SA timeshare in demand

Business Day
November 20, 2001

JOHANNESBERG -- International demand for South African timeshare swaps and holiday ownership is up in the wake of the rand?s freefall against the dollar and the World Trade Centre attacks, a timeshare group said on Tuesday.

"Unlike so-called discretionary tourism, timeshare owners are more committed to using their holidays and suddenly South Africa looks like a safe haven destination," Peter Foaden of timeshare marketers and developers, Magic Breakaways said in a statement on Tuesday.

Having taken an initial dip after the attacks, demand for internal exchanges had also recovered as more South Africans chose to holiday at home.

Chris Dodd from timeshare group RCI agreed with Foaden.

"We are back on track to meet budgeted exchange targets," he said.

Doss said RCI had launched "Operation Springbok" a promotional drive for South African holiday ownership in Europe and the United Kingdom to tap into the new appeal of South Africa.

Foaden said he anticipated increased demand for holiday ownership sales as well.

"Timeshare had always appealed as a hedge against holiday accommodation costs. With the Rand depreciating ever further, timeshare is now even more relevant," he said.

South African timeshare weeks are bought in rands, but through the RCI organisation those weeks have the same holiday value as weeks bought in any other currency.

South African buyers therefore acquire an international holiday asset as if there were no currency differential and the greater the fall in the Rand the more that asset "appreciates".

Overseas buyers benefit in the same way but they have the added advantage of hard currencies.

Sapa

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