TATOC and RDO Present Seminar to UK Timeshare Owners and Developers
Monday, March 10, 2014
On Friday, The Timeshare Association (TATOC) and Resort Development Organization (RDO) joined together to present an informational seminar to timeshare owners and developers in the UK.
The seminar marked the first time that an industry association and consumer association have collaborated on this type of project. Titled “A Seminar for Sold-Out & Owner-Run Resorts”, the presentation addressed a variety of issues that both parties can relate to.
TATOC Chairman Harry Taylor focused a large portion of the seminar on the recent political proposals for the European timeshare industry. Currently the Office of Fair Trading (OFT), a government department in the UK, is reviewing a law known as the Timeshare Directive. This directive was created to help regulate the timeshare industry and protect owners. In particular, OFT has focused on a section known as the Perpetuity and Accumulation Act which dictates the length of a timeshare contract. In two weeks, the OFT will report if any changes will be made to this act, allowing owners purchase shorter timeshare memberships.
If passed, timeshare contracts will most likely resemble the “right-to-use” model. This type of contract, allows buyers to purchase a timeshare contract with an expiration date, usually 20–30 years. Of course, this will have an effect on both timeshare owners and developers.
On the developer’s side, Taylor recommended that resorts prepare for any restructuring that may occur should the law go into effect. Taylor said, “The opinions of timeshare owners, committee chairmen and resort developers are important as we have the opportunity to make a difference. We will be reviewing the report and feeding [it] back to the OFT.”
During this review, TATOC hopes to strike a balance in the industry. Timeshare buyers should have the option to purchase a shorter contract, but they should also have the choice to purchase an extended contract with the opportunity to resell later on.
He shares, “There are two sides to the timeshare coin. There are people who want to get out. And there are more people who want to stay in and enjoy their resort; these owners need their resorts to be stable and financially secure. We need to consider the implications of everyone in finding a solution.”
In two weeks we will learn the outcome of the Perpetuity and Accumulation Act proposal. Check back with TheTimeshareAuthority.com for more information.
