Timeshare Industry Pumped $70 Billion into U.S. Economy in 2011
The U.S. timeshare industry contributed an estimated $70 billion in consumer and business spending to the national economy in 2011, according to a study conducted by Ernst & Young for the American Resort Development Association (ARDA). That economic stimulus includes a total of 493,000 jobs with $23 billion in income.
Overall, the travel industry has been creating jobs 26 percent faster than the rest of the economy since March 2011, creating 271,000 new jobs in that time, according to the U.S. Travel Association.
"With the easing of capital markets and pent up demand for travel and family vacations, sales are beginning to increase once again" says Howard Nusbaum, president and CEO of ARDA. "The $6.5 billion timeshare industry is making a major impact on local economies throughout the country. "It's encouraging to see these numbers - we aren't just bringing people a better way to vacation, we are making a serious bottom-line economic impact."
The impact of the timeshare industry on the U.S. economy extends beyond timeshare resorts themselves. The overall economic boost also encompasses sales and marketing offices, corporate operations, the construction of new resorts and renovation of existing resorts - not to mention the significant impact of expenditures of vacationers during timeshare stays.
The purpose of the study was to estimate the comprehensive private and public sector benefits generated by the timeshare industry.
Combined direct, indirect, and fiscal impacts in 2011 by the U.S. timeshare industry included $70 billion in consumer and business spending, 493,000 full- and part-time jobs, $23 billion in salaries and wages, and $7.7 billion in tax revenue. There are over 194,200 units in 1,548 timeshare resorts in the United States, encompassing a significant portion of the U.S. hospitality industry.
Spending by timeshare owners and guests during timeshare stays was estimated at $9.3 billion in 2011. About $1.5 billion was spent on-site at resorts, while $7.8 billion was spent off-site in the communities where the timeshare resorts are located.
In addition to private sector benefits, the timeshare industry contributes significantly more federal, state, and local tax revenue per employee than the average industry, totaling $7.7 billion in 2011.
The American Resort Development Association (ARDA) is the Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has almost 1,000 members ranging from privately held firms to publicly traded companies and international corporations with expertise in shared ownership interests in leisure real estate. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).