The Timeshare Beat Home | Today's Headlines | Back to Previous Page
|
The Timeshare Beat Home | Today's Headlines | Back to Previous Page |
|
|
|
Press Release: PricewaterhouseCoopers
April 29, 2004
WASHINGTON, DC -- The U.S. timeshare industry made a $66.7 billion economic impact on the U.S. economy in 2002,
according to a national study issued yesterday by the ARDA International Foundation (AIF), the research and education
arm of the American Resort Development Association (ARDA). The study was conducted for AIF by PricewaterhouseCoopers
(PwC) to analyze the impact of timeshare developers and owners, and their value to the U.S. economy.
Combined direct and indirect economic impacts as well as fiscal contributions for the industry totaled $44.4 billion
of output, 476,100 full- and part-time jobs, $15.9 billion in payroll and related income, and $6.4 billion in tax
revenue during 2002.
"This comprehensive study confirms the timeshare industry's significant economic contributions and its prominence
as a growing force within the hospitality sector," said Howard Nusbaum, president and chief executive officer
of ARDA. "The regions surrounding timeshare resorts benefit from the generation of a loyal base of repeat
visitors, new jobs, and consumer expenditures, as well as the industry's elevated occupancy rates and overall stability."
The study is the largest and most comprehensive the industry has undertaken, surveying 3,359 timeshare owners and
54 timeshare entities covering approximately 34 percent of existing timeshare resort units and approximately 67
percent of industry sales. According to ARDA, there are 1,590 timeshare resorts nationwide with a total of 132,000
units as of January 1, 2003.
"The economic impact of the timeshare industry does not end with the initial purchase," said Scott Berman,
a PricewaterhouseCoopers partner. "Timeshare purchases, combined with other expenditures and owner and guest
spending during vacation, generate tremendous income as well as a ripple effect through other parts of the economy."
Timeshare owners' unique vacation habits and commitment to travel
generate dollars
In examining direct industry output, the study showed timeshare owners:
* took 4.9 million timeshare vacations during 2002
* spent an average of $1,784 per trip
* yielding total estimated spending of $8.7 billion
Prospective and existing owners:
* spent approximately $5.5 billion on purchases of new timeshares
* contributed $3.0 billion toward maintenance fees for existing units
during 2002, with a combined total of $17.2 billion in purchases
representing direct industry output.
Survey respondents reported that during their most recent U.S. timeshare vacation, their traveling party consisted
of an average of 3.6 people (2.9 adults and 0.7 children). The timeshare vacation includes the full length of the
timeshare stay, plus additional time spent in the resort area before or after the timeshare stay. On average, respondents
spent 6.8 nights in the resort area at timeshare resorts, including bonus time and timeshare rentals. In addition,
respondents reported staying one night on average in other accommodations, including hotels, recreational vehicle
(RV) parks, and the homes of friends and family. In total, the average timeshare vacation was 7.6 nights.
Jobs, payroll, and taxes bolster local, regional, and national economies
Specifically, the industry's total direct impact in 2002 included $17.2 billion of purchases, 222,500 jobs, and
$6 billion of income. Direct resort impacts were substantial as timeshare resorts, corporate offices, call centers,
and off-site sales offices employed an estimated 102,900 people who earned $3 billion in payroll and related income
or labor income. Direct resort construction impacts, which occurred as the industry expanded existing resorts and
built new ones to keep pace with sales, supported approximately 10,900 jobs and $490 million in payroll and related
income.
The indirect output of the timeshare industry resulting from the disposable income of industry employees and the
purchase of goods and services by companies includes $27.1 billion in purchases, 253,600 jobs and $9.9 in income
during 2002.
The complete fiscal impact totaled $6.5 billion in tax revenue for the year, with timeshare property and occupancy
taxes representing $310 million, timeshare employee taxes accounting for $780 million and taxes on activities in
other industries totaling $5.3 billion.
Methodology
The study took place during the fall of 2003 and included timeshare owners (3,359), 54 timeshare entities (34 companies
in active sales, 18 entities not in active sales), and two leading timeshare exchange companies. To solicit responses
to the survey, PwC contacted 560 timeshare entities between September and November 2003 via email. The exchange
company surveys were conducted in January 2004.
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 interests in
timeshare resorts, community development, fractional ownership, and resort communities.
The ARDA International Foundation (AIF) is ARDA's research and education arm with the mission 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."
PricewaterhouseCoopers (www.pwc.com) is the world's largest professional services organization. Drawing on the
knowledge and skills of more than 125,000 people in 142 countries, we build relationships by providing services
based on quality and integrity.
Source: PricewaterhouseCoopers