What sort of impact do you think the timeshare industry has on the economy in the US? Does it matter? Of course. This vacation oriented industry creates jobs, contributes taxes, and generates economic activity that helps to keep the economy moving along. It can also be an indicator of how the nation’s economy is doing. Timeshare sales typically decline along with the economy and can be a predictor of growth and recovery as well.
“The U.S timeshare industry contributed an estimated $68.7 billion in consumer and business spending to the national economy in 2013, according to a study conducted by Ernst & Young for the American Resort Development Association (ARDA). That includes a total of 473,000 jobs with $23.6 billion in income, the study reports.” This quote from Travel Agent Central’s website confirms just what we in the timeshare industry all know: timeshares are a valid and valued service and product that the public wants.
Continuing on from the study by Ernst & Young: “Combined direct, indirect, and fiscal impacts in 2013 by the U.S. timeshare industry included $68.7 billion in consumer and business spending, 473,000 full- and part-time jobs, $23.6 billion in salaries and wages, and $8.5 billion in tax revenue.”
Renewed construction of timeshare towers and other interval related projects have continued to grow along with sales of already existing timeshare resorts.
Some resorts are reporting selling fewer units but with higher sales prices. As a result their dollar sales volume has increased while the numbers of closed sales has in fact fallen. But sales have not fallen enough to make a negative impact on profit. Those who trade stock in timeshare resort companies are rating quite a few timeshare companies as a “buy” or at least a “hold”. That is a much better rating than ” run away, run away! ”
With all the research and study of the resorts’ success in selling timeshare, what about the timeshare resale industry? Those numbers are hard to find. Timeshare resales by individuals and Realtors are very hard to find data for. However estimates are that timeshare resales are the fastest growing sector of timeshare sales. The advantage is that the asking prices from the owners will depend on the individual owners. They will not have to make an additional 50% to cover marketing and “advertising and promotion. Marketing costs are responsible for a significant portion of the final timeshare price accounting for at least 43 per cent and in most cases in excess of 50 per cent to the timeshare price. Compare this figure with Procter and Gamble, the global manufacturer of consumer products, whose worldwide television, print and electronic media costs amounted to 10 per cent of the sales. ” Journal of Retail and Leisure Property
The timeshare industry adds jobs, pumps billions of dollars into the economy, and pays taxes. Timeshares make a huge impact on the economy – wherever they are.