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1. The Concepts And History Of Timeshare

2. The multiple ownership of individual weeks brought
with it the guarantee of reservations for those who
wanted to ski in the area. It was an immediate success.
By the 1970's some faltering condominium projects in
St. Thomas, Fort Lauderdale and Puerto Rico were
converted over to vacation ownership and thereafter
timesharing became a viable vacation alternative.

3. Once the concept of vacation ownership was embraced
by the United States it began to gain wide acceptance by
the public. Sales jumped to over 50 million by the mid
1970's and has climbed to more than 2 billion annually
today. Vacation ownership has enjoyed substantial
growth over the years with approximately 3.3 million
timeshares sold since 1980. Currently there are over
5,000 vacation ownership resorts in over 75 countries
around the world.

4. Exchanging a vacation ownership week in one resort for
that of another resort was introduced in 1974 and
thereafter timesharing offered variety and flexibility in
the vacation experience. Although there are many
exchange companies available which provide excellent
service, the two major forces are Resort Condominiums
International (RCI) which has approximately 3,250
member resorts and Interval International (II) with
approximately 1,600 member resorts. Combined, these
two companies provided over 1,600,000 exchanges last
year.

5. During a 30 year span, the industry has grown from
small (15-20 unit ) hotel conversions to the high quality
condominium resorts of today. The evolution of the
industry from scattered entrepreneurs to well managed
professional development companies has brought with
it a noticeable change for the better. Definitive leaders
have emerged and created standards and ethics for
management, marketing and sales practices. One such
organization is the American Resort Development
Association (ARDA) who's members are required to
comply with the established "Code of Ethics." The recent
entrance into the marketplace by major hospitality
chains such as Disney, Hilton, Ramada, and Marriott has
greatly

6. enhanced the quality and image of the industry.
Vacation ownership resorts of today are luxurious,
spacious and well located.

7. By the advent of these stronger and more professional
development and management companies along with
the weeding out the less desirable developers and
marketers, the industry is experiencing a noticeable
swing from a historically negative to a very positive
public image. One of the industry's leading analysts
(Ragatz and Associates) concluded that the majority of
timeshare owners are very satisfied with their purchase
and in fact, many own multiple weeks. The future of
vacation ownership is very optimistic and has
tremendous potential.

8. What Is Vacation Ownership ?

9. Vacation Ownership "Timesharing" is the right to use
specific weeks of a resort during a specific time period.
Simply put, it is the pre-purchase of a vacation. It is
important to understand that vacation ownership is a
commodity which is purchased to be enjoyed and used
over the years. One should never purchase a timeshare
with the intent of reselling it for a profit. Vacations are
holidays for which we spend money to relax and
rejuvenate; they are not investments.

10. Ownership of a timeshare is very similar to ownership of
a condominium except that your rights are limited to a
certain week during the year. The form of ownership can
be Deeded, Leased or a License.

11. The License is somewhat different in that it is most
commonly a membership in a club. Providing you are a
member in good standing, you have the right to use the
club and all it's amenities. Be sure to read and
understand all the terms and conditions of your club
membership before you make the decision to buy. Most
vacation ownership consists of either a deeded interest
or a leased interest for a specific number of years.

12. A Deeded interest is owned outright forever. It an
absolute right which can be sold, leased, or even willed
to your heirs. Most timeshares which exist today are
deeded ownership.

13. The Leased interest is much like an apartment lease
except right to use it is restricted to a specific week
during the year. Upon the expiration of the lease term
your right to use will generally terminate and return to
the resort. With a leased interest you should know the
terms and conditions of the lease prior to making the
decision to buy.

14. The time of your use can be either Fixed or Floating.
Fixed time is a specific week during the year usually
defined by a number. Generally the week will begin on a
Friday, Saturday or Sunday and is given a number
starting with the first week in January an run through
the end of December. (Example - week 14 might be April
7 through April 13.)

15. Floating time means you have the right to select any
available week within a certain season of the year.
Therefore, if you own a summer season week you could
pick any week which falls within the

16. defined summer months. However, competition
between existing owners for prime weeks in very
desirable location can impact availability. It is important
to find which type of use best fits your specific travel
needs.

17. Each resort is different and you should ask if there are
other benefits which are available to its owners. Many
resorts offer special reduced rental rates for extra nights
or us of other resorts which are owned by the developer.
This can add to you flexibility and provide substantial
saving on vacation costs. Additionally, consider carefully
how and where you normally vacation. This is very
important in making your decision about where you
should buy and what you will be trading.

18. Important Facts About Vacation Ownership

19. - Timeshare is one of the fastest growing areas of the
travel and tourism industry.

20. - Timeshare owners live in more than 200 countries
around the world.

21. - Major brands now involved in timeshare
internationally include Hilton, Hyatt, Four Seasons,
Sheraton, Ramada and De Vere.

22. - On a worldwide basis, more than 12 million people
took a timeshare vacation in 1999

23. - There are around 5,500 timeshare resorts throughout
the world in more than 90 countries.

24. - The industry is worth in excess of $6 billion annually.
The top 10 timeshare companies alone reported
combined sales in excess of $2.64 billion in 1999.

25. - During 1999 each of the top 10 performing timeshare
companies worldwide recorded sales in excess of $100
million.

26. - RCI, the world's leading timeshare exchange
organization, arranged vacations for seven million
people worldwide in 2000, making it one of the world's
largest travel companies.

27. Timeshare Today And In The Future

28. The modern timeshare industry continues to expand at a
rapid rate, with new markets opening up in Asia and
Eastern Europe and consolidation prevalent in the
established markets of Western Europe and North
America.

29. Firmly established as a key sector of the mainstream
vacation market, the multi-billion dollar timeshare
industry now embraces modest entrepreneurs and
mighty corporations. Its global reach with close to 6,000
resorts in more than 90 countries extends from Spain to
China, Mexico to South Africa.

30. Some of the world's biggest names in the hospitality and
leisure sector now have timeshare interests - Hilton,
Sheraton, Disney, Ramada, Four Seasons, Hyatt, Westin,
Ritz-Carlton and Radisson. At the same time, the list of
well-known European companies with timeshare
interests continues to grow - RIU Hotels (50% owned by
TUI - Touristik Union International, Europe's largest tour
operator), Sol Melia, De Vere, Macdonald Hotels in
partnership with Barratts (the UK's Number One house
builder), Mondi Ferienclub in Germany.

31. Quality developments around the world are enjoyed by
millions of owners, their families and friends, making
the phenomenon of timeshare a success story without
equal. In 1999 over 12 million people took a timeshare
vacation.

32. Timeshare owners come from over 190 countries but
more of them live in the United States than anywhere
else in the world - 47%! In fact the US has the lion's
share of timeshare resorts - over 1,500. And that
accounts for more than 37% of the total worldwide. In
the western world, timeshare is now a highly organized
and regulated industry. Trade bodies such as the
American Resort Development Association (ARDA) and
the Organisation for Timeshare in Europe (OTE) work to
apply codes of conduct and ensure that expansion is
based on sound commercial practice and ethical
standards.

33. There is also considerable regional, national and
international legislation in place which aims to help
protect the rights of potential purchasers and discourage
the use of high-pressure sales tactics.

34. Timeshare in the future The worldwide timeshare
industry looks set to grow in popularity and log record
sales in the months and years ahead. Social trends mean
more people have more time and money to devote to
travel and the concept of vacation ownership. In many
parts of the world, regulation has given timeshare a firm
footing, helping to reassure and protect purchasers with
a series of consumer protection measures.

35. Since its inception, timeshare has undergone a
metamorphosis, according to Timeshare: Coming of Age,
an independent report published in October, 1999. With
the advent of the points-based system, the original real
estate concept has been transformed into "a flexible,
pre-paid vacation membership concept, placing
timeshare where it belongs - in the mainstream of
travel, tourism, hospitality and leisure".

36. In 10 years time who knows where the next
development will be?

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