Hawaii Timeshare is Stronger Than You Think

In Saturday’s timeshare blog post on Pirates, Timeshares, and Disney: Hawaii Excited to Host Them All, we looked at how the down economy has hurt Hawaii because tourism, one of the state’s primary sources of revenue, is quick to be cut when household budgets get tight. Additionally, Hawaii is just not a “drive-to” vacation destination for anyone and the rising cost of airline travel has added insult to injury.

But an article that appeared in The Honolulu Advertiser last week points out that in many ways, Hawaii timeshares have been a lifesaver to the state’s economy. Because Hawaii timeshare is prepaid, many timeshare owners have been able to enjoy a Hawaii vacation when other vacationers could not afford hotel travel. Industry officials describe Hawaii timeshares as more resilient than traditional hotels.

Earlier this month, Howard Nusbaum, president and chief executive officer of the Washington, D.C.-based ARDA timeshare association, met with lawmakers to explain how the Hawaii timeshare industry has held strong in many ways over the past two years, despite a slump both in tourism and in timeshare sales.

Here’s an overview of the interesting facts about Hawaii timeshare and timesharing in general that the article revealed:

  • Hawaii timeshares make up about 10 percent of the state’s lodging industry.
  • Based on ARDA statistics, Hawaii timeshares generate approximately $511 million in tax revenues to the state; 34,420 jobs; and some $4.5 billion in spending.
  • Nationwide, timeshare owners report 85 percent satisfaction rate with timeshare ownership.
  • Despite the economy, Hawaii timeshares have averaged an 88 percent occupancy rate, while hotels have averaged a little more than 75 percent.
  • Although foreclosures have affected some timeshares, 9 out of 10 timeshare owners are current on their monthly payments.

Growth in Hawaii Timeshare

Construction of Hawaii timeshares is slower than in past years, yet there are still new properties under construction or in the planning stages. One of the most exciting properties is the Disney Vacation Club timeshare at the “Aulani” resort, scheduled to open in 2011 on Ko Olina. Another hub for Hawaii timeshare growth has been the Hilton Grand Waikikian and other Hilton Hawaii timeshare properties. Jerry Gibson, area vice president of Hilton says Hawaii timeshare is doing “extremely well.”

“At Hilton Hawaiian Village, 2,904 are hotel rooms and 639 are timeshare, which pencils out to 22 percent timeshare,” says Gibson, “while on the Big Island, the mix is 34 percent timeshare at Hilton Waikoloa Village, with 1,244 hotel and 426 timeshare.”

The chart that follows provides a statistical look at Hawaii timeshare sales and was originally published in the Business section of the Honolulu Advertiser under the article title, “Timeshares Weather the Storm,” see: http://www.honoluluadvertiser.com/assets/gif/M1150255116.GIF

Timeshare stats from ARDA and The Honolulu Advertiser.