experts project demand will rise for timeshares · "i guarantee there's someone buying a...

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Experts project demand will rise for timesharesThe number of visitor arrivals in Hawaii is expected to reach a record in 2015

By Allison Schaefers

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CRAIG T. KOJIMA / [email protected]

I guarantee there’s someone buying a timeshare in Branson, Mo., right now because they see a picture on the wallof Hawaii.”Howard NusbaumPresident and CEO, America Resort Development Association

Despite a lackluster start to the year, Hawaii's visitorindustry is still on track to break an arrivals record in2015, and the burgeoning timeshare industry willplay a role in that expansion.

That was the opinion of a panel of tourism expertswho spoke Monday at a Chamber of CommerceHawaii luncheon titled Tourism 2.0 — New Wave ofTimeshare Customers.

"Total visitor arrivals hit a record in 2014, and we'll hitone in 2015," said Carl Bonham, executive directorof UHERO.

According to the latest statistics from the Hawaii Tourism Authority, timeshare-only usage was up 3.3percent in March to 49,769 visitors, and it rose 4.9 percent to 134,118 visitors for the first three monthsof 2015.

Visitors who planned to spend a portion of their vacation in a Hawaii timeshare increased 4.2 percent to66,011 in March and climbed 4.7 percent to 178,754 for the first three months of 2015. That's incontrast to HTA data for all of 2014, which reported timeshare-only usage fell 0.2 percent to 585,497and partial-timeshare usage rose a scant 0.6 percent to 762,939.

Part of the reason for recent timeshare gains is that more people are coming to Hawaii and exploringoptions beyond traditional hotels. According to Bonham, real room rates on Oahu have risen 14percent above their previous peak and 45 percent above the previous trough.

"We haven't tested all the causes for visitors changing where they stay. Part of it is unavailability ofhotel rooms as well as prices. But it's also exploration from heavy repeat travelers," said Daniel Nahoo-

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condominiums and timeshares."

Customer demand for Hawaii timeshares also is growing, said Howard Nusbaum, president and CEOof the America Resort Development Association (ARDA), which represents the timeshare industry.

"I have good news for you: Timeshare is doing well and it's doing well in Hawaii," Nusbaum said.

After years of lagging behind other destinations in terms of timeshare development, Nusbaum saidHawaii is coming into its own with 93 resorts, which make up 6 percent of the entire U.S. timesharemarket.

"Hawaii is the most sought-after timeshare destination, with nearly $1 billion in sales," he said. "At 85.2percent you've also got the highest timeshare occupancy in the U.S."

Altogether, Nusbaum said, Hawaii's timeshare industry employs 4,000 people, generates wages inexcess of $100 million and generates about $67 million in state and county tax revenues. As a result,Nusbaum said Hawaii's timeshare plays an integral role in the $23.6 billion U.S. timeshare industry.

"I guarantee there's someone buying a timeshare in Branson, Mo., right now because they see apicture on the wall of Hawaii," he said. "(Hawaii) is the dream vacation, the glue of the timeshareindustry."

Blake Oshiro, the contracted executive director for ARDA Hawaii, said the state's timeshare industry isexpected to continue growing despite the pending passage of state House Bill 169, which, if signed byGov. David Ige, would increase the transient occupancy tax by 2 percentage points over the next twoyears.

Oshiro said timeshare renters, who are using the properties like hotels, already pay transientaccommodations taxes. He added that Hawaii is the only state where timeshare owners are charged adaily transient occupancy tax during their stay.

"Since timeshare owners already pay property taxes and general excise taxes, we were philosophicallyopposed to the increase, which would go from the current 7.25 percent of the unit's fair market value to8.25 percent next year to 9.25 percent in 2017," Oshiro said.

That said, Oshiro said the timeshare industry understands that the percentage-point hike mirrors theone imposed on the hotel industry during the height of the recession. Oshiro said the tax increasesaren't expected to dampen Hawaii timeshare sales or stays.

"It's small, so most owners probably won't even notice the increase," he said.

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demand will risefor timeshares StarAdvertiser.com

Experts project demand will rise fortimeshares

The number of visitor arrivals in Hawaii isexpected to reach a record in 2015

By Allison Schaefers

POSTED: 1:30 a.m. HST, May 12, 2015

Despite a lackluster start to the year,Hawaii's visitor industry is still on track tobreak an arrivals record in 2015, and theburgeoning timeshare industry will play arole in that expansion.

That was the opinion of a panel of tourismexperts who spoke Monday at a Chamberof Commerce Hawaii luncheon titledTourism 2.0 — New Wave of TimeshareCustomers.

"Total visitor arrivals hit a record in 2014,and we'll hit one in 2015," said CarlBonham, executive director of UHERO.

According to the latest statistics from theHawaii Tourism Authority, timeshare-onlyusage was up 3.3 percent in March to49,769 visitors, and it rose 4.9 percent to134,118 visitors for the first three monthsof 2015.

Visitors who planned to spend a portion oftheir vacation in a Hawaii timeshareincreased 4.2 percent to 66,011 in Marchand climbed 4.7 percent to 178,754 for the



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experts project demand will rise for timeshares · "i guarantee there's someone buying a...

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