California Timeshare Industry Contributed $2.8 Billion in 2005 to Statewide Economy, According to AIF Study by PricewaterhouseCoopers.

WASHINGTON -- The California timeshare industry contributed $2.8 billion to the statewide economy in 2005, according to a study conducted by PricewaterhouseCoopers and released today by the ARDA International Foundation (AIF), the research and educational arm of the American Resort Development Association (ARDA). The study was conducted for AIF to analyze the impact of timeshare developers and owners and their value to California's economy.

The combined direct and indirect economic impacts the timeshare industry had on the California economy increased 25.4 percent from the $2.2 billion reported for 20021. The California timeshare industry directly supported 27,170 full- and part-time jobs (almost 13.5 percent more than the 23,930 in 2002), $1 billion in salaries, wages, and related income (a 27 percent increase from 2002), and $426 million in tax revenue during 2005 (a 25 percent increase over 2002).

"The economic benefits the timeshare industry conveys to California communities surrounding resorts and the state as a whole are documented, substantial, and growing," said Michael W. Andrew, Jr., vice president & assistant general counsel, Marriott International, Inc. and chairman of ARDA-California. "This study underscores the vibrancy of timeshare and our position as a serious and stable economic catalyst."

Timeshare owners' spending generates dollars for California

California's 123 timeshare resorts had 10,690 timeshare units in 2005 (representing a 12.5 percent increase from 2002, 6.9 percent of the current U.S. total, and an annualized growth rate of four percent.). During 2005, 1.5 million timeshare owners, their guests, and renters took approximately 430,000 timeshare vacations in California:

* with a typical traveling party of 3.6 people,

* spending an average 7.5 nights in the resort area,

* and spending an average of $1,581 per trip,

* with 88 percent of their trip expenditures at businesses outside the resorts, such as casinos, shows, restaurants and other area attractions.

New and existing owners:

* Spent approximately $560 million on purchases of new California timeshares (representing nearly seven percent of the $8.6 billion of U.S. sales and a 55 percent increase in annual sales over 2002),

* and contributed $280 million toward maintenance fees for existing units during 2005.

"The economic impact of the timeshare industry does not end with the initial purchase," said Howard C. Nusbaum, president and chief executive officer of ARDA. "Timeshare purchases, combined with other expenditures and owner and guest spending during vacation, generate tremendous income as well as a ripple effect through other parts of California's economy."

The California timeshare industry activities supported 16,600 direct jobs and $565 million of direct salaries, wages, and other income. The positive ripple effect the California timeshare industry had via indirect impacts on the state economy in 2005 resulted in an estimated $1.3 billion of purchases, 10,570 jobs, and $466 million in salaries, wages and related incomes as timeshare employees spent their disposable income and as timeshare companies purchased good and services from other businesses.

The typical California timeshare resort operated with an average occupancy rate of 83.1 percent during 2005, compared with the average California hotel occupancy of 69 percent in 2005.2

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 29 percent of existing timeshare units in the U.S. The response base in California included 38 resorts with over 6,170 units, or 51 percent of timeshare units in the state, and survey responses from almost 431 households who had visited California on their most recent timeshare vacation.

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.

1 2002 figures previously reported have been adjusted by PricewaterhouseCoopers to accommodate changes in industry classification made by the U.S. Census Bureau.

2 According to "STR Lodging Review December 2005," Smith Travel Research, Jan. 23, 2006.