Development

Nearly $1 Billion Annual Economic Impact on Arizona Generated by Timeshare Industry

PricewaterhouseCoopers study cites resorts' benefits, including repeat visitors, jobs, consumer expenditures, high occupancy rates, and industry stability

American Resort Development Association The timeshare industry in Arizona has made close to a $1 billion economic impact on the state in a single year, according to a study conducted by PricewaterhouseCoopers (PwC) and released today by the ARDA International Foundation (AIF), the research and education arm of the American Resort Development Association (ARDA). A total of 84,162 Arizona residents own timeshare, ranking the state fifth in the nation in terms of vacation ownership, according to other data compiled by ARDA. [1]

Combined direct and indirect economic impacts as well as fiscal contributions for the industry totaled $980 million of output, 11,600 full-and part-time jobs, $330 million in salaries, wages and related income, and $157 million in tax revenue during 2002.

"This Arizona study details timeshare's significant economic contributions to the state and its growing presence within the state's hospitality sector," said Howard Nusbaum, president and chief executive officer of ARDA. "The areas with timeshare resorts, benefit from the generation of a loyal base of repeat visitors, new jobs, and consumer expenditures, as well as the industry's elevated occupancy rates and overall stability."

" Arizona owners love to vacation and spend their travel dollars within the state," said Jerry Sikes, president of Pro Management and chairman of ARDA Arizona, at a recent Timeshare Industry Conference. " Arizona is quite unique in that such a disproportionate number of timeshare owners in the state own at resorts located in Arizona . Clearly, with over 80,000 timeshare owners living here, we can see that Arizonans have embraced timeshare and have a stake in timeshare resorts in their home state."

The PwC study-the largest and most comprehensive the industry has undertaken-reveals that Arizona had 46 timeshare resorts with 4,640 individual units at the end of 2002. According to ARDA, there were 1,590 timeshare resorts nationwide with a total of 132,000 units as of January 1, 2003.

Timeshare owners' unique vacation habits and commitment to travel generate dollars

In examining direct industry output, the study showed timeshare owners:

• took 169,000 Arizona timeshare vacations during 2002

• spent an average of $1,744 per trip for the traveling party

• yielding total estimated spending of $300 million

Prospective and existing owners:

• spent approximately $200 million on purchases of new Arizona timeshares (representing four percent of the $5.5 billion of U.S. sales)

• contributed $110 million toward maintenance fees for existing units during 2002

• with a combined total of $610 million in purchases representing direct industry output.

Survey respondents reported that during their most recent Arizona timeshare vacation, their traveling party consisted of an average of 3.3 people. The timeshare vacation includes the full length of the timeshare stay, plus additional time spent in the resort area before or after the timeshare stay. On average, respondents spent 7.6 nights in the resort area at timeshare resorts, including bonus time and timeshare rentals. In addition, respondents reported staying one night on average in other accommodations, including hotels, recreational vehicle (RV) parks, and the homes of friends and family.

"The economic impact of the timeshare industry does not end with the initial purchase," said Scott Berman, a PricewaterhouseCoopers partner. "Timeshare purchases, combined with other expenditures and owner and guest spending during vacation, generate tremendous income as well as a ripple effect through other parts of the state's economy."

Jobs, payroll, and taxes bolster Arizona economy

Specifically, the industry's total direct impact in 2002 included $610 million of output, 7,100 jobs, and $180 million of income. Direct resort impacts were substantial, as timeshare resorts, corporate offices, call centers, and off-site sales offices employed 3,500 people who earned $100 million in salaries, wages and related income. Direct resort construction impacts, which occurred as the industry expanded existing resorts and built new ones to keep pace with sales, supported approximately 400 jobs and $20 million in salaries, wages and related income.

The indirect output of the timeshare industry resulting from the disposable income of industry employees and the purchase of goods and services by companies includes $380 million in purchases, 4,400 jobs and $150 million in salaries, wages and related income during 2002.

The complete fiscal impact totaled $157 million in tax revenue for the year, with timeshare property and occupancy taxes representing $13 million, timeshare employee taxes accounting for $26 million and taxes on activities in other industries totaling $118 million.

The American Resort Development Association is the Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has nearly 1,000 members ranging from privately-held firms to publicly traded companies and international corporations with interests in timeshare resorts, community development, fractional ownership, and resort communities. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).

The ARDA International Foundation (AIF) conducts research and develops education programming for the timeshare industry. The Foundation's mission is to "support, conduct and disseminate research and technical studies that will enhance and improve knowledge for the public and the industry, and develop educational resources that will optimize value, operations, acceptance and service for the industry and the public."



[1] Compiled in June 2004; counts based on membership in RCI and Interval International, the two leading vacation exchange companies.

You can link to a pdf file of the report's executive summary and download it here:
http://www.arda.org/AIF_ExecSummary_AZ_final.pdf

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The American Resort Development Association is the Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has nearly 1,000 members ranging from privately-held firms to publicly traded companies and international corporations with interests in timeshare resorts, community development, fractional ownership, and resort communities. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).

The ARDA International Foundation (AIF) conducts research and develops education programming for the timeshare industry. The Foundation's mission is to “support, conduct and disseminate research and technical studies that will enhance and improve knowledge for the public and the industry, and develop educational resources that will optimize value, operations, acceptance and service for the industry and the public.”



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