Economic Impact on the State's Economy in 2002
Jobs, Consumer Expenditures, High Occupancy Rates, and Industry Stability
WASHINGTON, Nov. 29, 2004 - The timeshare industry in California made a $3 billion economic impact on the state's economy 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 California's economy.
Combined direct and indirect economic impacts as well as fiscal contributions for the industry totaled $3 billion of output, 31,100 full- and part-time jobs, $1.1 billion in salaries, wages and related income, and $418 million in tax revenue during 2002.
"This California 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 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 California had 125 timeshare resorts (second only to Florida) with 11,900 individual units (third, behind Florida and South Carolina) 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.
In addition to California, PwC conducted studies in six other states: South Carolina, Arizona, Hawaii, Florida, Nevada and Virginia.
"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."
Timeshare owners' unique vacation habits and commitment to travel generate dollars
In examining direct industry output, the study showed timeshare owners:
Jobs, payroll, and taxes bolster California economy
Specifically, the industry's total direct impact in 2002 included $1.7 billion of output, 18,500 jobs, and $530 million 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 9,600 people who earned $290 million in wages, salaries 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 1,400 jobs and $70 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 $1.3 billion in purchases, 12,500 jobs and $520 million in salaries, wages and related income during 2002.
The complete fiscal impact totaled $418 million in tax revenue for the
year, with timeshare property and occupancy taxes representing $33 million,
timeshare employee taxes accounting for $85 million and taxes on activities
in other industries totaling $300 million.
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."
American Resort Development Association
|Also See:||Time Share Industry Cleans Up Reputation by Embracing State and Federal Regulation / May 2004|
|Florida Timeshare Industry Made a $7.9 Billion Economic Impact in 2002; Florida had 366 Timeshare Resorts with 27,700 Individual Units at the End of 2002 / July 2004|