Economic Impact in 2002
Florida had 366 Timeshare Resorts with 27,700
Individual Units at the End of 2002
|WASHINGTON - July 21, 2004 -- The timeshare industry in Florida made
a $7.9 billion economic impact in 2002, according to a study issued today
by the ARDA International Foundation (AIF), the research and education
arm of the American Resort Development Association (ARDA). The study was
conducted for AIF by PricewaterhouseCoopers (PwC) to analyze the impact
of timeshare developers and owners, and their value to Florida's economy.
Combined direct and indirect economic impacts as well as fiscal contributions for the industry totaled $7.9 billion of output, 99,500 full- and part-time jobs, $3 billion in salaries, wages, and related income, and $1.1 billion in tax revenue during 2002.
"This Florida study details timeshare's significant economic contributions to the state and growing presence within the state's hospitality sector," said Howard Nusbaum, president and chief executive officer of ARDA. "The areas with timeshare resorts, such as Orlando, benefit from the generation of a loyal base of repeat visitors, new jobs, and consumer expenditures, as well as the industry's elevated occupancy rates and overall stability."
The study is the largest and most comprehensive the industry has undertaken, and reveals that Florida had 366 timeshare resorts with 27,700 individual units at the end of 2002. According to ARDA, there were 1,590 timeshare resorts nationwide with a total of 132,000 units as of January 1, 2003.
"The economic impact of the timeshare industry does not end with the initial purchase," said Scott Berman, a PricewaterhouseCoopers partner. "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 the state's economy."
In addition to Florida, PwC conducted studies in six other states: California, Arizona, Hawaii, South Carolina, Nevada and Virginia. Compared to those states, Florida offers more timeshare units and attracts more timeshare visitors. Those visitors spend more on average during their trips than timeshare vacationers in any of the other six states, except Hawaii. As a result, the timeshare industry supports more jobs in Florida than any of the other states studied.
"Timeshare accommodations are a growing part of Florida's tourism industry," said Lt. Governor Toni Jennings. "They provide our many repeat visitors an option for vacation lodging that is unique by securing their week in the Florida sun each and every year."
Timeshare owners' unique vacation habits and commitment to travel generate dollars
In examining direct industry output, the study showed timeshare owners:
Impact on Florida's economy
Specifically, the industry's total direct impact in 2002 included $4.4 billion of output, 59,300 jobs, and $1.6 billion of salaries, wages and related income. Direct resort impacts were substantial, as timeshare resorts, corporate offices, call centers, and off-site sales offices employed an estimated 35,200 people who earned $1 billion in salaries, wages and related income. Direct resort construction impacts, which occurred as the industry expanded existing resorts and built new ones to keep pace with sales, supported approximately 2,900 jobs and $120 million in salaries, wages and related income.
The indirect output of the timeshare industry resulting from the disposable income of industry employees and the purchase of goods and services by companies includes $3.5 billion in purchases, 40,200 jobs and $1.4 billion in salaries, wages and related income during 2002.
The complete fiscal impact totaled $1.1 billion in tax revenue for the year, with timeshare property and occupancy taxes representing an estimated $128 million, timeshare employee taxes accounting for $254 million and taxes on activities in other industries totaling $749 million.
The American Resort Development Association is the Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has nearly 1,000 members ranging from privately-held firms to publicly traded companies and international corporations with interests in timeshare resorts, community development, fractional ownership, and resort communities.
The ARDA International Foundation (AIF) conducts research and develops education programming for the timeshare industry. The Foundation's mission is to "support, conduct and disseminate research and technical studies that will enhance and improve knowledge for the public and the industry, and develop educational resources that will optimize value, operations, acceptance and service for the industry and the public."
|Also See:||The Timeshare Sector Reporting Revenue Growth for 10 Years Straight; Moving from Dogs to Darlings in the Tourism Industry / July 2004|
|Timeshare’s Club Culture Earning Fans Timeshare industry veterans offer advice on mounting a vacation club venture / Rae Hostetler / Oct 2000|