Timeshare sales climbed 21.4 percent during 2004 to $7.87 billion over 2003 sales of $6.48 billion, according to a new study of the U.S. vacation ownership industry conducted by American Economic Group (AEG) on behalf of the ARDA International Foundation (AIF). The survey of 466 timeshare resorts throughout the country also showed increases in new owners, new resorts, and the number of units.
U.S. Timeshare Sales 1975-2005 Source: ARDA International Foundation & American Resort Development Assn.
As of January 1, 2005, there were 1,668 vacation ownership resorts operating in the U.S., reflecting a jump of 78 resorts, or 4.9 percent, over the last two years. The number of owners increased last year by 16.2 percent following an increase of 13.8 percent in 2003, bringing the total number of U.S. timeshare owners to 3.87 million, up from 3.4 million in 2003 and three million in 2002.
"More and more Americans are choosing to own their vacations, as evidenced by the timeshare industry's consistently strong sales," said Howard Nusbaum, president and chief executive officer of ARDA. "Consumers are attracted by the high quality and inherent flexibility of timeshare products and the expanding proliferation of amenities, services, and offerings, guaranteeing that the growth in vacation ownership will continue for years to come."
The number of timeshare units in the U.S., as of January 1, 2005 was 157,518. By far the largest segment by size is the two-bedroom, accounting for 70.5 percent of all available units. During 2005, 18,561 new units are expected to be completed, a projected 11.8 percent increase. An estimated 31,000 additional units are planned for future years.
The top 10 timeshare resort states accounted for 65 percent (1,088) of resorts in the country, with Florida leading the way with 378 resorts, or 22.7 percent. South Carolina followed with 130 resorts, or 7.8 percent, followed closely by California with 126, or 7.5 percent. The other top 10 states are Hawaii (91 resorts), Colorado (90), North Carolina (64), Nevada (58), Missouri (53), Texas (51), and Arizona (47).
The average price of a timeshare interval or points equivalent in 2004 was $15,789; prices climbed 4.6 percent in 2004 and 4.1 percent in 2003.
When asked which single characterization best described their resort location, almost one quarter (24.7 percent) of study participants responded "seaside/beach location," followed by golfing, at 14.4 percent. Proximity to snow skiing and theme parks was named by 13.8 percent and 10.9 percent of the respondents, respectively.
Continuing the industry's trend toward high occupancy rates, 84.6 percent of the available inventory was occupied during 2004.
The ARDA International Foundation (AIF) conducts research and develops education programming for the timeshare industry. 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 membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).
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