June 23, 2017 — Recently InsideTheGate.Com (ITG) published some data that was released by the American Resort Development Association (ARDA) International Foundation (AIF) from their “Economic Impact of the Timeshare Industry on the U.S. Economy, 2016 Edition”. Having read the info it appears that all is going well in the U.S. timeshare industry. For example, during 2015 the reported sales volume in the U.S. was about $8.6 Billion plus, timeshare owners/members collectively spent an additional $3.4 Billion that year while vacationing at timeshare resorts throughout the United States.
So Here’s The Scoop: All fantastic news especially considering the two numbers publicly announced that in 2015 new owners/members as well as those who already own a slice of paradise collectively poured about $12 Billion directly and/or indirectly into the coffers of timeshare developers, HOA’s, and the on-site ‘establishments’.
The icing on top of the cake, so to speak, would include all the interest paid on all those financed timeshare contracts as well as all the annual maintenance fees paid and collected from all U.S. owners/members.
And we might as well add some ‘cherries’ to top off the U.S. cake which would be all of the exchange company annual dues as well as the exchange fees paid that year including all the other travel related products and services those exchange companies sold to all the timeshare owners/members throughout 2015.
If we do so, cipher that in and with a bit of guesstimating plus the published 2015 data I’m thinking the grand total of all that spending among all the owners/members in the U.S. must have exceeded $20 Billion that one (1) year, which is even more fantastic news regarding the general financial well-being of the U.S. timeshare industry.
And with a little whipped cream added the ARDA website has posted the 2016 U.S. numbers and it appears the sales volume in the U.S. increased last year to about “$9.2 Billion”.
And the crowd, rightfully, cheers!
Heck, before you know it just in the USA we’ll be back to our record high annual sales volume of a decade ago (2007) when we reached a milestone of about $10.7 Billion just prior to the worldwide financial crash when sales in the Land of Time – nationally and worldwide – plummeted by at least 40% in the very next year (2008).
That sobering and swift market reaction to financial challenges also reminds me that since the dawn of commerce — whether the issues are local, regional, national or global ‘issues’ and regardless of their causes such as personal, political, social or economical ‘unrest’ etc.) — monetary systems seem to run in cycles and there are always great financial times, those so-so times and then there are other times that aren’t so pleasant.
It’s the times that ‘aren’t so pleasant’ that I bring to the forefront this week and I do so not because I’ve gazed into my crystal ball and — through the mist, clouds, cracking thunder and tiny bolts of lightning — foresaw calamity on the horizon that may be detrimental to sales and our industry (aka: ‘us’, individually and/or collectively)
And for the record, unlike some ‘talking-heads’ on cable news TV, I’m also not predicting that an adjustment is imminent because of an overvalued stock market or that the historical track record clearly illustrates we’re simply due another major financial crisis. Heck, I’m not even forecasting what others are suggesting, that toe-to-toe full scale warfare throughout the Middle and/or the Far East is going to be unavoidable and soon.
Nope, I’m not suggesting anything of the kind because that ‘noise’ is far above my pay-grade. However I do know that financial situations change from time to time. That they do so sometimes without notice and for causes controlled by ‘others’. And because of that reality some folks who don’t prepare for the probabilities might find themselves facing some difficulties, even for a short period of time should their incomes decrease, erode or be eliminated.
And that reminds me of the time when the 40th President of the United States, the late Ronald Reagan cautioned us all about our incomes when he said: “A recession is when a neighbor loses his job. A depression is when you lose yours.”
So with that advice in mind this might be the perfect time for the rank and file around the world in our industry who have ‘gigs’ at or below the C-Level management slots to start cutting a couple of corners and maybe save a few more pennies for that rainy day.
You know, like once in a while occasionally cut out a (e.g.) visit to the mall or that mid-week night on the ‘town’ or just maybe that quick stop at the local watering hole after work during Happy Hour and/or buying a cup of ‘Java/Joe’ each morning from the local coffee shop on the way to work, etc.
Instead of spending that money that day/night and to be on the safe side – toss the $1, $5, $15, $30, $50, $100 or more into the bank or that old dusty coin jar sitting in the back of the closet – at least for awhile. 😉
Good Luck Out There
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