Florida Timeshare Industry Contributed $14.3 Billion in 2005 to Statewide Economy, According to AIF Study by PricewaterhouseCoopers

Study reveals 7.9 million timeshare visitors vacationed in Florida in 2005; high growth in sales, jobs and tax revenue over three-year period
 

The Florida timeshare industry contributed $14.3 billion to the statewide economy in 2005, according to a study conducted by PricewaterhouseCoopers (PwC) and released today by the ARDA International Foundation (AIF), the research and educational arm of the American Resort Development Association (ARDA). Undertaken to analyze the impact of timeshare developers and owners and their value to Florida’s economy, the study was released in advance of ARDA’s annual convention that will draw 4,000 timeshare industry professionals to Orlando next week.

The combined direct and indirect economic impacts for the industry in 2005 represent a 25.6 percent increase over 2002, when the last generation of this study was undertaken. In total, the Florida timeshare industry supported 161,100 full- and part-time jobs (22,400 additional jobs, representing a 16.2 percent increase from 2002), $5.4 billion in salaries, wages, and related income (a 27.8 percent increase from 2002), and $2.1 billion in tax revenue during 2005 (a 25.2 percent increase over 2002).

“The economic benefits the timeshare industry conveys to Florida communities surrounding resorts and the state as a whole are documented and substantial. This study underscores, once again, the vibrancy of timeshare and our position as a serious, stable, and growing economic catalyst,” said Raymond L. “Rip” Gellein, Jr., RRP, ARDA Chairman and president of the Global Development Group of Starwood Hotels & Resorts Worldwide, Inc.

The study showed that Florida leads the nation in the number of timeshare resorts (378 compared with 366 in 2002) and the number of timeshare units (47,400, or 30.7 percent of the U.S. total, compared with 38,700 in 2002). More timeshare owners take vacations in Florida than any other state.

“With nearly one third of U.S. timeshare units as well as the headquarters and central offices of many of North America’s large and mid-size timeshare development companies, the timeshare industry has proven a boon to Florida,” said Howard C. Nusbaum, RRP, president and chief executive officer of ARDA. “The areas with timeshare resorts, such as Central Florida, continue to benefit from the generation of loyal repeat visitors, new jobs, and consumer expenditures, as well as the industry’s elevated occupancy rates and overall stability.”

Timeshare owners’ travel and vacations generate dollars for Florida economy

In examining 2005 direct industry impact, the study showed 7.9 million timeshare owners, their guests, and others renting units:

Took approximately 1.8 million timeshare vacations during 2005
 

Spent an average of $2,062 per trip for the traveling party
 

Yielded a total estimated spending of $3.7 billion
 

Spent approximately $2.6 billion on purchases of new Florida timeshares (representing 30 percent of the $8.6 billion of U.S. sales)
 

Contributed $1.3 billion towards maintenance fees for exiting units during 2005
 

Spent a combined total of $7.6 billion in direct timeshare related spending in Florida.
 

“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 income as well as a ripple effect through other parts of the state’s economy.” 

More timeshare resorts mean more jobs, spending, and taxes for Florida

Direct resort impacts were substantial, as timeshare resorts, corporate offices, call centers, and off-site sales offices employed an estimated 54,300 people (compared with 44,200 in 2002) who earned approximately $1.8 billion in salaries, wages and related income (compared to $1 billion in 2002). Direct resort construction impacts, which occurred as the industry expanded existing resorts and built new ones to keep pace with sales, supported approximately 6,700 jobs (compared to 4,500 in 2002) and $270 million in salaries, wages and related income (compared to $170 million in 2002).

The average timeshare employee earned $33,000 in salaries, wages and related income—more than employees in the Florida hotel and lodging industry. Timeshare resorts operated with an average occupancy rate of 82.4 percent in 2005, compared to the average Florida hotel occupancy of 69.1 percent.

Study Methodology
 

The study results are based on the survey responses of 56 timeshare entities in the U.S., covering 391 timeshare resorts, approximately 50,700 timeshare units and approximately $5.2 billion of timeshare sales nationally. The sample size represents 24 percent of existing timeshare units in the U.S. This response base included 104 resorts in Florida with almost 19,000 units, representing approximately 36 percent of the timeshare units in the state. Study results are also based on the survey responses of almost 4,000 timeshare owners, of which 963 had visited Florida on their most recent timeshare vacation. In addition to Florida, PwC conducted a national study of the economic impact of the timeshare industry and state-specific studies in California, Arizona, Hawaii, South Carolina, Nevada and Tennessee. 

About AIF and ARDA
 

The ARDA International Foundation (AIF) conducts research and develops education programming for the timeshare industry. ARDA 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 expertise in shared ownership interests in leisure real estate. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).