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companies. The negative publicity
hurts the industry’s reputation
nonetheless.
I have also learned that it is not
uncommon for an elected official’s first
exposure to timeshare to be associ-
ated with a constituent complaint,
which are largely unsubstantiated.
Is there a regional
component to that?
Does their understanding
of timeshare depend on
where they’re from?
Location is an important factor.
Timeshare development and owner-
ship thrives in popular leisure destina-
tion markets in states such as Florida,
Hawaii, South Carolina, and Nevada.
Consequently, ARDA and
ARDA- ROCspend more time and energy on
more in-depth industry education in
these states. The good news is, it is
easier to educate an official about the
mechanics when he or she under-
stands the positive impact the
hospitality industry has on the
economy of that political district. This
is an advantage.
That said, while elected officials may be genuinely receptive to
industry education, timeshare is a multifaceted product based on real
estate, hospitality, and finance, and is governed by various laws and
regulations that have an impact on developers, owners, HOAs, prop-
erty managers, and exchange companies in different ways. Moreover,
each state has a different set of laws and rules. With this in mind, we do
our best to stay out of the weeds and focus the education on factors
such as economic impact, jobs, taxes, etc., and the impact a particular
piece of legislation — positive or negative — will have on the industry.
We focus on the principles of Timeshare 101, not Timeshare 501.
Timesharing has been around for 50 years.
Why is it taking so long for it to become
understood among these legislators?
That’s a great question. From a business perspective, timesharing is a
relatively young industry. It is also an industry that has evolved tremen-
dously during the last 40-plus years — and since the 1980s in particu-
lar. Given its limited market penetration, the vast majority of travelers
have yet to experience the many benefits of timesharing. In addition to
a lack of national timeshare brand marketing campaigns, the industry is
still shedding its colorful history, and it is not a sought-after product.
While shared ownership has become more mainstream, people don’t
wake up in the morning and say, “I want to buy a timeshare today.”
People do, however, wake up and say “I need a vacation.” Therein
lies the challenge and the opportunity.
There are other reasons why leg-
islators do not better understand the
mechanics of the industry. Consider
the impact of attrition and term limits.
Imagine the institutional memory lost
when these officials leave office. The
turnover has created a content vac-
uum for all industries and interest
groups that participate in the political
process. As a result, the educational
process never ends.
How do you build a
relationship with
a new elected official?
It depends on how present timeshar-
ing is in the district and its particulars
in that location — such as number
and average age of resorts. It also
depends on whether the legislator is
supportive of business. But gener-
ally speaking, if we are starting
from scratch in a particular jurisdic-
tion, we pursue the following steps:
First and foremost, we engage
owners, developers, property man-
agers, board members, and other
key stakeholders to determine their
legislative and regulatory priorities.
Then, working with our local lobbying and legal team, we begin
building individual relationships with the governor, members of his or
her administration, the attorney general, real estate regulators, and key
elected officials — who preferably have timeshare or other tourism
interests in their district. We work with key chairs and members of per-
tinent committees to educate them about ARDA and ARDA-ROC,
introduce our local lobbying team, and demonstrate the economic
importance of the industry to the state.
We also forge strong partnerships with related hospitality industry
associations in hotel and lodging, attractions, restaurants, retail, car
rental, airlines, and cruise ships. Industry partners need to know who
we are and how our issues affect the hospitality economy as a whole.
It’s in all of our best interests to work together.
ARDA and ARDA-ROC representatives also attend a variety of leg-
islative and regulatory conferences and events involving political par-
ties, legislative leadership, governors, attorneys general, and regulatory
agencies. We attend and support these events, as they provide a
unique opportunity to develop one-on-one relationships with elected
officials.
It’s about being strategic. It’s about knowing the issues and how
the political environment may shape these issues. And it’s ongoing.
Regardless of political affiliation, elected office, or location, we strive to
get to know legislators personally, which takes time, travel, and effort.