SA proving to be a serious role player in global vacation ownership market

Source: fractionalownership.co.za

Developments in the Southern African fractional ownership industry see it set to “explode onto the global map”

Dirk Wilson of fractionalownership.co.za says the shared vacation ownership industry in South Africa is maturing well, with leading global vacation ownership brands seeing expansion potential here in Southern Africa. He explains: “Leisure resort developers in South Africa are now adapting a multi-product vacation ownership model that has been tried and tested in the US market over the last decade and more. Many resorts themselves are now releasing a bouquet of shared vacation ownership opportunities into the market, such as fractional ownership, private residence clubs and timeshare, to meet the needs of consumers’ pockets as well as their service expectations.

“These resorts are selling directly through in-house agents or through third-party partnerships with experienced shared vacation promoters. The current economic climate, together with the fact that most consumers have limited access to capital is pushing the possibility of owning 100% of a family holiday home out of reach. Coupled with this, consumers are now acknowledging the financial benefits of fractional over whole ownership, driving demand for more vacation ownership options at the resort of their choice.

“Another major industry change has been formation of the Vacation Ownership Association of South Africa (VOASA), which now encompasses the various vacation ownership products (such as timeshare, fractional ownership and PRCs) under one umbrella organisation. In this way we are emulating what has worked in the USA with ARDA (the American Resorts Development Association).

“Exciting news is that with all this change in scenery, we think that consumers will now be more well informed as to the different shared ownership products available to them, and how they vary from one another. We will see the barriers of confusion between purchase options slowly lifting. We see VOASA as taking a major role in assisting and supporting the public here.

“Also exciting is that we are seeing major shared vacation ownership exchange brands coming into South Africa. Interval International has just been awarded the Southern Sun exchange business and is moving into South Africa alongside The Registry Collection and Platinum destinations, All these fractional exchange companies will be seeking to build up their portfolios of luxury residences here in Southern Africa; this will undoubtedly lead to South African fractional owners exchanging time into other top-class fractional residences elsewhere in the world. Another benefit is that fractional owners in the USA, UK and elsewhere will have more exchange options into Southern Africa, all available though these networks.

“We are also seeing a lot of high-end service companies looking at South Africa, such as the Preferred Hotel Group from Dubai, who want to create alliances in Southern Africa and add value for their premium members. There is also talk of additional global vacation resorts opening up in Southern Africa in the next 2-5 years. Presuming that the FIFA World Cup is a success, from 2011 onwards we should see more people purchasing fractional ownership and PRCs in Southern Africa, since they will be purchasing their shares in rand, not dollars or pounds. So instead of buying 21 days in a PRC in Dubai, Paris or London, an astute investor can buy into a resort of similar if not higher quality here in South Africa – such as Pezula, Fairmont Zimbali, Zorgvliet and L’Ermitage, all for a fractional of the cost of those elsewhere, yet still benefit from a value for value global exchange network of residences.

“We see all of these developments as major positive signs for the industry here. The combination of everything coming together is setting the scene for the Southern African fractional ownership industry to really explode onto the global map. It is also set to get so much stronger with the introduction of global vacation ownership heavyweights opening up operations here in South Africa.”

Contact Dirk Wilson on 072 591 0582; 021 556 5064; email dirk@fractionalownership.co.za; visit www.fractionalownership.co.za