Southern Africa timeshare study illustrates a growing market

Africa

According to a recent study completed by Ragatz Associates, the southern Africa timeshare industry has grown to 180 resorts…

According to a recent study completed by Ragatz Associates, the southern Africa timeshare industry has grown to 180 resorts, consisting of 8,128 timeshare units, as of Jan. 1, 2004. Of these, 169 are located in South Africa, six in Zimbabwe, two in Reunion, and one each in Mauritius, Namibia and Swaziland.

During the calendar year 2002, the report said, southern Africa timeshare resorts sold about 32,000 weeks, or the equivalent in points. This represented about ZAR566 million, or about USD$89 million at today`s current exchange rates. In 2003, this figure grew to ZAR705 million, or USD$111 million, representing about 38,000 weeks or the equivalent in points.

The report, titled Resort Timesharing in Southern Africa, 2004 edition, is the latest of an ongoing series of studies by Ragatz Associates examining the resort timeshare industry in key regions around the world.

Other key findings revealed in the study include:

Purchases of conventional timeshare from developers and other commercial sources are most likely to take place at a resort (44.8 percent) or in the buyer`s home (27 percent). The latter finding is noteworthy, because timeshare purchases occurring in the homes of buyers are uncommon in most other areas of the world.

The overall greatest concern reported by recent timeshare purchasers is the possibility of future maintenance fee increases. This was cited as very important by 61.6 percent who purchased from developers or other commercial sources during the study period.

Word of mouth and print ads in magazines and newspapers are the two largest marketing channels, accounting for 26.1 percent and 18.6 percent of conventional developers` sales, respectively. The heavy use of these comparatively low-cost channels helps hold down the cost of southern Africa timeshares.

Of households that have owned southern Africa timeshares for one year or longer, fully 82.8 percent are satisfied with their intervals, including 57 percent who describe themselves as very satisfied.

Timeshare ownership dramatically increased visitation to the area where resorts are located. Over a five-year period, visitations increased 74 percent in the number of nights spent in timeshare resort

areas.

Follow TravelDailyNews International on Google News

Theodore Koumelis

Co-Founder & Managing Director - Travel Media Applications | Website | + Posts

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.