ARDA SALUTES VACATION OWNERS ON TOURIST APPRECIATION DAY AS TIMESHARE OWNERS TOP 3 MILLION; Study Shows Preference for Vacation Ownership As Sales Increase Nine-fold since 1980.

WASHINGTON--(BUSINESS WIRE)--May 9, 1995--Vacation owners took center stage today as a global study released in honor of Tourist Appreciation Day showed that their ranks have swelled past the 3 million mark.

According to the study, the vacation ownership industry has experienced close to 900 percent growth since 1980. In addition, with 384,000 new owners purchasing 560,000 timeshare intervals and gross sales of $4.76 billion, 1994 proved a record year for the industry. Conducted by Ragatz Associates, Inc., and released today by the American Resort Development Association (ARDA), the study examined industry performance from 1980 through 1994.

In the past two years alone, the study reports, over 780,000 households have purchased a total of almost 1.2 million timeshare intervals, representing a sales volume of over $9 billion. The industry has grown 75 percent since 1990 in terms of both timeshare resorts developed, with 1,788 new resorts, and of households purchasing a timeshare interval, with 1,344,000 additional households during the four years.

The gross sales figure reported in 1994 reflected an increase of 870 percent over the $490 million in sales reported in 1980. In addition, the 560,000 timeshare intervals sold in 1994 reflects a jump of 460 percent over the interval sales reported in 1980, which were approximately 100,000.

A Global Explosion in Vacation Ownership

Approximately 3,144,000 households now own a timeshare interval, rising from 155,000 over the past 14 years. The number of timeshare resorts worldwide has risen to 4,145 from a mere 500 resorts in 1980. The study also reports timeshare resorts in 81 countries and timeshare owners residing in 174 countries.

"The figures on industry growth reported in the 1995 Worldwide Study are simply staggering and reflect what has been a virtual explosion in Vacation Ownership across the globe," said ARDA President Thomas C. Franks. "Of equal significance is the study's clear demonstration of vacation ownership as a stable and maturing industry. With rapidly mounting consumer demand, we are positioned to be the leading sector of the travel and tourism industry for years to come."

The industry demonstrated relatively consistent annual worldwide growth in timeshare owners in the past eight years, which has averaged 15.8 percent, with a narrow range from 13.9 to 17.6 percent. In the past four years, the absolute increases have been the highest in the history of the industry, according to the study.

U.S. Remains Industry Leader

The study reports the U.S. as the leader in the worldwide resort timesharing market, with 1,546, or 37.3 percent, of the resorts, 1,538,000, or 48.9 percent, of the "owners owning in the area," and 1,648,000, or 52.4 percent, of the "owners residing in the area."

The second most dominant area for timeshares is Europe, which contains 29.7 percent of the resorts, 20.9 percent of the owners owning in the area, and 21.6 percent of the owners residing in the area. Collectively, the U.S. and Europe contain 67.0 percent of the resorts, 69.8 percent of the owners owning in the area, and 74.0 percent of the owners residing in the area. According to the study, 64.6 percent of all timeshare resorts are found in six countries.

Some 52.4 percent of all timeshare owners in the world reside in the U.S., although the study showed that this number is decreasing as the market takes firmer hold in other countries. The next ranking country is the United Kingdom, with 286,259 owners, or 9.1 percent of the world total. Three other countries contain over 100,000 owners, including Mexico, with 171,905, South Africa, with 162,339, and Canada, with 127,050.

Rapid Industry Growth in Europe and South America 

The study shows that recent growth in the United States has been complemented by a boom in the timeshare market elsewhere in the world, especially in Europe, Mexico and South America. Between 1992 and 1994, on an area-wide basis, greatest absolute growth was in the U.S., Europe and South America. These three areas accounted for 66.4 percent of the new resorts, reported at 727, 75.5 percent of new owners owning in the area, reported at 590,000, and 75.7 percent of the new owners residing in the area, reported at 591,000.

Over one third (36 percent) of the new resorts were in Europe, with 394. Europe also realized a 47.0 percent increase in its number of timeshare resorts. The greatest relative increase was in South America, where the number of resorts grew 100.9 percent, from 115 in 1992 to 231 in 1994. The U.S. gained 217 resorts during the period.

Europe surpassed the U.S. as the leader with respect to growth of new owners residing in the area. During the last two years, an additional 245,000 households residing in Europe have purchased timeshres, compared to 237,000 in the U.S. Collectively, these two areas accounted for 61.7 percent of all new owners residing in any given area.

The penetration rate is over 50 owners per 10,000 in only two countries: New Zealand, at 79.4 to 10,000 and the U.S., with 63.2. The overall average figure for all countries is 8.9 timeshare owners per 1,000 tourists from abroad. The study reports this ratio as being significantly higher in countries with warmer climates, such as Mexico, the Caribbean and southern Europe.

Based in Eugene, Ore., Ragatz Associates, Inc., is a leading national consumer research firm. As the professional association of the recreational real estate, resort and vacation ownership industry, ARDA represents over 1,600 resorts, including second-home resorts, community developments, vacation timeshare resorts, fractional interests and recreational vehicle (RV) camp resorts.

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