Perspective’s A LIST – An Interview With Alain J.A. Grangé

An interview with Alain J.A. Grangé, Chief Executive of Sol Meliá Vacation Club and President & CEO of Luxury Leisure Properties International and Grangé Group. Grangé has an extensive background in developing and operating international developments across the globe.

What steps did you take in your career to become an expert and specialist in international shared ownership and leisure properties?

I came to this industry in a way that is much different than most people, having worked in the luxury palaces of Europe, luxury branded hotel companies worldwide, country clubs, real estate and mixed use communities. In the early 80s in Europe, I worked with hotel owners to help them maximize their assets, recover capital and continue healthy hotel operations. It appealed to my marketing sense to combine hotel expertise with that of the membership and real estate industries to create a very unique, global niche.
In my endeavors, I have long followed the mantra of “Glocalization,” or a global vision and strategy with local knowledge and execution. One should always remember that in one part of the world one thing has a certain meaning, but in another part of the world, it might mean something entirely different, or in other words, “the same is the same, until it’s not the same.” When playing on an international field, it’s important to know which game you are in, as well as how it is played, just as in the vast differences between US football and international football. Developing internationally not only requires specific research and planning, but also international skills, a special mindset and patience.

I’ve always used the formula of international development taking twice as long to implement as in the U.S., and that is after having the right leadership and people in place, in the right positions. It’s key to rely on local experts for guidance to establish realistic timeframes for all the necessary legal, financial and regulatory aspects of doing business in a destination. I’ve learned that success abroad is ultimately only as good as one’s roadmap and the team in place to implement it.

When you became Chief Executive of Sol Meliá Vacation Club three years ago, did you envision this branded product and vacation experience to achieve so much in such a short time? What do you think were the catalysts to drive these results?

Yes, I knew that when I selected Sol Meliá as the company with which to execute this very targeted business model that it had the ability to exceed expectations. As one of the very few globally branded vacation clubs, we started off very strongly with the name, organization and clear responsibility to develop and execute a product that exceeded high standards of service and quality. The key was that the company was committed to support the project. The breadth of the company and its hotels on an international scale also provided the perfect place to take club membership to a level so that it becomes a leisure lifestyle, rich with experience and options that can adapt and be enjoyed by members for a lifetime.

Solid financial results have built a strong foundation. We’ve been profitable since our first quarter of business in 2004 from vacation club sales, member and network operations, rental and Club portfolio. Since that time we have opened 12 international home resorts in Europe, Mexico, the Caribbean and Central America, opening 3 to 4 resorts every year, and we have consistently achieved record sales and some of the highest operating margins within the vacation ownership industry. Sol Meliá Vacation Club achieved a revenue increase in 2006 of 86 percent over 2005, while also reporting a 2007 increase of 44 percent over the 2006 revenue number. At the end of 2007, we celebrated a banner year with total revenue of $130 million, an EBITDA of over $50 million and more than 23,000 members worldwide. We’re extremely proud of the fact that The CLUB has made a net contribution of more than $400 million to Sol Meliá’s Hotel Division during its short time in business.

Our tremendous success is owed, in part,to widespread success of new projects in Mexico, Puerto Rico, Spain, the Dominican Republic and Central America, and the launch of a new deluxe 4-bedroom villa product which is marketed and sold as a multiple weeks product. In 2007, The CLUB opened new projects at ME by Meliá in Cancun, Gran Meliá in Puerto Rico, the Paradisus Punta Cana in the Dominican Republic and Meliá
Gorriones in Fuerteventura, Canary Islands, Spain. Additional successful satellite preview centers were also opened in Europe and the Americas.

Why are you so passionate about the global shared ownership and leisure properties market?

I have always been very passionate about creating a quality product that is a perfect fit for the consumer, with the right destination and the right markets. Delivering a quality experience from day one is a big part of it. I’ve been very fortunate to have had tremendous success in creating teams with a willingness to venture forward with passion, dedication and focus on a global vision. I’ve seen the difference it makes in conducting business internationally in a fashion that makes others respect and want to work with you. With an entrepreneurial spirit embracing culture, language and local traditions all along the way, it’s always an exciting and profitable adventure.

Additionally, for hotel and hospitality companies, this business creates the best long-term loyalty program for them. It enhances the natural synergies between the businesses while increasing the growth and profits of many of the hotels’ operations. It’s a great win-win situation for both the company and the consumer.

An example of a passion for cultural understanding can be found with Sol Meliá’s Vacation Club in Puerto Rico. Even though the destination is geographically located in the Caribbean, the local residents, who make up the majority of the main membership base, demand a product that is sophisticated and conservative in appearance. They look for a certain interior feel, quality of furnishing and décor in their accommodations. While on the neighboring island of the Dominican Republic, the product is much different and has more of a tropical beach-like appeal and a membership base that is from both the US and Europe. The expectation from this group is that the product should look and feel like a Caribbean fantasy. It was our understanding of local heritage that quickly brought the cultural differences to the forefront, making sure that the right product was provided for the right destination and the right consumer. This has been one of the keys to SMVC’s strong start and ongoing success in these and other locations.

What are the goals for Sol Meliá Vacation Club in the next five years?

Sol Meliá Vacation Club continues to focus on its vision to be a pre-eminent global provider of exceptional leisure lifestyle experiences for its members, while moving to the next stage of development with The CLUB by Sol Meliá. Objectives are to achieve further success in brand penetration and expansion, as well as maximization of occupancy levels. The mission is to build a Global Club that will be a leader in its field for brand quality, customer satisfaction and employee pride, which will be delivered through customer focus, ethic, integrity, teamwork, communication and continuous improvement. Latin America, the Caribbean and Europe will continue to be growing areas for Club Member resorts. We currently have three large exciting projects in development in Tenerife, Canary Islands, Spain, the Riviera Maya area in Mexico and the Dominican Republic. My hope is that The CLUB will keep growing and evolving from its original foundation
of success.

What are your expectations for the international shared ownership and leisure properties market within the next five years?

The international shared ownership industry is poised precariously between those looking for short-term profits and those with ethics and integrity, seeking long-term benefit for all, including long-term relationship with its members. I strongly believe that if outside the USA the mistreatment of the consumer and the non availability of product backing the memberships continues, and if the international industry organizations do not start policing it, stronger punishing legislation will take place.

I am hopeful that international developers will seek the true benefit of building long-term relationships with their customers and members, rather than having a short-term view of that relationship. Short term strategies do not work. The formation of these long-term relationships with consumers is the catalyst to providing an experience of a lifetime. Members and developers alike reap the benefits of true mutual long-term loyalty for all.

Making a true difference lies in a well laid plan, which generates long-term financial stability and loyal customers. In conclusion, our industry needs to create a menu of “experiential” moments for its members based on a well-working system backed by quality real estate and product, for the benefit of all involved.

The Comrades Marathon

By Peter Hutchinson

“55 brutal miles! 5 torturous climbs! 1 ruthless clock! The Comrades Marathon is considered by some, to be the world’s greatest long distance race! Some races are humbling! But this one stripped me bare!”
Not my words, but those of Amby Burfoot, after completing the 2006 Comrades, the last time it was an “Up Run”.

So what does it all mean?
The Comrades was first run in 1921, from Pietermaritzburg to Durban, in memory of those “comrades” who gave their lives in World War I. Each year the route is reversed and at an autumn barbecue, two (soon to be
ex) buddies, Jerry Graber of Nexus Holidays and Robin Mills of Petchey Leisure, threw down the gauntlet and challenged me to run this year’s “Up Run”, in the interests of charity and the annihilation of my feet! Thanks to their generosity and, perhaps also, to my stupidity, on June 15th I will join over 10,000 other runners to set off to the sound of the cock’s first crow at 5.30 in the morning! Precisely 12 hours later, the finishing gun is sounded by an official with his back to the runners and if I have not passed him as the shot rings out, I will not have completed the Comrades!

Thankfully, Jerry and Robin have agreed that they will pay out, just as long as I finish, no matter what the time! And, with your cash for inspiration, finish, I intend to!

So what motivates someone like me to do something like this?
Quite simply, it is the knowledge that, whatever challenges I face during the race, they are nothing compared to those overcome by the children who will benefit from your generosity.

My brother was the headmaster of a school for handicapped children and to see the freedom given to them by the latest, high tec, motorized wheel chairs provided by Whizz-Kidz is amazing. One small example will
illustrate the point. Recently, I read of a teenager in his local bookstore chatting about the latest Harry Potter novel. The shelf was about 5 feet high. “Shall I get it down for you, dear?” asked the assistant, in that
slightly patronising tone reserved for customers under 8 or over 80! “No thanks! I can reach it myself!” said the teenager confidently as he pushed a button and ascended smoothly and effortlessly to the required height, securing his copy of the book and his self esteem, at the same time!

Only those of you who remember how important such small things are when puberty and your peers jointly challenge you, will recognise the empowerment and self belief that this can install.

Now each one of those wheel chairs costs a staggering €7,500 and the Whizz-Kidz charity does amazing work raising enough money to change the lives of hundreds of children each year. Check them out on
www.whizz-kidz.org.uk.

My other favourite charity is one that will need little introduction to many of you. Christel De Haan has combined the sound business sense she used to build RCI to a multi billion dollar business with her compassion for underprivileged children to create Christel House. This has to be one of the most inspiring charities you could hope come across. Little, if any, of the money raised goes towards administration, as Christel funds this from her own pocket! So every pound, euro of dollar raised goes directly to where it counts! To the needs of the children!

I have been both privileged and humbled to visit the Christel House schools in Cape Town and India. The formers successes have been well documented in Perspective recently and so here I will concentrate on my
impressions of the latter. Unknown to me, the time I had requested to visit was during the school holidays.

Rather than show me around the empty buildings, the staff arranged for two classes to come in especially to give me an understanding of the difference your contributions make!And what a difference! Consider, that
to qualify to enter Christel House, the weekly income of the child’s whole family must be at a level which, in London, would not be enough to buy a couple of large latte’s and a chocolate brownie!

Indeed, many of the children arrive at school never having seen a tap! So you can imagine that the education process has to start at the most basic of levels! And yet, in 5 short years, these children display some of the
most incredible talents in music and art, sport and academic subjects! And they will go on to become leaders of their communities, passing on to others many of the talents that Christel House has unearthed in them!

I hope this short insight will give you at least some of the inspiration those visits gave to me; and, if so, you will be motivated to help continue the good work by contributing to one of the charities by emailing your pledge to charities@hutchtrust.co.uk.

Our aim this year is to match last year’s total of $50,000 and hit over $200,000 since I started running for charity in 2005.

“Rather than show me around the empty buildings, the staff arranged for two classes to come in especially
to give me an understanding of the difference your contributions make!”

Land Of A Thousand Hills Offers A Different View Of East Africa

With its year round subtropical climate and some the finest nature reserves in Africa, Rwanda, devastated by genocide in 1994, is once again open for business writes Craig Cowbrough.

It is hard to believe looking out over the serene setting of Lake Kivu, eastern Rwanda that just fourteen years ago this was the setting for one of the bloodiest acts committed during the country’s genocide.

The only sign of this turbulent past in the sleepy lakeside town of Kibuye is a hilltop church. There, a memorial marks the location of the massacre of more 5000 minority Tutusi and moderate Hutu tribe peoples by their extremist Hutu neighbours.

Such was the scale of the massacres, more than one million people were reportedly killed, that reminders like this are never far away. But despite its turbulent recent history today Rwanda not only offers some of the best wildlife experiences on the continent, it is currently one of the safest countries in
Africa to visit.

Visitor numbers are small, but the current government, which over the past decade has brought a degree of political and economic stability the envy of east Africa, realises that eco tourism is one of the country’s greatest assets. It has set targets to attract 70,000 visitors by 2010 which is small scale compared to its neighbours Kenya and Tanzania with their vast game reserves. However, for a country so recently ravaged by conflict it is an ambitious but achievable goal.

The country’s only international airport is in the capital, Kigali, a city of around a million people and the gateway for any visitor to Rwanda. It is typical of the rest of the country in attitude, friendly and relaxed with a hassle free stroll around the streets possible day or night.

An undemanding place to spend a day or two, it’s the ideal introduction before heading out to view the main reason for any trip to Rwanda, wildlife.

The country is home to one of the largest communities of Silverback Gorillas in the world and is perhaps one of the few places where it’s is possible to view them in their natural habitat in safety.

It is estimated there are around 700 left living in the wild and seeing such a severely endangered species in their own habitat remains one of the rarest of privileges for animal observers.

Amazingly, given the volatile political climate and a constant threat from poachers, gorilla numbers in the region have actually increased in numbers since 1990.

Organised tours are available from several outlets in Kigali with a range of accommodation on offer around the Gorilla National Park in the north of the country.

All in all an organised two day trip costs in the region of £400 depending on the standard of accommodation and includes the price of a national park permit and the service of a guide. Tours guarantee to find a troupe
after anything from a two to six hour trek followed by an unforgettable 40 minutes of close contact with up to 20 primates.

To avoid overexposure to human contact only 11,000 visitors a year are lucky enough to get permits to see Rwanda’s gorillas, so tourism officials are now coming up with alternative attractions to try and tempt visitors.

In the National Volcano Park treks can be arranged to view the golden monkeys, rare primates that had not been accessible to tourists until recently. The government also recently established Nyungwe National Park along the country’s border with Burundi. The rich landscape is home to 13 types of primates, as well as 260 species of birds.

Rwanda is one of the smallest countries in Africa, just slightly bigger than Wales, so it is possible to get round all the main attraction in one visit. The roads infrastructure is relatively good by African standards and even the public transport system is manageable for the more adventurous, although a 4×4 is essential to get off the beaten track.

Using Kigali as a base it is never more than a few hours drive to any of the major attractions. Three hours east of the capital is the country’s main game area, Akagera National Park, where day tours or overnight
visits can be arranged from the city’s dozen or so safari specialists.

To the west Kibuye makes a tranquil destination for a relaxing couple of days and getting there takes in one of the most spectacular mountain routes in all of Africa.

Given the country’s bloody recent past a poignant finish to any trip is a visit to one of the genocide memorials dotted around the country.

The Kigali Memorial Centre is the country’s main focus of remembrance. It is situated two miles north of the city centre and is built on a mass grave of 250,000 of the victims of the genocide. The knowledgeable
guides are all genocide survivors and will tell the story of how the genocide developed, its consequences and how the world sat back and did nothing as part of a two hour tour. Ntarama, an hour south of the city
centre provides an even more brutal reminder of what happened to Rwanda back in 1994. More than 5000 people were killed in this church and the victims remain unburied, bones scattered undisturbed around. It’s not for the fainthearted but says everything that needs to be said about the brutality humankind is capable of.

Visitors to Rwanda will experience a country trying hard to shake off its past. The sensitive and sustainable way the country is developing its tourism offering gives visitors an unrivalled opportunity to experience some of the world’s rarest species in their natural environment.

With one of the best climates, safest environments and fastest growing economies in Africa, the land of a thousand hills is unlikely to stay in the shadow of more established east African destinations for long.

Resale Companies: Friend or Foe?

An interview with Phil Watson, Worldwide Timeshare Hypermarket

Q. So that we can get a feel for both sides of the story regarding resale companies, can you tell us why some developers are so anti-resale’s?

The largest concentration of developers who dislike the resale marketplace can almost certainly be found in Europe, where they appear to believe that the resale companies are able to undercut their pricing structure due to them being able to market resale’s cheaper than they can. Actually costs of marketing the weeks are not dissimilar; it’s just the actual market value of the week itself that differs. This leads some developers to feel that resale companies are in fact stealing money from their own pockets, but they forget that they have already made their profit from the sale of the week the first time around – this coupled with a fear of change and refusal to move with the times creates in some cases a current compatibility issue between developer
and resale company.

Q. Can you now equally explain why some developers work very closely with resale companies?

We have found the developers who tend to work alongside the resale companies are the ones that are able to make the necessary changes to adapt their business and move with the times. They have actually come to terms with the fact that resale’s are here to stay and that there is a place in the market for the member who wishes to sell. Let’s be fair about this in so much as no developer wants unhappy owners on their resort, as they will only cause ill feeling with the other members. If they are unable to offer a way out for these members then they welcome the fact that there are reputable resale companies out there who can assist. The end result is that the resale company a) satisfies an unhappy owner b) gets all the management fees up
to date and c) supplies the developer with a happy owner on site who he can then up grade creating a win ~ win situation all round.

Q. So where does Worldwide Timeshare Hypermarket fit into this debate?

Worldwide Timeshare Hypermarket Ltd. pride themselves on being one of the market leaders in Secondary Timeshare Resale’s in that we provide to both buyers and sellers of Timeshare a very safe and professional service. We have found from experience that some of the main reasons why people do not buy Timeshare direct from the developer are either; the product is too highly priced or that they dislike the sales tactics used. Therefore we have taken a step back and allow both the buyer and seller to approach us which leaves them feeling relaxed and in control. We advertise extensively both on international / national television and in the national press which means that the clients have to call / approach us if they wish either to purchase or sell a timeshare. Under no circumstances do we cold call, therefore the client never feels under any pressure from our staff at any time.

We are able to offer a full service for our clients from beginning to end. For the seller we can advertise their weeks in the press as well as on our web-site and once we find a buyer for them we can then complete the
transfer on their behalf which takes all the hassle out of them having to sell it privately. For the purchaser we are able to determine which product would suit their requirements and budget and again conduct a full transfer service where all the client needs to do is sit back, relax and when they become the legal owner enjoy their timeshare along with the family. All monies are held in trust by Resort Fiduciary Services until the transfer is complete so the client knows he can relax happy with the knowledge that their money is safe until they become seen as the legal owner. Worldwide Timeshare do not take deposits and allow a full 14-day cooling off period and should the potential client be unable to afford the cost up front we are also able to assist them with membership to WorldWide Plus, which is a Club Card, which allows them to purchase through us with 6 months interest free and nothing to pay for six months. Thereafter they can use this card on a similar basis to purchase further Worldwide Timeshare Hypermarket products if they wish. H.M.C. Funding and Barclay Partner Finance supply this and we were the first European Timeshare Company to be offered this product.

Q. Isn’t it correct that your parent company is in fact a developer himself or herself?

Yes that’s correct, our parent company is in fact The Worldwide Leisure Group (previously The Paradise Group) who successfully marketed The Paradise Club and The Paradise Monterey Club in southern Tenerife which were both RCI affiliated Gold Crown resorts, with The Paradise Monterey Club reportedly having achieved the distinction of being No.1 in the world in August and November 1998 when it achieved maximum scores in every category of the user assessment and satisfaction process. Currently they own and
develop the Moness House Hotel & Country Club in Scotland, which again holds the RCI Gold Crown status.

Q. How did Worldwide Timeshare Hypermarket begin and what have been your biggest challenges?

We launched a company called New Dimensions Resales Ltd. back in the early part of 1997 as it seemed a logical extension of the business that we were already in and that as a developer it was essential to get into the secondary market. We then conducted a lengthy study of the resale market place and developed our own ideas about how best to go about it. Our main objective was to provide a fair service across the board to both resale sellers and buyers but the biggest obstacle initially was gaining sufficient inventory. Then later on in the year we acquired a controlling interest in Worldwide Timeshare Hypermarket, which like us was associated with OTE. This gave us access to a larger inventory of timeshare resales and New Dimensions Timeshare was absorbed into the larger company.

Nowadays WWTH employs five people purely on gathering new inventory and three sales teams of eight people as well as an additional team of three at our Groups resort in Scotland and recently a small team of agents in both Norway and Russia. The biggest surprise to us has been the after sales aspect of resales. The main source of customer dissatisfaction has been the time taken for ownership to be transferred and for new certificates of ownership to be issued. We recognised the need for a good after-sales service to keep in touch with clients and to let them know where the process was up to. Unfortunately, the main problem was not dealing with the Trustee companies, as in the main they appeared to know what they were doing. The biggest headache was dealing with the resorts as they were forever changing the goal posts, that along with the lack of communication and the forever increasing transfer rates, proved to be an ongoing challenge to our contracts team. Some resort developers seem to think that by making life difficult in this way they will be able maintain the price of developer weeks but in fact, the opposite is true. Rather than holding prices high it is forcing down the advertised prices for resale weeks for their resorts because someone still has to pay the high transfer fee. What the European developers do not seem to understand is that Resale’s are a necessity and by selling on the unwanted week(s) gives the developer a distinct advantage: – a) rid of a disgruntled owner who is always complaining b) having the management fees bought up to date and c) a new happy owner to up grade etc. Also an interesting fact that developers might like to know is, that upgrading of resale owners occurs around 57% with their first visit to their resort, which is also happening with our ‘Indulgence’ programme on a regular basis.

Q. Tell us a little bit about the people behind Worldwide Timeshare Hypermarket.

The obvious answer to this is the staff themselves as we have a very strong reliable team working for WWTH from the registrations team, who take the stock on, right through to our dedicated contracts team. This includes our very professional and dedicated teams of sales brokers who actually deal with the demands of the general public.

Q. You are a member of Organisation for Timeshare in Europe (OTE) and have been for a long time. Why is this important to you and does it make you stand out from those who aren’t?

Being a member of OTE is integral to our company’s beliefs and methods of working. They have provided a solid framework upon which we have built a professional and efficient procedure in assisting our customers, be the buyers or sellers and this provides those customers with the confidence which they deserve when they’re dealing with a reputable and trustworthy organisation.

The OTE not only ensures that its member companies are operating correctly, but it also works tirelessly to promote the image of timeshare throughout Europe. In this regard we share a common purpose and we are
extremely proud of our involvement with OTE. We are also proud to add to this our close association with TATOC, Timeshare Association (Timeshare Owners and Committees) whom we support and assist in every way that we can.

Q. To create the best service for a customer how important is the relationship between Resale Company and developer?

I think it is absolutely vital that resale companies and developers have a good working relationship and provide a good level of service for their customers, both old and new. This is one of the key reasons why I am always looking at ways to improve the developers understanding of who we are and how we operate.

One result of this is has been our “Indulgence” trial membership package which allows us as a company to tap into the large market of new to timeshare customers whilst providing good quality leads to our partner developers. Other than this mutually beneficial relationship, it is key that we work closely with both the developers and trustees when we are processing a transfer of ownership and the flow of information between all parties involved and a speedy and efficient process serves to enhance our reputation and that of the resort.
Anything other than this would simply hinder the transfer and have a negative impact on the customer’s view of both parties.

Q. Do you offer wholesale purchases for developers or marketers?

Simple answer to this is, yes we work very closely with certain forward thinking developers i.e. Resort Properties, Seasons PLC, Alanda Club, Macdonalds, Marriott’s and The Anfi Group to name a few. In some
instances certain resorts have the ability, through using our stock, to sell additional exchange member resort week(s) to exchange members when they exchange onto their resorts, which works very well. We can also come to arrangements with developer resorts that take in exchange weeks through their sales teams whereby we can take these weeks off their hands.

Q. We all know that there are many people who want to sell for various reasons but are there equally plenty of people who want to buy?

Without doubt! I am pleased with the way that the company has seen consistently growing sales figures and that trend shows no signs of slowing. We have invested heavily not only in our marketing, which ranges
from internet based and newspaper advertising to our hugely successful television marketing campaign but also in putting together a very strong sales team who are able to maximise every opportunity and are extremely dedicated to giving a high level of professionalism. We have also made sure that our numbers of incoming enquiries is as high as possible by offering our purchasers with facilities such as our 6 months interest free option, which is unique within the resale environment along with our ‘Loyalty Programme’ through our association with ICE Europe Ltd.

Q. Who buys timeshare resale’s?

The historical profile of a timeshare buyer has been that of a typically middle aged family with a relatively high household income. Whilst this has, to a large part, remained the same, as a company I feel we have
been successful in attracting a wider range of buyers to the timeshare world. The broad spectrum of services that we offer, beyond simply timeshare resale purchases has been of great interest to people from many
walks of life and backgrounds. This can only be good for the future of timeshare in general.

Q. What would you say are the main factors in determining the value of a resale week?

We feel that the main factors in determining the value of a resale week are obviously the resort and area, the size of the unit along with the time of the year and what the client is asking for his / her week(s) bearing in mind that they will be paying the transfer fees.

Q. Can you elaborate on what marketing strategies you use to find buyers and sellers?

As previously mentioned we advertise extensively in the National press as well as some National / Regional Magazines combined with competitions and sponsorship of many newspapers. We also cover all the search engines and recently through our marketing agency Ekay we were able to get onto the GMTV website with a feature commencing in May 2008. We also advertise on National television as well as the digital channels, which brings in many enquiries for our weeks that we have on sale. To add to all this we do many sponsorship deals (PR) with various charities i.e. Crystal House, Leukaemia Busters, S.A.S. Regimental
Association, The Dorset Police Rally team as well as the Sunseeker Rally to name a few.

Q. What have been your greatest successes to date and what goals are you currently working towards?

I believe that one of our main achievements to date was taking the original company, which was making a loss and turning it into what is recognised as one, if not the European Market Leader in Resale’s and that we were the first Resale company to advertise on U.K. National television which we will continue to do in the hopes that one day we will become recognised as a “Brand Name” when it comes to the buying and selling of secondary timeshare weeks in the European marketplace. We have also achieved professional working relationships with R.C.I. and I.I. as well as ICE Europe and we hope that this relationship will only grow as we do.

Q. How do you see the timeshareindustry evolving over the next 5 or 10 years with respect to the resale market?

I can only hope the Europeandevelopers will come round to the idea that the secondary market is not going to disappear, in fact it can only grow, and they like the developers in the USA, will start to work alongside the Resale companies to create a more harmonious market place.

Our Perspective… Vacation Ownership Investment Conference Dubai

The Vacation Ownership Investment Conference 2008 welcomed more than 160 industry professionals to the Arabian Court, One & Only Royal Mirage on March 11-12 this year. They were all interested to learn more about this unique market and area and to help understand the concept of Vacation Ownership and how it could be integrated into their new development.

With United Arab Emirates being one of the few regions in the world that we haven’t ever visited, the curiosity was already building as to whether it would meet our expectations based on what others had told us as we sat in the airport in the United Kingdom.

Upon arrival and ignoring the hour and a half it took to get through immigration at the airport, my first glimpse of Dubai from the taxi, albeit at 2am, gave me a warm feeling of satisfaction as I saw 24 hour construction companies building enormous gleaming and architecturally stunning buildings as far as the eye could see. What will surely become one of the top tourist destinations in the world was in overdrive, and come morning, even the skyline of cranes was unusually impressive.

The event opened with a welcome by David Clifton Managing Director Europe, Middle East, Africa and Asia for Interval International. David introduced our moderator for the event Nima Abu-Wardeh who is the presenter of BBCs World’s Weekly Financial programme, Middle East Business Report, Dubai.

Nima is a bilingual broadcaster with a deep understanding of Arab issues. She has moderated at the annual meeting of the World Economic Forum as well as the WEFs regional gatherings and many other key conferences.

We then welcomed onto the stage Darren Ettridge, Vice President Resort Sales and Service Europe, Interval International. He spoke about the basics and gaining an understanding of the size and scope of the global timeshare, fractional and private residence  club businesses and why vacation ownership has been one of the fastest growing sectors of the hospitality industry.

Sherif Khalil, Regional Manager for Interval International reviewed the state of the industry in the area and David Clifton returned to the stage and gave us a fascinating insight into multiple profit centres that are available to developers entering the timeshare industry and how timesharing allows developers to maximise profits, speed up cash flow and spread the risk. He showed potential new developers how they can receive an additional 11% profit from management fees each year.

Craig Nash, Chairman and CEO of Interval International was next onto the stage. Craig has over 30 years experience in the industry and directs the development and execution of the company’s global strategy and guides the creation of Interval’s strategic alliances. He gave us a further insight into the industry which included the history and how it all began. He carried on telling us about how important correct legislation is and the importance of having it in place in Dubai. He gave us a hint of the future – The US market is forecast to be worth $42 billion by 2015.

A keynote speaker for the event was John Burlingame, Executive Vice President, Hyatt Vacation Ownership. He has a wealth of experience in the timeshare industry. having joined HVOI in 1982, he has been involved in all phases of hotel development including project development, management contract and joint venture negotiations. He spoke to us about the importance of maintaining brand values and incorporating fun and flexibility and long-term value into the Hyatt Vacation Club and about the added value of Interval’s
developer programs and services, which includes back-office management, software support, debt servicing and turnkey reservation systems.

We then enjoyed a delicious buffet lunch which was courtesy of Preferred Residences including an opportunity to discuss the morning’s sessions with others. The afternoon sessions began with a very insightful speech by Jose Ventura, Executive Director Resort Sales and Service for Interval International. He spoke to us about the hot new topic – Fractionals, Private Residence Clubs and Condo Hotels and how they are emerging as a very viable option to owning a second home. He discussed how they differ from traditional timeshare and how they can fit into the emerging market in Dubai.

Next to take to the stage was Matthew E Avril, President and Managing Director of Operations for Starwood Vacation Ownership. Matthew has been in the Vacation Ownership Industry since 1986. He currently has overall responsibility for Sales and Marketing, Finance, Legal, IT, Resort Operations, Home Owner Associations, Human Resources and Corporate Communications. He discussed the success of Starwood Vacation Ownership and how they built its global hospitality brand. He talked about Starwood and how it is predominantly a hospitality brand but that vacation ownership is a natural extension of the core business and provides an opportunity to create even greater loyalty amongst consumers. He said that he believes
that the Middle East is an untapped market that has some great opportunities.

We then heard from Al Mohannad Sharafuddin, founder of Arabian Falcon Holidays who was the patron sponsor for the event. Al Mohannad Sharafuddin is a seasoned Middle East timeshare expert with nearly ten years experience in marketing and selling timeshare in the region. He talked about the key lessons that he had learnt and gave an insight as to how he has sold out the first timeshare development, Royal Club at the Palm in Dubai. He went into detail about the product that he sold, who his target market was and how he had generated his clients.

After the first day of sessions we were then invited to the opening day reception at Dubailand, which is approximately 3 billion square feet of land; this is about the size of Singapore.

On arrival into the visitors centre we walked past a glass wall behind which live two tigers which curiously prowled around their enclosure. We were welcomed and shown around by Mohammed Al Habai, CEO and Abdul Walab Al Halabi, Chief Development Officer for Dubailand. The scaled model of the development took our breath away with its size and it took nearly half an hour to walk around it and understand each part of
the development.

Dubailand is the world’s most ambitious tourism, leisure and entertainment project and is forecast to attract 15 million tourists from around the world by 2010. The diverse projects under Dubailand include seven theme parks, and areas for culture and art, science and planetariums, sports and sports academies, health and wellbeing, shopping and retail as well as numerous hotels and resorts.

Some of the amazing areas in Dubailand include Sahara Kingdom – an Arabian legend and folklore-themed development inspired by the tales of 1000 nights. It will feature theme park rides, attractions such as a state of the art gaming zone, IMAX theatre and integrated live and virtual entertainment shows.

Plantation- A lavish design concept incorporating Country Club living with world class equestrian facilities which includes 3 polo fields, polo academy and 800 stables.

Bawadi- A 10km long hospitality, shopping and entertainment boulevard, which will also be the largest hotel strip in the world and will incorporate Asia Asia, the largest hotel in the world.

Falconry of Wonders – will feature ancient and modern architectural wonders such as the Pyramids, the Hanging Gardens of Babylon, the Eiffel Tower, Taj Mahal, the Great Wall of China, the Leaning Tower of Pisa and the Lighthouse of Alexandria.

Dreamworks – will be working on a number of attractions and adventures with its much loved characters which include Shrek and the upcoming Kung Fu panda. This includes the Dreamworks Animation themed restaurants hotels and retail outlets.

As we continued to walk around the welcome centre we continued to be amazed with even more surprises such as The Tiger Woods Dubai, a private residential golf community and resort that will include Al Ruwaya, the world’s first golf course designed by Tiger Woods, the world’s leading golfer. This area, and surrounding the golf course will also include a professionally staffed golf academy, iconic clubhouse, a suite boutique hotel with private bungalows, a well-being spa, fine dining restaurant, high end luxury residences. The unique desert course will feature streams and over 100 feet of elevation throughout.

Upon leaving there was no doubt left that Dubai will succeed in becoming a leading tourist destination and our interest grew and mind wandered as to what the timeshare and fractional industry would look like here in a few years time, where everything is built as the biggest and the best?

Day two of sessions began with Abdul Walab Al Halabi talking about Dubailand, the vision and how they were making this a reality. He discussed the target they had of attracting an incredible 15 million tourist by 2010 and how the timeshare industry would fit into this.

He then announced what everyone in the room had been waiting to hear – The legislation had just been approved in principle – Dubai’s Real Estate Regulatory Authority (RERA) had approved timeshare regulations. The announcement created a real buzz and excitement in the room as it has been much anticipated. International and regional industry players have awaited these timeshare regulations for a long time
now and the announcement of RERA’s approval of the rules is now expected to mark the beginning of many timeshare developments entering the marketplace. Abdul Walab A Halabi announced that Dubailand would be entering the timeshare arena themselves and unveiled Dubailand Vacations.

They too had been holding off from entering the vacation ownership market until a regulatory framework was in place before making this announcement. The new rules came about following input from several industry players including Interval International and set out mandates for the sales and marketing of vacation ownership in Dubai.

“We have strong reasons to believe that vacation ownership will be important for our growth,” said Al Halabi, talking at VOIC. “It makes sense for Middle East travelers to stay in timeshare units. We travel heavily and typically end up booking two to three hotel rooms or looking for serviced apartments. So wouldn’t it be nice to have somewhere you can call home, while on holiday?”

Later in the day Tom Bell Senior Vice President of Governmental Affairs for Interval International discussed some of the main points in the legislation like the cooling off periods, deposit taking and rules that developers must follow. We will be running a full report on this from Tom Bell in our June edition.

We then heard from Wahid Attalla, Spectrum Consultants, Julie Shields from Jumeirah Living and Noorul Asif from Dubai Vacation Club. They discussed the role that a management company plays and how important it is to manage a property that is involved in shared ownership.

Again a buffet lunch was enjoyed by all and was sponsored by Free Bird Tourism Resorts LLC.

The final sessions of the conference began with an entertaining recorded excerpt from JW Marriott Jnr followed by an interesting discussion from Preferred Hotels and Resorts. Ananya Narayan from Preferred Hotel Group and Darren Ettridge, Interval International, discussed branding opportunities for high end fractional resorts and private residence clubs. They showed us how the new branded exchange programme works and the benefits involved.

The day culminated with “Meet the Industry Leaders” Craig Nash, John Burlingame, Al Mohannad Sharafuddin and Matthew E Avril joined together as a panel to discuss the challenges and opportunities that lie ahead.

Other highlights during the event included more panel discussions and we were able to ask expert opinions on a number of topics. On day one we discussed “The Do’s and Don’ts of getting started in the Shared Ownership Business. Day two saw further panel discussions with topics including:

Vacation Ownership by Design – Finding The Right Product Programme For The Market The Legislative Dynamic- The importance Of A Balanced Regulatory Platform A Key to Success in Shared Ownership – Finding the Right Personnel

Paul Mattimoe, Perspective International Ltd spoke on the latter of these panels and gave insights into the importance of finding the right people and the balance between experienced employees and home grown talent; drawing his experience of recruitment around the globe with www.timesharestaff.com

The Developer of the Year Award was presented to Pervaiz Naviede, the developer behind the first sold-out timeshare resort in the emirate: The Royal Club at Palm – Jumeirah. Naviede was recognized for his vision of potential in Dubai’s timeshare market. He said, “We came into the market in 2003, because Dubai was very interesting to us. At that time, there was some uncertainty in the sustainability of the destination,
with construction of the many landmark developments, such as the Palm, still a long way off.

“Interval International advised us on the right direction to take. At that point, vacation ownership was a totally new industry for us. Now, with one project fully sold out and a second iconic property, Royal Club at Downtown Dubai, set to begin marketing, we are very thankful for their advice. This award is as much testament to their industry leadership as it is to our success as developers.”

.The event was brought to a close by David Clifton and we were all invited to the Gala Dinner that evening which was sponsored by Arabian Falcon. The dinner was held in a breath taking location at the beach restaurant at Mina A’Salam at Madinah, Jumeirah overlooking the impressive and instantly recognisable Burj Al Arab. We enjoyed typical Arabic food, were entertained by belly dancers, falcons and had our hands painted with henna. It was a magical evening and was a great opportunity to relax and socialise
with the people we had met over the previous two days.

Crystal Enlightenment: Swarovski Lights Up The world of Interiors and Architecture

Timelessly modern, rich in heritage, Swarovski crystal has captured the mood of the moment to become an essential ingredient in contemporary design. Light-filled, prismatic and dramatic, STRASS® Swarovski®
Crystal is now the first choice for international lighting designers, both traditional and contemporary. Startling, state-of-the-art lighting systems, like the scintillating Crystal StarLED, a crystal starry sky with
LED technology, open up a world of versatility and freedom. The extraordinary qualities of crystal as a creative material in its own right fire the imaginations of architects and interior designers around the world.

A Universe of Crystal

The core production of crystal elements, reflecting a perfect fusion of artistry and technology, lies at the heart of Swarovski’s activities. Every day, the perfect, precision-cut crystals produced in the quiet Austrian village of Wattens, where the company was founded in 1895, are sent all around the world to be used by designers and manufacturers in a broad range of design-driven industries. Today, as the appeal of crystal broadens, Swarovski’s involvement with lighting, architecture and interiors is strengthening.
Now is dedicated to supply and collaborate with the architectural design community.

STRASS ® Swarovski® Crystal – The BrandSwarovski started making crystal elements for lighting in 1965, and STRASS was registered as a brand name in 1976. Bearing all the hallmarks of Swarovski crystal, STRASS Swarovski Crystal traditional chandelier elements are immaculately precision-cut and polished, producing perfect symmetry and consistency, and a unique dust-resistant surface that never loses its brilliance. Processed from the highest quality materials, the chandelier elements possess a purity and clarity that guarantee the ideal dispersion and refraction of light, and radiate an exceptional brilliance, unrivalled in the industry. Today, as a guarantee of quality and a sign of Swarovski’s dedication to perfection, the chandelier components are laser engraved with the STRASS signature. The logo appears on STRASS certificates, the labels found on chandeliers that are composed of 100% STRASS Swarovski Crystal. This is a mark of quality and a reassurance for the customer, that the ingredient elements of their chandelier are the finest they can buy.

Partnershops

In 2004, Swarovski embarked on a global initiative, in which the company works hand in hand with carefully selected lighting retailers, now numbering over 140 worldwide, including the Crystal Gallery in Innsbruck and Crystal Worlds, Swarovski’s own multi media playground, in Wattens. In any of the stores within the Partnershop network, customers can be sure of finding expert advice from specially trained staff.

Celebrated Chandeliers

Swarovski’s world-famous chandelier elements now grace some of the world’s most spectacular chandeliers, from breathtaking cutting-edge creations by designers like Ron Arad, Ingo Maurer and Tom Dixon, to historic chandeliers in the Metropolitan Opera House, New York, and in Louis XIV’s bedchamber
in the Palace of Versailles. A total of 1002 fairytale chandeliers with STRASS Swarovski Crystal guide guests through the luxury Emirates Palace Hotel in Abu Dhabi, while the largest crystal chandelier in the world hangs in the Sultan Quaboos Grand Mosque in Oman. It is decorated with more than 600,000 STRASS Swarovski Crystal elements and is 14 metres high. In 2004, STRASS Swarovski crystal played a leading part in the film version of Phantom of the Opera, when Swarovski created the magnificent chandelier of the Paris
Opera Populaire.

Crystal Palace

Reflecting the mission of its founder, Daniel Swarovski I, to continually improve on what has gone before, Swarovski has initiated directional design projects within the world of lighting and architecture, notably the Crystal Palace Collection, aimed at reinventing the chandelier for a new age. Under the direction of Nadja Swarovski-Adams, the Crystal Palace project has revolutionised the industry, breaking the mould of the traditional chandelier by commissioning breathtaking creations from internationally renowned designers including Tord Boontje, Karim Rashid, Andrée Putman, Georg Baldele, Chris Levine, Yves Béhar, Marcel Wanders, and even musician Lenny Kravitz. Pushing boundaries both of design and technical prowess, these individual and provocative interpretations, both organic and futuristic, raise the contemporary chandelier onto the level of an art form. Swarovski continues to expand the scope of Crystal Palace, and by popular demand, commissions new collections each year, inviting cutting edge designers to bring their visions to light. An acclaimed international success, the Crystal Palace collection is shown at events and exhibitions across the world, including the Salone de Mobile, Milan and Art Basel in Miami.

Light up your life

Following the success of STRASS Swarovski Crystal, and the growth of the company’s creative partnerships with lighting designers, Swarovski began to develop contemporary lighting systems that now combine the latest technology, such as fibre optics and LEDs, with the emotionally-charged, mood-enhancing qualities of cut crystal, a perfect blend of function and beauty. These state-of-the-art lighting solutions, including the celebrated twinkling Crystal StarLED, like a starry night-sky, downlights and recessed spotlights, or illuminated crystal panels, open up a world of versatility and freedom of artistic expression.

Illuminating Ideas

Understanding that crystal brings luxury and an air of optimism and abundance into everyday lives, Swarovski continually explores new concepts and applications for crystal at sophisticated spaces. Equally versatile and mood-enhancing, Swarovski Crystal Panels are customized but light-objects used on wall-coverings, ceilings and with signage and lettering. Capable of changing the atmosphere of a room,  heightening drama, enlarging spaces, Crystal Panels can be used in conjunction with mirrors to play with the optical effects of infinite reflections, intensifying the feeling of light and space. Swarovski offers a design and planning service for the application and customisation of Crystal Panels, which are illuminated by daylight of artificial light sources.

Crystal Design for Living

As the company broadens its scope within the fields of architecture and interior design, Swarovski crystal components have become a glamorous ingredient in furniture, fabrics, wallpaper, bathrooms and interior accessories, for hotels, residential and public spaces. Crystal-enhanced decorative and furnishing fabrics as well as wall coverings are the latest innovations to seduce the market. Swarovski leads the way forward, working closely with names such as Vescom, the company responsible for introducing the first ever crystal-encrusted wall coverings, German fabric house Nya Nordiska who used Swarovski’s transparent, crystal-dusted ‘Crystal Fabric’, and avant-garde textile designer, Ulf Moritz, who incorporated crystal into his collection of ornamental trimmings that is now distributed by the German editing company Sahco. Italian furniture company, Edra, who first discovered the joys of crystal with their famous Flap sofa, in 2001, have gone on to create the ‘Diamond Collection’ of contemporary sofas and armchairs.

Supporting design talent of the future, Swarovski initiates inventive projects with leading art and design schools around the world. “Shine of the Times” was a concept developed by futurologist Li Edelkoort for her students at the Design Academy, Eindhoven, Netherlands, and “Crystal Living” was a project undertaken with the Loughborough University School of Art and Design, UK.

The Swarovski Bathroom made by Kludi

In 2005 Swarovski joined forces with Kludi, makers of fine bathroom fittings, to create the first holistic crystal bathroom, a total architectural concept revolving around the qualities of crystal, its potential to imbue a personal space with a life-enhancing, dreamlike light and warmth. The result is the “Swarovski bathroom made by Kludi”, in which crystal interacts with other materials, like granite, wood, limestone, and with light and water, to create a haven of harmony and reflections. The bathrooms are fitted with crystal vanity and shower units, crystal wall and floor coverings, lighting systems and chandeliers.

Mozart by Swarovski

Swarovski pays homage to the work of the great Austrian composer by building a 200 square metre crystal installation for Salzburg’s rebuilt opera house “Haus für Mozart”. The Mozart crystal wall creates a shimmering metamorphic vision of Mozart and the most important people of his life. Using a captivating play of light and shade, the gleam from 82 individually adjustable spotlights hits the four layers of 35.000 crystals from different angles. The image shifts subtly from light to dark, appearing and disappearing before your eyes, a perfect portrayal of the enigmatic, multi-faceted personality of Mozart, mischievous child, prodigy, inspired composer, lover and husband.

Rockefeller

In New York, since 2004, Swarovski has provided the crystal star that traditionally tops the world famous Christmas Tree at the Rockefeller Center. Now, cementing this partnership, Swarovski crystal plays an integral part in the Rockefeller Center’s newly refurbished observation decks, Top of the Rock. Architect Michael Gabellini worked closely with Swarovski to add bespoke crystal features and two crystal works of art, “Radiance”, a massive crystal geode wall, and Joie, a STRASS Swarovski Crystal waterfall chandelier named “Joie”.

Winter wonderland

In Spring 2006, Swarovski commissioned acclaimed international Dutch-born designer Tord Boontje to create Winter Wonderland, a poetic winter mountain landscape, made entirely of crystal, to be shown for three years at the Swarovski Crystal Gallery in Innsbruck. The exhibition highlights the infinite possibilities of crystal, especially its ability to depict organic themes, and illustrates the deep affinity with the natural world by both Boontje and Swarovski. Shining with the light of infinite possibilities, Swarovski crystal points the way forward to a new  age of enlightenment. Crystal comes home.

Swarovski Brings Crystal TO TODAY’S SOPHISTICATED INTERIORS

Swarovski, the world leader in crystal manufacture, is now well established in the field of interiors and
lighting, allowing the company to be engaged in special projects both with clients and on its own initiative. The company also provides the services of an exclusive project team available to design innovative and individual solutions for lighting and architecture applications.

Crystal, recognized by trend researchers as an ongoing trend in interiors and lighting, has the power to add enchanting decorative and/or functional touches to interior spaces and is increasingly being integrated into top projects.

Swarovski initiates its own projects as well as assisting clients to realise theirs. The company has worked with customers to realise crystalline projects including the refurbishing of the Rockfeller Center in New York City, a project in cooperation with the renowned architect Michael Gabellini or the Cosmogrill, a bar / restaurant in the historic heart of the city of Munich. Special Swarovski intiated projects include Winter Wonderland by Dutch born designer Tord Boontje, on display at the Swarovski Crystal Gallery in Innsbruck and the Mozart Wall in Salzburg at the Haus fur Mozart (Mozart House), a tribute to the famous composer on the occasion of the Mozart year 2006. Further the cooperation between Swarovski and Kludi, makers of fine bathroom fittings, has produced “The Swarovski Bathroom made by Kludi”. It presents a total architectural concept that goes far beyond equipping a functional space, presenting it in a third, poetic dimension.

Swarovski places great importance on its role as a partner to both interior design specialists and chandelier and crystal lighting manufacturers. The project team offers expertise in helping to realise cutting edge interior projects with crystal applications. They are also on hand to supply expertise in the use of crystal for both traditional and modern lighting. STRASS Swarovski Crystal for traditional lighting solutions and the innovative use of high-tech lighting elements combined with crystal technology for modern lighting solutions.

Scotland – A World Class Product

Scotland is a modern and ambitious country with a dynamic economy and a rich heritage. It is setting the pace in the UK with regard to hotel and resort development.

It has also been at the forefront of timeshare development in Europe with over 20 resorts offering high-quality Vacation Ownership. It boasts leading resorts which have set the standard for the industry (including
the time ownership development at Hilton Craigendarroch, Glenmor at Gleneagles and the De Vere Cameron House Carrick at Loch Lomond) Scotland’s top quality Hotel Resorts include world renowned brands such
as Westin, Turnberry, Fairmont St Andrews and the Old Course Golf Resort and Spa.

Scotland has attracted owners from throughout the UK and overseas by offering settings in areas of outstanding natural beautyand by maintaining the country’s tradition of warm hospitality. These developments have set the standard for the industry by combining luxury accommodation with exceptional amenities, including new golf courses and other recreational facilities, in stunning locations. Recent economic impact research suggests that Scotland’s resorts do not suffer from peaks and troughs in resort occupancy rates and has demonstrated that it is a year round destination with up to 90% occupancy
rates in existing vacation resorts.

Committed to ambitious targets for tourism growth, the country is investing in its infrastructure and services to ensure that Scotland continues to be a location where business can flourish with the potential
for success and growth based around a number of key factors -

- Scotland’s economy has enjoyed a sustained period of growth, and its flourishing services sector is attracting international companies for whom it provides a competitive and successful European base.
“Scotland has real strength in the most vital factor for modern economies – the human capital offered by our greatest asset, Scotland’s people”. (The Rt. Hon Alex Salmond MSP MP, The First
Minister of Scotland).

- Scotland is home to two of Europe’s largest banking organisations – RBS Group and HBOS – and the flourishing financial services sector based in Edinburgh and Glasgow provides access to development capital, provided by organisations with extensive worldwide experience of the hospitality industry.

- With its own legal system, Scotland provides the framework to facilitate the development and sale of vacation ownership products, and allows for the sale of intervals in perpetuity. The legal structure facilitates alternative shared ownership products, and accommodates all variants of fractional ownership options.
Developers and operators have access, close at hand, to a comprehensive range of professional services, including legal advisors and trustee services.

- Scotland’s main population centres enjoy easy access to countryside with strong scenic appeal. Resort development sites take advantage of locations with strong guest appeal, whilst easy access to principal markets means that it is possible to target diverse markets, spanning both corporate and leisure bases. Investment in the tourism infrastructure has provided a strong network of demand generators throughout Scotland for the hospitality industry, with conference and event venues of international significance (including The Scottish Exhibition and Conference Centre in Glasgow) and state-of-the-art visitor attractions, which strengthen the appeal of traditional destinations such as Edinburgh Castle.

- The country’s status is going to be boosted as the country hosts prestigious sporting events including The Commonwealth Games and The Ryder Cup in 2014.

- Scotland’s principal airports are served by a strong scheduled flight network, with routes from principal European centres operated by full-service airlines and low-cost carriers. Inbound tourism is increasing in significance as Scotland becomes recognised as a short break destination from key European centres, and as European timeshare owners enjoy easy access for exchange holidays. Direct airline services also now operate to Scotland from North America and The Middle East.

- Scotland is also easily accessible by air, road and rail from the rest of Great Britain, with a combined population (England and Wales) of over 52 million. The expansion of air services has taken place alongside investment in high-speed rail services, with journey times from (e.g.) London to Edinburgh of under 5 hours.

UK Hotel Performance: July to September 2007

Scotland saw the best hotel performance of the three countries in the United Kingdom with revPAR growth across the country of 8.9%. Aberdeen had the highest growth of any UK city, with revPAR increasing 18.6%. Glasgow also achieved revPAR growth of 13.1%.(HotelBenchmark Survey, Deloitte, November 2007)

Scotland delivers the highest Average Room Rate and RevPar figures in the UK outside London- year after year. Scotland’s average occupancy rates, average room rates and RevPar show the largest uplift across the UK much of this is due to the increase of International visits.

Glasgow was rated first in the UK Cities category and Edinburgh was voted a close second (Source: Conde Nast Traveller 2006 Readers’ Travel Awards).

While new tourism projects are planned or in progress, demand is currently outstripping supply and further developments are required. There are huge Investment opportunities for city hotels, resorts, spas and Marinas and there are a number of great investment locations.

Edinburgh
World-renowned festivals, events and conferences are contributing to the demand for rooms outstripping supply in Edinburgh. Outside London, Scotland’s capital is the UK’s favourite domestic holiday destination and the most popular city in the UK in which to hold an international conference. Public and private sector organisations are working in partnership through organisations such as the Edinburgh Tourism Action Group to invest billions of pounds in further enhancing the city’s tourism offering. There are also new investment opportunities being created through regeneration projects in Edinburgh City Centre, Leith Granton Waterfronts, and West of Edinburgh. Edinburgh has experienced an increase in overseas visitors of 14 per cent, almost double the rate of the UK as a whole.

Glasgow
Cosmopolitan and vibrant, Glasgow is Scotland’s largest city. Already a leading conference, short break destination, Glasgow’s tourism credentials will be further boosted when it plays host to the Commonwealth Games in 2014. Major regeneration projects such as the International Financial Services District and £5.6bn Clyde Waterfront projects reflect a booming business sector – one reason why Glasgow hotels are currently enjoying the highest yield growth of any UK city.

Aberdeen
Situated in north-east Scotland, Aberdeen is the “Energy Capital of Europe” and the modern gateway to Scotland’s castle and whisky country. Occupancy and room rates remain among the highest in the UK with the city regularly hosting meetings and conferences of up to 2,000 delegates.

Inverness
Inverness is the 15th most popular UK city for overseas visitors. This Highland capital is the fastest growing city in the UK and an ideal base to explore some of the most beautiful scenery in the world. Business tourism is booming and an increasing number of corporate headquarters are locating in Inverness, particularly in the area of life sciences.

Spas
Scotland is developing a fashionable reputation as a luxury spa destination. With first class facilities. Scottish spas combine the best of historic elegance and grandeur with the latest treatments and techniques. Close to 14 million spa trips are taken annually by UK residents (source BTA) Growth in the UK spa tourism sector is anticipated to remain strong over the next decade. One Spa in Edinburgh was named British Beauty & Spa Award’s Destination/Hotel Spa of the Year.

Marinas
Excellent facilities and the opportunity for sailors to test their abilities in varied conditions has made Scotland one of the top sailing destinations in the world – for experienced sailors and beginners. Over 1,000 new pontoon berths are either in planning or development at present, but further marina infrastructure is required and provision of berths may need to double in the next ten years to meet demand. Currently Scotland’s sailing sector has an estimated tourism spend of over £248 million. Sailing visitors are high
spenders with an overall average daily spend of £125.

Home of Golf
Scotland is known internationally as the “Home of Golf” and plays regular host to the Open Championship. Six centuries of tradition mean no other destination can offer such a unique experience with world renowned championship courses including the Old Course at St Andrews, Carnoustie, Royal Troon and Turnberry, as well as marvellous parkland courses such as Gleneagles and many hidden gems.

The great outdoors
Wild, unspoiled spaces and dramatic sceneryare just some of the reasons why Scotland is famed the world over for its other outdoor activities – such as cycling, hill walking, skiing and extreme sports. Country activities include fishing, hunting, shooting and deer stalking on estates, many of which are hundreds of years old. Scotland also draws people interested in watching wildlife – with the chance to view rare species such as eagles and ospreys, and boat trips to see dolphins and whales, or even the Loch Ness Monster!

Tracing the past
Nessie is only one of a number of famous Scots to draw visitors, with many people keen to follow in the footsteps of great historical figures such as Robert Burns, William Wallace (Braveheart), Rob Roy, Mary Queen of Scots and Andrew Carnegie. Visitors also visit Scotland to trace their own family history. Around 50 million people claim to have direct Scottish ancestry with over 25 million North American residents (in the USA and Canada) that can trace family links back to Scotland. It is anticipated that the number of ancestral
tourists to Scotland could increase from the current estimate of 200,000 to as many as 800,000 annual trips.

History and heritage
Scotland’s heritage is brought back to life at many of its historical landmarks including ancient castles, battlefields and whisky trails. With traditions over 500 years old, whisky is a core part of this heritage.

Eco-friendly
Scotland is at the forefront of eco friendly tourism and is attracting a growing number of visitors who are environmentally aware, drawn by the country’s scenery and natural environment. Ongoing investment in renewable energy means that tourism businesses can develop and manage their operations on an environmentally sensitive basis, subscribing to the principles of environmental tourism.

Reputation
And Scotland seems to look after their visitors. Scotland’s worldwide reputation for excellent hospitality and authenticity delivers a truly great, memorable experience for the tourists of who visit. The Visitor Experience 2007 survey found that 97% of those interviewed were satisfied with their recent holiday in Scotland and three quarters were very likely to recommend Scotland as a holiday destination. The UK accounts for 86% of tourism trips to Scotland and the biggest overseas market is the US.

Target market
Areas of projected growth include the markets for over-45s and domestic leisure as UK residents with higher levels of disposable income choose to enjoy more short breaks and holidays in Scotland. Also Business tourism is also a fast growing sector with Edinburgh and Glasgow both ranked among the top 30 cities in the world by number of conferences. It generates around £300m a year for the Edinburgh economy with delegates spending an average £364 per day (80% more than leisure travellers).

Scottish Development International
Wide-ranging support for business development is provided through the national economic development agency Scottish Enterprise which can offer via its international division Scottish Development International advice and guidance to assist developers and operators through the critical stages of site identification and selection, business planning, and consultation with the relevant agencies to ensure development success.

Scottish Development International (SDI) is the specialist inward investment arm of Scotland’s business development agency, Scottish Enterprise. Their dedicated tourism team is experienced in working closely with developers, investors and operators to help secure a successful investment and maximise the
opportunities that Scotland provides. Scottish Development provide a global marketing and business development support resource which can help to identify the best areas for development and access sites and deals that may not be available on the open market. In addition they can source unique sites for
specific developments as well as identify business partners, investors, developers and operators. They can help to liaise with local authorities and their partner government agencies to assist new developments. Scottish development have a network of worldwide offices across Europe, North America and Asia and provide business to business and business to consumer marketing support through their partner agency VisitScotland.

The Scottish Government with Scottish Enterprise, its business development agency, and VisitScotland, the country’s tourism marketing agency, are committed to a growth strategy that will increase revenues from tourism by another 50% over the next decade.

Scotland Sets Sights On Bigger Slice Of The Holiday Ownership Market

Scotland’s success at attracting prestigious holiday ownership and timeshare resorts will be top of the agenda at a conference being held on, 22 May 2008, at Our Dynamic Earth in Edinburgh.

Minister for Enterprise Energy and Tourism, Jim Mather, will open the inaugural Organisation for Timeshare in Europe’s, (OTE), conference which is being hosted for the first time ever in Scotland by Scottish Development International, (SDI).

With over 20 resorts, including the Hilton Craigendarroch and the Glenmor ownership development at Gleneagles offering vacation ownership, Scotland has earned a reputation as being at the forefront of timeshare development, setting standards for the industry across Europe by combining luxury accommodation with exceptional amenities.

The OTE event, which is now in its tenth year and is the largest timeshare gathering in Europe, will provide a platform for Scotland to further develop its standing as a leading destination for vacation ownership resort development and provide an opportunity to further expand relationships with potential investors to open up new opportunities for Scottish tourism.

In addition to Mr Mather’s opening address on Scotland’s national strategy for tourism growth, speakers, Philip Riddle and Professor Yeoman of VisitScotland, Kenneth Clark of SDI and Jon Baker from GE Finance will join a host of OTE representatives to provide an overview of the current and future shape of the timeshare market in the UK.

Kenneth Clark, tourism, investment and trade manager with Scottish Development International, commented: “The tourism industry in Scotland has demonstrated consistent and sustained growth which is predicated to continue, creating further investment opportunities.

“Scotland is setting the pace in the UK with regard to tourism development, already attracting prestigious brands and providing an environment in which new concepts will flourish. We are confident that this event will help keep that momentum and help attract further developments for the timeshare and fractional market to Scottish shores.”

Demand is currently outstripping supply resulting in ripe investment opportunities not only for city hotels
and resorts but for spas and marina developments across Scotland.