The recent economic downturn may affect the timeshare industry in some ways and may even be the cause why some owners tried to get out of their timeshares but according to Jeff Tisdall, the RCI Middle East and North Africa managing director, the success of timeshares during the economic downturn has also caused the investors and owners to look towards shared ownership and mixed use developments in Dubai.
As Tisdall said, this is because the fundamentals which analysts look for when predicting strong potential for timeshare are all present in Dubai and most importantly perhaps, Dubai is really starting to mature as a leisure destination. He added that from a consumer perspective, the financial crisis helps to highlight some of the key advantages of timeshare as when times are tougher economically, we all tend to use what we already have.
Meanwhile, the move towards timeshare in the region is highlighted by the continued success of the market in destinations such as Sharm El Sheikh and Hurghada where timeshare owners have continued to travel, despite the economic downturn. Moreover, as Tisdall stressed out, if you looked back 12 to 18 months, the strength of the residential market made it very difficult for established vacation clubs to enter the Dubai market by acquiring a block of residential units and then offering them to their member base. Currently, the conditions are much more favorable.
Up to this day, there may still be a significant number of owners who are trying to get rid of their timeshares as a result of the recent economic meltdown. But that doesn’t mean that the timeshare industry is in crisis as a whole. As a matter of fact, there are even major timeshare investments in some areas like in Dubai which is seen as a great potential for timeshare business.