Global

Timeshare ownership is leading in the hospitality and leisure industry with steady growth, as a big part of the industry's relentless innovation developed in response to consumer lifestyle needs and vacation preferences. The timeshare product can take one of several forms including fixed week, floating week or point based ownership. However, the basic premise of owning time in a resort remains the same.

The global timeshare industry consists of 5,300 resorts in 108 countries, supported more than 1.1 million jobs and generated over $45 billion in direct economic output in 2010. According to the World Wide Shared Vacation Ownership Report conducted by Oxford Economics in 2012, nearly two percent of all households own at least one timeshare product. Of those, 83% have vacationed in the past 12 months, highlighting the strong correlation between ownership and vacationing.

The United States timeshare industry contributed an estimated $68.7 billion in consumer and business spending to the 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. This is generated by 8 million timeshare owners that take advantage of 189,222 units in 1,551 resorts throughout the United States.

Spending by timeshare owners during timeshare stays in the United States was estimated at $10 billion in 2013. About $2.1 billion was spent on-site at resorts, while $7.9 billion was spent off-site in the communities where the timeshare resorts are located. In addition to private sector benefits, the timeshare industry contributes significantly more federal, state, and local tax revenue per employee than the average industry, totaling $8.5 billion in 2013.

Marriott Vacations Worldwide in particular, plays in the high end of the market. The company's average first-time buyer spends $30,000 to $35,000 for the ability to stay a week each year at a two-bedroom, two-bath vacation home in locations such as Orlando, Florida, and Hilton Head, South Carolina. That compares favorably with an average sales price of about $20,000 industrywide, according to data from the American Resort Development Association (ARDA).

The recent merger of Interval Leisure Group Inc. and Starwood Hotels & Resorts Worldwide Inc.’s timeshare business valued at $1.5 billion signifies the continued investor interest in the timeshare industry. Timeshare businesses are seeking a larger and increasingly global presence to offer more value to their owners.

The key factors driving growth of the global timeshare industry include rising number of the employed population, a growing demand for leisure and recreation, increasing internet penetration, improving global economic condition and eager international tourism in the United States. Some of the notable trends and developments of this industry are enhanced buyer's protection, shifting profitability from hotel stays to timeshare buying, growing popularity for eco-friendly timeshare resorts and a fast recovery of the industry in the developed markets after the recession. However, the growth of vacation ownership market is currently hindered by a number of factors, including stringent government regulations.

The Oxford Economics survey also concluded that future generations of timeshare owners will likely expand to numerous countries, with particular emphasis on Brazil, Russia, India, and China. Indicators such as a heavy representation of the global population, a growing middle class, a positive attitude toward timeshare among non-owners, and consideration of future timeshare ownership among non-owners point toward timeshare growth within these countries.