Hawaii = Safe Timeshare Harbor?

According to kauaiworld.com, timeshare sales have remained strong despite the flagging economy and its effects on the hospitality sector.

In their words:


Timeshare exceeded hotel occupancy by nearly 20 percent statewide, according to an American Resort Development Association’s Hawai‘i Chapter report last week. The association predicts Hawai‘i timeshare will continue to maintain its high occupancy figures throughout third quarter 2008, evidenced by the confirmed bookings through the month of September reported by Hawai‘i timeshare operators. Timeshare represents about 10 percent of the state’s total accommodations inventory, but is seen in a greater concentration on Kaua‘i.

“These figures demonstrate once again that even during downturns in tourism, timeshare continues to stand out as a reliable source of revenue for Hawai‘i’s economy and provide jobs for Hawai‘i’s people,” Mitch Imanaka, ARDA Hawai‘i chair, said.


There are a few issues with this however -- Hawaii is something of an anomaly compared to the contiguous US, being primarily a tourist economy. Timeshares in Hawaii are also more likely to retain their value than others in the contiguous 48, although the fact that Hawaii can only be reached by expensive airfare is likely to have some negative effect. In fact, the jury is still out on just exactly how the economy is changing the timeshare market. The numbers in Q1 of 2009 may tell an entirely different story.

Read the article.