$62 Billion in Timeshare Consumer and Business Spending Added to U.S. Economy in 2005, According to AIF Study by PricewaterhouseCoopers.

With $8.6 billion in Sales and Indicators That Surpass Other Resort Industries, Timeshare is Boon to Local Economies

WASHINGTON -- The U.S. timeshare industry contributed an estimated $62 billion in consumer and business spending to the national economy in 2005, according to a study conducted by PricewaterhouseCoopers for the ARDA International Foundation (AIF). Released today during the annual convention of the American Resort Development Association (ARDA) taking place this week in Orlando, the study was undertaken to analyze the impact of timeshare developers and owners and their value to the U.S. economy.

Combined direct, indirect, and fiscal impacts in 2005 by the U.S. timeshare industry totaled an estimated $92 billion, including $62 billion in consumer and business spending, 565,300 full- and part-time jobs, $21.5 billion in salaries and wages, and $8.5 billion in tax revenue. There are over 1,600 timeshare resorts in the U.S., attracting 4.1 million households to vacation ownership.

On average, timeshare achieved significant growth of 24 percent in key economic categories over a three-year period: Since 20021, the industry's output increased 23.7 percent with $11.8 billion in additional output; timeshare employment increased 11.5 percent with 58,200 new jobs; salaries, wages and related income increased 24.4 percent with $4.2 billion in additional income; and the fiscal impact increased 24.8 percent with an additional $1.7 billion in tax revenue.

"The economic benefits the timeshare industry conveys to communities surrounding resorts and the nation as a whole are documented and substantial. This study underscores, once again, the vibrancy of timeshare and our position as a serious, stable, and growing economic catalyst," said Raymond L. "Rip" Gellein, Jr., RRP, ARDA Chairman and president of the Global Development Group of Starwood Hotels & Resorts Worldwide, Inc.

"Timeshare resorts are a boon to surrounding communities. They attract annual, recurring vacationers who fill seasonal low periods and travel even during periods of economic flux," said Howard C. Nusbaum, RRP, president and chief executive officer of ARDA. "Communities seek stability, and timeshare owners offer a committed perspective unique to travelers based on a shared desire for the long-term viability of the resort and protection of the resort area."

Timeshare stacks up favorably against other businesses in vacation destinations

In 2005, timeshare owners took approximately 5.7 million timeshare vacations, spending an average of $1,768 each trip, amounting to $10 billion in total, with 90 percent of a timeshare party's spending occurring outside the resort among the local area businesses. Visitor spending, generated by owners and guest spending during timeshare vacations, supported approximately 99,700 jobs and $3.0 billion in salaries and wages at businesses such as retail outlets, visitor attractions, and other local businesses.

"Timeshare resorts convey a significant base of jobs and tax revenues in vacation destinations, stacking up favorably as a long-term partner in local economies," said Scott Berman of PricewaterhouseCoopers. By way of comparison2:

* Timeshare resorts, companies, and exchange companies employed 133,400 people in 2005, compared to U.S. museums, which employed an estimated 79,300 in 2003.

* Timeshare owners and guests spent an estimated $22.6 billion on purchases of new timeshare, maintenance fees, and other purchases during timeshare vacations in 2005. By contrast, travelers spent an estimated $16.8 billion in 2003 at sporting facilities, such as gyms, fitness centers, ice skating rinks, tennis clubs, and swimming pools.

* Timeshare owners and guests spent more than twice as much purchasing or maintaining U.S. timeshares and vacationing itself than moviegoers spent on movie tickets during 2005.

Direct impacts were substantial, as timeshare resorts, corporate offices, call centers, and off-site sales offices employed an estimated 133,400 people (compared with 111,000 in 2002) who earned $4.5 billion in salaries, wages and related income (compared to $3.0 billion in 2002). Direct resort construction impacts, which occurred as the industry expanded existing resorts and built new ones to keep pace with sales, supported approximately 20,800 jobs (compared to 14,800 in 2002) and $960 million in salaries, wages and related income (compared to $640 million in 2002).

The fiscal impacts of timeshare at the federal, state, and local levels total $8.5 billion annually. Owners, who are part-time residents, support local governments and facilities through an estimated $400 million in annual property taxes. Renters contributed an estimated $80 million in occupancy taxes. The corporate office of timeshare companies and sales and support facilities paid an estimated $20 million in property taxes, and timeshare businesses and employees paid an estimated $970 million in payroll and personal income taxes. Another $7 billion is generated by other activities supported by the industry.

Study Methodology

The study results are based on the survey responses of 56 timeshare entities in the U.S., covering 391 timeshare resorts, approximately 50,700 timeshare units and approximately $5.2 billion of timeshare sales nationally. The sample size represents 24 percent of existing timeshare units in the U.S. Study results are also based on the survey responses of almost 4,000 U.S. timeshare owners. In addition to the national study, PwC conducted state-specific studies in Florida, California, Arizona, Hawaii, Nevada, South Carolina, and Tennessee.

About AIF and ARDA

The ARDA International Foundation (AIF) conducts research and develops education programming for the timeshare industry. ARDA is the Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has over 1,000 members ranging from privately held firms to publicly traded companies and international corporations with expertise in shared ownership interests in leisure real estate. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).

1 For comparison purposes, PricewaterhouseCoopers has updated figures previously reported for 2002 in a method that is consistent with the analysis for 2005, using the latest version of the economic model and a consistent view of timeshare inventory.

2 Sources: U.S. Census Bureau, Motion Picture Association of America, and PricewaterhouseCoopers