rci ventures: november 2009

Behzat Aksaray: ‘Condo-hotelsand multi-use properties arebecoming very popular inTurkey.’ PAGE 12

Diane Clarkson:‘Customer intelligenceis only useful if it isacted upon.’ PAGE 36

Robin Barrasford: ‘Fractionalownership opens up thetarget market for luxuryresorts.’ PAGE 27

Enterprising ideas for the vacation industry November 2009

TURKEYTHE RISING STARA WEALTH OF ATTRACTIONS ANDGOVERNMENT SUPPORT MEANSTURKEY IS FINALLY READY TOREALISE ITS INTERNATIONALTOURISM POTENTIAL

SILVER SERVICE CLUB LA COSTARESORTS & HOTELSCELEBRATES 25GOLDEN YEARS

PROPERTY AGENT DEVELOPSFIRST RESORT IN GREECE

FRACTIONAL PHILOSOPHY

CROATIA IS A LANDOF OPPORTUNITY

HOT PROPERTY

TIMESHARE ASSOCIATION HELPSBUILD INDUSTRY’S REPUTATION

CREDIT WORTHY

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4 MARKET OUTLOOK:A news and views round-upfrom Europe, and around theworld

10 RDO NEWS:A year of change and positiveaction against rogue tradersfor the Resort DevelopmentOrganisation

12 COVER STORYTURKEY – A RISINGSTAR:Turkey has all the attributes to becomea major player in international vacation ownership

16 ON COURSE FOR CHARITY:European executives and colleagues tee off at the Christel House Open

18 SIMPLY GIVING:Resort Properties’ latest development project will aid orphans in Kenya

20 TURNING SILVER TO GOLD:Club La Costa Resorts & Hotels Group goes from strength to strength after 25 years in the business

24 A WORLD OF DIFFERENCE:How luxurious new resorts are changing the face of the Costa del Sol

27 PHILOSOPHY FOR SUCCESS:A UK-based property agent is going Greek to develop its first resort

30 A CREDIT TO THE INDUSTRY:Chief executive Harry Taylor reflects on a busy year for The TimeshareAssociation

32 LONG-TERM PROMISE:Why Croatia is a market with real potential for property development

36 IN PURSUIT OF HAPPINESS:How and why you should reap the rewards of customer satisfaction

38 FINAL CALL – TAKING CONTROL:Survive tough economic times by making bold decisions, says LINDAFREER, managing director of Resort Solutions

RCI Ventures, November 2009 | 3

CONTENTS EDITORIAL

VENTURES is published by RCI, a trading name of RCI Europe, Kettering Parkway, Kettering, Northants, NN156EY, United Kingdom. Tel: +44 (0)1536 310101. Fax: +44 (0)1536 314682. Email: [email protected] EDITOR:Helen Foster. CONTRIBUTING EDITOR: Steve Adams. DESIGN: Richard Blaney. PRODUCTION CO-ORDINATOR:Claire Williams. ADVERTISING SALES: Media Line Ltd. Tel: +44 (0)870 250 8701. Repro: JP Repro. PRINTING:CKN Print Ltd. Original articles and contributions may be reproduced or transmitted only with written permissionfrom the publisher. No responsibility is accepted by RCI Europe for any losses or other consequences resultingfrom advertisements or other material appearing in this publication. RCI Europe reserves the right to accept orrefuse advertisements at its discretion without assigning any reason for doing so. © RCI Europe 2009.

2009 has been a year of achievementfor RCI and its industry associates.The last 12 months have left mefeeling proud to be a part of anindustry that is consistently proactiveand enthusiastic in identifyingopportunities to build a bright future.

Our developers’ commitment tothe long-term future of our industry is evident in the 35 newproperties we have signed to our exchange holiday networks inthe EMEAI region this year. We’re thrilled to welcome resortsoffering a great diversity of location and experiences, fromyacht clubs in the Mediterranean and spas in Turkey tohouseboats in Venice. A selection of these newly-affiliatedproperties are showcased on page 8.

The cover story on page 12 highlights the strengths ofTurkey as an increasingly important market for the shared-ownership product and for RCI, having affiliated six newTurkish resorts this year. Croatia is also tipped as a hot spot forfuture resort development in our market report on page 22.

Throughout 2009 I felt there has been a coming together ofindustry players across Europe and other regions, fostering agenuine team spirit which can only serve to strengthen ourbusiness. There are updates on the important work of severalof our associates in this issue – see pages 10-11 for a round-upof the achievements of RDO and its enforcement programmeheaded by Alberto Garcia, and page 30 for news of TATOC’sachievements throughout this year.

It has been a particularly good year for the fractionalproduct in Europe. The value proposition of fractionalproperties has made them an attractive leisure propertypurchase for those with spending power during the creditcrunch and consequently we’ve seen an increase in marketactivity. The Registry Collection affiliated six Europeanproperties in the last 12 months.

Increasingly property professionals from the wholly-ownedresidential sector are entering the fractional arena –companies such as international property agents Barrasford &Bird Worldwide whose new fractional property, Halcyon Hills inGreece, is featured on page 27. The Registry Collection wasalso invited to fill speaker slots at three prestigious propertyshows and won the Best Fractional Service Award at the 2009Overseas Property Professional Industry Awards – see pages 4, 6 and 7 for more details.

We’ve certainly had much to celebrate in 2009 and I’d like tothank our affiliated developers and associates for theircontinued loyalty to RCI. The RCI team greatly values thoserelationships and we look forward to working with ourdevelopers and business associates towards a shared goal ofgrowing all our businesses further in 2010.

SincerelyJonathan Back

Managing director, RCI EMEAI

VENTURES MAGAZINE SERVING RCI’S MARKETS IN EUROPE, NOVEMBER 2009 THE MIDDLE EAST, AFRICA AND INDIA

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4 | RCI Ventures, November 2009

NEW APPOINTMENTSTRENGTHENSHUTCHINSON ANDCITADEL TEAM

GUESTS HAPPIER WITH EUROPEAN HOTELS

THE REGISTRY COLLECTION WINSPRESTIGIOUS OPP INDUSTRY AWARD

A R O U N D - U P O F I N D U S T R Y N E W S , V I E W S , A N D P E O P L E T O W A T C H

Marketoutlook

Hutchinson & Co Trust Companyand Citadel Trustees have appointedVeranne Wilkinson, below, as managingdirector of both firms as well as all theirother European Group companies.

Wilkinson,who has beenwith the firmsince 1996,was born andeducated inFrance whereshe graduatedfrom theUniversité deFranche-Comté with aMastersDegree in

Modern Languages and Business.Chairman Peter Hutchinson said:

“Veranne’s vast experience in providing ourever extending services to the timeshareindustry and beyond will stand her in goodstead to move the Group forward withgreater emphasis on financial products,including Unregulated CollectiveInvestment Schemes, which Citadel hasrecently been authorised to operate by theFinancial Services Authority.”

In a separate development, PaulSmythe will be reducing his activities ashe moves towards semi-retirement, butwill remain involved in the Group’sexpansion in the Far East, in his role asmanaging director, Asia. The Board willbe further strengthened by the additionof Anna Rickard as legal servicesdirector, Raquel Gonzalez as operationsdirector and Chris Allen as sales &marketing director.

■ To read an exclusive interview withVeranne Wilkinson, visitwww.rciventures.com

PEOPLE:

Overall hotel guest satisfaction in Europe reached a five-year high in 2009,increasing dramatically over 2008 with improvements in all ranked hospitality brandsand across all segments, according to the JD Power and Associates 2009 EuropeanHotel Guest Satisfaction Index Study.

The study examined the overall satisfaction of European hotel guests based onseven measures – costs and fees, guest room, hotel facilities, food and beverage,check-in/check-out, hotel services and reservations. Forty-two hotel brands weremeasured and ranked in four segments: upper upscale, upscale, mid-scale full serviceand economy.

The study found that hotel guest satisfaction had improved on 2008 by 16 indexpoints or more (on a 1,000-point scale) in all four segments, with the greatest rises inupper upscale and upscale, which increased by 24 and 25 points respectively over 2008.

Michael Drago, director of the global hospitality and travel practice at JD Power andAssociates, said: “Hotels throughout Europe have not lost their customer focus despitean economic climate that has reduced demand and forced hotel brands to stringentlycontain costs.”

The RegistryCollection programme,the world’s largest luxuryexchange programme,has been honoured withthe 2009 OverseasProperty Professional(OPP) Industry Award inthe Best FractionalService category.

The RegistryCollection pioneered theluxury leisure propertyexchange concept when itlaunched in the US eightyears ago and now hasmore than 130 affiliatesand 160 associatedproperties across fivecontinents in its portfolio.During the last 12 monthsits European businessdevelopment team hasaffiliated six new resortsin Italy, France, Spain,Greece and Tunisia.

Representatives fromICREA, AIPP, NAEAInternational and theFlorida Association of

Realtors were among thejudges, who said of TheRegistry Collection: “Thesize, scale and expertiseof this internationalcompany protects the

buyer and its growingspecialist knowledgecreates value for a widevariety of developers.”

Nick Turner, head and VP, businessdevelopment, TheRegistry Collection,Europe, said: “We’redelighted to have ourefforts in helpingdevelopers to grow theirbusinesses, and thefractional industry as awhole, recognised by anorganisation of OPP’sstanding. We’d like tothank the OPP team for itscontribution to thefractional industry byembracing and supportingit so well across all itsmedia channels.

“I’d also like to thankour affiliates and industryassociates who are allvery much a part of theteam that made winningthis prestigious awardpossible.”

INDUSTRY:

INDUSTRY:

Nick Turner

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José Rodrigues hasbeen appointed group salesdirector of Pestana VacationClub, with responsibility for thecompany’s resorts in Madeiraand the Algarve.

The move signals the startof the Madeira national’ssecond spell with the PestanaGroup, having been a salesconsultant with the companyfrom 1988 to 1996. During histime away he has developed awealth of hospitality industry

experience, working forMarriott Vacation Club inMarbella, and StarwoodVacation Club in Cancun,Mexico, where he was a seniormanager with responsibility forsales and marketing.

Peter Booth, Pestana Groupmanaging director, said: “We’redelighted to have José back. Heworked for Pestana up to 1996,when he left his native Madeirato take up the challenge ofgoing overseas to work for

several international hospitalitybrands.

“After 12 years away he’sreturning to us with muchinternational experience andfresh thinking to bring to eachpart of our business. 2010 isour 25th anniversary year and agood time to fine tune ourbusiness.”

Pestana Vacation Cluboperates 16 resorts in Madeira,Portugal and Brazil, and isaffiliated to RCI.


RSL TO MANAGE MONTE CARVOEIROUK-based resort management company Resort Solutions Limited (RSL) has

signed a new management contract with Monte Carvoeiro in Lagoa in the Algarve.The RCI-affiliated development, which comprises a mix of apartments and villas on

a hill above the bay of Carvoeiro, joins the 13 other resorts managed by RSL, one of thelargest independent management companies specialising in timeshare resorts. Thecompany, headed by managing director Linda Freer, is working with Monte Carvoeiro’sowners’ committee to implement a number of operational changes to boost theresort’s efficiency, with ongoing plans to upgrade its units and facilities.

The refurbishment of a two-bedroom show apartment was completed inOctober 2009.

Ms Freer said: “We have already put a number of changes in place and areworking closely with the new owners’ committee who are committed to restoring theresort to its former glory through an extensive programme of refurbishment.”

A newly-formed sales company, Vacations For You, headed by Murray and Jocelyn Nichol and Paul and Lisa Salih, joined RSL in Octoberand will be actively selling the resort. ■ To read Linda Freer’s views on taking control in a tough economic climate see Final Call on Page 38.

GOTIMESHARE.ORG MAKES GOOGLE NEWSThe Resort

Development Organisation(RDO) is succeeding in itsstrategy to counter negativeinformation on the internet bygetting its consumer website,www.gotimeshare.org,accredited as a source site byGoogle for inclusion intoGoogle News.

Google’s strict selectioncriteria is reported to admitonly 4,500 websites to its

worldwide source list. TimKirby, the search engineoptimisation (SEO) specialistmanaging the site said:“When people do a search,Google gives some addedweight to sites that are listedin Google News which boostsour rankings on internetsearches about timeshare andrelated terms.”

Shortly after inclusion inGoogle News, visits to the site

increased by 90 per cent.Articles published on the siteare supplied by site sponsorsand will now be considered forthe Google News feed,meaning they could besyndicated to thousands ofnews gathering agenciesworldwide, driving traffic bothto the site and associated links.

“This is a great opportunityfor sponsors,” added Kirby.“Not all the articles submitted

will be syndicated but if thecontent is original and topicalthey have a good chance ofGoogle selection for syndication,giving sponsors the benefit ofhaving a much better onlineexposure worldwide.”

Any RDO membersinterested in discussingsponsorship opportunities onwww.gotimeshare.org shouldcontact Sue McNicol [email protected].

PEOPLE:

RESORT:

INDUSTRY:

FAMILIAR FACE RETURNS TO PESTANA

José Rodrigues

The sales team at Monte Carvoeiro, from left, Murrayand Jocelyn Nichol with Lisa and Paul Salih.

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FRACTIONAL SPOTLIGHT AT MAJOR PROPERTY SHOW

A R O U N D - U P O F I N D U S T R Y N E W S , V I E W S , A N D P E O P L E T O W A T C H

Marketoutlook: Events

For the first time, fractional products became a major feature at TheProperty Investor Show & OPPLive event in London. HELEN FOSTERreports.

ractionals were definitely on the agendaat The Property Investor Show &

OPPLive event held at the Excel Centre inLondon in October. A number of exhibitorswere real estate developers who had recentlyintroduced fractionals to their portfolios, andthe event featured a dedicated fractionaltheatre in which panel sessions andworkshops were held.

The Registry Collection was a headlinesponsor of the event and was representedwith both a stand presence and in threetheatre sessions in which Nick Turner andPaul Mac Sherry of The Registry Collection,Europe, participated. Turner, head and VP ofthe The Registry Collection, Europe, said:“The fact that mainstream propertyprofessionals such as the Overseas PropertyProfessional (OPP) group are bringingfractionals into their publications and eventsis a testament to the viability and strength ofthe product in the leisure property market.”

MASS MARKET OPORTUNITIES‘Is fractional a mass-market product?’ wasone of the liveliest of the show’s fractionalpanel sessions.

Robin Barrasford of international propertyagents Barrasford & Bird Worldwide, whohas just entered the fractional market with amid-priced development (£20,000) in Greecewhich is affiliated to The Registry Collection,said: “Fractional is another weapon in myarmoury. It opens up the overseas propertymarket to a vast number of people whocouldn’t afford it.

“That man can now afford a luxury villaon the beach with an infinity pool and that’swhat it’s about. The Registry Collection is avery sexy product – it makes my product looksexier. It’s all about living the dream, notcalculators. I build properties and I selldreams.”

No matter how great the property or

concept, it needs a route to market and thesession identified property sales agents asbeing essential in reaching the wider mid-market consumer base.

Paul Anderson of model providersFractions Abroad said: “A good agent will beable to qualify a client and understand whatthey need. But this industry is very bad atmatching products to buyers. If a customerdoesn’t match your price range or ismortgage-dependent and you can’t helpthem, they could walk out the door. You’vegot a motivated buyer so you’ve got to meettheir needs.”

The value add of an agent’s services wasnot disputed, but the fee level was. Andersonsaid agents must be compensated andthought developers should make anallocation out of profit to pay agent fees, “asthe client needs to buy at value”.

Delegates heard some agents werereported to be loading the selling price bymore than 40 per cent to cover costs andmake profit. “This is what is going to kill thisindustry. It’s just greed”, said Barrasford. “I

sell 12th shares and people can see whatyou’re loading onto the price by doing themaths. I think no more than a 20 per centuplift as a maximum.”

Anderson explained that agents will notwant to sell fractions if they’re too small: “Theydo not have the desire to sell high multipleshares because the income is too small for thework involved. If you expect your agents towork 12 times as hard to sell 12 fractionsinstead of one whole ownership property, youhave to compensate them sufficiently.”

US property lawyer Andy Sirkin saidindustry education was fundamental but“educating brokers is a long-term processinvolving intensive training”. He added that inmost cases agents were better as introducers.“Getting fractional ownership to marketthrough the mainstream broker communityis a huge step,” he said. “Local agents canwork well as a referral network. They don’tcomplete the sale but pass the leads on toyour in-house sales team. The leads theypass on can be tracked so the local agentdoesn’t feel his sales are being hijacked.”

F

The Registry Collection stand at the OPPLive Show. From left, Kelly Render andPaul Mac Sherry of The Registry Collection with a visitor and Nick Turner.

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espite the autumn showers,hundreds of visitors made

their way to the Fractional LifeExpo 2009 held at London’sBroadgate Event Venues inSeptember to learn more aboutthe fractional product.

Piers Brown, founder ofFractional Life and eventorganiser, said it was difficult togive an accurate figure on footfall to the event but somewherein the region of 8,000 showguides had been given outduring the three-day event.

The show featured car clubsand fine wines, though propertywas its main focus.Promotional investment onbehalf of its 16 exhibitors –including the leading brands of47 Park Street, Yoo Phuket, K Club, Oceanico and TheRegistry Collection – wassignificant to attract the rightprofile of visitor. Brown said:“We spent double on LondonUnderground advertising thisyear and feedback fromexhibitors indicates that it waseffective.”

Though ostensibly aconsumer show, the Expoattracted a high level ofdeveloper interest. Paul Mac Sherry of The RegistryCollection, Europe, said: “A lotof industry visitors came to ourtable resulting in half a dozenstrong leads. It was a valuableopportunity to sit down withseveral developers we’re in

discussions with to talkthrough ideas in a relaxed andinformal setting.”

Nat Alexander of supercarclub Marque II noticed achange in the attitude ofvisitors to the Expo. He said:“Last year there was a definiteair of caution and hesitancy inthe market. This year peopleare a little bit more confident.They’re setting themselvesbudgets to invest and to have abit of fun with.”

FRACTIONAL SUMMITRETURNS IN 2010The Fractional Summit 2010,Europe’s largest B2B fractionalproperty conference, will takeplace on 18-19 February 2010at the prestigious MarriottLondon, Grosvenor Square.

Building on the success of2009’s event which attractedover 210 delegates from 23countries, and the raised levelof interest in fractionalproperties in Europe, theFractional Summit 2010 willoffer a unique opportunity tomeet key fractional industry

players under one roof. The Registry Collection will,

for the third consecutive year,be headline sponsors of theSummit, giving visitors theopportunity to meet with itsrepresentatives at its stand andto hear their views on theindustry during several paneldebates in which they will beparticipating.

Nick Turner, head and VP ofThe Registry Collection,Europe, who will be presentingduring the Summit sessions,said: “Like us, Fractional Lifewas one of the pioneers in thefractional market and has nowbecome a pivotal part of thisrapidly growing market byproviding many industryassociates with a virtualmarketplace in which topresent products and servicesto a very relevant audience.

“This has been a good yearfor fractionals in Europe withhigh levels of developer interestand activity – we have signedsix new European affiliates inthe last 12 months. There hasbeen much media focus on

fractional products, which havefeatured in both The PropertyInvestor Show & OPPLive eventand A Place In The Sun and wewere invited to participate inforum and panel discussions atboth, while our company andaffiliated developer projectshave been the subject of muchpositive media coverage,including featuring in leadingUK newspapers TheIndependent on Sunday, TheDaily Mail, The Sunday Expressand Country Life Internationalmagazine.”

The 2010 Summit themeChanging Times, ChangingMarkets is designed to helpnew developers andprofessionals enter theindustry, as well as explore thechallenges and opportunitiespresented by the growth of thefractional market in Europe.

■ For sponsorship and speakeropportunities [email protected] or call+44 (0)20 8340 7989 for moredetails. To book tickets visitwww.fractionalsummit.com


FRACTIONALSHOWCASE

HELEN FOSTERreports on the thirdFractional Life Expo.

D

The three-day Fractional Life Expo attracted about 8,000 visitors.

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C VENICE ON WATER offers a unique holiday experience, allowing guests to visit the waterwaysof the iconic Italian city staying in luxury two-bedroom houseboats only five kilometres from thecentre of Venice. The water-borne resort is affiliated to The Registry Collection and is the first ofa planned fleet of 10 vessels to be developed by MAP Destinations, the largest timesharemarketer in Malta.

NEW HORIZONSFOR RCI MEMBERS

2009 has seen theaddition of a number ofexciting new resorts tothe RCI and The RegistryCollection exchangeprogrammes.

I N F O R M A T I O N E X C L U S I V E L Y F O R R C I A F F I L I A T E S

RCInside

LISTENING to members and monitoringmember satisfaction levels is a priority forRCI’s operations and customer serviceteams. Topping the members’ wish list isthe desire for an ever greater variety ofdestinations and holiday experiences.

RCI’s business development team hassucceeded in introducing 35 new propertiesto the company’s exchange network acrossthe EMEAI region including six toThe Registry Collection luxuryexchange programme. Brokendown by region, 20 of the newaffiliations are in Europe, 11 are inIndia and four in South Africa.

Brett Archibald, SVP businessdevelopment, RCI, EMEAI, said: “Ina year of huge trading challengesI’m happy to be able to report RCI inEurope has affiliated a significantnumber of exciting new properties.We have expanded our portfolio withnew properties in fresh destinationssuch as Venice, Turkey, Finland andGreece – also increasing the reachof consumer source markets. Weare confident that we have provenRCI is the right choice for existingand new affiliates.

“As the year draws to a closeour message to our developers andassociates is that we’ll make surewe continue to deliver the bestbusiness opportunities to them,great holidays to our members andan excellent service to both.”■ Visit www.rciventures.com to viewthe latest RCI affiliation news.


CKARTAS THERMAL & SPA RESORT was developed by Kartas Turizm and is due to open in 2009.Built to meet the growing demand for spa resorts in Turkey, the property in the Cavlak area ofBogazliyan, Yozgat is affiliated to RCI’s holiday exchange network.

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CARCOS GARDENS GOLF CLUB & COUNTRY ESTATE is one of the most recent signings to The Registry Collection from Novaterra Resorts. Theluxury residential golf resort is built in Spain’s traditional heartland close to Cadiz and will be a development of 470 properties of different types.Ownership offers discounted golf memberships, complimentary golf clubs and the use of an Audi A4 car during the stay.

CCLUB MAHINDRA BACKWATER RETREAT is one of four new RCIaffiliations this year from major hospitality brand, Club Mahindra. Theproperty is located on the peaceful banks of Ashtamudi Lake in India.Historic Kollam is the gateway to Ashtamudi and is just 15 kilometresfrom the resort by road or 10 minutes by speedboat. The resort has 25 rooms spread across five chalets, each with a view of the gardens and lake.


C SITHONIA BEACH CLUB @ Porto Carras is an RCI-affiliated mixed-use resort in Halkidiki, Greece.The property is on a beach with access to many watersports and activities such as tennis, a health club andhorse riding.

A CASTLEBURN, part of Legacy PrivateResidencies and affiliated to The RegistryCollection, sits in the foothills of thesouthern Drakensberg in the KwaZulu-Natalregion of South Africa. The four-bedroomarchitect-designed cottages are built of local stone and positioned on the edge ofLake Madingofani.

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L A T E S T N E W S F R O M T H E R E S O R T D E V E L O P M E N T O R G A N I S A T I O N

RDOnews

The past year has been ahugely significant one for theResort DevelopmentOrganisation (RDO) as well asthe European timeshareindustry in general. In alandmark development thenew Timeshare Directive hasbeen passed into EU law andmember state implementationset for 2010/11.

In spring we changed ourname from OTE to RDO toreflect the changing nature ofthe industry and its products.The name change enabledthe organisation to broadenits representation tofractional and privateresidence clubs in Europe.Since then, the Fractional &Shared Ownership TradeAssociation (FSOTA) hasjoined the RDO to become thetrade association to representthe fractional industry.

While 2009 saw the worldin recession, the RDO reporton timeshare in Europe,published in May, painted apicture of a strong, vibrantindustry enjoying occupancyrates of 72 per cent for theyear in Europe’s 1,312 resorts– which is 67 million bednights – with a consumersatisfaction rating of morethan 86 per cent.

Unfortunately, thechallenging economic timeshave brought more scams tothe market – particularly inthe UK and Spain – to prey onunsuspecting purchasers andtimeshare owners. This haskept RDO’s EnforcementTeam exceptionally busy. Thegood news is that it has

achieved notable successeswith the police and media inSpain and elsewhere inclosing down rogue operatorsand protecting consumersfrom loss.

Our new websitewww.Gotimeshare.org wentlive at the beginning of theyear, being recognised byGoogle as an approved newssite in the summer, withwww.Gofractional.orgfollowing suit. Both sitescontinue to grow inpopularity, helping spreadpositive news about shared-ownership property.

We were disappointed tohave to cancel this year’sRDO conference, thoughpleased to say we’re lookingat 2010 options. We will,however, support the 2009Forum event being organisedby Generator and PerspectiveMagazine in London inDecember.

LOOKING AHEADSo where does RDO want togo in 2010? The recession hasinevitably put our focus oncost base and increasingefficiencies in the comingyear. This will be coupled witha continued drive to createvalue for money for ourmembers – for which wewelcome any input.

A Membership FeeWorking Group is looking atfees, levies and ways tofinance RDO in the future andwill be reporting later thisyear.

RDO will continue tostrengthen its new websites

and improve search enginerankings. SupportingNational Chapters throughthe implementation of the EUTimeshare Directive inmember states will also be akey initiative and it’santicipated that funding forthe Chapters can beenhanced. There are plans toestablish new Chapters inmember states where anRDO presence can bejustified.

The continued supportand expansion of theEnforcement Programmeremains a key objective asmembers place great faith inthe work being done byAlberto Garcia and his team(see opposite page).

This work is not onlyrecognised by RDO members,but also acknowledged byconsumer organisations, thepolice and the media acrossEurope. Enforcement hasbecome one of RDO’s keyactivities and something forwhich it continues to gainrecognition and positivepublicity.

Our ultimate goal is thatevery organisation operatingin the European industrycan’t afford not to be amember of RDO.

The fact that non-members reap the benefits ofour work without contributingto its funding continues to bea serious issue. We’re tryingto rectify this situation overthe coming year by addingvalue to RDO membership toencourage all the non-RDOmembers to get on board.

CHANGE AND CHALLENGE

RDO chiefexecutive PAUL

GARDNER-BOUGAARD looks

back at a year ofchange for the

industry’s tradebody and considers

the challenges ofthe future.

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‘‘

Ventures (V): How did you becomeinvolved with the timeshare industry?Alberto Garcia (AG): In 2003, shortlyafter TUI invested in Anfi del Mar, thecompany offered me a senior position onits Executive Committee to help protect itsbusiness and public image. This gave methe opportunity to learn everything aboutthe timeshare industry.

V: When did you start working for RDOand what was your first task?AG: I joined in 2007 when the industry’simage was being badly affected by bogusdiscount travel membership clubs andfraudulent resale companies operatingwith almost complete impunity. Themajority of consumer associations,politicians and police forces thought thesefraudulent activities were being committedby timeshare operators. It became clearthat before tackling the fraudulentactivities, I first had to show theestablishment that the bogus operatorswere nothing to do with our industry.

V: How did you approach such a difficult task? AG: We had to build up a close relationshipwith European consumer associations andthe UK Office of Fair Trading. Westrengthened our relationship withpoliticians at local town hall levels, as wellas in Madrid. We nurtured our relationshipwith the Spanish police and became a

reference point for some Spanish, Britishand Scandinavian media.

V: What have been the results so far? AG: I’m proud to say that after three years wehave helped improve the RDO’s image and,consequently, the image of timeshare. Thenumber of bogus companies closed down inSpain has increased year on year. In 2008, 25 companies had been closed down by thepolice and 19 more had ceased operating byAugust this year.

I think the best way to eradicate fraudulentactivities is through information. This is whywe provide intelligence to the main Spanishand European consumer associations andpublic bodies. The Enforcement Programmehas become the information centre aboutbogus activities for the media, consumerassociations, politicians, police, timesharecompanies and consumers. Everybody nowtrusts us, which is very important.

V: What factors have contributed to theProgramme’s success?AG: Undoubtedly the combination of policeinvestigation methodology and timeshareindustry expertise. We also use competitiveintelligence analytical techniques and applyspecific techniques to each challenge we face.

V: You obviously face a lot of challenges. AG: We do – on a daily basis – and it’ssomething I truly enjoy. Detecting,understanding and neutralising new scamsbrings home to me the challenges ahead. I’veseen a lot of fraud in my career and I’m stillamazed by the imagination of the fraudstersin the timeshare field.

V: There must be an element of personalrisk involved in your job – how do you protectyourself?AG: I’m very aware of the risks I face and Itake many security precautions, includinginforming the Spanish police on a daily basisof every step I make. I also provide them within-depth analyses of the activities that I’mengaged in.

V: Do you think you will achieve your goal?AG: Absolutely. We still have lots of things todeal with but I foresee a timeshare industry ina couple of years’ time unhindered byfraudulent activities – or at least having nomore problems than other industries. Thismay sound a bit naive but I strongly believealmost everything is achievable in life.

THE FIGHT BACK A vital element of the RDO’s work is itsEnforcement Programme, which is designed to combat the industry’s rogueoperators in Europe through liaison with police and government agencies.The Programme is headed by Alberto Garcia, a former Spanish policeinspector who spent five years fighting organised crime in the Canary Islandsand who talks to STEVE ADAMS in an exclusive interview for RCI Ventures.

In 2008, 25 companies had been closed down by the police and 19 more had ceased operating by August this year Alberto Garcia

’’

Governments and tourism authorities indestinations such as Tenerife are working withRDO to fight fraudulent activity.

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Turkey’s varied attractions and wealth ofnatural beauty puts it in a strong positionto go beyond a traditional reliance ondomestic business and fully exploit theinternational vacation ownership market.GEORGE SELL reports.


QUOTE: WE SPECIFICALLY CHOSE RCI BECAUSE IT’S THE LARGESTCOMPANY IN THIS FIELD AND IT GIVES US A POSITIVE RESPONSERATE TO EXCHANGE REQUESTS. BEHZAT AKSARAY

tourism sector.One strand of the strategy

is to move away from whatthe ministry describes as“the fragmented and plot-based planning practices”towards establishing“tourism cities withremarkable globalcompetitive power” on theAegean and Mediterraneancoasts.

To this end, five mainareas have been identified toattract international

COVER STORY

STRADDLING the dividebetween east and west, Turkeyis a vast country with atantalising mix of history,culture and scenery to tempttourists.

Despite a background ofpolitical uncertainty andfluctuating financialfortunes, the country’sgovernment is determinedto increase overseas touristnumbers by staging aconcerted marketingcampaign and investing ininfrastructure to support

TURKEY:A RISING STAR

private investment in touristfacilities.

The Turkish Ministry ofTourism has a long-termplan, the Tourism Strategy ofTurkey 2023, which aims tomark the 100th anniversaryof the founding of themodern state byimplementing a moreefficient, profitable andenvironmentally-friendly

investment – Cesme,Dalaman/Bodrum, Didim,Antalya and Manavgat.

As well as these well-known resorts, themountainous interior regionof Cappadocia and the cityof Istanbul also attractsignificant numbers ofoverseas visitors, while theBlack Sea Coast is popularwith domestic tourists.

Although new resorts aregenerally funded bydevelopers, governmentassistance goes considerablyfurther than marketingcampaigns and infrastructure.

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purchases, reducedcorporate tax rates, subsidieson the employer’s share ofsocial security andemployment tax, andinterest rate subsidies.”

These fundamentalscertainly make investmentattractive for the shared-vacation ownership sector.However, Turkish resortoperators have traditionallyrelied on the domesticmarket for business as mostTurkish families holiday athome due to the prohibitivecost and visa requirementsof international travel.

NEW IDEASSo how do Turkishdevelopers go aboutincreasing the number ofoverseas visitors? As well asconcentrating on moretraditional beach resorts,forward thinking firms arelooking to new trends suchas spa resorts and conferencetourism to boost visitornumbers.

Vassilis Themelidis, anRCI regional director, said:“There’s a major trend of spa


and health resorts inmainland Turkey which arealready very popular in thedomestic market.”

A good example of this isrecent RCI affiliate SalutarisThermal Resort which, uponcompletion in 2010, is set tobecome one of Europe’slargest thermal holidayvillages. It will consist of ahotel plus 204 two-bedroomtimeshare units of 60 squaremetres each. Set in themountainous province ofAfyon, resort amenities willinclude a hamam or Turkishbath, saunas, indoor andoutdoor swimming pools,thermal pools, a fitnesscentre and spa. Timeshareprices are expected to rangefrom €6,000 to €10,000per week based on a 29-yearlease.

Club Dedeman’s Aksaraysays: “Turkey is a richcountry in terms of thermalsources and the majority ofthe new hotel developmentshave thermal and/or spacentres in their facilities,especially in resortdestinations. These spacentres are usually set on bigareas of the property, and arean effective way to add valueto the bottom line of theoperation.”

Aksaray adds thatconference tourism is also

starting to take off: “Istanbulhas become a very importantnational and internationalcongress and conferencedestination. In 2008 morethan 70 internationalcongress meetings tookplace in the city, and in 2009the World Water Forum andthe World Bank-IMF annualmeeting each attracted morethan 10,000 foreigndelegates. Both spa andcongress tourism definitelyincrease a resort’s occupancyrates and average daily rates.”

As the global economicdownturn continues toimpact both the tourism andreal estate markets, there isan increasing openness tomoving to newaccommodation modelssuch as condo-hotels andfractional ownershipvacation properties.Themelidis said: “The leisurereal estate business in Turkeyhas been booming over thelast three to four years butnow, due to the ongoingglobal economic crisis,developers are seekingalternative ways to offertheir unsold properties.There is major potential forfractional and condo-hotelopportunities across Turkey.”

Aksaray shares this pointof view. “Lately condo-hotels

Behzat Aksaray (above left) andVassilis Themelidis. The

Salutaris Thermal Resort isone of several developments

built in Turkey this year tomeet demand for the spa

experience.

Behzat Aksaray is generalmanager of Club Dedeman,one of Turkey’s best-knownhospitality brands based inBodrum and an RCI affiliate.He said: “There are certaingovernment incentives whenit comes to tourisminvestments in Turkey, suchas land allocation to tourisminvestors on a 49-year leasebasis, tax exemption on localmachinery and equipment,tax duties and chargesexemption on local

SALUTARIS THERMAL RESORT



and multi-use properties arebecoming very popular inTurkey,” he explained.“Certain brands are veryinterested in increasing theirshare of this market. On theother hand some currentproperty owners, includinghigh-class boutique hotelowners, are planning toconvert their properties tothe condo-hotel concept –some have already done so.”

RCI ADVANTAGERCI is playing an increasingrole in developing theshared-vacation ownershipmarket sector in Turkey andhas affiliated seven newresorts across the country inthe past 18 months,bringing the total to 42.

Themelidis said: “RCI hasintroduced customised trialpacks specifically for theTurkish market which aredesigned to meet the needsand requirements of theaffiliate community inTurkey. These packs act as anentry programme and a leadgeneration tool for Turkishaffiliates, and provide theability for members to test

QUOTE: IN AN AVERAGE YEAR UP TO 30PER CENT OF MY RESORT’S BUSINESS

COMES VIA RCI. TAYFUN SARMAN

COVER STORY

the affiliate’s product andRCI’s member services.

“To support theexpansion of timeshare inthe Turkish market, RCI hasalso introduced a moreflexible approach to fees,both on the B2B and theB2C sides of the business, toaddress the difficulties ofoperating in a relativelyunstable economy.

“RCI also facilitates theintroduction of internationalorganisations to Turkishaffiliates in order for them toinitiate sales to major sourcemarkets such as Germany,

the UK and Russia.” Aksaray believes being

an RCI affiliate has clearadvantages. He explained:“RCI has two major benefitsfor us. Firstly, it enables ourcustomers to go to differentresorts and countries fortheir holidays. The second isin helping low season sales.Some customers are willingto buy low season in orderto use it for exchange. Wespecifically chose RCIbecause it’s the largestcompany in this field and itgives us a positive responserate to exchange requests.”

Tayfun Sarman of ClubArmonia Bodrum Evleri inBodrum highlights theeconomic benefits ofaffiliation, saying that in anaverage year up to 30 percent of his resort’s businesscomes via RCI. ClubArmonia Bodrum Evleri wascompletely refurbished in2008 to bring itsaccommodation andamenities up to the standardRCI members expect.

Aksaray is convinced thetimeshare model is ideal forthe Turkish market. “I believethat timeshare and sharedvacation, in a country wherefour seasons can be sold, is avery suitable and necessaryproduct,” he says.

“In Turkey people buysummer houses, but only

Club DedemanBodrum, right, on

the Bodrumpeninsula hasaround 4,000

members and 147rooms. Far right,

Antalya Dedemanand, below far right,

Holiday and Leisure Club –

Kusadasi resort.

CLUB DEDEMAN

ANTALYA DEDEMAN

HOLIDAY & LEISURE CLUB – KUSADASI

TURKEY BY THE NUMBERS■ Modern Turkey was founded in 1923 by national heroMustafa Kemal, who was later honoured with the title Ataturk(father of the Turks)■ Turkey’s population is 76 million■ The country has a coastline of 7,200 kilometres■ Around 26 million foreigners visited Turkey in 2008. Thelargest national group was Germans with 4.5 million visitorsrepresenting a 16.77 per cent market share, followed byRussians (10.93 per cent), British (8.2 per cent) Bulgarians(4.77 per cent) and Iranians (4.31 per cent)■ RCI has 42 affiliated resorts in Turkey■ Vacation property rental prices: three-bedroom villa inBodrum – €400 to €800 per week; two-bedroom apartment inKusadasi – €175 to €350 per week; three-bedroom apartmentin Didim – €150 to €250 per week; one-bedroom city centreapartment in Istanbul – €400 to €550 per week. Source: www.holidaylettings.co.uk



THE RCI PERSPECTIVEVassilis Themelidis, an RCIregional director, says Turkeyhas established itself over thelast decade as one of the toptourist destinations in theworld, mainly due to thegovernment’s strategicdecision to attract tourisminvestment and consequentlyinvest in infrastructuresupporting private tourisminvestors.

“The main advantage fordevelopers is the establishmentof Turkey as a major touristdestination and the attraction oftourists from various sourcemarkets,” he says.

“A Turkish developer has theability to market the productdomestically, to Europeans whoare travelling to Turkey, as wellas to visitors from Asiancountries such as Iran whoconsider Turkey an idealvacation destination.

“Labour costs are relativelylow compared to the Europeanaverage and, as a result,Turkish developers are able tooffer high levels of hospitalityservices.”

Nick Turner, head and vicepresident of businessdevelopment for Europe atluxury exchange programme,The Registry Collection, adds:“The Turkish market has all ofthe key fundamentals to make ita very good market for sharedownership.

“Turkey provides anattractive consumer propositionwith a pleasant climate for up to40 weeks of the year andimproving tourisminfrastructure has made keydestinations more desirable forrepeat visits.

“Accessibility is always a keyconsideration and both full-service and low-cost airlinesnow connect key Turkishdestinations with several UKairports year round.”

use them for one, or in a fewcases, two months. For theremaining 10 or 11 monthsthe house stays empty andgets damaged due to lack ofuse and maintenance. As aresult national wealth staysunused at the beachside. Byputting this national wealthto use, timeshare not onlyhelps the country, but helpspeople enjoy less expensiveholiday home purchase andmaintenance costs.”

CHALLENGES ANDOPPORTUNITIESHaving pointed out some ofthe positive aspects of theTurkish timeshare market, itneeds to be acknowledgedthat there are somesignificant issues adverselyaffecting the sector, many of

which will be familiar totimeshare operatorsworldwide.

Cagatay Alacam, CEO ofthe Holiday and LeisureClub, a timeshare resort inKusadasi, said: “There havebeen, and still are, problemswith some operatorsincorrectly marketing theirproduct and there is noactual protection in Turkishlaw.”

Aksaray agreed, saying:“There are problems arisingfrom some sales methodswhich lead to negativecoverage in the media andon the internet. This cancause developers difficultiesduring marketing and sales. Another big issue is theTurkish government’sunfavourable timeshare taxpolicy. The Turkish TimeshareInvestors Association hasdiscussed this issue with theMinistry of Finance severaltimes but there was noresolution which has nothelped new timeshare resortdevelopment in Turkey.”

The legal situation is asticking point whenmarketing to overseascustomers. “Timesharedoesn’t have a legaldefinition in Turkish law andso the country doesn’t have a trust company system

operating between the buyerand the seller. As a result,even though Turkey is a verypopular holiday and secondhome location withEuropeans, without a trustcompany system,international sales can bevery tough,” says Aksaray.

Other challenges facingthe industry, according toRCI’s Themelidis, are “anunstable economicenvironment which affectsthe exchange rate of theTurkish lira against maincurrencies such as the euro,dollar and pound”.

The marketing oftimeshare has been a thornyproblem the world over, andit’s no simpler for Turkishoperators. They use a varietyof methods but one-to-onecontact seems to be thefavoured route.

Alacam says his companyuses internet advertising butprefers to contact purchasersdirectly, and it doesn’t useother marketing channels.Sarman of Club Armoniatakes another approach. Heexplained: “We use printmedia such as adverts innewspapers, but our mainroute to market is byparticipating in exhibitions.”

Turkey has much to offeras a tourist destination – itssize, variety, natural beauty,long season and relativelylow prices all make itattractive to overseas visitors.The Turkish government’sdetermination to develop thetourist industry is evident inits long-term 2023 strategy,and timeshare is well placedto benefit. V


European executives joined colleagues all overthe world to tee off for the annual fundraisingRCI Christel House Open charity golf event inJune. STEVE ADAMS reports.


QUOTE: THROUGHOUT OUR 35-YEAR HISTORY WE HAVESUPPORTED MANY CAUSES, BUT NONE IS MORE SPECIAL TO US THAN CHRISTEL HOUSE. GEOFF BALLOTTI

CHRISTEL HOUSE

TIMESHARE, hospitality andindustry suppliers strode outagain this summer on greensthe world over for the annualRCI Christel House Open charitygolf event.

The unique internationaltournament sponsored by RCIand now in its seventh year, saw nearly 2,000 golfers andhundreds of volunteers gather at19 sites on five continents. Mostevents took place in June, withothers later in the year.

The European event tookplace on a wonderfully sunny dayat Ealing Golf Club in Middlesex,UK, with some 56 playersparticipating in 14 teams of four,followed by a drinks reception,dinner and prize presentation.Competition was fierce butfriendly, with ‘Team Vision’claiming the first prize of twoweeks’ accommodation in SouthAfrica courtesy of Club LeisureGroup. Runners-up were‘Fractional Life 1’, with ‘ThreeGuys and a Birdie’ in third place.

The event raised more than£20,000 for Christel House, thecharity set up by RCI co-founderChristel DeHaan to help childrenaround the world break the cycleof poverty and become self-sufficient, contributing membersof their societies.

The money was raisedthrough entry fees, sponsorshipand auction prizes kindlydonated by several companies.Worldwide proceeds for this yearare anticipated to be in excess of$650,000. All proceeds will godirectly into programmes and

Team Vision’s winning line-up, featured Stephen Price,Tony Dangerfield, Bertie Edwards and Jimmy Kane.

ON COURSE FOR CHARITY

Runners-up, Fractional Life 1, from left, Nat Alexander,Piers Brown, Alex Foley and Pat Keene.

Madison Mayfair (Signature Sponsors): Peter Malone, Guy Lean, Clive Hillier and Billy Skelli-Cohen.

Three Guys and a Birdie: Martin Anderson, PaulMac Sherry, Marj Anderson and Philip Morley.

services benefiting more than3,000 children attending ChristelHouse learning centres in India,Mexico, South Africa, Venezuelaand the US.

“We are deeply grateful toour sponsors, including our TitleSponsor RCI, for their generoussupport of this year’stournament,” said DeHaan.“Likewise, our tournament sitehosts are the event’s heart andsoul – their collective effortshave built the tournament intoan annual tradition that spansthe globe.”

Geoff Ballotti, president andCEO, RCI, said the company wasproud to be the event’s TitleSponsor.

“Throughout our 35-yearhistory we have supported manycauses, but none is morespecial to us than ChristelHouse,” he said. “Theorganisation’s incredible worktransforms the lives ofimpoverished children aroundthe world and we are thrilled toonce again have had theopportunity to sponsor thetournament.”

Peter Malone of MadisonMayfair, Signature Sponsors ofthe European event at EalingGolf Club, said: “We decided toget involved for some verysimple reasons. RCI and theWyndham Group are valuedclients of Madison Mayfair andwe have helped them inrecruiting and building theirteams around the world.

“We have supported anumber of charities, but thisyear, we were so taken withChristel House we put all ourcharitable efforts into it.”

For more information aboutChristel House, visitwww.christelhouse.org

THANKSA special thanks to all thosewho attended and sponsoredthe 2009 European event –Madison Mayfair, FractionalLife, FNTC UK Ltd, Samsung,Nexus Leisure Group, GRMCorporate, RDO, Active PS,Perspective International,Crown Golf, Vision, Generator Systems, Ice Europe Ltd, RCI and Holiday Cottages Group.

The 2010 European event isplanned for Monday 7 June. Formore information on taking partand sponsorship opportunitiesplease contact Amanda [email protected]

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“Winner of the Best Fractional ServiceAward – 2009 Overseas PropertyProfessional Industry Awards”

Contact Amanda Worsley on tel: +44 (0) 208 762 6635email: [email protected] to arrange an appointment or for further informationvisit www.theregistrycollection.com

VenNov Registry Ad:Layout 1 18/11/09 17:09 Page 1

Resort Properties’ latestdevelopment project isn’t for holidaymakersseeking fun in the sun. Instead it will benefitimpoverished orphans in Kenya. Managing directorMARK CUSHWAY explains how and why one oftimeshare’s most successful companies is helpingthose far less fortunate.


QUOTE: PART OF THIS PROCESS IS TO CELEBRATE OUR SUCCESSAND TO CONTRIBUTE IN A WAY THAT HELPS THOSE WHO ARE NOTAS FORTUNATE AS WE ARE. MARK CUSHWAY

CHARITY INCENTIVES

FOR many years the timeshare industryhas been synonymous with exoticlocations, glitzy lifestyles and bigbusiness. However, during a holiday visitto Mombasa, Resort Properties’ salesteam advisor, Anthony Yateman, caughta glimpse of a very different world. Thisinsight led to the company supporting avaluable social project by building anaccommodation block for 60 orphans ata school in the region.

Mombasa is a place of startlingcontrasts. A thriving tourist industryexists alongside the sad realities of the developing world – poverty,malnutrition, violence and the woefullyinadequate provision of healthcare andeducation.

It was in response to these serioussocial problems that a localcouple, Freddy Kinyanjui Gachaoand Mary Njoki, founded theMarianna Glorious Academy in2002. With a fundamental goal toprovide primary education andcare to children living below thepoverty line, the school opened itsdoors to just 15 local boys andgirls.

Despite a lack of resources,and the fact that many pupilsremain unable to pay the fees of£14 per term, the academy hasgained such momentum that itcurrently educates over 430children and remains true to itsoriginal mission that ‘no localchild is turned away’.

MOUNTAINS TO CLIMBThe majority of local children faceextreme challenges in their daily lives –drugs, poverty and abuse – while thereare also many who have lost bothparents to the ravages of the HIV virus.With HIV infection rates in the poorerareas sometimes running as high as 10 per cent, the disease has had a veryreal and tragic impact on the lives of asignificant number of children at theAcademy.

Orphans often find themselves inthe care of friends or relatives whocannot afford another hungry mouth tofeed. In many cases their presence istoo much for the guardians to handleand the children find themselveshomeless, exposed to the associateddangers and hardships of a life on thestreets.

This grave situation presented a bigchallenge for the Marianna GloriousAcademy. With so many childrenalready drawing on the school’s limitedresources, it had proven virtuallyimpossible to provide shelter for thesevulnerable young people.

SIMPLY GIVING

BEYOND EDUCATIONIn addition to traditional academicsubjects, the school encourages pupilsto engage in a wide range ofextracurricular activities includingmusic, drama and sports. It alsoprovides counselling on issues such asdrug use, HIV/AIDS, spiritual growthand reproductive health.

Above all, the Academy provides ahaven – a place where young people canfind a calm loving community, united inits mission to educate and nurture. TheAcademy’s ultimate purpose is to helpits young pupils to build a better life bygaining independence and confidenceto enable them to be able to look afterthemselves and their families.

“THE ACADEMY HAS GAINED SUCH MOMENTUM THAT IT CURRENTLY

EDUCATES OVER 430 CHILDREN AND REMAINS TRUE TO ITS ORIGINAL

MISSION THAT NO LOCAL CHILD IS TURNED AWAY.”

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A HELPING HANDFortunately, theaccommodation predicamentthe Academy faced wasbrought to the attention of theteam at Resort Properties.While holidaying in Kenya lastyear, sales team advisor,Anthony Yateman, visited theAcademy and was profoundlytouched by the community’sefforts to better itself in theface of such hardship andadversity.

Being genuinely movedby what he saw, Anthonydecided to devoteconsiderable time tohelping the Academy createa programme to provideclean water and books for thechildren. As time went by herealised the scope of theproject was such that he alonecouldn’t hope to put all thevital plans in place and meet allthe community’s needs. That’swhen he turned to ResortProperties for support.

Anthony came to me and explained he’d got to thepoint where there was just too much for him to do. He explained the plight of the children, especially theorphans, and I understood why he was reluctant toleave the job unfinished.

Together we soon got things moving and withinweeks had the money in place to start work on the newaccommodation block. Our company has also pledgedongoing support to the Academy and promised todonate some of our old computer equipment to createa network so the children can learn IT skills.

We’ll also be sourcing text books and othermaterials so they can start to build a library andresource centre to help with their studies.

THE DRIVING FORCEFor a number of years Resort Properties has been involved in severalcharitable causes around the globe. As well as regularly donating toChristel House, the company is also the official corporate sponsor for the Malta Hospice Movement and supports several mainstream charities.

So what motivates this team of professional and hardworkingsalespeople to give up their free time to help those less fortunate thanthemselves?

As part of our ongoing life-coaching programme, we explore allaspects of our lives – family, financial, physical, emotional, professionaland spiritual – and try to bring a balance of all those elements to the way

we live. Part of this process is tocelebrate our success and tocontribute in a way that helps thosewho are not as fortunate as we are.

When I heard about the situationat the school, and especially theplight of the AIDS-orphaned children,I spoke to my team and asked them ifthey were prepared to raise the fundsfor the new dormitory block. Theresponse was phenomenal andbefore I knew it the team was comingup with lots of ideas to raise themoney needed for this project.

And raise money they did – in oneday alone they collected over £11,500.Fundraising took the form of anauction of donated items rangingfrom DVD players and furniture to


wakeboarding lessons and boat trips. Another popular idea was the sale of ‘Duvet Days’,

where individuals were able to purchase a day offwork to be used at any time in the future with noexplanation needed. Many agreed that these dayswere a bargain and they sold out in minutes.

The company also donated a number of timeshareweeks at its resorts into a prize draw.

With the funds safely in the bank, the Academywas able to begin work on the two-storeyaccommodation which, when complete, will house up to 60 orphans and their care providers. It is

estimated that the whole project will be completed before the endof 2009 with the foundations and initial building work already wellunder way.

It’s great to see that our help is making a real difference inKenya. For many years we at Resort Properties have enjoyedexceptional success and prosperity. Through our life-coachingprogramme we have learnt to give something back and this outlook and action has helped many of us become more completeand much happier people.

To learn more about Resort Properties’ charity work or to make a donation to the Academy visit: www.resortproperties-charities.org

“THROUGH OUR LIFE-COACHING PROGRAMME WE HAVE LEARNT TO GIVE SOMETHING BACK AND

THIS OUTLOOK AND ACTION HAS HELPED MANY OF US BECOME MORE COMPLETE

AND MUCH HAPPIER PEOPLE.”

V

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The growth of the Club La CostaResorts & Hotels group, currentlycelebrating its silver jubilee year, isgaining momentum as it developsnew resorts at a faster rate thanever. JUDI EVERITT looks at thecompany with the Midas touch.


QUOTE: TIMESHARE WILL REMAIN OUR CORE BUSINESS.THE ADVANTAGE OF BUYING WITH CLC IS THATPURCHASERS ARE NOT LEFT TO COPE ALONE. ROY PEIRES

BUSINESS PROFILE

THROUGHOUT its 25 years, Club La CostaResorts & Hotels (CLC) hascontinually evolved andrefined its productoffering. True to thecompany’s innovativespirit, today its new resortsare an efficient symbiosisof leased back real estateunits which fuel its high-powered timesharemarketing programmes.It’s a model that hasenabled the company, evenin world recession, tomove forward with newdevelopments.

NEW HORIZONSFurther announcementsare expected from CLCnext year as the companyexpands its resort base

TURNING SILVER TO

GOLD

beyond its traditionalEuropean holidaydestinations into severalnew locations which areunder consideration inEastern Europe and theCaribbean.

The recent opening ofthe 350-unit ApolloniumClub La Costa Spa &Beach Resort marks thecompany’s first foray intothe Turkish market. It willalso be CLC’s 18th resortaffiliation to RCI’s holidayexchange network,following the recentaddition of the CLC YachtClub destinations in theRed Sea and theMediterranean.

A second Turkishventure is under waywhich will be based on >

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CLUB LA COSTA – THE MILESTONES■ 1984 – CLC wasfounded with the purchaseof 10 apartments at LasFarolas, Costa del Sol■ 1986 – Marina del Soldeveloped on same siteand sold to British,Spanish, French, Germanand Russian markets■ 1992 – CLCmembership reaches15,000■ 1997 – Roy Peiresenters RCI’s Hall of Fame■ 1997 – DestinationsClub, a multi-destinationfloating time club, isintroduced■ 1998 – CLC’s points-based Vacation Club islaunched. Membershiphits 31,000. The companyembarks on acquiringand developing its ownresorts in England,Scotland, Spain, Austriaand Tenerife■ 1999 – Official openingof CLC flagship CaliforniaBeach Resort in Spain■ 2003 – CLC’s highlysuccessful TrialMembership programmebegins■ 2005 – CLC forms itsown real estate sales anddevelopment company■ 2006 – Launch of ClubLa Costa Yacht Club■ 2008 – CLC embarks onits first Turkish venture■ 2009 – CLC announcessecond Turkish resortwhile research into newdestinations continues■ Club La Costa hassales operations in UK,Spain, Tenerife, Turkey,Russia and Portugalserving its Vacation Cluband real estatebusinesses. It conductsclose to 100,000 salespresentations annually.

CLC’s first venture into the Turkish market and18th resort affiliation to RCI is Apollonium ClubLa Costa Spa & Beach resort. Different aspectsof the development are pictured on thesepages.

“We are continually working onimproving both the holidaychoice and the quality ofservices we offer ourmembers. Efficient use of theexchange area is one key toolin this and to help achieve ourgoals we’re working closely

with RCI, with particular importance given to theimproved use of IT systems. Our company’s ITdepartments are jointly developing a newinteractive two-way data link to allow the efficientflow of information and improved booking use byour members. Recently we also welcomed RCITV on resort to promote CLC to the RCI memberbase, and there are further discussions on futuremarketing promotions to address Vacation Clubmembers’ use of the RCI exchange system.”Guy Mantel, CLC director, club operations & travel

CLC – SECRETSAND STRENGTHS

“Given that timeshare salesregulations are changing andthe nature of the currentmarketplace, we arefocussing our marketingprogrammes on SIVs and fly-buys. Recession has madepeople review travel and

holiday choices and now they search rigorouslyfor providers that offer great value. So we’veadapted our offers and how we present them,having launched several new online campaignswhich are showing excellent early returns. Weplan to roll these out to a much wider audience.

“Consumers are discovering our excellentpromotional holiday offers and contacting us!The whole marketing dynamic is changingfrom us having to get clients in – they are nowactively seeking out a CLC holiday experienceand agreeing to the sales presentation as anacceptable trade-off for their heavilydiscounted holiday.”Huw Jones, CLC creative director



> the business model thatClub La Costa aims toestablish worldwidefeaturing luxury mixed-use properties havingoutstanding facilities,which at this resort willinclude both a spa and an18-hole golf course.

CLC chairman RoyPeires explained: “Wehave branched out intowhole ownership pairedwith timeshare. By sellingthe bulk of units onleaseback we are able torun even more successfulfly-buy marketingprogrammes. This,coupled with oursuccessful freehold salesin Club La Costa’scarefully-plannedcommunities, allows us toincrease the pace at whichwe develop resorts.”

CLC’s more than50,000 members andhundreds of freeholdowners all benefit fromthe new destinations andproperties which typifythe very best of thecompany’s productoffering. The CLC focus ison securing excellentlocations, providingluxurious interiors,attractive exteriors, a widerange of on-site facilitiesand services – togetherwith the assurance of astrong and trustedhospitality brand in CLC,one of Europe’s premiertimeshare companies and,says Peires, the largest interms of sales.

He added: “Timesharewill remain our corebusiness. The advantage ofbuying with CLC is thatpurchasers are not left tocope alone.

“Our owners benefitfrom the full range of


Club La Costa services atall our resorts, amongwhich are 24-hourreception and on-sitesecurity, full resortmaintenance, aprofessionallyadministered lettingsservice and more. This isan attractive propositionfor both our real estateand timeshare owners.”

In some of theemerging markets theseadvantages are seen ascrucially important bypurchasers becausestandards relating tobuild, and provision ofutilities and services aresomething of an unknownquantity to those used tobuying in mainstreamEuropean markets. TheClub La Costa brandrepresents an assurancethat the end product willmore than meet thepurchasers’ expectationsand aspirations, givingthem a sense of security.

THE DYNAMICSApollonium Club La CostaSpa & Beach Resort is off-the-beaten track in atranquil location. Theearly interest in thisdevelopment shown byconsumers and itsconsequent sales successhas convinced Peires thatunspoilt locations ofnatural stunning beautyare going to be winnersfor CLC. This is somethingof a departure from thecompany’s tried andtested successful formulacentred on developing inthe popular hot spots ofSpain and the CanaryIslands.

Diversity of experienceoffered is clearly at theheart of the new formula,

QUOTE: THE WHOLE MARKETING DYNAMIC IS CHANGING FROM USHAVING TO GET CLIENTS IN – THEY ARE NOW ACTIVELY SEEKINGOUT A CLC HOLIDAY EXPERIENCE. HUW JONES

BUSINESS PROFILE

as Peires makes it clear thathis company will continueto develop its traditionalfavourites. He cites theongoing development atCLC’s multi-resort sitebetween Marbella andFuengirola in southernSpain as an example. Itwas here, at what becamea CLC flagship property,that the company createdits unique fusion of aCalifornia-style resort ofoutstanding architecturaldesign with luxuryboutique hotel-styledinteriors.

CLC’s growth anddirection is mastermindedby a very ‘hands on’Peires who sets the pacefor his team of directors.

A key ingredient ofsuccess has been thefearless and fast way thecompany reacts to themarket environment.Innovation and flexibilityare hallmarks of thisdeveloper company, whileits leadership ensures CLCstrategies, policies andplans are communicatedrapidly and dynamicallythroughout itsorganisation, which has2,500 employees, themajority based in Spainand the UK.

Peires believes it isCLC’s flexibility andfreshness, along with itsmantra of making luxuryholidays affordable,which has seen thecompany not onlyweather both the financialdownturns and legislativestorms which havethreatened the Europeantimeshare business overits history, but to emergeon the other side in astronger position thanever before.

“We’re all about diversityand staying fresh andenticing. For instance, ourfirst resort in Turkey hasall the comforts ourmembers expect andmore, while the CLC YachtClub appeals to the

adventurer who wants to wake to a sunrisein a new place every day. Our search for newholiday destinations never stops. As well asEastern Europe and the Caribbean, we’relooking closer to home in Mallorca, Portugaland France. Our Vacation Club (VC) and CLCTravel continue to grow, while members canbook hotels and cruises across the worldwith their points. Coming soon is our firstWorld of Escorted Tours expedition, offeringnew holiday experiences.”Lucien Le Moing, CLC director of productand business development


V



ABOUT ROY PEIRES■ Roy Peireswas born on 12December 1951in Cape Town,South Africa■ Following hisacademic studies

and obligatory military service, Royentered the restaurant andhospitality industry and quicklygraduated to running his ownrestaurant franchise■ He moved to Israel and continuedrunning his own restaurants■ Having sought further businessinterests in the US, Roy wasgranted a Häagen Dazs licence –but he was soon turning hisattention to the real estate market■ A commercial opportunitybrought Roy to the UK in the 1980sand he founded Club La Costa in1984■ From 1984, Roy has successfullybuilt and expanded Club La CostaResorts & Hotels, increasinglymoving towards a mixed-useconcept incorporating freeholdholiday homes■ Married with three children, Royhas main residences in London andMarbella, where the twomanagerial hubs of Club La Costa’sbusiness operations are located■ Roy is a British national with alove of fast cars and boats. He‘collects’ Ferraris but has a‘hardwearing Mercedes’ for day-to-day use■ Through the Peires FamilyFoundation and The SmileFoundation (which CLC founded in1999) Roy supports numerouscharities and major charitableprojects■ An avid reader of biographies,Roy admires business luminariessuch as Richard Branson, RupertMurdoch and Warren Buffet■ Roy’s continuing ambition is tobuild CLC into a leading inter-national leisure company and brand■ Roy says the secret of hissuccess is a combination of gutinstinct and experience.

“We continue to develop resortmanagement in new areas, servicing notonly the needs of members but alsothose specific to our property owners,many of whom are also members, viaour property management division.Services included in such enhancementsare, for example, arranging bank

accounts, utility bill payments, legal advice and unit rentalservices. In fact, we aim to provide the complete turnkeysolution to carefree ownership of a property abroad.

“Our resorts are also helping recession-hit clients byputting out excellent value-for-money offers on food,beverage and in their on-site retail outlets.

“Club La Costa is also now in its sixth year of theBritish Standards Institute ISO 9001:2008 QualitySystems Management accreditation, demonstrating itscommitment to the best UK standards which areinternationally recognised.”Richard Fletcher, CLC director, resort management


“CLC is one of the most pro-active and innovativedevelopers in Europe right nowand we’re pleased to be able tohelp the CLC operations team inits drive for furtherenhancements to its membershipoffering. We greatly look forward

to continuing to support CLC in its future plans toexpand its resort base in both the UK and emergingmarkets, which have so much growth potential.”Susan Duncombe, regional director UK, Malta & Ireland, RCI


San Diego Suites, main picture, was the first resortto launch the Californian Beach brand for CLC.Pictured above is one of the catamarans of the CLCYacht Club.


The resorts of the Costa del Sol have long been a draw for holidaymakers.The latest Holiday World developments on the Costa, however, aretransforming traditional timeshare offerings with an array of first-classfacilities, reports SARAH LEE.


ON ARRIVAL at Holiday World yourealise there are few places like it.Turning off the Costa del Sol’s N340 –the road which takes visitors right intothe centre of a holiday heartland –you’re greeted by a small herd ofelephants, albeit made of stone.

You’ve arrived at Holiday World,host to a world of surprises. Thecomplex on the outskirts ofBenalmadena offers many experiences –themed hotels with everything fromPolynesian á la carte dining toboutique-styled spa hotels on a sitewhich will eventually include 13 four-star hotels offering 6,928 beds.

In April developer Grupo Peñarroyaopened its third hotel Holiday Polynesiaand the fourth, Holiday Hydros, will

follow in 2010, joining Holiday Villageand the RCI-affiliated Holiday Palace,part of the Holiday World Vacation Club(HWVC).

STRENGTH IN CRISISGrupo Peñarroya is a relatively newentrant to the industry and, despite theglobal economic crisis, it plans to placea number of units at Holiday Polynesiainto timeshare.

Residential property developerCristóbal Peñarroya launched GrupoPeñarroya in the 1960s, building 200homes in the Costa del Sol. Thecompany has since developed around30,000 properties between Marbellaand Málaga.

Cristóbal’s daughter Marifrancis

QUOTE: HOLIDAY WORLD IS A UNIQUE PRODUCT – IT’S RARE TO FIND ARESORT WITH SUCH A LARGE NUMBER OF FACILITIES AND FIRST-RATEACCOMMODATION. OVIDIO ZAPICO

MARKETING

A WORLD OF DIFFERENCE

Peñarroya, one of four sisters in thefamily-run business and HolidayWorld’s managing director, said:“Holiday World was born about 15years ago when we bought 400,000square metres of land.

“Building regulations meant wecouldn’t develop residential propertieson the land so my father decided onhotels. People told him he was crazy togo into a whole new market but hewanted to diversify. I think it’s the bestthing he ever did.”

In planning Holiday World, Cristóbaltravelled all over the world to see whatother developers were doing, resultingin a unique development.

Marifrancis said: “The original planwas for 13 all-inclusive hotels but this

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proved difficult as my father wasn’tknown in the hotel industry.

“But someone from TUI travel groupbelieved in him – like us they wantedgood-quality accommodation in theCosta del Sol, and so we embarked on a10-year contract.”

The project is a truly ambitious one.Holiday World Beach Club connects tothe resorts by shuttle and an exclusivefootbridge over the N340. Its seasidehouses share a water park with eightdifferent areas and entertainment for allages, including the Holiday Stadiumwith a football pitch, tennis andbasketball courts, all with seaviews.

The whole complex will beconnected to the rest of Spain by trainwhen the soon-to-be-built Peñarroya

train station is completed, offeringconnections to Málaga airport and thenational high-speed rail network.

The extent of the project – HolidayWorld employs more than 1,000 staff –makes it easy to forget this is a familybusiness.

Cristóbal and wife Mari Pepa havethree other daughters – Pepa, thepresident of the group and the one whodrives the company; Ana, who managesthe sales side of the company’sresidential developments; and Monica,who trained as an interior designer inMadrid and controls the use andpurchase of high-quality materials inthe properties’ inspired interiors.

Marifrancis said: “There’s a lot ofpassion involved in a family businessbut my mother brings a level of reasonto events, which works well for thebusiness.

“My husband Andres is also involvedin the business as project director. He’sresponsible for liaising with architects,builders and engineers. We weredelighted when he started working forthe business – as a family dominated bywomen we weren’t as interested in thisside of things.”

Cristóbal now has time to planfuture projects and travels to gaininsight and inspiration from othertourism projects. He is now working onthe group’s next hotel, Holiday WorldVenetian, which will be based on ideasgathered from a stay at The Venetian inLas Vegas.

Though Grupo Peñarroya’s plans arenever less than ambitious, there is asense of confidence in all they do. Atestament to this is the numerous

awards Holiday World has received,including TUI’s Best Hotel in the World.Praise indeed for a company relativelynew to the business. So what’s thesecret?

“When you do what your clientswant and produce quality you will besuccessful,” said Marifrancis. “The Costadel Sol needed a refresh. We arrivedwith new ideas and quality all-inclusiveresorts – fantasy hotels. No one elseoffers all-inclusive here as they don’thave the space.

“It’s not just about eating anddrinking but facilities – you need aswimming pool, mini golf, a spa,children’s club and eveningentertainment. Members of HWVCdon’t just buy a week here buteverything on site – for 30 years.”

Her sentiments are echoed by OvidioZapico, regional director, Spain andItaly, for RCI, HWVC’s exchangecompany. He said: “Holiday World is aunique product – it’s rare to find aresort with such a large number offacilities and first-rate accommodation.We are proud to be partnering withGrupo Peñarroya, which is investingheavily in the Costa del Sol and addingto the quality resorts in the region.”

Marifrancis added: “In time weintend to offer timeshare in all of ourhotels. Diversified Resorts has beenworking with us for two years and wewant them to sell into Holiday Polynesiawhen we have finished sales at HolidayPalace.

“We also plan to work closely withRCI as it is helping us bring this projectto fruition.

“We have found RCI and Diversified

AHoliday Village, whichoffers self-catering andall-inclusive packages, hasa lagoon-style pool and avariety of sports facilities

C The RCI-affiliatedHoliday Palace, part of theHoliday World VacationClub, mixes hotel operationwith 148 timeshare units.



Resorts to be honest and we value thetrust they put in us when we decided toenter timeshare.”

DIVERSIFIED TARGETS NEW MARKETSAs HWVC’s marketing company ofchoice, Diversified Resorts has a hugetask on its hands, but with more than18 years’ experience in the Costa delSol, the company has good cause foroptimism.

The opening of Holiday Polynesiaand Holiday Hydros resorts is hotlyanticipated by David Gibson ofDiversified Resorts, as the marketersknow the impressive facilities at thenew hotels will have a huge impact onHoliday Palace’s sales decks.

Business director Gibson said: “Entry

Peñarroyas were very keen everythingshould be done properly and we wereable to support them.

“The Holiday World concept is verygood as it has something for everyone.There is also a great three-wayrelationship between us, the Peñarroyafamily and RCI.

“There was a view that you couldn’tcombine a hotel with timeshare here inSpain. But RCI was keen to develop newbusiness models and has been heavilyinvolved in the project.”

Diversified Resorts, which marketssix Crown Resorts properties and theSunset Beach Club, see challengingtimes ahead for timeshare marketers.

Gibson added: “A lot of the tried andtested methods – website offers, directmail, member referrals and leadgeneration on-site – don’t have theresponse levels they used to get andcosts are increasing. Web marketing and e-shots are still in their infancy and theresults are more difficult to quantify. You have to send out a high volume ofinformation to generate results.

“Russia and some of the EasternEuropean countries were good sourcemarkets for a while but like the MiddleEast these are not as strong in today’seconomic climate.

“We were picking up a lot of peoplefrom the second home market but notanymore. Property prices have peakedhere and exchange rates with the UK –our largest source market – havedropped.”

Gibson said when times get toughthere is a tendency for resorts to keeptheir prices high, while at the same timetour operators are dropping theirs, sosales can struggle. He explained:“Holiday World is on the right track,and all-inclusive is the way forward inthis market.”

He concluded: “I think the timesharemarketplace will shrink in years tocome – there will be fewer companies,but those that stay will have a goodproduct.

“It will be survival of the fittest, withan increasing number of larger chainsin evidence in Europe. And I believetimeshare will become a product peopleare really proud to own.”

prices at Holiday Palace start at £4,500(€5,000) for a week share in a one-bedroom apartment. The offering has aseasonal market and as we’ll bemarketing to package tourists, we’redealing with a very different clientprofile to that of most timeshare. Wehope the quantity of leads will furtherimprove with the opening of the newhotels which will also attract a differentprofile of clientele.

“Our role is varied. At some sites weoffer sales and marketing alone. But wealso use our expertise to help resortsfurther.

“At Holiday World for instance weset the timeshare operation up fromscratch, including getting involved inthe legalities of sales structures. The

QUOTE: WE HAVE FOUND RCI AND DIVERSIFIED RESORTS TO BE HONESTAND WE VALUE THE TRUST THEY PUT IN US WHEN WE DECIDED TO ENTERTIMESHARE. MARIFRANCIS PEÑARROYA

MARKETING

C High-spec interiorsand quality furnishingscomplement theholiday experience atHoliday Hydros.

A Holiday Polynesiahas become part of theHoliday World VacationClub and a number ofits units will beallocated to the group’stimeshare offering.

V


Robin Barrasford,managing director ofproperty agentsBarrasford & BirdWorldwide, has enteredthe world of resortdevelopment withHalcyon Hills Luxury SpaResort & Marina(pictured top). Located onthe Greek island ofSamos, the resort willinitially include 15fractional units and is dueto complete in early 2012.

Barrasford & BirdWorldwide, a successfulUK-based internationalproperty agent, isexpanding its business bydeveloping its own luxuryresort on the Greek islandof Samos – a project thatwill also include thecompany’s first fractionalproduct offering. STEVE ADAMS profiles a business enteringunfamiliar waters.

AN ANCIENT Greek proverb says‘Before you can score you must firsthave a goal’, and it’s a maxim that couldeasily be applied to Robin Barrasford,managing director of Barrasford & BirdWorldwide. Despite being talented anddriven, during his early career that‘goal’ proved somewhat elusive.

After obtaining a degree inComputers and Information Systems,Barrasford became frustrated withacademic life and dropped out of apost-graduate course in Mathematicsand Education. He joined Sussex PoliceForce, where he stayed for ten years,becoming one of its youngest-eversergeants and ultimately reached therank of inspector. During a year off hemoved to the southwest of Englandwhere he converted a collection ofbarns into a family home. This got himthinking about how he could combinehis love of property with a full-timeentrepreneurial business.


PHILOSOPHYFOR SUCCESS

THE INSPIRATIONA solution presented itself some eightyears ago. While buying a propertyabroad, it occurred to Barrasford that he could provide a useful service inintroducing and guiding new andseasoned property buyers to thepotential of overseas propertyinvestment. He’d found his goal.

Barrasford & Bird Worldwide –formed with director Alan Bird – initiallyfocused on sales and marketing propertiesin Bulgaria, taking minor shares indevelopment companies to ensureexclusivity and then introducing theproperties to the UK market. The movewas so successful the company expandedinto the Caribbean and has never lookedback – it has now handed over more than2,000 completed properties.

QUOTE: SAMOS HAS A BLOSSOMING TOURISM MARKET BUT IS IN NEEDOF A TRULY LUXURIOUS FIVE-STAR DEVELOPMENT TO SATISFY THEDEMAND OF THE HIGH-END TRAVELLER. ROBIN BARRASFORD

FRACTIONAL

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From day one, the company, whichnow employs more than 30 staffworldwide, made high-quality customerservice a priority, offering a lifetimeaftercare guarantee and employing morecustomer support than sales staff.

When it became apparent that thedeveloper could be the weak link in theprocess, Barrasford decided the only wayto ensure consistent quality of servicefrom reservation to full ownership was tobecome the developer as well as the agent.

He then took the unusual step ofcanvassing the company’s database ofmore than 65,000 clients to find outwhat they wanted from an overseasproperty. Once the information wascollated, he sought out marketswith genuine exit strategies andstrong government support fortourism. The research pointedhim to an idyllic sheltered bayon the south-eastern tip of theGreek isle of Samos, which willbe home to the company’s firstdevelopment project, HalcyonHills Luxury Spa Resort &Marina.

He said: “The developmentrepresents a unique and desirableproperty purchase. Samos has ablossoming tourism market but is in need of a truly luxurious five-stardevelopment to satisfy the demand of the high-end traveller.”

Halcyon Hills will certainly cater tothis client. The resort – due to completein early 2012 – has been carefullydesigned to take full advantage of itsstunning location. All its proposed 209properties will have panoramic sea views.The resort will be centred around a1,200m2 spa and feature a private beach,35-berth marina, concierge service andthe facilities of a five-star hotel.

Accommodation will be made up of42 studio apartments, 32 studiokampanas, 30 one-bedroom kampanas,44 one-bedroom villas, 46 two-bedroom

and making it work among six to 12separate owners – ensuring each had titleon the property they were investing in.

He said: “As one of the mostestablished overseas property agents inthe UK and being founding members ofthe Association of International PropertyProfessionals, customer security is one ofour main priorities.

“Partnering with the FractionalOwnership Consultancy in Guernsey wewere able to ensure an exceptionalfractional product that was perfectly safe.”

He believed the fractional product wasalso a good fit with the company’s clientbase, and added: “With Barrasford & Birdbeing investment-based, the fractionalownership concept appealed to ourcustomers, who are often looking for aneasy investment that doesn’t require 365days a year monitoring and maintenance.They benefit from the same capitalappreciation and rental guarantees as fullpurchasers, but with a smaller investmentboth in terms of financing and time.”

The capital appreciation and rentalfigures quoted by the company are

superior villas and 15 three-bedroompremier villas. Whole-ownership pricesrange from £176,000 for a studioapartment to £735,000 for a three-bedroom premier villa with private pooland garden area.

FRACTIONAL FIRSTIn addition to whole-ownership units,the development will also includeBarrasford & Bird’s first foray intofractional ownership, with an initial 15 properties being sold in one-twelfthfractional shares. Prices range from£21,000 for a studio to £72,000 for athree-bedroom premier villa, and moreunits will be released as others sell out.

The move is something Barrasford hadbeen considering since late 2007.

“The appeal of property ownershipfor literally a fraction of the normal costseemed like a great opportunity to passvalue and quality on to our customers at a time when the credit crunch wastightening purse strings,” he said.

On paper a great idea, in practice hehad concerns about splitting ownership

QUOTE: THE APPEAL OF PROPERTY OWNERSHIP FOR LITERALLY A FRACTIONOF THE NORMAL COST SEEMED LIKE A GREAT OPPORTUNITY TO PASS VALUEAND QUALITY ON TO OUR CUSTOMERS. ROBIN BARRASFORD

FRACTIONAL

Halcyon Hills Luxury SpaResort & Marina will belocated in a sheltered bay onthe south-eastern tip of Samos(main picture). Based around a1,200m2 spa, the developmentwill incorporate a privatebeach, 35-berth marina and avariety of apartments,kampanas and villas, all built,decorated and equipped to thehighest standards.



especially impressive. As well asguaranteeing an eight per cent rentalreturn over the first two years ofownership, the company claims buyerscan expect an appreciation in value ofbetween 81 and 148 per cent by the timethe project is complete. (See table below)

Barrasford explained: “Most peopleare buying now to get the maximumbenefit of the price difference fromoff-plan prices to completion prices,but having said that, the majority ofowners will be keeping their propertiesfor at least five years to benefit fromthe lifestyle advantages as well.

“It’s a two-fold property purchasereally, meaning it makes a greatinvestment but also offers a stunningfive-star luxury property to enjoypost-completion.”

THE REGISTRY COLLECTION BENEFITSThe icing on the cake in terms ofenhancing the buyer’s benefits is theaffiliation of Halcyon Hills to TheRegistry Collection luxury exchangeprogramme. This enables the developerto offer further benefits to its off-plan

fractional purchasers, including one freeweek’s accommodation at another resortin the programme while they awaitcompletion of their own property. “Thisgives buyers a great indication of thequality they’ll be getting with theirpurchase at Halcyon Hills, oncecompleted, and gives them somethingto enjoy while their property is beingbuilt,” said Barrasford.

“It was incredibly important to usthat we partner with an exchangecompany that embodies the finerdetails of luxury property ownershipand The Registry Collection parallelsthe same elegance and opulence thatHalcyon Hills will offer.”

The combination of a high-qualityproduct with real earning potential and aluxury exchange option suggests theresort could be a marketer’s dream, butBarrasford said the crucial factor is tofully explain how the model works.

“Our sales and aftersales teams are allfully trained on the nuances of fractionalownership, enabling them to provide acomprehensive service right from thevery first enquiry and throughout the

customers’ property ownership,” he said.Somewhat surprisingly, Barrasford

claims those fractional customers aremostly the same people who would makea whole ownership purchase.

THE MARKET“In terms of income and target market,while fractional ownership should intheory open up the resort to those withless available funds, we’re actually findingthat the target market is similar if notidentical to whole ownership,” heexplained.

“Fractional purchase allows owners tospread their investment between varyingproperty styles, so whereas a customermight have purchased a two-bedroomvilla at £385,000, they can now purchasea fraction in the same property, plusfractions in a studio apartment and athree-bedroom villa, and enjoy a selectionof property styles during their holidays.”

Barrasford said the company’s marketis generally made up of households withincomes ranging between £60,000 to£100,000. The majority of purchasers arefrom the UK, though “dozens” of buyershave also come from the US, Middle Eastand Eastern Europe.

“Fractional ownership opens up thetarget market for luxury resorts to a muchgreater demographic and in a strugglingmarket it allows purchasers theopportunity of investing abroad withminimal risk. It’s a great model, especiallywith our great product.”

PRICES AND RETURNS ON FRACTIONAL OWNERSHIP PROPERTIESType Current Deposit Value upon Profit by Return on

Price completion completion Investment

Apartment Suite (Penthouse) £21,000 £8,400 £27,768 £6,768 81%

One Bedroom Luxury Villa £30,000 £12,000 £47,749 £17,749 148%

Two Bedroom Superior Villa £41,000 £16,400 £62,365 £21,365 130%

Three Bedroom Premier Villa £72,000 £28,800 £104,231 £32,231 112%V


It’s been a busy 12 months for the Timeshare Association, with anew consumer website, quality accreditation scheme for resorts,expanded membership and more. STEVE ADAMS spoke with chiefexecutive Harry Taylor about an important year for anincreasingly important organisation.


QUOTE: THERE IS NO SET STANDARD FOR TIMESHARE SALES STAFF HERE,SO WE’RE LOOKING TO PUT TOGETHER A PROGRAMME – WITH THEINDUSTRY – TO HAVE A PROCEDURE TO TRAIN SALES STAFF. HARRY TAYLOR

represents with increasing strength. The weekI spoke to him, three new resorts – HollywoodMirage, Palm Beach Club and Beverly HillsClub, all in Tenerife – had been recruited intomembership, accounting for more than 50,000new members. TATOC now has more than 70member resorts (spanning the UK, Portugal,Malta, Spain, Tenerife and Lanzarote), andrepresents more than 250,000 individualowners. The numbers are key to its credibilitywhen dealing with government and otheragencies, according to Taylor.

“Our strength is from our membership,so that credence enables us to go to bodieslike the Office of Fair Trading (OFT) orEuropean Union (EU) and they’ll listen to us,”he says. “They realise we work with theindustry, and not for the industry.”

Taylor says this credibility – and being“the consumer equivalent of the ResortDevelopment Organisation” – enabled TATOCto have an input to the new EuropeanTimeshare Directive.

“We were concerned that it was goingover the top in certain areas and neededstrengthening in others,” he says. “We had afew meetings with Arlene McCarthy, aMember of the European Parliament (MEP),who listened to what we had to say, andsome changes were made.

“Now the legislation’s come to the UKwe’re working with the BERR (the UKDepartment for Business, Enterprise &Regulatory Reform, formerly the DTI) on howit should be implemented.”

It’s generally accepted that one of thereasons the new Timeshare Directive wasdeveloped was to outlaw the activities ofrogue operators mis-selling products such

as holiday packs under the timesharebanner, which is also why TATOC hasembarked on a campaign to raise awarenessabout the industry, providing information andfacts to potential buyers through a newconsumer-facing website (www.timeshare-consumer-advice.co.uk).

“Most of the industry’s problems aren’tcoming from the timeshare product, they’recoming from people who are feeding offtimeshare and trying to con consumers,”says Taylor.

“The website offers free impartial helpand information on the industry and dispels alot of the myths about it. It’s essentially agood news site, and something we hope willencourage potential buyers to find out moreabout a product they may only know throughnegative media reports and sensationalnewspaper headlines.”

GUARDIANS OF QUALITYTaylor says TATOC is also working closelywith Citizens’ Advice Bureaus, tradingstandards offices and police forces toeducate them about timeshare and helpprotect the industry from the actions ofunscrupulous operators. To back this up, theorganisation launched a resort accreditationscheme at the end of 2008, to provide a ‘kitemark’ quality guarantee for consumers.

“It’s all very well for a resort to say it’sfour-star quality or whatever else, but wewanted to look at it through the eyes of theconsumer. We weren’t interested in what wasacceptable to the trade, but to the consumer,”explains Taylor.

The scheme is only available to resortsthat are TATOC members as well as affiliates

TATOC

A CREDIT TO THE INDUSTRY

THE 20TH anniversary year of TheTimeshare Association (Timeshare Ownersand Committees), also known as TATOC, hascertainly been one of its busiest. Formed in1989 and still the only elected consumers’association representing timeshare ownersin Europe, in 2009 the organisation has:■ Launched a new consumer-facing websiteto provide independent information on thetimeshare product■ Acknowledged and rewarded the firstresorts to complete its quality accreditationscheme ■ Increased its membership by more than 25 per cent■ Expanded its membership criteria toenable individuals (in addition to clubcommittees) to join■ Published its own member magazine,Sharetime, and ■ Played a key role in the development of theEuropean Timeshare Directive.

“It’s been a busy year,” says chief executiveHarry Taylor. “A busy year, but a good year.We’ve achieved a lot of the things we set out todo but there’s a lot more still to come.”

MAKING A DIFFERENCETaylor is clearly a master of understatement.A concerted membership drive, tenth annualconference, putting more resorts through theaccreditation programme, increased presenceon the internet and the development of atraining scheme for sales staff are all on theagenda for 2010 – quite a task list forsomeone who officially retired in 1998.

But Taylor freely admits his role is partly alabour of love for an industry with which he isgenuinely proud to be associated, and

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of RCI or II, and to achieve accreditation theymust meet a variety of criteria includinghealth and safety issues, whether a unitreally is big enough for the number of peopleit claims to accommodate, and thetechniques used by sales staff. Accreditation,which has been awarded to 11 resorts todate, gives confidence to potential buyers andcan be a huge booster for sales, resales andrentals – a fact not lost on Taylor.

“We realise this is a good tool forsalespeople but we make sure it is policed,”he says. “The accreditation is only valid forthree years, after which we have to do a newinspection. If there are any complaints withinthat time, each will be looked at and a replyor explanation required from the resort. If there are more complaints than isacceptable, we will withdraw theaccreditation and publicise the fact.”

Taylor also wants to take the accreditationscheme a stage further, by developing atraining programme for sales staff.

He explains: “At the moment anyone cansell timeshare in the UK, but in Americayou’ve got to be a real estate agent with alicense. There is no set standard fortimeshare sales staff here, so we’re lookingto put together a programme – with theindustry – to have a procedure to train salesstaff and provide them with a diploma orform of accreditation.”

Taylor reports huge support from theindustry for the scheme – “there are more

than 40 salespeople who would go into ittomorrow if it was up and running” – butwants it to have UK government recognition,so doesn’t expect it to be up and runninguntil at least 2011.

More immediate priorities includeexpanding the organisation’s helpline formembers and the general public, planning its2010 conference (scheduled to take place inNottingham from March 26-28 and likely to beits biggest ever), developing micro websites toimprove the quality of information about theindustry, and growing TATOC membership. Acampaign to recruit more UK-based resorts isabout to get underway, with Taylor adamantthat joining should be a no-brainer for resorts.

“There’s a huge benefit to being amember of a recognised organisation,” hesays. “TATOC now has a lot of credence andis acknowledged by many governmentbodies, while increasing numbers ofindividuals – including potential timeshare

buyers – are finding us through the internet,our helpline and other means, while realisingwe’re a good and reliable source ofinformation about the industry.

“RCI was one of the first major playersin the industry to associate themselveswith TATOC as they saw us as a majorbenefit for their members. We continue towork well with RCI on behalf of alltimeshare owners.

“We also provide a good support networkfor resorts, can help or point them in the rightdirection if they have legal problems, and theaccreditation scheme gives them anadditional boost in the eyes of the consumer.They’ll gain credibility by association, andbeing part of what is effectively a consumerclub, and one that works very well.”

■ For more information about the Timeshare Association, visitwww.timeshareassociation.org


V

Harry Taylor, chief executive of the Timeshare Association (above left)is encouraged by the response to its new consumer-facing websitewww.timeshare-consumer-advice.co.uk, which is designed to raiseawareness as well as dispel a few myths about the industry.

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Natural beauty, popular coastalresorts and flourishing citiescoupled with political and economicstability make Croatia a market withreal property development potential.KATHERINE STEINER-DICKSreports.


QUOTE: ALL THE BARRIERS TURNED INTO POSITIVES AS THEY PREVENTEDTHE MASSIVE OVERSUPPLY OF HOLIDAY HOMES AND DRAMATIC PRICEFALLS, SOMETHING WE HAVE SEEN IN SPAIN. ANNA GRYBEL-KLOC

return on your investment once youfactor in seasonal demand, which ispredominately driven by foreign, ratherthan domestic interest. You must alsoconsider the relatively higher thanaverage house and rental prices for apre-succession EU market.

Croatian coastal properties, althoughstill comparatively inexpensivecompared to those in Italy or anywhereelse across the Adriatic, have alreadyaccounted for some high growth equityopportunities.

Based on October 2008 figures,average prices for Adriatic coastalproperties were €2,300 per squaremetre (psm) and €2,000psm forproperties on the northern coast and€2,400psm for all other coastal areas.

Dubrovnik, however, is in a leagueof its own, with rates of between€4,000 to €8,000psm. All prices, evenaccounting for the coastal property hotspots, are expected to remain static for

MARKET REPORT: CROATIA

IF CROATIA was human, she wouldbe a brazen beauty with diversequalities that attract and inspire peoplefrom far and wide. Despite thecountry’s pending acceptance into theEuropean Union by the end of this year,her core cultural values are notexpected to change, nor is she expectedto get swamped with over development.

Croatia’s political and macro-economic stability, pro-business climateand strong infrastructure planning areall set to contribute to its long-terminvestment prospects.

Visitors are spoilt for choice inCroatia with its offering of stunningcoastlines, fresh Mediterranean seafood,island getaways, lakes, forests andcosmopolitan cities. Thorough researchis essential to ensure that, as aninvestor, you have the right informationto determine which area of the countrywill best suit your proposed sourcemarket and business model.

For the developers of hotel, mixed-use or residential resort projects, there are some promisingopportunities, especially given the lackof high-quality hotel accommodationand modern housing stock, which arein demand from locals and foreign

LONG-TERMPROMISE

investors alike. Yet, according toproperty analysts, Property Secrets, akey question to ask yourself, regardlessof whether you’re a developer orindependent investor, is: Will myinvestment serve as a pure investmentor a combination of investment andlifestyle?

COASTAL OPPORTUNITIESSo what are the implications of each?Property investment analyst AlanForsyth of Property Secrets, says by allmeans invest in a coastal property, butdon’t regard it as a pure money maker,but rather as a lifestyle purchase. It’sunlikely to give you a guaranteed

Dubrovnik, picturedleft and right, isCroatia’s capital ofculture. Propertyhere sells at apremium €4,000 to €8,000 psm.

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some time, according to PropertySecrets’ research.

Although some analysts are less thanoptimistic about turning a lifestyleinvestment into a money-makingopportunity, Ross Elder, managingdirector of online lettings businessholidaylettings.co.uk thinks otherwise.

“Dalmatia and Dubrovnik areparticularly in demand withholidaymakers and could supportfurther supply of holiday homes ifdemand is sustained,” says Elder. “Themain driver for new property listings issecond home owners realising thattheir additional property could beearning them some extra money, or atthe very least paying its own way.”

But as more new builds come onstream, investors’ potential exit strategiesbecome more and more limited. Anyonecurrently looking to invest in coastalareas would be advised to considerbuying coastal land, as demand – andprices – are being driven by developerdemand for AAA plots. Although, inpractical terms, this move is best suitedto the seasoned land buyer who knowsthe language and can get through thelegislation, planning permission and redtape with relative ease. >


While luxury privateaccommodation exceedsdemand in Croatia, thereis certainly scope forimprovement when itcomes to high-qualityhotel resorts. In an

exclusive interview with RCI Ventures,Anna Grybel-Kloc, a property investmentanalyst at Property Secrets, offers thelatest insights into Croatia’s hot spots.

RCI Ventures (V): Which coastal citiesand villages draw the most visitors? Anna Grybel-Kloc (AGK): The mostpopular coastal region is Istria, mainlybecause it’s better developed than othercoastal areas. It’s also close to Italy andeasily accessible for overseas visitors.Other popular coastal areas includePrimorje-Gorski Kotar County and Split-Dalmatia County. Coastal cities such asPula, Rijeka, Split, Zadar and Dubrovnikare the main areas of interest for foreignvisitors.

V: Which areas of Croatia are the hiddengems and why?AGK: From the tourist’s point of view, thehidden gems are the islands of theAdriatic. From the property investor’sperspective, I’d say Zagreb. As overseasproperty buyers in Croatia focus mainlyon buying holiday properties on the coast,the capital city remains fairlyundiscovered.

V: Hypothetically, if you had €45,000 toinvest in a Croatian property, whichlocations would be most suitable in thelong and short-term?AGK: I think in the long-term only Zagrebstacks up from an investment point ofview as it has all the fundamentals in

place. It’s the country’s economiccentre, has a solid rental market drivenpredominately by locals, and fallingproperty prices in Zagreb are creatingselected buying opportunities.

Given the current market conditions,I don’t think there are any prospects forshort-term returns. In the past, suchopportunities could be found on thecoast, where prices were increasingfast as Croatia became more popularamong foreign buyers.

V: Established holiday home markets,such as Spain, have long catered toforeign buyers. How has Croatia cateredto a foreign buyer and tourist market?AGK: Croatia wasn’t friendly for non-resident property buyers in thepast. The process used to be time-consuming and bureaucratic, with manytitle deeds being uncertain.

But, in my opinion, all the barriersturned into positives as they preventedthe massive oversupply of holidayhomes and dramatic price falls,something we have seen in Spain.

As for the tourist market, Croatia isemerging as a popular touristdestination, but lacks the high-qualityaccommodation demanded by tourists.On the other hand, privateaccommodation exceeds demand.

V: What type of infrastructure is beingput in place for coastal and urbancities?AGK: The Croatian network of roadsand railway systems is fairly well-developed. There are also seveninternational airports and sixinternational seaports.

One of the main infrastructureprojects in Croatia is the railroadbetween Zagreb and Rijeka, which willdrastically reduce the journey timebetween the cities from four hours and45 minutes to just one hour.

■ For more information about PropertySecrets visit www.propertysecrets.netor call 0115 985 3963.

SHARED SECRETS

An Istrian village, left,typifies the naturalbeauty of Croatia, whilePorec, above, bordersItaly and has much of thecharm of that country.


> Hotel and resort developerswould be wise to keep tabs onan expected rise in coastal landcoming up for sale as thegovernment seeks to pay off its$45 billion external debt bill,which accounts for 66 per centof the country’s GDP.

CITY SLICKERSFor pure investment, cities suchas Zagreb are where thegenuine opportunities lie, dueto local demand for modern rentalproperties, according to PropertySecrets. Demand for modern apartmentsis increasing from a local, young,growing middle class looking forcoastal properties. There hasn’t been abuilding spree since 1989 and there is a deficit of apartments of at least50,000 units.

Prices in Zagreb are likely to godown about 10 per cent over the nextyear, creating a good opportunity forlong-term equity investors. However,according to Swiss-based propertyconsultants, Henley & Partners,property prices in Croatia are likely torise between 100 and 150 per cent overthe next three to five years.

Buy-to-let investors will beencouraged to discover that prices forcity apartments range between€1,660psm in the less expensive areas(for example Dubrava and Novi Zagreb) to €2,578psm in the exclusiveareas of the city centre, which shows


that they offer more value for moneythan cities such as Prague, Budapest andWarsaw.

It is also worth noting that Zagreb’scity rental prices were on a par withWarsaw’s just a year ago, whichsuggests that there has been a slightcorrection in prices in line with globalinflation and credit restraints.

Financial products are becomingmore popular with mortgagepenetration to GDP currently sitting at15 per cent, which leaves a lot of roomfor growth. High loan-to-asset valueratios in recent years have spurred localbuyers to take advantage of low interestrates of 4.5 per cent CHF on domesticmortgages and 5.5 per cent on euroloans.

But don’t think that Croatia has beenunaffected by the global credit crisis.Inflation has doubled from 3 per centin 2007 to 6 per cent in 2008.However, lowering commodity pricesare bringing down inflation which is awelcome sign.

QUOTE: DALMATIA AND DUBROVNIK ARE PARTICULARLY IN DEMANDWITH HOLIDAYMAKERS AND COULD SUPPORT FURTHER SUPPLY OFHOLIDAY HOMES IF DEMAND IS SUSTAINED. ROSS ELDER

MARKET REPORT: CROATIA

WINDOW OF OPPORTUNITYCroatia is a market to watch, especiallyfor developers of hotel, shared-ownership, residential resort andapartment properties looking to create a new market opportunity with long-term revenue generationopportunities. The diverse choice ofholiday destinations within Croatia areideally suited to developers in thetimeshare and fractional markets.

Croatia is undoubtedly a market that has grown quicker than most.Importantly, it has the potential to be along-term winner if infrastructuredevelopments are kept on schedule anddevelopers work in harmony with notonly the government and touristauthorities, but crucially, in sympathywith the country’s natural beauty.

125

120

115

110

105

100

May 06 Nov 06 May 07 Nov 07 May 08 Nov 08

CROATIA’S PROPERTY PRICE INDEXMAY 2006 - DEC 2008

The index grew by 21.5 percent from May 2006 toDecember 2008. In 2008 theindex grew overall by a mere2.2 per cent, with a pricedecline towards the year end.This is attributed to difficultiesin accessing finance and anincrease in the cost ofborrowing and mortgages.

Source: Centar Nekretina and Visium Group Limited

Top, Venice is only a 30-minute boat trip fromPorec and makes for a memorable day-tripfrom the Istrian town, pictured right andbelow. Dubrovnik, above, sits at the Greek endof Croatia and is in high demand by touristsand could sustain an increase in holidayaccommodation.

City Av. Price Highest Price Lowest Price€/SQM €/SQM €/SQM

Zagreb 2049 6555 920Osijek 1130 1653 616Split 2621 6296 730Rijeka 1788 3516 900Pula 1652 3554 752Dubrovnik 3649 6505 1220Zadar 1879 3157 1000

PROPERTY PRICES IN KEY CITIES – CROATIA 2008

Source: Centar Nekretina and Visium Group Limited

V



Katherine Steiner-Dicksspeaks to Ross Elder,managing director ofonline rental agentsholidaylettings.co.uk togauge the health and

wealth of the Croatian rental market.

RCI Ventures (V): What makes Croatiaunique compared to other markets in theMediterranean?Ross Elder (RE): Croatia’s huge sellingpoint in the current economic climate isthat it’s outside of the Eurozone. It isquite a cosmopolitan area of EasternEurope and benefits from appealing to awide range of visitors – family holidays,city breaks and rural retreats. Itscoastline is mostly rugged and rocky,generally meaning pebble beaches ratherthan golden sands.

V: What are the average rental rates for acoastal holiday house in Croatia? RE: A three-bedroom villa on the coast inAugust will set holidaymakers back atleast €1,000 per week, but anywhere upto €3,500 per week. If they’re travellingoff-peak (May) they can expect to paybetween €650 and €2,700 per week.

V: And for an average apartment rentalin Zagreb? RE: €420 per week / from €70 per night(for a minimum two-night stay).

V: What are your expectations for rentalprices in Croatia for 2010 shouldCroatia join the EU? RE: If they adopt the euro there may besome inflationary pricing as a result,but Croatia is already very popular andquite pricey because there’s a goodlevel of competition for accommodation,the over development of holiday homesis being restricted, so a change in rentalvalues is unlikely.

V: Would you say that customerslooking for a holiday home in Croatiaare more or less discerning than inmore established markets such asSpain?RE: They are either more discerning orhave larger budgets.

V: Do you think you’ll have moreCroatian properties listed on your sitethis year? If so, what is driving supplyand demand?RE: So far in 2009, a similar number ofnew properties have been added to thesite as in the same period 2008.Dalmatia and Dubrovnik are particularlyin demand with holidaymakers andcould support further supply of holidayhomes if demand is sustained.

The main driver for new propertylistings is second home ownersrealising that their additional propertycould be earning them some extramoney, or at the very least paying itsown way. Providing a solution forsecond homeowners is proving aparticularly beneficial message in thecurrent climate, but one which haslong-term effectiveness.

RENTAL POTENTIAL


Your happyowner

members areworth their

weight in gold.As the costs

for marketingto each new

client continueto rise, it pays

to keep yourcustomers

smiling. DAVETHACKERAY

talks to theexperts about

ways tomonitor

customersatisfactionlevels – and

the rewards itcan bring.


QUOTE: THE COMMUNITY CONCEPT SHOULD BEEXTENDED FAR BEYOND THE HOLIDAY ITSELF, INTOFORUMS ON YOUR WEBSITE. SALLIE BURNETT

FORGET fancy direct mail packs,expensive inspection visits and prizedraws. The most successful catalyst forsales efficiency in the holiday ownershipindustry is customer satisfaction.

Customer delight is the number onedriver of loyalty, referrals andrecommendations – and it should bethe beating heart of your business.

But are you doing enough toharness the potency of your product toinspire existing members to upgradeand evangelise about it?

To surpass your owners’ needs andexpectations you need to know whatthey want. You should know how theyfeel, and what their hobbies, passionsand influences are. Such intelligence,combined with the hard facts andtransactional data you possess, is apriceless asset to your sales andmarketing strategy.

To gather lifestyle informationyou need a solid structure in place toevaluate and collect owner feedback atevery opportunity. And you need theversatility, employee empathy and softsystems in place to not only listen, butactively respond and address customerconcerns.

Juliet Mumford, director of marketresearch company Intelligent Insight,specialists in customer satisfactionanalysis, outlined the process shefollows to identify the business needand then create an outcome to drivebusiness success and customer delight.

• Why are you doing this? Figure outwhat it is you want to know. Make alist of key objectives and when youknow what results you’re looking for,you may discover the methodologyneeds reconsidering. A questionnairemight help you measure the benefit ofdeveloping new facilities at a resort,but is of little use if you want toestablish a set of personas upon whichyou can base a segmented marketingstrategy.• Set up focus groups. These shouldaddress the requirements and concernsof the different customers at yourresort. Couples think differently tofamily units in the way they holiday.

CUSTOMER SATISFACTION

IN PURSUIT OFHAPPINESS

Pictured from top: Juliet Mumford, Jeffrey Henning,

Sallie Burnett andDiane Clarkson.

PLAN

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• Build the questionnaire. We’re notnecessarily looking for a wide range ofquestions – we need to workselectively to gather the exactinformation the business requires. • Gather data – and analyse. Withexperience and an understanding ofthe marketplace you can really drilldown into questionnaire responses todiscover trends and traits that you mayhave been unaware of. • Present the information. And do so in a meaningful, simple and, mostimportantly, actionable way. Everyoneacross the business should be able togain a real insight into the mind of the consumer.

Consistency is crucial if you are to get to the heart of customersatisfaction. Consistency in the wayyou reach out for information, and inhow you share out the results andaction plans.

Jeffrey Henning is chief strategyofficer and co-founder of Vovici, aleading enterprise feedbackmanagement company. He said: “Wesee a great deal of inconsistency in theway companies often carry outdifferent types of surveys from whichthe data simply cannot be correlatedeffectively.

“With the technology availabletoday, the results from every customercontact should be fed into a systemable to share this data in ways that canbenefit all your staff, whatever theirrole and department.”

Henning recommends a seven-stepaction plan to get on top of yourcustomer satisfaction strategy:

• Implement a customer experiencemanagement programme. This issimply an understanding of theemotional engagement at each stage ofthe owner experience lifecycle.• Use a common platform to obtain‘voice of the customer’ data. Stopusing incompatible feedback-generating methods and start unifyingefforts so every piece of informationreceived can be used to build acomplete picture of the customer andbenefit all staff.

• Integrate customer relationshipmanagement (CRM) into every part ofyour business so you can interact withcustomers in a smart, personal andefficient fashion.• Share feedback internally. Toooften feedback simply ends up on theshelf, but its value should never beunderestimated.• Show your employees how theiractions are being perceived andtheir subsequent impact on customerloyalty.• Create a customer community oran open forum for customers to talkabout the organisation. Spearhead thisand you can directly respond toconcerns and build positive PR.• Share feedback with customers asthey want to know what you’re goingto do with it – and the timeframesinvolved in execution.

Like Henning, Sallie Burnett, presidentof Customer Insight Group, aColorado-based strategic marketingcompany, is a fervent supporter offocusing on owner communities – aperfect fit for the timeshare model – todevelop customer happiness and brandadvocacy.

Burnett explained: “You should bedoing all you can to foster this kind ofcommunity feel, both on and offresort. The community concept shouldbe extended far beyond the holidayitself, into forums on your website.”

By developing an online communityyou foster a sense of belonging longafter bags have been unpacked, addedBurnett. The ancillary benefit is thatowners will share a formidable array oflocal information and insights intoyour resort that may have slipped yourattention, or would give youinspiration for the future.

Naturally, not everything postedonline will be complimentary.

“Some people may use the forumsas a place to moan about theirexperiences,” said Burnett. “Turn itinto a positive – many companies willcapitalise on this insight to makeimprovements or respond in a way thatdemonstrates exemplary customerservice.”

Opportunities for gatheringcustomer satisfaction data are morewidespread and cost-effective online.With the prohibitive cost of postalsurveys and restrictions surroundingcold calling, the natural successorwhich is gaining improved responserates is the internet.

Diane Clarkson, analyst atindependent international researchcompany Forrester Consulting, said:“Effective methods of gatheringintelligence on customer satisfactioninclude surveying customers directlyand reviewing information thattravellers are telling each other onwebsites such as TripAdvisor. Twitter isalso a growing source of marketintelligence.

“Customer intelligence is onlyuseful if it is acted upon – one of themost important parts of monitoring isto ensure that processes are in place toinform appropriate internaldepartments and circle back to ensureuseful insight was enacted upon.”

Henning said: “Customersno longer accept you want tocommunicate with them on a one-way basis – they need to knowhow you’re implementing their input.And it’s good news – this is a verypowerful way of building customerloyalty.”

Having a new layer of customerinformation means you can integratewhat you already know with what youwant to know. Owner contact isenhanced with a contextual experiencebased on your understanding of theirneeds and history, and morepersonalised interaction.

The subsequent amassing ofinformation can generate a formidableresource for your sales team as theyembark on a discovery with their latestprospect.

“Feedback will identify the gapsbetween customer expectation and thecustomer experience,” explainedHenning.

And once customer expectation hasbeen exceeded, you’re on the road tocustomer delight: the holy grail of anybusiness.


DO

REVIEW

V

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THERE has never beena more important time

to stick your head above theparapet and be counted in theworld of resort management.It’s no good sitting back, simplyhoping it will all work out andblaming the recession foreverything. This is one of themost challenging times we’veexperienced in the last coupleof decades and it is experiencethat you need to call on.

I’ve spent 20 years in theindustry, taking resorts fromreceivership to RCI Gold Crown,and turning around the fortunesof 14 resorts. These thingsdon’t happen by themselvesand it’s not something that canbe achieved working in isolation. And it most definitelyisn’t something you can do by always making thepopular, easy decisions.

There are plenty of things you can’t do without –owners committees, sales companies, rental contactsand friends in the industry to name a few – but bolddecision-making is probably up there at number one.

The euro exchange rate has crippled many resortsduring the last couple of years and, whilemanagement shouldn’t be about hedging bets onexchange rates, Resort Solutions took calculated risksin forward buying euros and securing funding at theaverage budget rate. You can only do this usingreliable statistics and a sound knowledge of yourresorts and owners.

We have also been proactive in not waiting forthings to go from bad to worse. While 2009 has seencollection rates largely in line with 2008 and previousyears, it is anticipated that 2010 will be a greaterchallenge. For this reason we have dedicated newstaffing to filling resort inventory, invested in newsalespeople and new resorts to forge our own wayforward.

Management fees need to be realistic in thesedifficult times. Maintenance fees may need to beincreased and inevitably will be, if only to take intoaccount the return of the 17.5 per cent VAT rate in theUK and the changing sterling/euro exchange rate.

While long-term planning and investment arecrucial to the future success of any resort, whentimes are hard the budget has to be trimmed and thisstarts by looking at waste and where things can beimproved.

Resort managers are the best people to do this, somake sure they are on board and working with you.Be sure to involve them in the difficult decisions. Andremember – cutting costs should not compromisecustomer service.

At the end of the day we are all in the holidaybusiness. A holiday – and the anticipation of it – is arelaxing time when the trials and tribulations ofeveryday life, as well as the word ‘recession’, shouldbe forgotten, so let’s stop groaning and get on withmaking people happy. Look beyond tomorrow and nextyear, make those bold decisions and plan for the future instead of worrying about it.


QUOTE: WHILE LONG-TERM PLANNING AND INVESTMENT ARE CRUCIAL TO THEFUTURE SUCCESS OF ANY RESORT, WHEN TIMES ARE HARD THE BUDGET HAS TO BETRIMMED. LINDA FREER

FINAL CALL

LINDA FREER, managing director of Resort Solutions, a UK-based resort management company, explains why bold decisionmaking can be key to surviving in a tough economic climate.

TAKING CONTROL

BIO NOTELinda Freer hasworked in thetimeshare industryfor 20 years. Herformer roles includebeing operationsdirector ofmanagementcompany TMSI anddirector of RCIResort Management.In 2005 she set upResort Solutionswith a businesspartner, but nowowns the companyoutright. Thecompany specialisesin propertymanagement, guestservices, humanresources, qualityassurance andinformationtechnology for anumber of resorts inthe UK, France, theCanary Islands andmainland Spain.

For moreinformation aboutResort Solutions call+44 (0)1858 431160or visit www.resort-solutions.co.uk

‘‘

’’

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For more information, please contact: Amanda White on +44 (0)1536 314 651.

“Through the years, Hilton and RCI have enjoyed a great relationship. When we dream big and present ‘what if’ ideas, RCI always steps up to help us bring our Owners’ vacation experiences to the next level. As a result, our travel advantages remain unique, flexible and ever-evolving. Our successful collaborations with RCI are based on years of trust, and a shared commitment to bring dynamic ideas to life. We celebrate RCI’s 35th Anniversary and look forward to the innovations ahead!”

Kim Robert KreigerSenior Vice President and Chief Club Officer, Hilton Grand Vacations

RCI Affiliate since 1993

With 35 years of experience, more than 4,000 affiliated resorts worldwide and over 3.7 million members, we continue to be the global leader in vacation exchange. We are committed to bringing the highest level of reliability, customer service and innovation to every developer relationship so that you can achieve your goals in shared ownership. Because after all… your success is our success.

RCI and related marks are registered trademarks and/or service marks in the United States and internationally. All rights reserved. ©2009 RCI, LLC. All rights reserved.

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rci ventures: november 2009

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