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Opportunity
“Opportunity follows struggle. It follows effort.
It follows hard work, It doesn’t come before!”
-Shelby Steele-
We live in a World made up of imperfections. Perhaps the most difficult for us to admit
are those shortfalls to be found within ourselves. Because they do exist, such faults and/or insufficiencies can
also be found in those entities we develop including but not limited to, our societies, systems of government,
religions and businesses. Within those imperfections exist individuals and groups that see those faults and/or
insufficiencies as opportunities for improvement and devote their efforts toward achieving those goals. Others
see them as opportunities to take control or grab power. Almost always, those in power are the few rather than
the majority. Be it within a society, a system of government, a religion or a business, those in power always want
those subjective to them, to believe that they will always use their power in everyone's best interest. Therein
resides one of those major shortcomings; typically those with the power feel that any action or activity they undertake
in their best interest can be spun so that it appears to be in the best interest of the other stakeholders.
In many ways the Timeshare/Vacation Ownership resort business is no different than other businesses, however
in some ways it is very unique. This uniqueness exists because of the two distinctive parts of our business, pre-sale
vs. post-sale, resort in development vs. resort in operations. The collective industry joins together in the trade
association ARDA (American Resort Development Association). On its web site, http://www.arda.org and in the section “Membership -Who We Are”, ARDA declares it was
created to “represent the vacation ownership and resort development industries” and its “close to 1000 members,
ranging from privately held companies to major corporations, in the U.S. and overseas.” Its mission statement is
“to foster and promote the growth of the industry and to serve its members through education; public relations
and communications; legislative advocacy; membership development; and ethics enforcement.” By its very nature,
ARDA, its stated purpose and mission, its leaders have created a society completely separate from that found
at the resorts which have been developed, a separate form of governance and the inevitable struggles for power.
By their very nature, each individual resort creates its own society, its own form of governance and its own power
struggles. This occurs because of the unique makeup of its collective owners and the form of ownership they hold,
covenants-conditions-restrictions established by the developer, and where the power is vested as the resort approaches
sell-out of its final phase. As conveyances occur within a Timeshare/Vacation Ownership resort, it becomes a living,
breathing entity, rather than a cold Development – Sales & Marketing race where lots of money is to be made,
prior to moving on to the next such opportunity. Unfortunately, or at least so for the hundreds of thousands or
even millions of resort owners, developers are now seeing resort operations as a major opportunity for profits
and are establishing governance during the development phase to insure that the developer retains the power long
after owners make up the majority of stakeholders within that resort. They give little thought that those resort
operations profits come on the back of the consumers.
While not a U.S. Timeshare/Vacation Ownership entity, the recent activities by Donald Macdonald, Chairman
of Macdonald Hotels with respect to the Loch Rannoch timeshare resort in the UK is not untypical
of similar activities by other developers. If you are not familiar with the Macdonald activity click on
the following; http://www.theherald.co.uk/business/41817.html
Another example would be the Westgate/David Siegel situation at the Lake Buena Vista, Florida Blue
Tree Resort. A resent update is at: http://www.bluetreeowners.org/attachments/2004%20Annual%20Web.pdf
If my understanding is correct Bill Young and the SPM Resorts Inc. group are members of ARDA
and David Siegel and his Westgate Resorts or Central Florida Investments Inc. are not. If
this is the fact, it warrants the question; what, if any, support did ARDA provide its member toward resolving
this situation?
In 2004, the ARDA International Foundation commissioned Price Waterhouse Coopers to perform an
Economic Impact study of the Timeshare Industry on the U.S. Economy. That study indicated, as of 1/1/03,
there were estimated U.S. 1,590 timeshare resorts containing 132,000 units employing 75,900 in resort operations.
Other ARDA studies indicate that during the same period worldwide 6.7 million consumers own a timeshare
interest and that almost half of those consumers (3.0 million) resided in the U.S.
These ARDA studies and statements about itself beg the questions: “If ARDA only represents the
timeshare/vacation ownership development industry and only serves its 1,000 members, who represents the 3+ million
U.S. timeshare owners and the 75+ thousand timeshare resort operations employees? “Who represents the 250+
thousand individuals that work for firms that provide products and services to those resorts and who represents
the universities, colleges and schools attempting to educate the next generation of timeshare professionals?”
I am sure that if you asked some of the major development corporations, any of the major independent developers,
either of the major exchange firms or some of the large management firms that are ARDA members about this
representation, you would get an answer which would indicate that they, part of the 1000, do in fact represent
the majority of those depicted in the triangle above. It would be my contention that if you asked the consumer/owner,
the average resort operations employees or any of the thousands of firms the provide goods and services to those
operating resorts or their employees, the overwhelming number would respond: “ARDA! What is ARDA?”
There are always exceptions to the rule. There are those within ARDA who excel at representing owners
and the employees who serve them. Lynn Weas, the members of the Board of Directors and the entire management
staff at the Christie Lodge in Avon, CO. come to mind as does Neil Hutchinson and those associated
as owners or employees at ORE (Owners’ Resorts and Exchange, Inc.) Salt Lake City, UT. I would be remiss
if I didn’t mention Woody Cary of TRICON, those who work for the resorts he manages and the members
of the respective resort boards. If you looked at the history of the ARDA Awards program you would see untold
winners from that group. As an example; the hotly contested 2005 ARDY race for Homeowner Association
Board Member was neck and neck between Kim Stanley of Kingsbury Crossing, John Beard of Sun Dunes Villas
and Forney Smith of the Jockey Club Resort. Kim crossed the line first but it was a sweep by
TRICON Management, Inc. In addition to John and Forney there were 10, I repeat, 10 other
ARDY Silver Medal winners representing TRICON for 2005. The folks at Grand Timber Lodge and
Orange Lake Country Club must also make the short, but illustrious list. The problem is that it is a short
list and, in spite of ARDA-ROC and its track record on behalf of resorts and owners, this situation has
to present a major opportunity for ARDA to reconsider its mission statement and purpose to encompass the
entirety of the industry.
Final Thought
ARDA, the societies its members created and the forms of governance within which it currently operates
are not perfect. Little question exist that, at the top, powerful entities struggle for dominance and few
are interested in change, if such change could be perceived as diminishing their positions. However, as indicated
in the first paragraph, within ARDA there are some who consider imperfections as opportunities for improvement.
These ARDA members are devoting efforts toward changing some of the attitudes concerning broadening the
membership and representation base to include some of those associated with the Timeshare/ Vacation Ownership industry
that may currently feel disenfranchised. In order to effect these improvements, there are those who feel that ARDA
must facilitate some changes in the current form of governance.
When the ARDA leadership gathers in Washington, DC on November 1st and 2nd for the
Fall Conference they will consider the creation of a new council, which will open the door to enhanced representation
of resorts operation segments of the Timeshare/Vacation Ownership industry within ARDA. There are
a few who have worked long and hard to create this opportunity and all of them have some concerns, that if and
when ARDA takes this momentous action it will be a struggle to get some of the key resort operations components
to take full advantage.
Specifically, they are concerned about compliancy as it relates to owners. They believe that the typical timeshare
owner has little, if any, interest is becoming involved in resort operations at their own home resort or the Owners
Association that is charged with operating it on behalf of the collective owners, not even to encourage their Board
Members to become involved in ARDA. They are concerned that the typical member of the Owner Association
Board of Director does not want to commit any more time or effort to become a more effective director or officer.
That when the budget preparation for the next operating year rolls around, those responsible will not include in
that budget the few dollars it would take to fund activity within ARDA.
Others point out that some management firms believe that if HOA Board Members become involved in ARDA
they may begin to become knowledgeable beyond the basics and may begin to assert demands on management performance
that those managers are eager to avoid. Consequentially, these firms or managers do not bring the benefits of ARDA
involvement to their Board of Directors.
For me, I believe that given the opportunity, those involved in resort operations such as Owners, HOA Board
Members and/or Officers, Resort Management staffs, Regional Vendors that service those resorts and Schools, Colleges
and Universities teaching Timeshare Resort Management will welcome the opportunity to participate within ARDA
and that their participation will strengthen the industry and its trade association.
I’m keeping my fingers crossed that we get the opportunity to prove the pessimistic ones wrong.
JS 6/05
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Jerry Sikes,
RRP / CHA, is President of Professional Resort Operators, Inc., Scottsdale, Arizona. He has over 35 years in the
Hospitality Industry / over 25 years in Timesharing, and is the current Co-Chairman of ARDA Arizona as well as
Chairman of the Arizona Timeshare Management Association.
Jerry is a frequent guest speaker regionally and nationally on all aspects of Timeshare Management and a frequent
contributor of articles for industry publications. He writes informative and easy to read weekly columns on the
business of properly managing resorts and people, and on other issues of interest to the industry.
READ THE COLUMN
Email: boyjerry@cox.net
Web site: http://www.protimeshare.com |
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