TIMESHARE INDUSTRY SEEING 18-20% ANNUAL GROWTH

What is the current status of vacation ownership in India in terms of market size, number of companies, and resorts and units compared to developed countries? The timeshare industry in India comprises 350,000 timeshare-owning families and has a total turnover of Rs 700 crore. Currently, there are around 45 developers operating over 90 timeshare resorts in India with an average 40 units/apartments in each. While in India the industry is growing at the rate of 18-20 per cent per annum, in more saturated markets growth has leveled out at 10 per cent per annum. Globally, there are over 7,000 resorts with approximately 9.3 million owners representing approximately 10.7 million timeshare weeks across 200 countries. The west witnesses a fair amount of resale activity. However, in India the resale space has not really opened out yet. What are the emerging trends in the industry in India? We expect the entry of more branded hospitality players. In other markets, leading hotel brands have made timeshare an important part of their product portfolio thereby driving up the average purchase price and also creating greater awareness. What are the factors fuelling the growth of the timeshare industry in India? The growth in tourism is expected to intensify in the next few years driven by a buoyant economy and greater government support in upgrading and expanding the country’s infrastructure. Moreover, the concept of timeshare is attractive to those who are keen on committing to the need for a lifetime of family holidays. The feature of paying upfront during purchase leaves consumers with liquidity for other discretionary spends while on vacation. This inflation-proof pre-paid vacation has found greater favour after the recent recession. What are the challenges vacation ownership has been facing? High land cost in popular locations and poor FSI norms. On the flip side, this has also spawned development in lesser known and therefore more affordable destinations which now owe their popularity to timeshare. What’s the current operational profile of RCI? What sort of growth do you expect in 2011? RCI currently has 92 affiliated resorts in the Indian sub-continent. Over the last three years we have added 22 new resorts. We expect the trend to continue to grow. As more hotels and resorts look to maximise their revenue potential from available inventory, mixed-use resorts will be the mantra for the future. What advice would you give a developer thinking of embarking on a first project? First, seek new destinations. The huge popularity of Goa and its international appeal have indeed made it a sought-after vacation destination, but there are many other beautiful locations where land is more affordable. Second, develop sales and marketing teams. Those vacation ownership developers who have successfully scaled-up operations here have done so by developing their own sales and marketing infrastructure. My advice to newcomers would be to be prepared to invest in their own outfits and train and develop staff rather than outsource things.