Street Talk International Archives

Street Talk is a compendium of tips, facts, gossip, rumors, speculation and editorial comment provided by The Timeshare Beat as an outlet for the free expression of its readers and for their entertainment. The Timeshare Beat makes no assertion as to the veracity of the items contained herein. If erroneous information is inadvertently included and a correction to this information is subsequently sent to The Timeshare Beat, the correction will be prominently published. Opinions published within Street Talk are the opinions of the authors thereof and are not necessarily the opinions of The Timeshare Beat.

STREET TALK INTERNATIONAL: Week of September 12 - September 18, 2003 Street Talk is a compendium of tips, facts, gossip, rumors, speculation and editorial comment. PUBLISHED ON FRIDAY E-mail: news@thetimesharebeat.com | Email: street@thetimesharebeat.com Lost & Found Women in the Biz Street Talk Back Issues Street Talk International Archives A veritable Whos's Who in Timeshare Europe will be speakers at the International Hotel Conference to be held in Europe on the 17th - 19th September. Timeshare is featuring in the think tank sessions and some of the timeshare companies are event sponsors... Check it out at: http://www.internationalhotelconference.com/ That made us remember we were looking at the OTE (Organization for Timeshare in Europe) website the other day and noticed (probably belatedly) that Interval International, Marriott and Sunterra Europe (GVC) are not listed as members. Why? YOUR COMMENTS Sept. 20: --" Re your question about Marriott, Interval International, Sunterra GVC not being members of OTE. " They, along with many other legitimate timeshare companies in Europe pulled out of this useless organisation as they realised it had become funded (tainted?) as an RCI tool to manipulate the market place in Europe. Many, many companies over here in Europe refuse to have anything to do with it. It no longer represents the Industry as a whole. If you check the list of members, you will find virtually ALL the German players pulled out. Although it tried to model itself on ARDA, sadly it never made it and is now a 'has been'. No serious developer will bother with it anymore." Sept. 23: --" The Germans have their own association which used to be the German chapter of the OTE. Not anymore, it’s now completely independent. As far as I know, Anfi (TUI) pulled out of the OTE as well. After all, the OTE’s attempts to lobby the European legislation ended in a fiasco. Even harder legislation is under way including 28 days cooling off and ONE YEAR to cancel the contract if it does not meet certain criteria. Well, done Mark! Imagine if it would have been Mark de Waal's job to avoid the Iraq war, would we have a third world war by now? No wonder everybody leaves the OTE, despite the nice parties at the otherwise useless conferences. I am not going to attend the conference this year despite of living in Marbella (10 minutes drive to the Don Carlos)" E-mail street@thetimesharebeat.com AUSTRALIA QUEENSLAND: The Joint Parliamentary Committee Inquiry into the Australian Timeshare Industry is set to commence at the end of this year. It is vital that the Australian Timeshare Industry has the opportunity to discuss the challenges and opportunities provided by this inquiry and that we have a united voice on the future needs of the industry. To ensure that the Australian Timeshare Industry develops this united voice on future directions an open workshop is being held on Thursday, 25 September, 9.30AM until 4.30PM at: SURFERS PARADISE MARRIOTT Verandah Room 158 Ferny Avenue Surfers Paradise Qld 4217 All participants are asked to bring along their past experience and future visions to develop several conceptual models so that the industry is united on future requirements and directions. Additional information is provided in the .pdf document located at the following link: AUSTRALIAN TIMESHARE INDUSTRY REFORM. (http://www.athoc.com.au/publish/ATHOC%20Reform%20Workshop.pdf ) E-mail street@thetimesharebeat.com

THE UK & EUROPE

THE UK: The Travellers' Guild Limted, Travel Concepts, Buckingham Leisure Limited, Travellers' Guild (UK) Limited and Riverside Travel Services Limited have been wound-up in the High Court on public interest grounds by the DTI. Members of the public were encouraged to join the holiday club at a cost of between £ 1,800 and £ 4,995 to receive discounts on holidays via password- protected websites www.thetravellersguild.com and www.conceptravel.com. Of nearly £ 2 million that went into the Travellers Guild Limited bank account in Jersey between November 2001 and February 2003, less than £ 60,000 can be seen to have benefited customers, about half of which was used to maintain the website. This particular holiday club scam was reportedly the brainchild of Malcolm Simmonds and Tony Bullis, who have allegedly been selling worthless holiday club memberships such as Qualycon and Gold Crown Resorts for a number of years. What will their new one be called? (We're sure they've got one in line, don't you think?) You can read about the wind-up here: DTI Winds Up Five Companies Promoting Holiday Club Memberships YOUR COMMENTS Sept. 15: --" Perhaps someone can explain why The Timeshare Beat would so irresponsibly allow such dribble to be offered out to the Vacation Ownership industry. I guarantee that the DTI has very much appreciated our cooperation in dealing with those companies in the UK that are accused of fraudulent sales and marketing practices. For the record, for those people who made the purchase of a vacation travel club product in the UK that included Qualycon supported services, those services always have been, and still are provided. If a local branded new car dealer promises a free vacation with each car purchased, and then reneges on the promise, the car still works, and the customer is unhappy with the dealer. But going to the car manufacturer for the free vacation would be unrealistic. The Qualycon cars still work, but it would be unrealistic for Qualycon to fulfill promises the Qualycon systems were never designed to provide. The Qualycon product still stands solidly as perhaps the best online, real-time, weekly condominium rental service. Certainly the resorts providing the condominium weeks are satisfied with the results. Our name has been Qualycon since the company was begun October 17th, 1997. We have no reason to run and hide no reason to morph into a new company with a new name and address, because the promise we have made since day one remains the same, “If you can it see listed on our Web site, it is ready to be booked.” Also, for the record, I welcome the opportunity to discuss the concerns of the principals of any of the troubled holiday club companies, government agencies in the UK, or representatives of The Timeshare Beat. My contact information is available below, and you are welcome to display it appropriately on The Timeshare Beat pages. Rick Henry President Qualycon, Inc. 7802 Kingspointe Parkway Suite 101 Orlando, FL 32819-8524 407.367.2138 Direct Line 425.988.7970 eFax rickhenry@qualycon.net GERMANY/CANARY ISLANDS: Just how much trouble is Anfi del Mar in, really? We hear they started out as a good company but have gone to the dogs in recent years. If true, is that TUI's fault, or Bjorn Lyngg's fault, or? Word is that top managers at TUI in Germany are very unhappy about the high rescission rate and that budgets have not been hit they have allegedly been discussing the situation in depth this month. Rumors are rife that sales staff have not been paid in full and that there is talk of selling out. There are even alarming rumors of the possible liquidation of timeshare clubs (anyone out there think Anfi's points club is any good?) There is apparently some kind of court case going on regarding allegations of fraud against Anfi regarding a resale scheme-- and more. We have few details. Who would like to fill us in about all this? E-mail street@thetimesharebeat.com

INDIA

Club Mahindra has just launched the electronic version of its holiday magazine ‘Hello’, which is distributed mainly to its members. “The e-magazine is just one of the initiatives we have undertaken in our endeavour to get closer to our members. Our customer feedback has revealed that most of our members preserve old copies of ‘Hello’ to refer to when planning new holidays. The e-magazine will help simplify this process in an eco-friendly manner,” said Ravi Santhanam, managing director, Club Mahindra Holidays in a statement. Club Mahindra has also launched four ‘Holiday Worlds’, intended to enable members to ‘virtually visit’ each resort and help plan where they can holiday in the next three seasons. Club Mahindra has recently added to its stable of resorts, the latest inclusions being Poovar in Kerala, Corbett in Uttaranchal, and Bangkok.

MEXICO

QUINTANA ROO: CANCUN: Does Avalon Resorts really have properties in progress and near completetion in Puerto Vallarta, Cabo San Lucas, Jamaica, and Cuba? And what is the status of the Avalon Reef in Belize- has it been sold? We hear Avalon owner Michael Kelly has bought a hotel in Acapulco named Excalibur Acapulco. Yes? No? Come on now. Someone knows. Talk to us. Are we to assume that these properties are non-existent and prospects are being lied to? A reader informs us that Kelly's Yucatan Investments (is it still called that?) not only offers a financial product, they tell clients that if they do not take the income on a monthly basis it will avoid current income taxes like an annuity. Will the IRS eventually take a close look at this since Yucatan is neither an insurance company nor a financial institution? We are further informed that Kelly has been changing the names of the Mexican Corporations he has been using. Comercializadora Hodgsoan.S.A. de C.V. changed to Resort Holdings International S.A.de C.V. and he has allegedly shot down Yucatan Investments. S.A. de C.V. and Yucatan Resorts S.A. de C.V. and opened new corporations such as: Corporativo Nola.S.A. de C.V. E.I.K.S.A. de C.V. Vestco.S.A. de C.V. First SabreS.A. de C.V. Azzurriccio.S.A. de C.V. In Riva Mare.S.A. de C.V. Buona Stanza.S.A. de C.V. Paraiso del PacificoS.A.deC.V. Naviera Mipis.S.A. de C.V. Aqua Tours.S.A. de C.V. Corporativo RobleS.A. de C.V. Senza Ubio Bella.S.A. de C.V. Servicios Profesionales Keara.S.A. de C.V. Mattinata.s.a. de C.V. Operadora de Hoteles Grand.S.A. de C.V. He seems to be using some Italian names for his corporations now. Curious. We're having some trouble keeping track of all this. Some of our readers who are afraid to reveal themselves publicly tell us that Kelly is paying only returns and brokers' comissions because he is not liquid enough to pay the principal all at once. Maybe because he has being buying properties all over the place, but isn't profiting enough from them yet? So far investors seem to have been receiving their returns, though the apparent flimsiness of the scheme troubles us a LOT. The only people getting in trouble seem to be brokers in the USA who have been hit by the SEC for selling unregistered securities. For instance, in June this year Kansas invoked a Notice of Administrative Sanctions under the Kansas Securities Act alleging Carl Todd promoted an investment opportunity, the Equity Sales Program, encouraging individuals to mortgage their residential property and invest the money in a Universal Lease paying up to 11%, with anticipated return on investment of 5% or more. Todd allegedly represented that the product was authorized by his employers, Resort Holdings International and Yucatan Resorts. Resort Holdings and Yucatan denied that this was an authorized product but admitted that it is a security. The Notice alleged that neither the security nor Todd were registered in the State of Kansas and that Todd’s misrepresentation that the program was authorized by Resort Holdings and Yucatan constituted an unlawful act in connection with the sale of a security. We hope that Kelly's schemes end well and that investors will not end up in the toilet, but we are not sanguine. YOUR COMMENTS Sept. 12: --" the yucatan universal lease owners get their purchase amount back when they redeem the lease back per contract if they're receiving (or deferring, as deferred rent collection, like if you had a tenant in an apartment) their income, then of course the client/purchaser. and the agent/broker gets a commission when the sale is made so it's incorrect to say that principal isn't being paid when it isn't asked for. the properties' occupancy is high, so the income is easily paid by the travel agency, and if a lease is redeemed, the room inventory is available again for sale to someone else." E-mail street@thetimesharebeat.com

MID EAST & AFRICA

KUWAIT: Munshaat Real Estate Projects Co., a dedicated Islamic real estate finance and investment company incorporated earlier this year in Kuwait with an authorized capital of $50 million, is building the Zam Zam Tower Complex, adjacent to the Grand Mosque in Makkah. What is unique about this project is that it is being built on a Shariah-compliant BOT basis which incorporates a Sukuk Al-Intifaa (a timeshare bond), an Islamic alternative to the timeshare concept -- the first such real estate project to be so structured. The Zam Zam Tower is a five-star serviced apartment complex. Munshaat has leased the land from the Makkah authorities for 25 years in the form of a waqf (religious endowment). Munshaat is allowed to build the Zam Zam Tower Complex and related infrastructure from its own resources (equity and investors amounting to $390 million), and to operate the building by outsourcing its management on a five-star serviced apartment basis. Indeed bidding is already under way. Investors from Saudi Arabia can buy 24-year sub-leases on the apartments, and they can further sub-lease the apartments to Muslims from all over the world on a Sukuk Al-Intifaa (timeshare) basis. Investors, according to Munshaat, can expect a projected internal rate of return of up to 26 percent per annum, which is very high compared with the prevailing rates in the real estate sector. This high rate, says Munshaat’s Meshal Al-Ameri, reflects the “quality of the structuring which went into place in developing the portfolio in terms of cash flow and the product itself.” E-mail street@thetimesharebeat.com

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Street Talk is a compendium of tips, facts, gossip, rumors, speculation and editorial comment provided by The Timeshare Beat as an outlet for the free expression of its readers and for their entertainment. The Timeshare Beat makes no assertion as to the veracity of the items contained herein. If erroneous information is inadvertently included and a correction to this information is subsequently sent to The Timeshare Beat, the correction will be prominently published. Opinions published within Street Talk are the opinions of the authors thereof and are not necessarily the opinions of The Timeshare Beat. THIS COLUMN CONTAINS OPINIONS, RECOMMENDATIONS, STATEMENTS AND INFORMATION PROVIDED BY THIRD PARTIES. THE TIMESHARE BEAT DOES NOT REPRESENT, ENDORSE OR GUARANTEE THE TRUTHFULNESS, ACCURACY OR RELIABILITY OF ANY OF SUCH CONTENT POSTED BY SUCH THIRD PARTIES, OR ENDORSE ANY OPINIONS OR RECOMMENDATIONS EXPRESSED BY SUCH THIRD PARTIES. ANY RELIANCE ON CONTENT POSTED BY THIRD PARTIES WILL BE AT YOUR OWN RISK. CHANGES ARE PERIODICALLY MADE TO THIS COLUMN AND MAY BE MADE AT ANY TIME.

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