As the state’s timeshare industry got hit by the financial market meltdown in late 2007, many owners tried to get out of their timeshares. However, as the industry officials say its pre-paid nature makes it more resilient than traditional hotels during challenging economic times. Currently, it remains a strong and growing part of Hawai’i’s tourism sector.
Last week, the head of the American Resort Development Association was in Hawai’i, meeting with lawmakers to showcase the economic impact of the timeshare industry for the past two years. It was characterized by an overall slump in the state’s No. 1 industry.
According to Howard Nusbaum, president and chief executive officer of the Washington, D.C.-based trade association, the industry had enjoyed double-digit increases in revenues for 20 years until the financial crash. The growth in the number of timeshare units nearly doubled from 4,815 units in 2002 to 8,245 in 2005 then, growing more slowly to 8,872 units in 2007.
This adds up to about 10% of Hawai’i’s lodging inventory and it was reported contributing $4.5 billion in spending in Hawai’i, with 34,420 jobs and $511 million in tax revenues.
The timeshare industry is one of the greatly affected by the recent crisis. After it broke out, many owners want to get rid of their timeshares while others hire a timeshare transfer company such as the Transfer Smart just to get rid of such property. However, as the economy is gradually bouncing back this year, this industry shows resiliency and still remains a big contribution to any state.