Submitted by Dr Peterson
If you build, will they come? Well, that certainly seems to be the case with the timeshare industry. Boosted by strong sales and consistent double-digit growth over the past two decades, the international timeshare industry is estimated at $25 billion in sales. This steady performance, combined with projected growth of roughly 5% annually, and a market penetration of less than 10%, positions timeshare as an attractive and competitive sector for investors, developers and consumers.
Although once considered a controversial segment of the tourism industry, timeshare is now seen as one of the more stable products in a destination’s tourism portfolio, as visitors return each year to utilize their purchase and contribute substantially to local communities and economies. Internationally, timeshare owners spend well over $15 billion on timeshare interests and destination vacation spending exceeds $20 billion. With at least 10 million households interested in owning a vacation and buying timeshare in the next two years, of which over 80% seek a tropical beach destination, the Caribbean is a ‘prime suspect’, accounting for less than 10% of the global timeshare supply.
Within the Caribbean, Aruba continues to play a pivotal role in the timeshare industry, boasting continued sales growth and high (+80%) satisfaction rates. What started out as a ‘strategic experiment’ in the mid 1970s, has now turned into a formidable local sector, accounting for almost half of all visitors, especially loyal repeat visitors, and contributing well over half-a-billion dollars to local commerce.
It is against this backdrop that two years ago Dr. Ryan Peterson, Dean of Tourism Studies at the University of Aruba set out to uncover the ‘secrets’ of the strategy and sustainability of the global and Caribbean timeshare industry, with a special interest in the success and story of the Aruban timeshare industry, and its developers, managers and owners. The research project was readily accepted and adopted by the Aruban Time Share Association (ATSA), which is spearheaded by Mr. Jan van Nes, who immediately recognized the need for and importance of management insights, business intelligence and strategic foresight. And the rest, as they would say, is history.
Over an extended period between 2007 and 2008, Dr. Peterson collected and analyzed well over 1500 surveys from all timeshare properties on island, and subsequently analyzed and benchmarked findings, and continued to produce significant results and conclusions. According to Dr. Peterson, the question is no longer about ‘to build and they come’, but about staying connected to sustain value. This in-depth and extensive study sheds light on the quality and sustainability of the timeshare industry by uncovering an intricate strategic alignment of destination factors, industry mechanisms and resort elements. Dr. Peterson concludes that the secret and strength of the timeshare industry lies in the integration and innovation of the mix of mechanisms. Indeed, the quality of timeshare is more than the sum of its parts, and its sustainability will depend on the diligent governance of this integrated mix. These and other interesting findings will be presented on Wednesday June 25 at 7pm at the University of Aruba.
