(Sources: The Park Record; Deseret News) The tightening of the credit market combined with the declining economy has already forced Westgate timeshares to lay off workers and to scale-back sales efforts. And just when they did not need more bad news, a Utah County Court has ordered Westgate timeshare to pay $1 million in punitive damages in a consumer related court case. The timeshare company is being held accountable for having attempted to attract prospective timeshare buyers to their Westgate Park City Resort, by using problem-ridden travel vouchers as bait.

An attorney representing the Consumer Protection Group says that the timeshare company defrauded consumers. “They weren’t telling them they were getting a voucher; they were telling them they were getting an Anaheim trip,” explained attorney Scott Boyd, who qualified that the trip was supposed to include air travel and lodging and have a value of approximately $500. Boyd explained, “For all timeshares, they have to get bodies through the door so they can do the sales. Now how different companies choose to get people through the door may tell you who’s reputable and who’s not so reputable in the industry.”

Here’s How the Westgate Timeshare Problem Started

People who toured Westgate timeshares in late 2000 and in 2001, received letters advising them that they may have been defrauded. More than 900 individuals responded to the Consumer Protection Group’s letter. In the end, 30 Utah residents (or 15 parties) made up the case against Westgate Resorts.

As is too often the case in such timeshare problems, people who toured at Westgate timeshare believed they were receiving a product (a gift) that in the end, turned out to be too problematic to use. Voucher holders were restricted from redeeming their trip during any weeks before or following 10 different holidays and they were required to depart only on a Tuesday, and return only on a Thursday.

Adding to the confusion and complexity of the ‘deal’ was the fact that the voucher holder had to kick in $135 upfront, and redeem the voucher within 21 days. While many people looked at the extensive restrictions and simply tossed out the vouchers, others complied with all the stipulations only to be told that the dates requested were not available.

After a three-week jury trial, the case was decided in favor of the plaintiffs. Attorney Boyd admitted that the individuals involved, “did not stand to make a lot of money,” but said that, “This is to make a point to the timeshare industry, to Westgate, that you cannot have a fraudulent scheme.”

Westgate reportedly has plans to appeal a final civil judgment. The timeshare company’s attorneys claim that it was an independent telemarketing firm that scheduled the timeshare tours, and that they (the telemarketers) had failed to warn callers of the travel restrictions.

The Timeshare Authority is not defending or condemning Westgate timeshares, as there are always two sides to every story. But the question does arise … if there were only 30 plaintiffs, which was defined as 15 couples, and they do, “not stand to make a lot of money,” then who do you think is receiving the lion’s share of the million dollar settlement?

Other recent posts on The Timeshare Authority involving Westgate timeshare:

• Bluegreen Timeshares and Westgate Timeshare Mogul Settle Pending Lawsuit
• Hotels, Timeshares, and the Bailout

The Florida Sun-Sentinel is reporting that Bluegreen timeshare, Bluegreen Corporation intends to sell to Las Vegas-based timeshare developer and manager, Diamond Resorts LLC. The reported sales price will be $15 per share, or about $500 million excluding outstanding debt owed by Bluegreen.

Alan B. Levan, who is Bluegreen’s chairman, says the offer was unsolicited, but admitted that Bluegreen timeshare has been considering its options. A statement released by Bluegreen timeshare quoted Levan as saying, “When Diamond presented our board with this unsolicited, attractive offer, we believed that it was in the best interest of our shareholders to pursue this transaction at this time.”

In April 2007, Diamond Resorts timeshare bought Sunterra timeshare for approximately $750 million. Diamond Resorts believes it is well on its way to becoming one of the world’s largest timeshare companies, with 110 branded or affiliated resorts in 14 countries and over 360,000 owners. Their timeshare resort locations include North and South America (and Hawaii), and Europe.

Bluegreen Timeshare

A nonbinding letter of intent has been signed by Bluegreen timeshare. The company’s stock dipped to $6.44 a share with the news, coming off a 52-week high of $11.85. Bluegreen’s business focuses heavily on their residential community development, golf communities, and home sales. One has to wonder how much the weak real estate market has affected the Bluegreen corporation and if the impact of declining home prices on part of their business made the offer from Diamond Resorts look even more attractive.

Help for college students interested in hotel and timeshare careers.

Are you facing the high cost of sending a child to college? The Princeton Review breaks down the cost of one year of college tuition like this:

• $31,717 at a private university
• $11,918 at a public university.

And these numbers do not include lodging, meals, or other expenses that are part of the expense. So congratulations to so many forward-thinking companies in the hospitality, lodging, and vacation ownership industries that are committed to helping students earn higher educations. One of the noteworthy programs I wanted to share with you is that of the American Hotel & Lodging Education Foundation.

The American Hotel & Lodging Educational Foundation (AHLEF) that is the fund raising and fund management arm of the American Hotel & Lodging Association. For 2007, the programs AHLEF will administer include:

1. Arthur J. Packard Memorial Scholarship Competition
2. Ecolab Scholarship Competition
3. Hyatt Hotels Fund for Minority Lodging Management Students
4. Steve Hymans Extended Stay Scholarship
5. The Rama Scholarship for the American Dream
6. American Express Scholarship Competition
7. Annual Scholarship Grant Program
8. Lodging Management Program (LMP) Scholarship
9. Pepsi Scholarship
10. AAA Five Diamond Hospitality Scholarship

The application process for the AHLEF programs has been streamlined. For 2007, it is easier than ever for students who are interested in management, sales, marketing, administration, or food and banquet service at a hotel or timeshare vacation resort to complete the application process. The applications no longer need to be accompanied by tax forms and either official and unofficial transcripts are acceptable.

In 2006, the American Hotel & Lodging Educational Foundation awarded $430,000 to more than 300 hospitality management students.

If you, or your son or daughter, is interested in the great career opportunities available in the hotel and timeshare industries and want to learn more about the AHLEF scholarship program, you can contact:

An island in the Fijian archipelago is the setting for a new Survivor-themed timeshare-esque vacation concept.

So, who’s heard about the new Survivor-style timeshare vacation, Tribewanted?  Is this a vacation, or a thinly-veiled attempt to get people to pay to labor on someone else’s island, while being video-taped for posterity?
 
Tribewanted describes these activities on Adventure Island as, of course, the “adventure of a lifetime.”

“It is Tribewanted’s aim to create a sustainable and ecological community on Adventure Island and to encourage tribe members to actively take part in this challenge.”  The community opens September 1st 2006 but is already building online.

Tribewanted’s motives notwithstanding, what they do have is great PR and an interesting website.
 
Joining the Timeshare Tribe is certainly affordable; at $220 up to $660, the timeshare tribe is open to many vacationers. “Tribe Members” can join for one to three years. At the end of the three years, the island, which is actually being leased, will be returned to its owners, who may or may not open it up to the public again.
 
A new slice of the ecotourism pie, Tribewanted’s goal is to have a “positive impact on both the environment and the communities it is working with in Fiji. They are keen to promote responsible tourism and actively engage in developing a sustainable eco-community on Adventure Island.”  Perhaps most interesting is Tribewanted’s ultimate goal, “To promote and raise awareness for sustainable and eco-friendly living and travel as a real option for both tourists and communities around the world; showing that you don’t need to be an eco-warrior to blend with the environment.” Hurrah!
 
If the real chief of the island, Tui Mali, decides so at the end of the three years, everything will be dismantled and removed. Or, the adventurous experiment will be continued. Either way, there are currently about 4000 more tribal places available, and current members hail from all around the world.