Tennessee Timeshares Contribute to Statewide Economy

• 
  SAVE
• 
  SHARE
• 
  TEXT SIZE
• 
  PRINT
• 
  COMMENT
• 
  PDF

. October 14, 2008

JULY 13, 2007. The Tennessee timeshare industry supported an estimated $1.1 billion of statewide economic output in 2005, according to a study conducted by PricewaterhouseCoopers and released today by the ARDA International Foundation (AIF), the research and educational arm of the American Resort Development Association (ARDA). The study was conducted for AIF to analyze the impact of timeshare developers and owners and their value to Tennessee's economy.

The Tennessee timeshare industry supported 11,630 full- and part-time jobs, $365 million in salaries, wages, and related income, and $119 million in tax revenue during 2005.

"Tennessee garners a vital and growing share of the timeshare industry's economic impact and boasts the highest owner referral ratings among top timeshare states. The healthy growth of the timeshare sector provides a source of economic growth and security for Tennessee's residents," said Howard C. Nusbaum, president and chief executive officer of ARDA.

Timeshare owners' spending generates dollars for Tennessee

Tennessee was home to 33 timeshare resorts with 5,300 timeshare units in 2005 (representing 3.5 percent of U.S. total). During 2005, 685,000 timeshare owners, their guests, and renters took 182,000 timeshare vacations in Tennessee:

o with a typical traveling party of 3.8 people,

o spending an average 6.8 nights in the resort area,

o and spending an average of $1,193 per trip, yielding total estimated vacation spending of $220 million,

o with 90 percent of their trip expenditures at businesses outside the resorts, such as shopping, shows, restaurants and other area attractions.

During 2005, new and existing owners:

o Spent approximately $230 million on purchases of new Tennessee timeshares,

o and contributed $140 million for current resort operations and future maintenance and refurbishment of unit accommodations and resort facilities.

"The economic impact of the timeshare industry does not end with the initial purchase," explained Nusbaum. "Timeshare purchases, combined with other expenditures and owner and guest spending during vacation, generate tremendous income as well as a ripple effect through other parts of Tennessee's economy."

The Tennessee timeshare industry activities directly supported 7,060 jobs and $202 million of direct salaries, wages, and other income. The positive ripple effect the timeshare industry had via indirect impacts on the state economy in 2005 resulted in an estimated $480 million of purchases, 4,570 jobs, and $163 million in salaries, wages and related incomes as timeshare employees spent their disposable income and as timeshare companies purchased good and services from other businesses.

Study Methodology

The study results are based on the survey responses of 56 timeshare entities in the U.S., covering 391 timeshare resorts, approximately 50,700 timeshare units and approximately $5.2 billion of timeshare sales nationally. The sample size represents 29 percent of existing timeshare units in the U.S. and 60 percent of U.S. sales. The response base in Tennessee included four resorts with over 2,420 units, or 40 percent of timeshare units in the state, and survey responses from almost 208 households who had visited Tennessee on their most recent timeshare vacation. In addition to Tennessee, PwC conducted a national study of the economic impact of the timeshare industry for AIF and state-specific studies in Florida, California, Nevada, Arizona, Hawaii, and South Carolina.