19 / 52
New Wave of Timeshare Customers
“Timeshare is good for Hawaii and Hawaii’s good for timeshare,” says Howard
C.Nusbaum, president and CEO of the America Resort Development
Association (ARDA). Speaking at a Chamber of Commerce Hawaii luncheon
titled “Tourism 2.0 — New Wave of Timeshare Customers,” Nusbaum reported
that Hawaii’s 93 shared ownership resorts enjoy an average occupancy rate of
85.2 percent, the highest in the nation. According to the Hawaii Tourism
Authority (HTA), the number of people vacationing in a timeshare rose 4.9 per-
cent in the first three months of 2015.
“When people own a timeshare, they’re definitely going to come for that
week, and now with points they come more often,” Nusbaum says. Local
businesses love timeshare owners because they spend on groceries and
gas, as well as dining and tourist attractions. What’s more, Hawaii’s timeshare
industry employs 4,000 people, generating wages in excess of US$100 mil-
lion. Timeshare developments also contribute about US$67 million in state
and county tax revenues. (Hawaii is the only state where timeshare owners
are charged a daily transient occupancy tax during their stay, according to
ARDA reports.)
But Hawaii has also been very good for the vacation ownership industry.
After years of lagging behind other destinations in the development of time-
share resorts due to legislative issues and construction entitlements, Hawaii
is coming into its own.
17
Deposit Photos/Glow Images
ith its soaring volcanoes, iridescent reefs, lush rain forests,
and warm aloha welcome, Hawaii could have been the pro-
totype for “tropical paradise.” Just one thing separates the
island state from perfection — its distance from major mar-
kets, including the U.S., Japan, Australia, and — a rapidly growing pres-
ence on the travel scene — China.
For example, the West Coast of the U.S. is more than 2,500 miles (4,023
kilometers) and at least five hours away by plane, making it an expensive
vacation destination, vulnerable to economic ups and downs. During the
recent recession, both Aloha Airlines and ATA Airlines shut down, and Japan
Airlines pulled its direct flight to Kona, creating a devastating temporary loss
of airlift. But thanks to a number of factors, including savvy marketing,
Hawaii anticipates its fourth straight year of growth in tourism in 2015, with
tourist arrivals expected to top the record-breaking 8.28 million in 2014.
A broader market made up of more first-time visitors is finding more air-
line seats available, and new carriers such as Virgin America are bound to
help. And while hotel occupancy is nearing prerecession levels, more travel-
ers are exploring lodging alternatives, including timesharing.
W