Timeshare sales climbed nine percent during 2005 to $8.6 billion over 2004 sales of $7.87 billion, according to a study of the U.S. vacation ownership industry conducted by Ernst & Young, LLP and released today by the ARDA International Foundation (AIF). The survey of 596 timeshare resorts throughout the country also showed increases in new owners, higher prices, and occupancy rates that far exceed U.S. hotels.
As of January 1, 2006, there were 1,604 vacation ownership resorts operating in the U.S. There are a total of 4.1 million U.S. timeshare owners, up from 3.87 million in 2005, 3.4 million in 2003 and three million in 2002.
'Timeshare continues to lead in the hospitality sector with steady growth, due in large part to the industry's constant innovation developed in response to consumer demands to tailor vacations to meet lifestyle needs and travel dreams,' said Howard Nusbaum, president and chief executive officer of ARDA. 'Vacation ownership offers unparalleled flexibility, amenities, spacious accommodations, services and luxury-all features travelers have come to expect.'
The number of timeshare units in the U.S., as of January 1, 2006 was 154,439, with 22,424 newly constructed units in 2005 and an additional 23,578 expected to be constructed this year. Occupancy at U.S. timeshare resorts averaged 82 percent in 2005, compared to a 67 percent occupancy rate for U.S. hotels during the same time period.
Florida has three times as many timeshare resorts as any other states. The top 10 timeshare resort states accounted for 65.5 percent (1,051) of resorts in the country, with Florida accounting for 378 resorts, or 23.6 percent. Trading places with South Carolina, California jumped to second place with 123 resorts, and South Carolina followed closely with 117 properties. The other top 10 states are Hawaii (92 resorts), Colorado (77), Nevada (60), North Carolina (55), Texas (54), Missouri (49), and Arizona (46).
The average price of a timeshare interval or points equivalent in 2005 was $16,278, an increase from $15,789 in 2005.
When asked which single characterization best described their resort location, almost one third (32 percent) of study participants responded 'seaside/beach location,' followed by regional resorts at 14 percent and golfing at 10 percent.
The American Resort Development Association is the Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has nearly 1,000 members ranging from privately held firms to publicly traded companies and international corporations with expertise in shared ownership interests in leisure real estate. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).
The ARDA International Foundation (AIF) conducts research and develops education programming for the timeshare industry. The Foundation's mission is to 'support, conduct, and disseminate research and technical studies that will enhance and improve knowledge for the public and the industry, and develop educational resources that will optimize value, operations, acceptance, and service for the industry and the public.'
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