T I M E S H A R E MATTERS
February 2006

Tourism makes a significant contribution to the economy of the United Kingdom - and an integral part of that is timeshare.
Conservative estimates show that timeshare owners bring at least £205million a year to the UK. Over the past decade that figure has trebled and will likely increase again by a similar level over the next
10 years.
Few can doubt that timeshare is a robust business.
Since its inception in the early 1970s, it has been on a steep growth curve. And today the UK remains at the forefront of timeshare development, representing more owner-families than any other country in Europe.
The UK also benefits from a range of exceptionally high quality resorts that regularly attract record
Over the years timeshare’s image has been enhanced by resorts at the top end of the market, many of them in the four- or five-star category.
Entrepreneurs and big-name hospitality groups have done much to raise awareness of the quality holidays that timeshare has come to represent.
Based on research undertaken by the Organisation for Timeshare in Europe (OTE), I am confident that holiday ownership in the UK will continue to grow at a healthy rate and make an even greater contribution to domestic tourism and the national economy. As the comments below from the Greek minister of tourism indicate, timeshare has shown positive signs that it can be a major vehicle for expansion. levels of occupancy. At the same time local firms, such as shops and service outlets, profit from the
Frank W Chapman
Chairman of OTE UK business that holiday ownership brings to an area.
Dimitri Avramopoulos, Greek minister of tourism at the European Timeshare Business Forum in Athens, 2004
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A growing confidence in timeshare coupled with new products and services has spurred the growth of quality resorts by big-name leisure groups and independent entrepreneurs. Here are just some of them.
 Club La Costa Resorts & Hotels (CLC) is actively looking to expand its resort portfolio in the UK and mainland
Europe. It is in active negotiation for three properties in Scotland, Wales and south-western England.
Recently it completed the construction of 55 lodges at Duchally Country Estate in Perthshire. Set in 27 acres of national parkland, the property is only an hour’s drive from the main airports of Edinburgh and Glasgow.
When CLC acquired Duchally in 1998, it was a small, country house hotel with 12 bedrooms and outline permission for the lodges. With construction of the lodges now complete, CLC has also added a leisure centre with swimming pool and sauna.
In mainland Europe, the company is also engaged in a strategy of expansion by acquisition. In recent weeks it has had lengthy and detailed discussions about potential properties in Turkey and Cyprus – destinations popular with UK holidaymakers.
Currently CLC has a member base of 50,000, half of which are British nationals. The remainder comprise French,
Spanish, German and Russian club members.
The company has 20 of its own resorts and a portfolio of close to 200 affiliated properties worldwide. With a growing membership, it maintains strategic business alliances as it continues to expand in the travel and real estate markets.
 De Vere Resort Ownership, the timeshare division of the hotel and leisure group, has invested £50million in a golf and leisure resort on a 300-acre site by Loch Lomond in Scotland.
The Carrick at Cameron House is the fourth timeshare development in the De Vere portfolio. On completion it will have
18 luxury mansion house apartments, 78 detached lodges, a championship golf course, world-class spa and extensive leisure facilities.
A third of the development will be committed to a nature reserve for the protection and enhancement of local wildlife.
De Vere also operates timeshare properties at Belton Woods, Lincolnshire, Slaley Hall, Northumberland, and Cameron
House in Scotland.

Hilton International Grand Vacations Company (HIGVC) has welcomed its first guests to six new timeshare lodges at
Hilton Dunkeld in Perthshire, Scotland, bringing the total number available to 22.
The resort – part of a 280-acre estate and 50 miles from the Scottish capital, Edinburgh – was once the Highland retreat of the Duke of Atholl.
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HIGVC also added a new resort to its portfolio of properties in the UK and Ireland: the Mount Wolseley Hilton Hotel,
Spa & Country Club in southern Ireland where it plans to develop 56 lodges over the next three to four years.
Situated 40 miles from Dublin, the 143-room hotel has a championship golf course and a state-of-the-art spa.
HIGVC currently operates four resorts in Scotland and Egypt. A further resort in Vilamoura, Portugal, is due to open in
2007.
 Seasons Holidays has announced the completion of 29 new holiday cottages at Whitbarrow Village in England’s Lake
District. Last summer official ceremonies marked the formal opening of this £3million development.
The cottages have all been sold ‘off plan’ through a national advertising campaign.
The concept for the new Kirkstone Cottages allowed owners to purchase them as holiday homes on the basis that they could enjoy exclusive occupancy for four weeks each year for the first 10 years.
The remaining time is being hired out to Seasons’ 18,000-member base as well as to the travel company Hoseasons to provide owners with a rental income.
 Anfi Tauro is the latest project in Gran Canaria to be developed by the Anfi Group. Some five kilometres from its four other developments – Anfi Beach Club, Club Puerto Anfi, Club Monte Anfi and Club Gran Anfi – this latest resort will comprise 1,500 timeshare units as well as an 18-hole golf course, commercial centre, private marina and freehold properties.
According to Calvin Lucock, general director, the first phase of 119 timeshare units at Anfi Tauro will be ready for occupancy in September. Some 35 per cent of the units are already sold. Forecast completion for sell-out is 2012.
Currently the owner base of all Anfi resorts totals 30,000. Some 40 per cent comprise British nationals; most of the remainder are German and Scandinavian.
 One of the biggest owners of hotel properties in Europe has acquired Holiday Club Finland Oy whose interests include nine resorts and six spa hotels in the country and a spa hotel in Sweden.
London & Regional Properties (L&R) agreed the transaction with Procurator Oy CapMan’s investment funds, the main owners of the Finnish company.
In acquiring the Nordic company, L&R is working with the Finnish company on the future development of Holiday Club in northern Europe and “marking the move of our hotels’ investment business into timeshare”.
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As co-investors, L&R is collaborating with the Finnish company on future developments of Holiday Club in northern
Europe, Russia and the Baltic as well as on other timeshare opportunities throughout Europe.
London and Regional Properties is the owner of more than 60 hotels, comprising some 10,000 rooms and is one of the biggest, private property companies in the United Kingdom. Its real estate portfolio is valued at more than €5billion.
 In early 2005 the parent company of Clube Praia de Oura and Oura Praia Hotels - one of Portugal’s most successful timeshare establishments - acquired the RMI Consortium and subsequently formed Petchey Leisure. The Portuguese property has some 700 apartments and 18,500 owners.
Petchey Leisure plans to continue to develop the growth strategy of the former RMI either through organic growth or acquisition. Its linkage with Club Praia de Oura – the group has an overall membership of 52,000 – will lead to “greater synergies and benefits for both the businesses and its members”.
At the time of the buyout, RMI owned or managed six resorts in the UK, Tenerife, mainland Spain and Thailand. It also owned inventory at 24 other resorts in 22 countries, providing its 28,000 members with a wide choice of holidays.
In a separate development, Petchey Leisure acquired the Montechoro Beach Club, an apartment complex at Praia da
Oura on the Algarve comprising 177 apartments and 4,391 timeshare owners.
With these acquisitions, the company solidified and enhanced its commitment to all owners that they belonged to an innovative and dynamic timeshare group.
 Sol Meliá, the Spanish hospitality giant, unveiled plans to expand its timeshare arm – Sol Meliá Vacation Club
(SMVC) – in Europe. Initial projects include resorts in the Canary Islands followed by Mallorca and mainland Spain.
Future developments could also include destinations in the UK, France and Italy.
This latest development mirrors SMVC’s relationship with Cendant subsidiary RCI in the Americas and the Caribbean.
SMVC is one of the largest vacation clubs in the world.
In 2005 SMVC launched sales and marketing programmes in Europe in order to establish a timeshare presence in the medium term.
In October 2003, Sol Meliá announced a strategic alliance with Cendant Corporation. In a separate agreement, RCI agreed to provide consultancy, exchange and other networking services.
By expanding its existing association with the exchange company, Sol Meliá said it would “help achieve our strategic objective to develop and internationalise our timeshare business and provide opportunities for greater growth and profitability”.
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The participation of OTE in the annual conference in Morocco of the Association of British Travel Agents is tangible evidence of how the contribution of timeshare to the world of tourism is now being recognised.
In a special breakout session, Preben Vestdam (Cendant Leisure Real Estate Solutions) and Robin Mills (Petchey Leisure)
– both members of the OTE Board of Directors – made presentations extolling the opportunities and benefits for travel agents of marketing timeshare products and services.
Under the title ‘Time to Share’, Mr Vestdam covered the range of shared ownership products, from traditional timeshare to fractionals, Private Residence Clubs (PRCs) and condo-hotels. He told delegates that in 2004 timeshare sales exceeded
$10billion and over the past decade timeshare had registered double-digit growth every year.
In his address, Mr Mills said timeshare was a “must have” for the hospitality industry, was a quality holiday product and a booming sector of the global tourism. There were positive benefits to gain from marketing timeshare – namely by selling inspection visits, trial products and offering a range of complementary services such as flights, insurance and car hire.
In the past timeshare had failed to be recognised as an integral part of the legitimate travel industry. That had now changed, said Mr Mills. There were great synergies emerging between travel and timeshare providing opportunities for great returns and a “win-win” situation.
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A proactive public relations campaign has done much to reverse the negative public perceptions of timeshare in the United Kingdom.
At the same time the growing number of hospitality brands venturing into timeshare has also helped this welcomed trend.
While there is broad recognition among many journalists that timeshare represents value for money, there are still some whose doubts dwell on the ‘hard-sell’ tactics of rogue operators whose activities in the past have spawned negative publicity, particularly in the tabloid press.
Thankfully this type of coverage is diminishing due in part to an OTE programme where journalists are offered information guidelines and best practice advice.
Augmenting those efforts is the recognition that the Organisation for Timeshare in Europe is a reputable trade body able to speak authoritatively on industry issues.
For the second year running, OTE hosted a roundtable meeting in September for journalists that resulted in positive news coverage. Industry participants included Frank Chapman, Clowance Holdings, Beverley Hoyle, RCI, Craig Mitchell, De Vere
Resort Ownership, Richard McIntosh, Hilton International Grand Vacation Club, and Peter van der Mark, OTE.
Over the past two years, visits to UK resorts by selective journalists have generated more positive coverage; the programme will continue in 2006.
Other activities: the production of a series of press releases that resulted in good coverage, especially in regional newspapers and broadcasting outlets.
Particularly successful was a news announcement highlighting ‘OTE’s Top Tips for Purchasing Timeshare This Summer’.
In 2005 OTE logged a total of 141 articles directly relating to timeshare of which 58 per cent were positive. Many acknowledge quality accommodation and resort facilities and credit the fact that the perception of timeshare among consumers has changed for the better.
Of those articles deemed ‘negative,’ they often refer erroneously to timeshare when the stories relate to dubious holiday clubs and ‘free’ holiday offers.
Others refer to developments associated with John Palmer, convicted of conspiracy to defraud in 2001.
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UK INFORMATION
 Number of UK Resorts 112
 Total Number of units
 Average number of units per resort
 Year round average occupancy levels
 Number of UK families owning timeshare
 Total visitor spend
 Majority of units are two-bed apartments
 Maintenance fees range
3,891
35
85%
Approx. 500,000
 Over 70,000 British families own in the UK (75% of total), followed by Germans (11,000)
 Average size of travelling party 2.3
£205 million (without maintenance fees or other)
£215-£552 - example 2 bedroom
 Employment UK: Direct Employment approx. 20,000
Indirect Employment approx. 7,000
Not calculated induced employment
NOTE: The UK employs the highest percentage of Head Office staff in the European Union.
EUROPEAN INFORMATION
Overall size of Timeshare Industry in Europe:
1,450,000 owning families
1,500 resorts - approx. 85,000 units
Another Example: Spain:
Total output €4.2 billion
Total Income €2.5 billion
139,000 fte jobs
50.3% of owners come from the UK - over 300,000 owners.
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Second only to North America, Europe continues apace as a vibrant, growing timeshare market.
In the months and years ahead, UK holidaymakers can look forward to a greater choice of destinations as developers focus on a range of new vacation hot spots for resort projects.
While Spain continues to dominate the timeshare market in Europe, watch out for holiday destinations like Cyprus. It’s a growth market where The Paradise Group has already made its mark.
The first two phases of Paradise Kings Club in Paphos with 64 units are now open. With the third and fourth phases in place, this first, purpose-built timeshare property on the island will eventually have 110 units. The development is a joint venture between The Paradise Group and a local construction company, Kouroushis Brothers. And Paradise has more projects in the pipeline.
Vesta Vacations, part of the Leptos Group, is another company making inroads in timeshare. Lepkos is one of the principal property developers and a major hotelier in south-eastern Europe. Last September Vesta signed an agreement with RCI to affiliate the Paphos Gardens Holiday Resort. The Leptos Group has also launched the Vesta Vacation Club which is being serviced by RCI as a ‘white label’ club, facilitating club reservations and offering travel and exchange services. The Paphos
Gardens Holiday Resort is the first property within the club with plans to incorporate more Leptos resorts throughout the island.
Another key development in Cyprus is the Amathus Vacation Club that is now open for business. Situated at the Aphrodite
Hills resort, it is the first integrated golf, leisure and residential development of its kind on the island. The resort design is based on a traditional Cypriot village. Eventually the Club will comprise 78 one-, two- and three-bedroom apartments and villas. On-site amenities will include a split-level swimming pool, poolside restaurant, a separate children’s pool and indoor/outdoor children’s activity area. Club members will also have access and special privileges to facilities including an
18-hole championship golf course, a Greco-Roman-style health spa, tennis academy and a variety of shops and restaurant.
The developer, Amathus Vacation Ownership, is part of the Lanitis Group of Companies. Group interests include two, fivestar hotels in Cyprus and on the Greek island of Rhodes. Other interests are two real estate operations as well as travel, tourism, commerce, farming and entertainment ventures.
In Greece published plans by the N. Daskalantonakis Group have signalled the company’s commitment to timeshare. The
Group owns Grecotel - the best-known hotel brand in Greece and the Eastern Mediterranean – which launched the Galaxia
Vacation Club in 2005.
RCI is managing the Club, handling reservations and providing a travel and exchange service for members. With more than
30 resorts and city-based hotels in Greece, the Group is predicting significant timeshare sales over the next five years.
Plans to expand its resort and hotel portfolio into the Balkans and southeast Europe are high on the agenda.
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In addition to providing an exchange service for the Galaxia Vacation Club, RCI has committed to a significant lead generation programme of five years. The weeks of timeshare initially came from resorts in Kos and Crete. More from Corfu will be available in
2006.
In the past year Turkey has logged record numbers of inbound holidaymakers, many of whom are budget conscious and view the country’s hot-spots as real value-for-money.
In recent weeks The Dedeman Group – one of the largest hospitality brands in the country – signed an agreement to affiliate 10 resorts with RCI. They are based in popular holiday destination such as Bodrum and Antalya as well as Istanbul, Kyrenia, in northern Cyprus, and the eastern Anatolian region.
Turkey is a growth market for the timeshare industry both in terms of domestic and international visitors.
Other European companies – established and newcomers -- are also evaluating plans for resort properties in the country.
Watch out as well for Croatia. Here is another holiday destination where timeshare development can give new impetus to its tourism industry. The Hungarian developer, Dalmacia Holiday, owner of Dalmacia Holiday Apartments, has signed an exclusive affiliation agreement with RCI.
Croatia is a destination in high demand, according to the exchange company.
For firms serving tourists seeking a more novel holiday experience, consider developments in the Baltic and Nordic countries.
Holiday Club Finland has joined forces with a construction company to develop a new spa hotel in the centre of the Estonian capital,
Tallinn. This mixed-use project will eventually have 362 guest rooms and 90 timeshare apartments. Holiday Club Tallinn is due to open in spring 2007.
Holiday Club Finland has managed to develop its popular spa hotel concept into a successful export product. Its first spa hotel outside its own borders was opened in Sweden in November 2004.
In 2005 one of the biggest owners of hotel properties in Europe acquired Holiday Club Finland Oy whose interests include nine resorts and six spa hotels in the country and a property in Sweden.
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New concepts of shared ownership are expanding the horizons of timeshare around the world.
In Europe, particularly, the potential for developing fractional ownerships and private residence clubs (PRCs) is huge, according to leading timeshare guru, Dr Richard Ragatz.
His projections are based on the growth of these new timeshare products in North America that combine to make one of the fastest growing segments of the resort property industry.
Fractionals and PRCs have emerged as a viable alternative to second home ownership, featuring the privileges of a luxury holiday residence at a fraction of the cost.
They are at the cutting edge of the resort property industry where they offer multiple benefits to developers and operators of upmarket resorts as well as consumers.
To illustrate the point, sales of fractional interests in the United States in 2004 surpassed $1.5billion, up 300 per cent over the previous year.
Today most upscale hotel and resort development companies are already in the industry or contemplating entry in the near future. The concept is most appropriate for companies emphasising a high-income clientele and conducting business in areas where prices for whole-ownership properties and hotel rooms are also high.
While acknowledged as another form of shared ownership, the fractional concept differs significantly from the traditional timeshare product. In timesharing, individual weeks are sold at an average price of about $15,000.
In contrast the price of a fractional is obviously higher than a timeshare week as more time – typically three weeks to three months – is allocated to the product. More importantly, a greater proportion of the purchase price is allocated to the product itself since marketing and sales costs are perhaps one-third of what they are for a timeshare.
As a result, the resale and investment potential of the fractional interest is enhanced since it is more of a tangible property product than an abstract holiday concept.
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Office of Fair Trading (OFT)
OTE continues to work closely with the Office of Fair Trading (OFT), an independent government agency charged with making markets work well for consumers.
While playing a leading role in helping consumers to understand their rights, the OFT also aims to ensure business practices are fair and competitive.
Part of its Consumer Regulation Enforcement Division is the European Enforcement Team that acts to ensure that traders in other European Union (EU) or European Economic Area member states comply with EU consumer protection laws.
Where possible the OFT seeks to work with authorities in other member states. This has led, for example, to cooperation with a major police investigation in Spain into fraudulent timeshare resale schemes.
Each month the OFT receives an average of 200 complaints about the trading practices of some timeshare and holiday club traders. Of these some 80 per cent relate to holiday clubs and of the remaining 20 per cent, many relate to resales.
Department of Trade and Industry (DTI)
Over the years OTE has forged a close working relationship with the Department of Trade and Industry (DTI), the government department responsible for policy on timeshare regulation in the UK.
Meetings have been held with senior officials to review the implications of the UCP – Unfair Commercial Practices –
Directive, problems stemming from fraudulent holiday clubs, rogue resale companies and other timeshare-related issues.
The DTI was also a guest at the last seminar organised by OTE UK.
Taking the lead within the UK government, the DTI’s Consumer and Competition Policy Directorate addresses a range of policy issues. Its raison d’etre is to deliver a competitive framework for the growth of successful businesses and a fair deal for consumers.
Part of the DTI is the Companies Investigation Branch (CIB) 1 which evaluates complaints about the conduct of companies and carries out inspections and investigations under the Companies Acts.
In recent months, five companies promoting holiday club memberships that promised exclusive discounts to customers were wound up by the High Court following a CIB investigation. Some 14 other holiday club companies have also been wound up.
1 In the last Budget, the Government announced plans to transfer the Companies Investigation Branch from the DTI to the
Insolvency Service, based in Birmingham.
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Unfair Commercial Practices Directive (UCP)
The Fair Trading Directive – formally known as the Unfair Commercial Practices Directive (UCP) – became European law on
12 June 2005.
In the UK it must now be transposed into law by 12 June 2007 and effective by 12 December 2007. Other EU member states have been given specific deadlines to give effect to the legislation.
The new law will ban unfair advertising, marketing and other commercial practices used by businesses in their dealings with consumers. In particular, practices that are misleading or aggressive will be banned. It will have profound ramifications for dubious holiday clubs and other schemes run by rogue operators.
According to the European Union (EU), the Directive will replace the complex tangle of existing national rules and judgements with a single, Europe-wide regime.
The Directive and the new Enforcement Co-operation Regulation are complementary. The UCP Directive lays down common rules prohibiting a range of sharp practices and requires EU states to put in place effective ways of ensuring that traders who break the rules are punished.
The Enforcement Co-operation Regulation will establish a network of public enforcers with the aim of strengthening enforcement of all consumer protection rules “and beating rogue traders who exploit differences in national laws to run cross-border scams,” says the EU.
VOICE: the Vacation Owners’ Independent Coalition in Europe
In 2005 the Organisation for Timeshare in Europe (OTE) and The Timeshare Association of Timeshare Owners’ Committees
(TATOC) – co-founders of the Vacation Owners’ Independent Coalition in Europe (VOICE) – reached agreement on the future of VOICE.
The VOICE Board of Directors unanimously endorsed the agreement which defined the core business of VOICE as the handling of consumer complaints throughout Europe.
Key elements of the agreement include establishing a unified system for the handling of member and non-member complaints on a cross-border basis and the opening of a European head office in Brussels.
VOICE also aims to create an independent, audited reporting system on complaints that will be conducted annually. This data will be made available to both national and European authorities.
Norma Hartshorn, formerly secretary-general of TATOC, is now secretary-general of VOICE.
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As a non-profit-making partnership, VOICE works to safeguard the interests of consumers and promotes the positive development of timeshare throughout Europe. As such it aims to provide unbiased information on all matters relating to consumer complaints on timeshare.
ADR: the independent arbitration scheme
The independent arbitration scheme formally launched in 2005 will go a long way to build trust and confidence in the timeshare industry with improved consumer protection measures for members of the public who purchase from OTE member companies.
Developed in co-operation with the European Commission and administered by the Chartered Institute of Arbitrators (CIArb), the scheme is geared to handling complaints that are unresolved through OTE’s standard complaint-handling procedures.
It also offers fully independent analysis and judgement. The arbitrator’s decision is binding for both the consumer and the
OTE member.
The CIArb offers an independent service that can address cross-border disputes.
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More and more companies and individuals who play a direct and indirect role in the timeshare industry have recognised the benefits of OTE membership. Here are six reasons that underscore that premise:
1.
OTE is the trade body for the vacation ownership industry throughout Europe, representing and promoting best practice and excellence in business.
Through its Code of Conduct, OTE is committed to high standards in the marketing of timeshare products and services.
2.
Protecting the interests of member-companies through proactive stakeholder lobbying.
As the unified voice of the European industry, OTE works closely with regulators, politicians and the media. OTE’s agenda is driven by developments in the political arena, in the consumer protection and media market and in its members’ business market.
3.
Providing the biggest and best business networking opportunities for the wider industry.
OTE encourages members to get involved in special events such as the annual European Timeshare Business Forum. At the same time, throughout the year, it organises seminars to promote timeshare and the work of OTE in key markets around Europe.
4.
Exploring developments and new business opportunities as the genuine information source about the industry and its different markets.
For member-companies, OTE is a source of industry data on timeshare developments and the legislative scene in Europe. It also works to maintain an acceptable balance between the interests of the consumer and the supply side of the industry.
5.
Promoting and communicating the overall benefits of timeshare ownership.
Representing the best of
European timeshare, OTE works to foster and promote the growth of the industry through a range of programmes – education; public relations and communications; governmental affairs; membership development; consumer relations and a dedication to excellence and fair trading.
6.
Becoming the seal of approval for potential customers by ensuring the delivery of consumer relations and proper information.
In the event of disputes with member-companies that cannot be resolved amicably, OTE now offers consumers an independent arbitration service, devised by the Chartered Institute of
Arbitrators. OTE also addresses cross-border disputes through an independent organisation, the Vacation Owners’
Independent Coalition in Europe (VOICE).
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Fractionals… private residence clubs… destination clubs… condo-hotels. All based on the concept of shared ownership, these latest products and services are growing in popularity.
And their potential to expand the range of holiday options currently available has been recognised by the Organisation for
Timeshare in Europe.
Several companies are already offering an expanded range of services. As a result, OTE has endorsed new policies to embrace these products and widen its geographic sphere of interest beyond Europe to the Middle East.
The policies represent a watershed for OTE. Embracing new products and services - and extending its sphere of influence - allows the trade body to grow its membership base and expand the range of services currently on offer to members and the consumer at large.
Driving these latest developments was a demand from OTE members themselves who are already venturing into these new areas. Other companies already offering these products and services have declared an interest in joining OTE.
OTE has already experienced tangible benefits from these developments. In 2005 following a recruitment drive, the membership base logged a net increase of 15 per cent and includes brand name hospitality companies such as Starwood,
Sol Meliá and Accor.
Certainly the ramifications of new products and services will have a significant impact on the timeshare industry not only in
Europe and the Middle East but also, eventually, around the world.
Take fractionals as an example: in the United States alone, sales in 2004 exceeded $1.5 billion, an increase of 300 per cent over the previous year.
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A DR scheme – launched in spring 2005, the Alternative Dispute Resolution programme is designed to handle complaints that are not resolved through OTE’s standard complaint handling procedures. The scheme, which is administered by the Chartered Institute of Arbitrators, is the first pan European ADR service for cross-border complaints on timeshare.
Amenities & Facilities – refers to those facilities (other than the accommodation units) that are available to timeshare owners within a resort. Such amenities and facilities will vary from one type of resort to another – for example, a beachfront resort may well provide an outdoor pool, pool bar, beachside café and an extensive range of water sports.
ARDA – the American Resort Development Association is the established and well supported trade association representing the U.S. holiday ownership industry.
B iennial membership – see Timeshare. c ancellation/cooling off period – the period of time granted under national and European law during which a buyer can cancel a purchase contract without penalty and receive a complete and full refund of monies paid.
Cash-back scheme – a contract by which a cash-back company agrees, subject to certain conditions, to pay to the customer all, or a substantial amount, of the monies paid by the customer under a primary contract to which the cash-back contract is ancillary. OTE does not endorse cash-back schemes.
Club constitution and rules – most European resorts are set up under the Club Trustee System and rules for the Club are set out in the Constitution. There is usually an unincorporated members’ club, membership of which entitles purchasers to occupy the property. Usually the structure is supported by a deed of trust with an independent trustee.
Club Memberships – this form of timesharing has gained enormous popularity since the early 1980’s. In a club membership project, the developer places ownership of the real property and its improvements in trust as indicated above.
The purchaser receives a certificate of membership in the club entitling that person to use a unit for a designated period each year and the recreational amenities available at the property. No title or interest in the underlying property is conveyed.
Often, these club membership programmes are structured using a “points-based system,” offering certain benefits and flexibility to timeshare owners. The “Club” concept also travels well across international borders.
D eveloper – the term used to denote the developing entity, which is responsible for the planning, funding and construction of a timeshare resort.
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Discount travel membership clubs – members usually acquire the right to book holidays, including flights and/or accommodation and other services such as car hire and insurance at discounted or privileged rates. Discount Travel Clubs offer long-term membership which can be as long as 50 years or even in perpetuity, for a capital sum to be paid at the signing of the contract (i.e. a membership joining fee). Usually holiday arrangements are via allocation deals with various suppliers rather than being real estate or timeshare resorts actually dedicated to the system. Trustees are not used. In addition to the joining fee, members also pay an annual membership fee and a separate fee for every holiday taken.
E scritura – a system of timeshare often used in Spain and Portugal. Buyers register their week(s) in front of a notary who registers their ownership and issues them with a document.
European Timeshare Directive – the Directive, which applies to any timeshare contract made under the law of a EU country or where the property is in the European Economic Area (EEA), gives timeshare buyers the following minimum rights:
 A minimum 10-day cooling off period in which to cancel the contract; in the UK the cooling off period is 14 days
 Timeshare sellers cannot seek or take deposits prior to, or during, the cooling off period
 The right to a brochure and a written contract setting out basic information on the timeshare property in the buyer’s own language
 Any associated credit agreement is cancelled automatically when a buyer cancels a timeshare contract.
Exchange – a facility offering timeshare owners the option to deposit their membership or week(s) in a computerised system to exchange for a stay in another unit in another location at the same or alternative time or within any similar season.
F ixed time – see Timeshare.
Floating time – see Timeshare.
Fractional ownership – is similar to that of the traditional week system, but rather than purchasing an individual week, the consumer is able to purchase the right to use and occupy a vacation property in various multiples from four to thirteen weeks a year.
M aintenance/management fee – the annual fee assessed to owners to cover their contributions towards the cost of maintaining and managing the resort.
Marketer – an entity that is authorised to sell to the consumer, either by virtue of a marketing agreement with the developer, or by virtue of having purchased the product from the developer for onward sale to the consumer.
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Mini-holiday programmes – a means of bringing prospective buyers to resorts by offering a free or reduced cost stay at the property. Sometime during the mini-holiday, attendance at a sales presentation is mandatory. Many holidays can be offered through direct mail and telemarketing. Sometimes also referred to as SIVs (site inspection visits).
Mixed-use resort – this is a development in one or several buildings that combines two or more uses that are physically and functionally integrated and developed as part of a coherent plan. A mixed-use development might include, for example, a resort hotel, a purpose-built timeshare component and a central facilities block.
O PCs – the abbreviation OPC stands for ‘off-premises contact’ or ‘outside property consultant’. The OPC’s function is to occupy a location outside the project to invite people who seem to meet predetermined qualification criteria to tour the resort. To help accomplish this, OPCs may offer potential customers a variety of inducements such as a free meal or a gift. In many locations, OPC activities have been restricted. Such restrictions vary from place to place and may involve limiting OPC representatives to booths or other fixed locations, limits on hours of solicitation, the numbers of OPCs or locations a resort may have and requiring that OPCs register with the city, county or other governmental jurisdiction.
OTE – Organisation for Timeshare in Europe , the non-profit making trade association representing the timeshare industry. OTE was formed in 1998 and has over 140 members from all sectors of the industry across Europe, including resort developers, exchange companies, management and marketing companies, trustees, finance houses, law firms and resale companies. All members sign up to a code of ethics, which provides customers with higher levels of protection than the law requires.
P art exchange – a method of upgrading or changing memberships whereby owners trade in their existing weeks as part payment.
Points – see Timeshare.
R esale Company – similar to an estate agent, a resale company acts as a broker for timeshare owners wishing to sell their week(s). As well as undertaking advertising on an owner’s behalf, often in the national press, the resale company will complete the transfer into the new owner’s name.
S takeholder -- an independent third-party such as a solicitor, accountant or trustee, appointed by the developer, marketer or resale company to receive and ultimately distribute the purchase price, on completion of the purchase contract.
T ATOC – The Association of Timeshare Owners’ Committees is a non-profit making association for owner committee members from resorts around the UK and mainland Europe. TATOC encourages the efficient management of timeshare resorts, liaises with OTE, governments and NGOs and lobbies on matters affecting owners and the timeshare industry.
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Timeshare (also known as vacation ownership, holiday ownership or seasonal ownership) – a holiday concept where occupancy of holiday accommodation is provided and where this right of occupancy is secured through a direct link with underlying real estate. In nearly all cases that underlying property asset is held by an independent trustee in order to protect members in the case of the developer becoming insolvent.
 Fixed time – an occupancy period pre-determined by a fixed calendar date each year.
 Floating time – occupancy periods not restricted by calendar dates but restricted by season.
 Points – a symbolic measurement (i.e. a currency) related to a vacation club or timeshare ownership, used to establish a value for length of stay, seasons, unit sizes and resort locations and allowing a certain flexibility of how the “currency” is used.
 Biennial or alternate year – under a biennial format, an owner’s use and occupancy rights recur every other year.
Timeshare-based holiday clubs (or vacation clubs) – “Discount travel clubs” have sometimes been referred to incorrectly as “Holiday Clubs” but the distinction is clear. Holiday Clubs/Vacation Clubs encompass various systems designed to offer flexibility of holiday reservations to their members. All are built around, and underpinned by, a core portfolio of traditional, property-based, timeshare and club resorts in multiple locations, supplemented with other holiday options such as hotels and exchange alternatives either through use agreements with other resorts or via an international exchange company.
Membership is not linked to a particular resort but rather to a club with the obligations and benefits set out in its rules and regulations. In general, the core accommodation and use rights, as well as the reservation system, is held or controlled by an independent trustee (or established under a registered company structure) to ensure the long-term protection of the members´ interests. Holiday Clubs follow the marketing, selling and disclosure requirements of the EU Directive on timesharing.
Trial membership programmes – allow consumers to try out holidays in timeshare resorts without the long-term commitment of a full, longer term membership in a timeshare club. The trial holiday packages often include three-to-five weeks of holidays to be taken over a two-to-three year period at timeshare resorts. If less than 36 months, they are not covered by the European Timeshare Directive but where promoted by OTE members such trial memberships have the protection of cancellation rights.
Trustee – the entity holding legal ownership of the occupancy rights at the resorts, which underpin the timeshare owners’ rights as members, for the life of the timeshare club.
U nit – the term for a studio, apartment, lodge, chalet, villa, room or even a boat in which a timeshare owner acquires occupational rights.
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V OICE -- Vacation Owners’ Independent Coalition in Europe, an independent, non-profit making organisation set up by
OTE and TATOC to offer advice and assistance on timeshare and to safeguard the interests of owners and the industry. The Europe-based body has its headquarters in Brussels.
OTE
Oak House
Cours St Michel 100/3
1040 Brussels
Tel: 00 322 533 3060
Fax: 00 322 533 3061 www.ote-info.com
Consumer Enquiries
OTE:
Tel: 00 322 533 3069
Email: info@ote-info.com
VOICE
Tel: 0870 240 8993
Email: uk@voice.eu.com
Media Enquiries
Flagship Consulting Ltd
The Media Centre
19 Bolsover Street
London W1W 5NA
Tel: 020 7886 8440
Fax: 020 7886 8460
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