Tuesday, January 19, 2010

Timeshare Industry Hit Hard by Recession

The recession has been particularly tough on the timeshare business. Sales are down; defaults are up. Resort development has come to a standstill, and thousands of salespeople have been laid off.

Scams targeting owners desperate to get out from under payments are resulting in consumer complaints and actions from state attorneys general all over the country.

Sales dropped 48 percent in 2008 and 40 percent in 2009. They are likely remain flat in 2010, estimates Howard Nusbaum, CEO of American Resort Development Association.

Nussbaum says customer satisfaction remains high with 50 percent of buyers already owning another time share. He blames the slowdown on customers’ inability to get independent financing and the industry’s difficulties repackaging and reselling mortgages they used to provide buyers.

Source: Gannett News Service, Roger Yu (01/17/2010)

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