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1. Timesharing-Is It Finally Time To Buy?

2. The "hard" sales techniques, unexplainable price drops,
and low-quality resorts are generally disappearing. That
means many vacationers now view timesharing as a
viable and economical option for future vacations. But
they need to know much more to make an intelligent
purchase.

3. With the entrance of companies like Disney, Marriott,
and Hilton into the field, the timeshare market is
exploding. In the past two years, almost 500,000
households have purchased a total of more than
700,000 week-long units at timeshare resorts. That
means there are more than 2 million owners at more
than 2,000 resorts worldwide. Contrary to popular
belief, a recent study by leisure survey experts Ragatz
Associates showed that more than 80% of these owners
are happy with their purchase.

4. "It is clear that timesharing is gaining in popularity, not
only here in the U.S., but also across Europe, Mexico,
and in South America," says Tom Franks, president of
the American Resort Development Association, the
timeshare industry body, based in Washington, D.C.

5. THE BASICS

6. In timesharing, consumers typically buy one or more
weeks at a specific resort and can return to that resort
every year or "trade" it for a week at another resort
with an exchange company. Prices currently average
about $9,000, with annual maintenance fees of around
$300.

7. Vacation timesharing generally takes one of two forms:
"Fee" timesharing gives the purchaser permanent rights-
-in the form of a deed--to the property. About 85% of
timeshare resorts sell under fee-ownership agreements.
"Right-to-use" timesharing grants the purchaser the
rights to the use of the property for an established
period of time, such as 30 years. Under this type of
timesharing, the purchaser does not receive a deed.

8. Rather than return to their home resort every year,
many owners opt to exchange their week for a week at
one of thousands of other timeshare properties
worldwide. For a fee (usually less than $100), companies
like Resorts Condominiums International (317/876-1692)
or Interval International (305/666-1861) perform these
exchange services for member resorts and owners.

9. Many owners say this exchange privilege was a key
reason for buying and have had much success with the
exchanges. The keys to successful exchangers are: buying
at a popular resort (this increases exchange power);
"depositing" the week with an exchange company as
early as possible (this gives the exchange company more
time to find a user for the week being exchanged); and
being flexible on the desired destination, resort, and
dates of travel.

10. SOME SPECIFICS

11. The Orlando, Florida area serves as an ideal example of
what's available. It's a huge market for vacationers from
throughout the world in search of a piece of that
Orlando "magic." There are dozens of options available
and the area is a great place to own one or more weeks,
if you know where to go.

12. Well-established possibilities include: Island One
(407/859-8900); Marriott (813/688-7700); Orange Lake
(407/239-1082); and Vistana (407/239-3008). At these
and other resorts, you'll find a full host of amenities,
often including kitchens, decks, pools, restaurants, golf
courses, tennis courts, and much more. These timeshare
resorts are more like fully-equipped apartments or
suites, rather than standard hotel rooms.

13. Walt Disney World recently opened their first timeshare
resort, the Disney Vacation Club (407/939-3100). As
would be expected, they have developed some unique
features for their timeshare concept.

14. Disney tackled two of the major issues in the timeshare
industry today: flexibility and aggressive sales
techniques. Along with many other timeshare
properties, Disney has moved to improve these two
areas and the early reviews give them high marks.

15. By purchasing a real estate interest in Disney Vacation
Club Resort, guests automatically become members of
Disney Vacation Club and are entitled to a variety of
exclusive benefits and privileges. Members also receive
an annual allotment of vacation points, which may be
used on vacations at the resort or at more than 100
worldwide resorts currently offered through a "Member
Getaways" program with RCI.

16. "The flexibility of choosing among several different
vacation experiences is what sets the Disney Vacation
Club apart from many similar plans," says General
Manager Mark Pacala. "The vacation point system
allows members to select the type of vacation best
suited to their needs, particularly as those needs change
from year to year."

17. Disney has also attacked the overly-aggressive sales
techniques that used to plague the industry. They don't
provide any incentives or awards for prospects attending
the sales presentation and their sales force mostly
receives a fixed salary, rather than high commissions for
high volume.

18. For a one-time purchase price, guests may purchase a
real estate interest in the resort, which expires after 50
years. Prices currently run from $11,730 to around
$16,000.

19. The points system, which is becoming much more
popular in the timeshare industry, is much easier to
understand than it first appears. Let's say that with your
Disney Vacation Club ownership interest you have 270
points to use each year. You could reserve a two-
bedroom home for a week's stay in June or enjoy a five-
day family reunion in July in a three-bedroom Grand
Villa. Other options would be to reserve a two-bedroom
home for a nine-day stay in September or an incredible
stay of several weeks in a studio unit.

20. Disney's timeshare operation is typical of the exciting
future for the industry and astute timeshare buyers.
There are timesharing options throughout the U.S., with
huge multi-site options like Hilton Grand Vacations
(813/482-7766); Fairfield Communities (800/251-8736);
and the Lawrence Welk Resort Group (619/485-5556); as
well as small and intimate single-resort operations.
You'll find apartment-like accommodations in a resort-
like atmosphere.

21. WORLDWIDE OPTIONS

22. Timesharing is not limited to the U.S. at all. This
worldwide industry is very popular in Mexico, South
America, Europe, and several other parts of the world.

23. More than 100,000 weeks were sold in Mexico last year
at more than 100 different resorts. Prices tend to be
lower than the average $9,000 purchase price in the U.S.

24. Potential buyers should consider Cancun and Cozumel;
Puerto Vallarta; Acapulco; Ixtapa; and Manzanillo, a
regional resort area for Mexico City, which is favored by
Mexicans and generally features even lower prices (less
than $5,000). To get started in Mexico, contact reputable
multi-resort operator COSTAMEX at 305/267-7855.

25. South America is a relatively new hot-spot for
timesharing, but the industry there is growing quickly.
The Argentinian coast and mountains (skiing during the
U.S. summer) are currently the most popular spots for
development. Visitors to Argentina should explore the
options in Buenas Aires, Mar del Plata, Miramar, and the
Cerro Catedral ski area. The Uruguay coast resort area of
Punta del Este is also becoming a timeshare hub.

26. Timesharing actually started in Europe, before
blossoming in the U.S. There are hundreds of options
throughout Western Europe, the Mediterranean, and
Scandinavia. As can be expected, resorts are most
prevalent along the coasts and in the Alps.

27. Southern Spain is probably the leader in sunny European
timesharing. Dozens of timeshare resorts dot the Costa
del Sol area. It's easy to comparison shop along the
coast, but definitely check out several of Club Riviera's
options (011-34-52-831252). Other timeshare hotspots
include the Canary Islands, Portugal, the French Riviera,
Greece, and Turkey.

28. The Alps appeal to many timeshare buyers and for good
reason. A timeshare unit can save lots of money on ski
trips or a summer vacations in the mountains. There are
several options in the French Alps, Switzerland, and
Germany's Bavaria, but Austria seems to have the best
overall bets. Timesharing Ferienclub Jausern in Sallbach-
Hinterglemm (011-43-65-41-503) is typical of Austria's
club-like mountain resorts.

29. BUYERS BEWARE

30. Timesharing isn't for everyone. It's not a true real estate
"investment" and the resale market is tight. Simply put,
plan to buy it, keep it, and enjoy it.

31. The industry body ARDA (see below) has many excellent
publications about timeshare purchase. Their office is a
great starting point for interested buyers.

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