Timeshare Resorts

With winds in excess of 165 MPH, hurricane Rita is closing in on the Gulf Coast of Texas, and may damage areas already devastated by Katrina.

The latest report from the National Hurricane Center indicates that hurricane Rita has been upgraded to category 5. This hurricane’s winds exceed 165 miles per hour. The storm is approaching the Gulf Coast of Texas, and landfall is expected by Saturday morning. Galveston, Texas residents and visitors alike are evacuating, as this island city is especially vulnerable to hurricane damage.

Earlier this week, hurricane Rita passed between the Florida Keys and Cuba. Key West homes and businesses reported minimal damage, and the bridges connecting the keys were still structurally sound follwing the storm’s departure.

The Timeshare Owner’s Blog will be following this storm closely over the next several days. For the latest developments on this hurricane, visit the National Hurricane Center at: http://www.nhc.noaa.gov/.

Points-based timeshare ownership offers owners more flexibility, but there are some things about points systems that any timeshare owner should know.

The concept of points-based vacation ownership is one of the most significant innovations within the timeshare industry in recent years. The goal of this article is to illuminate some of the pros and cons frequently encountered by timeshare owners who buy into a points-based system of timeshare ownership.

First of all, timeshare owners who buy points often do not own them. Most resort chains/exchange companies hold these points in trust. This can pose advantages and disadvantages depending on the owner’s particular needs and preferences. There are some exceptions to this statement, but by and large this is the case.

Points can be redeemable for a number of things, including airfare, hotels, and car rentals. Whereas this is an obvious convenience, points owners can expect to pay fees each time they use their points. For example, using points for plane tickets, renting a car at the airport, and staying overnight at a hotel could cost about $100.00 in accumulated fees.

Possibly worst of all, inflation often occurs with timeshare points. For example, if you have 150,000 points, you might be able to exchange these for a particular resort this year, but what about next year, when the resort you want suddenly costs 200,000 points?

Also, there may be additional restrictions imposed on the transfer of points between owners. This might make things difficult on the resale market. It is best to ask the timeshare seller or the home resort about any restrictions regarding the sale of timeshare points.

Though some difficulties arise, a points-based timeshare allows very flexible vacationing. Herein lies the real beauty of this type of ownership. Stay for as little or as long as you want! Points allow much greater freedom in determining a vacation itinerary.

Again, timeshare points can also be redeemed for a number of important vacation necessities, like hotel rooms, auto rentals, and airfare. Some theme parks even accept points toward tickets to their attractions.

Like everything else in the world of timeshare, a shrewd timeshare owner will learn how to benefit from these opportunities.

Ever get the urge to travel to Dubai? Thanks to Interval International, you just might get your chance.

According to this recent article, industry analysts are bringing more and more attention to the Middle East’s timeshare industry. Political changes, plus the involvement of a major timeshare exchange company, may spell revitalization for the region’s resorts. Interval International, the second-largest timeshare exchange company in the world , has opened talks with legislators from several countries in the region. Their goal is to establish legislation that provides consumer protection as well as growth opportunities for legitimate timeshare businesses (and hopefully to make life difficult for dishonest timeshare businesses). II has opened a sales office in Dubai, and is making its presence known through seminars and conferences in the area.

Most Americans, when asked if they would like to buy timeshare in the Middle East, would react with incredulity. This region’s image has been tarnshed by years of conflict and certain countries -like Lebanon- are still cleaning up the deadly detritus of war. How could a place like this translate into an appealing vacation spot? Furthermore, how could this part of the world successfully support a timeshare industry of its own?

It may sound far-fetched, but the concept of timeshare in the Middle East is predicted to become more popular in coming years. Consider Lebanon in the early 1970s, before the Lebanese Civil War. Lebanon’s Mediterranean coast was once considered a chic travel destination by Europeans and residents of bordering countries. Recently, with radical political reform sweeping through Lebanon, the groundwork has been laid for rebuilding of infrastructure on a massive scale. Despite Lebanon’s challenges, some say the future looks bright for this country in transition.

Earlier this year, a non-profit group called Time4Sharing finished planting over 3,000 trees on a significant acreage of land designated as a children’s park. Time4Sharing, an organization composed of timeshare professionals all over the world who donate their time for worthy causes, accomplished this project for the comparatively small sum of $50,000 (about the same cost as a red week in Hawaii bought directly from a resort). This park was constructed in an area that, devastated by war and riddled with land mines, was formerly considered uninhabitable.

Dubai, long considered a playground for wealthy sheikhs and jet-set Europeans, is now receiving some attention from Americans and other adventurous types from all over the globe. Recognizing the potential of this area, Kerzner International is developing a huge resort on Dubai. Similar to Kerzner’s colossal Atlantis complex on Paradise Island in the Bahamas, Atlantis Dubai is scheduled to open in 2007 and will feature an aquarium, a water park, and countless other attractions. The cost of developing this resort is estimated at 1.1 billion dollars.

Anyone willing to make this kind of investment would have to be extremely confident about the long-term returns.

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In foreign countries, laws regulating timeshare resorts, timeshare sales and other real estate purchases can be very different from US laws.

Recently, I read an article about timeshare owners who were pressured into buying timeshare from  timeshare resorts in Mexico. They wanted to buy a timeshare for the sole purpose of renting it out. However, not only did the contract they signed specifically forbid them from renting the property, the rental company that they were referred to did nothing to help them rent this timeshare. Though the terms of this agreement seem self-contradictory, many people each year are, in effect, scammed at timeshare resorts by unethical timeshare salespeople using similar ploys.

Laws pertaining to the regulation of real estate (including timeshares) differ drastically in all parts of the globe, and this can create leverage for dubious timeshare sales agents to exploit. For example, in the UK, the cooling-off period (a period of time during which a timeshare transaction can be cancelled for a full refund after it is completed) is ten days. In Mexico, it is five days. Recognizing this, the US State Department warns potential timeshare buyers not to sign a contract which penalizes the buyer for canceling the timeshare sale within five days.

In addition to carefully reading through any agreements, people who buy timeshare directly from a resort should familiarize themselves with local laws that may affect the terms of sale. For instance, Mexican law prohibits the ownership of property by foreigners within 100 kilometers (about 62 miles) of any border, or within 50 kilometers (about 31 miles) of a coastline. Typically a Mexican bank holds the property in trust, and a trust beneficiary enjoys the rights of ownership. This is why rental timeshares and right-to-use agreements are the predominant ways in which Americans enjoy Mexico timeshares. This is not to say that anyone who wishes to use timeshare in Mexico will undoubtedly undergo a bad experience; rather, it is more accurate to suggest that anyone looking to buy timeshare in a foreign country should pursue as much research as possible before entering into an agreement.

In regard to the article under discussion, I am inclined to wonder if things would have turned out quite differently for the timeshare owners, had they investigated their options in the timeshare resale market. Before they were approached by the resort developer’s sales team, they may have been pleased to find out that they did have the option to buy a resale timeshare directly from a timeshare owner, saving a considerable amount of time, money and hassle in the long run. Local regulations aside, even after they were duped into buying this property, they might have discovered that a reputable online timeshare reseller could have given them a chance to rent this property (like they intended to do from the beginning) or resell the timeshare outright. Sadly, as events unfolded, they became the latest in a long line of timeshare buyers badly treated by the resort industry.

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