indiana, New York, and
Texas enact new timeshare laws or rules to
regulate timeshares. Hawaii tries to ban
timesharing for the fourth time.
1986 – In the Federal Tax Reform Act, ARRDA
helps preserve installment sales treatment for
itself was legitimate and wanted to fool prospective purchasers
long enough to at least pocket their cleared down payment. By contrast, so much of the success that the industry enjoys
today is reflected in the experience and professionalism of most
salespeople and their belief in the value of the products that
they sell.
Most businesses that struggle with these kinds of challenges
in their early years will fail without a doubt. So, why did
timeshare succeed? For a combination of reasons, in my
opinion.Timeshare succeeded in part because most of the early
customers who bought and used the product loved it, even while
hating the way it was sold and resenting the misrepresentations
that many of them received regarding the ability to rent their
weeks to cover their expenses and debt service. Timeshare
succeeded in part because RCI and Interval International
imposed standards on developers and resorts in their respective
exchange affiliation processes, long before the days of
meaningful state regulation. Timeshare succeeded in part because principled developers
and exchange companies across the country came together to
support and initiate strong consumer protection legislation
in the major resort and market states to protect the industry
and its customers. Timeshare succeeded in part because the industry
modified its products over time to meet consumer demands
for more choice and flexibility by including floating time,
point systems, multi-site vacation clubs, and access to
branded hotel loyalty programs. And lastly, timeshare succeeded in part because Bill
Ingersoll, Stu Bloch, Gary Terry, and a few other industry
pioneers founded the American Land Development Association
(ALDA) 40 years ago and—with a lot of help from a lot of
volunteers over the years—nurtured it to grow into the incredibly
effective industry trade association that ARDA is today.
timeshare, land sales, and camp resort developers
and full deductibility of second home mortgage
interest—virtually the only two positive real
estate provisions in that tax law. New Mexico
enacts its timeshare law. Ohio moves “foreign”
real estate regulation from the Securities to the
Real Estate Division. Vermont proposes to regulate
timeshares under its Securities Act.
1999 – Illinois works with ARDA to enact up
to date amendments to its 1985 timeshare
act, opening the door for other states to work
with ARDA to modernize and streamline their
timeshare laws.
1987 – Montana and Utah pass timeshare laws.
2001 – Arizona works with ARDA to substantially
revise and modernize its timesharing law.
Nevada works with ARDA to revise and enact
timeshare owners association provisions in the
timeshare act.
2007 – Successful amendment of tax legislation
and ordinances unfavorable to timeshare owners
in Tennessee and Washoe County, Nevada,
and defeated an unfavorable real property tax
interpretation in Missouri.
2002 – ARDA-Arizona works with state tax
assessors to enact real property valuation
standards for timesharing.
2008 – ARDA works with ARELLO to start the
ARELLO Timeshare Registry to use Web-based
technology to modernize and streamline the
state timeshare registration process. ARDA
obtains amendments to the Federal Foreclosure
Prevention Act, protecting timeshare developers
from drastically altering their traditional methods
of sales and financing.
1988 – Massachusetts and Wisconsin enact
timeshare laws.
1993 – Florida Vacation Club amendments
enacted, establishing standards for the structure
and registration of multi-site timeshare plans.
1994 – ARDA adopts its Model Vacation Club Act.
1997 – ARDA and ARDA-ROC* work hard to
support enactment of Sec. 966 of the Taxpayer
Relief Act, which permits timeshare owners
associations the same tax treatment as other
residential owners associations.
2000 – ARDA works with South Carolina
legislators to enact non-judicial foreclosure
legislation for timeshares.
2003 – ARDA works with Louisiana and South
Carolina to enact major amendments to the
states’ timeshare act.
2004 – ARDA works with California legislators
and regulators to enact the comprehensive
Vacation Ownership and Time-share Act.
2005 – ARDA works with Texas to pass
comprehensive amendments to the state’s 1985
timeshare act and also with Mississippi to adopt
revised timeshare rules.
2006 – ARDA works with New Jersey to enact a
modern, stand-alone timeshare act.
*2009 also marks the 20th Anniversary of ARDA-ROC, an important milestone for timeshare owners across the United States.
Snapshot:
L
Industry Experts
ook Ahead
by Christina Wells
So, what lies ahead for the timeshare
industry? Research and expert forecasting offer
this consensus: challenges exist we are wellpositioned for the future, as Baby Boomers hit
retirement age. Demographics are on our side.
The joy of ARDA’s 40th Anniversary is juxtaposed by the fear of the present global
recession and lack of liquidity in the markets. This situation may negatively color many
short-term views, but the long-term potential for vacation ownership is truly compelling.
Findings from the 2007 Ypartership/Yankelovich Inc. National Leisure Travel Monitor
also validate timeshare’s growth potential. The study revealed that 70 percent of U.S.
leisure travelers say they would like to go someplace they have never been before on their
next vacation. In addition, 90% of leisure travelers in the United States say they are aware
of the concept of timeshare, and 62% say that about vacation ownership. Both of these
numbers have grown significantly since 2000. Six percent of active leisure travelers are
interested in owning some form of timeshare in the next two years.
Another positive indicator is the fact that those who own, love the product.
With satisfaction ratings near 85%, timeshare owners want more. According to
PricewaterhouseCoopers Financial Performance 2008: A Survey of Timeshare &
Vacation Ownership Companies, 32.6% of new timeshare sales in the United States
were to existing owners, illustrating that vacation ownership continues to provide
accommodations and services that meet the leisure traveler needs.
“Our ability to maintain the success of the timeshare industry in today’s tough economy
will hinge on strong consumer satisfaction and demand,” says Howard Nusbaum,
ARDA president and CEO. “Vacation ownership, with its flexibility and spacious
accommodations, continues to be a preferred travel choice for U.S. families.”
The low penetration of qualified households in all markets indicates that 95% of the
marketplace still has huge potential.
“Market penetration is only about 4-6% in the United States, so it is still a growth
industry here,” says Edwin H. McMullen, Sr., senior partner, E.H McMullen &
Associates/Destiny M. “We are at less than one-percent penetration worldwide. The
brands will be in untapped markets first. Entrepreneurs have an opportunity in the
boutique markets. Globally, it will be the hotel story that occurred here all over again.”
Presidential
Perspective
“The timeshare business has proven to be and will remain an extremely resilient
earnings driver for all of us in this business,” says Geoff Ballotti, president and CEO
of Group RCI. “Growing international diversification overseas in markets like Asia
and the Middle East, where improving regulatory environments will continue to take
hold—these forces combined will continue to fuel the success and the growth of this
industry. While economies are cyclical and choices numerous for consumers, demand
will continue to increase for all of us who seek and develop new and creative lead
generation and sales and marketing concepts.”
And then there is the potential of the Internet. In the past, conventional wisdom
indicated that real estate would never be sold over the Internet because people had to
touch and see it in person before making a purchase.
“There are those who still believe this will always be the case, but I don’t,” says
Rob Webb, partner, Baker Hostetler. “I believe that the Internet has only achieved
a very small percentage of the overall purchase transactions that it will experience
over the next five to 10 years, and that a great deal of real estate will begin to move
“electronically.”
Webb points out that Realtor® multiple listing services are becoming increasingly
electronically accessible to more people. Project Web sites now provide complete real
estate information and virtual tours of accommodations and amenities. In addition,
sources of Internet financing appear to be growing faster than any other kind.
While opportunity exists, there are challenges confronting this industry. Several
have impacted vacation ownership since its inception more than 40 years ago.
“There continue to be good opportunities for the vacation ownership industry, both
traditional timeshare and fractional,” says John M. Burlingame, former chairman of
ARDA and executive vice president of Hyatt Vacation Ownership, Inc. “However,
once we get through the liquidity crisis, the biggest challenges facing the industry will
to be the high cost of lead generation, escalation in construction costs, and the lack of
high-quality entitled land.”
Other challenges include creating a more efficient and viable resale market, as well as
limiting the market opportunity for predatory resale companies through better owner
communication and action. Another challenge is attracting and developing new talent
in the industry. This must be addressed through improved education, partnerships with
colleges and universities, and other means.
“I think we can all agree that the ability to evolve is one of the great hallmarks of our
industry,” say Franz Hanning, president/CEO of Wyndham Vacation Ownership.
“We can’t say what the future will bring but we can remember how far we’ve come.
Change is definitely upon us and the time to embrace it is now.”
“Throughout our history, one of our greatest strengths as an industry has been the
ability to work in a collaborative fashion to overcome the challenges that we faced,”
says Craig M. Nash, chairman, president, and chief executive officer of Interval Leisure
Group. “With the tremendous member commitment and expertise that we have to draw
on, I believe there is no limit to what we can achieve in the next 40 years.”
by Howard Nusbaum, RRP
Putting together the material for the
40th Anniversary of ARDA has truly been a
wonderful process filled with discovery for
me, as someone who joined the industry
more recently (in 2000). Making new
connections from the past, learning the
sweet stories of a young industry finding
its bearings, and most of all, seeing the
passion of those who created this wonderful
vacation product and business.
At the same time that we were
documenting this unique and beautiful
history, the world as we know it changed.
The last quarter of 2008 was the height of
preparing this 40th Anniversary supplement,
and at the same time we were witnessing
a “new normal” as the credit markets
imploded, Wall Street melted down, and
a global recession took hold, offering
mounting sets of bad news daily.
Juxtaposing these entertaining stories of
the birth of an industry with the news that
has negatively impacted timeshare has been
ironic and dramatic. But, at the risk of being
overly optimistic, I must report that it was
comforting to know that the entrepreneurial
nature of our founding industry fathers
alongside today’s wonderful operators’ spirit
helped me keep sight of a really important
fact: timeshare developers are survivors—
the same people that developed this product
in the recession of the 1970s will recreate
the industry in this decade.
We have a wonderful vacation product
and a huge marketplace. Millions of baby
boomers are entering their leisure years
and the millions of others (Gen X, etc) that
follow are eager to “own their vacations”
and enjoy the benefits of better vacationing.
Our industry has a rich history of making
lemons out of lemonade. We will use the
same robust creative spirit as we reinvent
the industry business models, enhance
the vacation product, and serve a new
generation of Americans eager to answer
their wanderlust with vacation ownership.

1201 15th Street NW, Suite 400 Washington, DC 20005

Transcription

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