RCI Ventures | Timeshare and shared ownership news http://www.rciventures.com Timeshare news and fractional real estate news. Fri, 10 Sep 2010 15:05:54 +0000 en hourly 1 http://wordpress.org/?v=3.0.1Timeshare news and fractional real estate news. RCI Ventures | Timeshare and shared ownership news no Timeshare news and fractional real estate news. RCI Ventures | Timeshare and shared ownership news http://www.rciventures.com/wp-content/plugins/powerpress/rss_default.jpghttp://www.rciventures.com Shared ownership, South Africa-stylehttp://www.rciventures.com/2010/09/shared-ownership-south-africa/ http://www.rciventures.com/2010/09/shared-ownership-south-africa/#comments Fri, 10 Sep 2010 15:05:54 +0000 Dave Thackeray http://www.rciventures.com/?p=1823

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]]> Picture of Wayne Grews

Wayne Grews

South Africa is experiencing one of the most pivotal years in its tourism industry. Hosting the 2010 World Cup showcased the Rainbow Nation and created unprecedented demand for many of its prime destinations.

Wayne Grews, managing director of RCI in Africa, shared his experience and insight to give us an overview of South Africa's timeshare industry past, present and future...

From your point of view, what is the current state of the shared-ownership industry in South Africa?

The re-sale market of traditional timeshare units or space is very active. The industry has evolved and ‘new’ products such as fractional ownership, private residence clubs and destination clubs are the order of the day. This has allowed RCI to also evolve and develop new products and brands such as The Registry Collection which supports these developers and developments.

Also, with the investment in infrastructure that went into paving the road for South Africa’s world cup soccer hosting, we may very well see an upswing in development or conversion of leisure destinations to shared-ownership models.

Did the world’s economic crisis affect South Africa? (For example, have you had the same problems with financing that the U.S. and Europe have had?)

Yes, we have seen a downturn- but not as negatively as abroad. Financing of developments and developers are currently limited with some challenges around investment appetite. There are however companies that are offering products to support emerging developments and industry players, such as the IDC (Industrial Development Corporation).

Are there any dangers inherent with the current rate of growth?

There are some signs on the horizon regarding less new sales, but there are also opportunities in repackaging existing offerings. We have received a number of enquiries from developers and some product packaging has resulted in success stories, such as The Registry Collection, some key new RCI affilations and a number of developers in the pipeline with some exciting plans.

How would you compare the state of the industry in South Africa with other major markets around the world?

The South African market is different to other markets due to the smaller scale of developments taking place globally, but we have solid consciousness around shared-ownership in South Africa. Fractional, timeshare and vacation ownership are all recognised and established as a part of the leisure property market as opposed to markets where this phenomenon still has to be accepted and where knowledge and legislation around it has to be developed and put in place.

Has fractional ownership taken off in South Africa and if so, how is it being integrated and sold?

Yes, fractional ownership is an increasingly-attractive option of ownership. It gives more market segments access to the luxury leisure property market and it is generally more flexible than traditional timeshare acquisitions.

Fractional ownership is also mostly sold through the leisure real estate sector rather than the shared-ownership industry and clearer distinctionneeds to be made, so that the market understands it better.

Currently there is a rapidly increasing number of families becoming financially able to purchase timeshare -- have you seen a shift in the reasons why people buy?

Changing social trends and differences between generations have led to changing expectations. Shared ownership makes sense due to the reduced capital growth of a wholly-owned property resultant from the economic downturn. Maintenance costs, security costs and rates and taxes are expenses that are then split between owners and make shared-ownership viable to the astute owner.

The prospective timeshare purchaser of today does demand a higher standard of facilities as well as more themed entertainment at resorts.

Do you think the hosting of the World Cup will have had a positive effect on future tourism in South Africa?

It has been outstanding both from a branding of South Africa as a great tourist destination points of view, combined with a residue of both word of mouth and growth in future tourism and leisure investments.

The immediate positive effect is the tourism influx that took place during South Africa’s traditional low season for overseas visitors due to winter and its related spending, thus boosting the economy. Hosting has showcased South Africa’s ability to successfully manage and deliver a large global event with the required infrastructure demands.

South Africa as a destination, received well-deserved exposure. It wasn’t only stadiums and transport infrastructure that were constructed and improved. New leisure and tourism infrastructure has been developed which will be an enabler of future tourism numbers.

If the stability in the exchange rate of the ZAR (South African Rand) against the US dollar, Euro and British pound remains, it makes South Africa an affordable and viable option for international travellers. The climate and variety of leisure options on offer make it a comfortable place to visit.

What are the biggest challenges facing the industry now and going forward?

Revitalising a mature market with resort developments that bring fresh experiences to current members, whilst attracting both new developers and members in a restricted credit environment.

RCI on a global basis has a number of new initiatives from RCI TV, The Registry Collection and constant member and developer feedback that translates into constant reinvention of the RCI value proposition.

In the coming years, do you envisage more foreign companies looking for Joint Ventures and will we see South African developers expanding their portfolios with overseas developments?

Yes. Joint venture investments are happening in Australia and, developers are already expanding to Mauritius, Seychelles, Kenya, Tanzania, Nigeria, Mozambique, Botswana and Angola. Marketing of these properties is growing and the affluent markets are targeted for these by personal invitation or expo’s at luxury venues.

Investors have trust in South Africa due to our stable economy, modern banking systems and political stability compared to the rest of Africa. Tourism has become our biggest earner of foreign currency and government aims to increase tourism’s contribution to GDP to 12%. All this is very attractive.