LETTER FROM CHAIRMAN

On the industry-building role of timeshare concepts

I have often been asked how timeshare concepts can boost resort development in India. And the answer to that is not a simple one-liner. Because the timeshare and vacation ownership business model comes with a long life cycle – helping promoters plan the roll out of investments and resources. It also gives them a long buy-in from customers. In addition to paying upfront they continue to use the facilities and pay for other services such as F&B.

The longer version of that answer has to do with India as a booming hospitality market and poised for growth through relatively newer models such as timeshare and vacation ownership.

Though vacation ownership has been growing at a CAGR of 20 per cent in the recent past, the concept of timeshare is still under-leveraged in the country. While there are a number of products in the leisure basket, timeshare is the dark horse that will take resort development to newer heights and unexplored holiday locations.

Today, if you scan the holiday horizon, you will find limited options in customized leisure travel. In response, more circuits need to be explored and supported by planned resort development. What is encouraging here is the fact that the market for timeshare models is huge, and domestic traffic is adopting a lifestyle that is visibly supportive.
 
Also, there is a need to adopt an approach with consumer friendly policies - since vacation ownership resorts have the potential to be developed in hills, beaches, wildlife zones, plantations and even health circuits. Interestingly, resorts are being located even in pilgrim spots these days.

In the ultimate analysis, we can look forward to three or four key products in this category; namely, traditional timeshare, condominium hotels, traditional fractional and private residence clubs - the range covering the entire leisure spectrum from Rentals to Ownerships.

At a time when the vacation ownership industry is looking to take off in India, the All India Resort Development Association (AIRDA) has pinned its hopes on long term committed players venturing into the development of resorts

On its part, AIRDA will ensure the addressing of domestic leisure tourism as a national priority. For developers, our broad aim would be to increase awareness on timeshare (or vacation ownership) to potential investors. Timeshare directly contributes to the leisure segment - the benefit of which is passed on to the travel sector.
 

B. S. Rathor
Chairman, AIRDA