Perspective’s A LIST – David Clifton

An interview with David Clifton, managing director Europe, Middle East, Africa and Australasia for Interval International on his extensive worldwide experience in vacation ownership.

Tell us about some of the roles you’ve had in the vacation ownership industry and the challenges that you’ve faced in your career.

I’m very grateful to have had the opportunity to work in all aspects of the shared ownership industry for almost 30 years. I enjoyed being a developer and marketer during my days as Managing General Partner of Welk Park North (a joint venture between Welk Resort Group and Kemper Development) and Executive Director with Hilton Grand Vacations. And, I’ve thoroughly enjoyed working on the exchange side of the business for the past 12 years.

Having the chance to live outside of the U.S. since 1995 has been an incredible experience. While it took me a bit of time to recognize that the way I was used to doing business in the U.S. was not necessarily the best way to get things done abroad, I’ve learned to think out of the proverbial box to come up with creative solutions that fit each specific market. I’ve also had to learn as much as possible about all of the cultures throughout Europe, Middle East, Africa, Asia, and Australasia. I’ve found that while there are vast differences in each market, most people are fundamentally similar. Along the way, I have been blessed to discover so many new things and to meet so many incredible people.

What’s the best thing about living abroad?

Meeting people from different countries, learning about their customs and culture, and assisting them in their successful entry into our dynamic industry. It’s very rewarding to educate newcomers about what our business is and what it is not, and to help them become successful. It’s also gratifying to deal with the many seasoned professionals in each market who have been in the business for years, know the industry inside out, and are willing to share their understanding of local and regional cultures.

Dubai has been at the epicentre of the travel and tourism industry for the last five years. You’ve been in the unique position to have experienced the boom, the correction, and now its re-emergence. What’s it been like on the spot?

It’s been quite a ride … I believe I first visited Dubai in 2003 and moved there in March 2005. I was drawn to it by a number of things, including His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s vision for the Emirate’s future, the warmth of its people, quality of its resorts, great weather and beaches, incredible restaurants, substantial airlift, and high quality of life – all of which made for tremendous potential for shared ownership.

When I moved into my apartment across the street from the future location of the Burj Dubai (being promoted as the world’s tallest building upon its completion), I vowed on the first day of every month (or as close to it as possible given my travel schedule) that I would set up my tripod and photograph this building as it was being built. It’s been magical to watch history being made as it went from a pile of sand to a structure that is now over 160 stories tall.

During this same period, I’ve also watched Palm Island, and so many other world-class projects, take shape as the speculative real estate market soared to stratospheric heights before the global meltdown that took place last year. Dubai’s real estate market, like many others, has experienced a material pullback since it peaked in the second quarter of 2008. The days of investors queuing up for hours, if not days, to buy properties off-plan with little regard for price, are over.

Today, a far more rational and sustainable thought process is the norm in this market. Real estate prices are now much more affordable, which is great news for the shared ownership industry. In fact, Dermarr Real Estate just purchased 30 completed units in the Bonnington Jumeirah Lake Towers with an option for
20 more. Dermarr and Arabian Falcon Holidays (its marketing company) have been very successful timeshare developers and marketers in the region and are long time Interval clients.

The government is very focused on getting more end-users to purchase real estate in the Emirate and many officials with whom I’ve spoken recently recognise how important the shared ownership sector could be in meeting their ambitious tourism objectives. With most of the speculators out of the market, many developers are now looking seriously at our sector as a solution for the current oversupply of inventory, just as others have done before them in other markets around the world. In my opinion, the real estate correction in Dubai was necessary and it will be good in the mid- to longer-term for both the Emirate and for our industry. After all, Dubai continues to have not only all the attributes of a very appealing shared ownership destination that I referred to earlier, but it is strategically located in proximity to hundreds of millions of middle-class consumers who are prime customers for our vacation ownership products.

What are some of the key ingredients for success in vacation ownership today?

No doubt, they are qualified lead generation that is cost effective, being able to provide attractive consumer financing, and getting your overhead in line with your sales volume. In this economic climate, consumers continue to want quality resorts located in highly desirable destinations, but some are looking for more affordable purchase options than in the past. A number of developers are now creating shorter-term products that will satisfy this segment of the market. More than ever before, sales and marketing must be targeted in areas where qualified families live and/or where they vacation. Maximum results are achieved by
those developers with cost-effective lead generation and the ability to offer a strong value proposition and a consumer financing programme for the client.

I also believe the foundation for sustainable growth in the shared ownership industry starts with well-balanced legislation that benefits all the stakeholders (consumer, developer, and government). This is the primary reason why Interval plays a leadership role in global regulatory matters in most major shared ownership markets.

How has the industry changed since you began your career?

Shared ownership was quite a new concept when I got into the business. Most people had little real knowledge about what timesharing was back then. The majority of programmes being offered were quite simple: a fixed unit for a fixed week. The physical product was also very different. Most developments were conversions and there were few purpose-built quality shared ownership resorts in existence.

Developers in the late 1970s and early 1980s were all independents with a great entrepreneurial spirit, but with little, if any, historical industry knowledge to fall back on. Today, most hospitality companies are in the business and a number of independent developers have created their own brands as well.

The consumer too has changed. Satellite television and the Internet have helped fuel the appetite to travel the world and learn about different cultures. I think this thirst for travel is now unstoppable. At the same time, product quality has improved, programmes are more flexible, shorter-term products are being created, and many companies have adopted sophisticated target marketing and counsellor selling techniques. This is all in keeping with our industry’s ability to adapt and evolve in an everchanging environment.

What this all adds up to is a product that’s enjoyed by a wide spectrum of consumers all over the world.

Many in vacation ownership view the industry as more resilient than other businesses during difficult times. Do you agree with this view?

Most of us recognize that the global economic downturn over the past 12 months has been difficult on almost all industries and ours is no exception. While consumers have continued to purchase the product, it has been at a slower pace than in the past. Developers who have been dependent on receivables financing have been affected and have had to pull back on their sales and marketing. We’re hearing, however, that some lenders might be ready to re-enter the shared ownership consumer financing arena, which will be good news for us all.

Because the whole-unit real estate market has screeched to a virtual standstill in many locations around the world, we’re seeing these developers look to our industry, as they have done during previous difficult times, as a potential solution for their current whole-unit real estate woes.

Although we still face some tough days ahead, I would much rather be in the shared ownership industry than in the conventional real estate business today.

We’ve seen diversity in the vacation ownership product range with fractional resorts, private residence clubs, and condo hotels alongside the traditional timeshare model. Which do you see as having the biggest future growth potential?

Traditional timesharing will continue to be the dominant sector within shared ownership. But, we see opportunities for long-term sustainable growth in other shared ownership products as viable alternatives to second-home ownership. To capitalize on this value proposition, Interval formed an alliance with Preferred Hotel Group to establish Preferred Residences, a branded membership and exchange programme for luxury fractional resorts, private residence clubs, and condo-hotels. While sales of these products have also been impacted by current market conditions, we’ve recently affiliated several resorts with Preferred Residences,
have a number in various stages of the affiliation process, and are actively pursuing quite a few leads.

Your solo fundraising motorcycle ride “Cruising for the Cure” was a great personal achievement. What was the most memorable moment?

It has to have been meeting all the great people. I will never forget their kindness and generosity as I travelled 24,000 miles and visited 49 states last summer to raise awareness and funds for breast cancer research and treatment. It totally rekindled my faith in mankind.

And finally, for such a world traveller, where do you call home?

Although I’ve had a home at Aviara in Carlsbad, California, for many years, these days I’m very happy to call Dubai home.

Perspective Magazine – September 2009

EDITION HIGHLIGHTS Front Cover Sponsorship: Zorgvliet Private Residence Club Supplier Review: Robb & Stucky Interiors A-List Interview: David Clifton, Interval International Developer Review: Exclusive Resorts Feature: Daring To Dream Feature: Upscale Orlando? Feature: An Organization With A Heart Feature: BuyATimeshare.com And The Timeshare Resale Market Feature: What’s Next For Fractional Ownership? View Digital Page-Turn Edition Online Download PDF Version To Hard Drive

This month’s front cover sponsor is Zorgvliet Private Residence Club who offer wine, culinary, spa, resort playing, conservation and safari experiences in South Africa and are a new affiliate with Interval International. We speak to owner and entrepreneur Mac Van Der Mewre and his unique approach.

Following on from that we hear from Delarey and Sandie Brugman, award winning wine producers who are also making other people’s dreams come true through their community development program the ‘Give Me A Chance’ Children’s Foundation. Their estate, the Alluvia Specialist Vineyard and
Guesthouse is part of the Zorgvliet Private Residence Club.

Robb & Stucky return to update us on the latest custom renovations they have recently carried out at luxury hotels and resorts and we interview Brent Handler, cofounder and president of Exclusive Resorts which now has more than 3,400 members in its destination club.

This month’s exclusive and coveted A-List interview is with David Clifton, managing director Europe, Middle East, Africa and Australasia for Interval International on his nearly 30 years experience in the industry and who recently rode around the USA covering 24,000 miles and 49 states to raise
awareness and funds for breast cancer research and treatment.

Matthew McDaniel uncovers the beginnings of upscale luxury in Orlando and Lawrence Hefler gives fractional developers a guide to going green, whilst Wes Kogelman, founder and president of BuyATimeshare.com talks of the growth of the resale market amidst the struggling economy and
Tasha Lewis, ICC brings us an account of the recent “Evening With Miss America” hosted by the Westgate Resorts Foundation held at David Siegel’s residence in Orlando.

Daring To Dream: The “Give Me A Chance” Children’s Foundation

Delarey and Sandie Brugman of the Alluvia Winery and Guesthouse in Stellenbosch have built a name for themselves as award-winning wine producers. Now the couple, owners of this luxurious Cape wine country escape are making other people’s dreams come true through their community development program the
‘Give Me A Chance’ Children’s Foundation.

The children’s foundation backs bright but disadvantaged youngsters in the local community, turning their lives around so that they, in turn, can inspire the next generation to follow in their footsteps.

“Give a man a fish and he will eat for a day but teach a man to fish and he will eat for a lifetime.” Chinese proverb Delarey and Sandie Brugman excel at what they do. Their estate, the Alluvia Specialist Vineyard and Guesthouse (part of the Zorgvliet Private Residence Club) is set in the sort of panoramic, wide open scenery that’s splashed across double page spreads in luxury travel magazines.

There’s something special in the air here. Mountains, vines, dotted as far as the eye can see under a blue South African sky. Maybe it’s the wine, could be the views, but there’s a certain something in the air that seems to spell “relaxation” with a capital “R”. Alluvia is a place wine-lovers dream of: the food lives up to the wines; the wines are among the best the Cape has to offer; and there’s always a warm welcome on the menu.

Welcome to South Africa’s vineyard lifestyle, par excellence.

Since 2004, giving back to the community has become as important to the Brugmans as giving their guests memorable holiday experiences. Sandie and Delarey founded the ‘Give Me a Chance’ Children’s Foundation www.givemeachance.co.za to adopt promising students from Kylemore’s struggling community with the purpose of providing them with the educational and psychological tools to succeed in life.

“Although Kylemore is home to some of the poorest in our country, it is also home to a talented group of learners who dare to dream and are willing to work hard at achieving their goals,” explains Delarey, who adds that research has shown that the development of a child from underprivileged status into a commercially active individual results in the betterment of at least 12 other people from his or her community.

The Give Me a Chance scholarships provide financial and moral support with the overall aim of creating a new generation of positive, socially active, educated South African children, who can go on to share their knowledge and mentor new generations.

If the property developer’s mantra is “location, location, location”, the Give Me a Chance Foundation’s mission is “education, education, education”. No child, however bright, has a fair chance in life without a decent education, and all too often a harsh environment goes hand in hand with lack of proper schooling.

Foundation Director, Katherine Berchulski, believes it is important for the students to give back as well, so it was intentional that the Foundation is the only one in the region that requires those it helps to give back to their community and the result is an energy and commitment that feels inspirational. Fundraising is through golf days and special events at the Zorgvliet Group’s resorts, such as celebrity golf tournaments at the Zorgvliet-owned Riviera on Vaal Hotel and Country Club or auctions to win weekend getaways at one of the Zorgvliet Group’s resorts.

Berchulski says the alliance with the Zorgvliet Private Residence Club will no doubt significantly boost the Foundation’s efforts: “Through the support and backing of ZPRC, Give Me a Chance will be able to expand beyond the borders of the Kylemore region, and move beyond the functions of a scholarship programme towards a skills development programme.”

The Foundation identifies the children as early as grade 6 and commits itself to assisting the children through their matric year. Adds Berchulski: “We also devote ourselves to encouraging each child to be proactive in their own future and work to equip each child with the social and leadership skills necessary to attain success. The Foundation seeks to promote an holistic solution to South Africa’s current plights of poverty and inequality through providing exceptional children with the ability to become financially sustainable and in turn to become influential citizens.”

Alluvia holds fundraising events at the winery and visitors can buy two “Give Me a Chance” label wines – a Cabernet Sauvignon and a Sauvignon Blanc, the proceeds of which go directly to the Foundation, helping cover important necessities: school and hostel fees, uniforms, books and sports equipment. Thanks to positive mentoring – a network of strong role models who become friends and mentors – the students are given the opportunity to strive towards their academic or athletic training and develop their own leadership skills alongside their personal and professional dreams. While education is key, the freedom to design and
develop their own professional and personal futures with the help of mentors is priceless.

Student Marco Hendricks, a first year at the University of Stellenbosch, was the first to be selected into the program and through his touching story has become the face of success for the organization. Born to a family of meagre income and orphaned at the age of 15, Hendricks is the poster child of perseverance and integrity. Through the support of ‘Give Me a Chance, Hendricks has achieved his ambition of entering his university career to study Business Accounting. His ambition is driven by his desire to be proactive in his own future: “I want to be an example to those in my community that through hard work and dedication one can change their own circumstances.”

Students have to attend monthly workshops to build leadership skills and learn how to tackle the difficult issues prevalent in South African society, including rape and gender equality. There is a strong focus on volunteering, such as the partnership formed between the foundation and Pebbles Project. Simply put, the message is that it doesn’t take money to do good, it just takes the will and the time, and the concept of philanthropic “regeneration” (in other words, giving to these students so they in turn can give to future students within their own community) is central to the Foundation’s efforts.

Talented musician and sportsman Jerome Jacobs is a keen trumpet player and dreams of becoming a music teacher, using music as a way to influence others and show that anything in life is possible through discipline and practice. Jacobs, a Grade 11 student at Kylemore, is currently studying his second year of music theory at the University of Stellenbosch. Eleventh grader Gwendoline Rodrigues has stayed at the top of her class year after year and plans to go on to study Business Law. Like the other students, she wants to support her own community and believes that if you can positively affect one person’s life, you can help
change the world one person at a time.

Student Phozia Haffit, Grade 11, wants to be a doctor. She’s the “Give Me A Chance” Committee’s Sponsor Coordinator and when she’s not studying English, Afrikaans, Life Orientation, Accounting, Physics and Life Science, she’s out on the volleyball court, or singing her heart out in choir practice. She’s looking forward to graduating and is keen to actively help those in need in the Kylemore community: “I want to help those less
fortunate,” she explains, inspired by the help she’s received from her own mentors.

Five years on, Sandie and Delarey continue to drive the Foundation forward. As it expands, it’s clear their hearts and souls are invested in Give Me a Chance and despite the hard work, their commitment is unwavering.

This June, Foundation Director Katherine Berchulski announced exciting news: Hollywood star Beau Bridges, who was in South Africa filming “Free Willy: South Africa”, the sequel to the Free Willie series, has just accepted the role of global ambassador to promote the Foundation further afield.

“Mr. Bridges has agreed to promote Give Me a Chance initiatives abroad and assist in building our international support network. He has offered to link us to potential funding sponsors and his personal website will include a link to our own site,” Berchulski adds.

The actor’s involvement is an unprecedented opportunity for Give Me a Chance to expand and bring in much more funding. By building strong futures for more talented students who just need a break in life, the Foundation will enable its alumni to “pay it forward” to future generations. They’ll continue to plant hope where there was hopelessness and radically transform lives, one student at a time…

We are always looking for other corporations or individuals to involve themselves with the trust and adopting a child for financially for a year the cost is approx R9K. For more information regarding the ‘Give Me a Chance’ Children’s Foundation, or to make a donation, please contact Foundation Director, Katherine Berchulski at 021.885.8104 or e-mail at hope@givemeachance.co.za Or visit our websites www.givemeachance.co.uk www.alluvia.co.za

What’s Next For Fractional Ownership? Going Green and Saving Green

By Lawrence Hefler

Rising energy and maintenance costs.
Increased environmental awareness.
Concern over toxins in our indoor spaces.

Fractional properties as part of the hospitality industry, by their very nature of transient guests, multiple owners, excess consumption, and housekeeping demands, are inherently an impact on the environment. It’s no wonder that the hospitality industry has embraced green solutions to help them lower operating costs and increase everyone’s health and wellbeing. Recently, one major brand launched their “Make a Green Choice” program that gives guests the option to opt out of linen and towel replacement, along with daily
housekeeping. Guests choose to maintain environmental sustainability for up to three nights at a time during their stay. Afterwards they are rewarded for each night they opt out of housekeeping services with a gift card to the hotel’s restaurants or loyalty points. Going Green meets Consumer Marketing.

The American Hotel & Lodging Association has issued the Minimum Guidelines for Going Green – a list of actions properties of any size should take to stake their claim as an ecofriendly establishment.

Why Should Fractional Properties Be Green?
Fractional homes, residences, and Private Residence Clubs, as a form of hospitality, are ideally suited for travelers wanting to have a minimal environmental impact without sacrificing amenities. With increasing awareness about the need to cut down on environmental impact, travelers are increasingly choosing lodging that not only offers a natural experience, but also are “green” in how they’re maintained and operated.

Going green can not only help attract new guests and residents/owners who want to reduce their environmental footprint, but it’s also a way to cut costs significantly. By becoming more energy and water efficient, reducing waste, and taking creative steps to green operations, you can actually cut costs significantly while marketing your efforts to reduce your footprint to your guests, owners, and prospects.

By going green you can benefit by saving money on operations, marketing green benefits to guests, and creating a more eco-friendly business. Moving forward consumers/ buyers will expect more from their “vacation home ownership” purchase and long term commitment than the traditional rational reasons or emotions for fractional ownership. After all, costs savings from reduced energy and water use could positively impact homeowner association dues and annual maintenance fees for years to come.

Fractionals can go green by focusing on areas that would translate into cost savings and areas that can dramatically improve guests’ experience at the property. Some of the key areas to go green include:

1. Energy Efficient Lighting
2. Water Conservation
3. Waste Reduction
4. Toxic-Free Environment
5. Renewable Energy

The time is right for fractional properties to go green. Not only is it good in these economic times to cut costs through savings on energy, water, and waste, but it’s also beneficial to attract new guests who are environmentally conscious and prefer a green home away from home.

First steps are relatively simple. Identify how to save money by: replacing light bulbs to save energy, installing showerheads and aerators to save water and energy, composting wasted food to cut on waste costs, and using green cleaning products to reduce toxins. In fact, many hotels are now implementing green cleaning products and practices to improve indoor air quality, reduce risk to occupants and employees,
improve their environmental performance and obtain a marketing advantage.

Green You Can Use Today: Energy Conservation
Energy is perhaps the area that can provide the most benefits. At a time when climate is in danger because of current energy choices, it is even more important to conserve energy today through efficiency and behavioral changes. Below are just some of the steps that can be taken to reduce energy use:

1. Replace incandescent light bulbs with compact fluorescent light bulbs (CFLs) to reduce energy bills.
2. Consider occupancy sensors, photocells, or dimmers to reduce energy waste further.
3. Upgrade appliances to EnergyStar models to cut consumption by up to 30%.
4. Use smart power strips to reduce phantom power losses and reduce bills by up to 10%.
5. Maintain refrigerators regularly, keeping them at 41ºF and leaving enough space around them.
6. Cool interior rooms with fans instead of ACs to save money on cooling.

Water Conservation
Water is increasingly becoming an important resource as the world’s freshwater reservoirs become depleted. Saving water not only saves a valuable resource for other uses, but it can also save money because of the energy needed to heat hot water. Here are some steps that can be taken to cut on water usage:

1. Install low-flow showerheads and aerators in bathrooms to save thousands of gallons of water.
2. Place a water displacer in toilet tanks to save up to 1.25 gallons per flush.
3. Fix any leaky faucets in kitchens and bathrooms.
4. Running the laundry machines and dishwashers only when full.

Waste Reduction
Waste carries with it a huge cost. It costs money to create unnecessary items that become waste after their first use. It also costs money to take care of that waste. Reducing waste in shared residences can cut costs significantly and reduce the footprint. Here are a few things to keep in mind to cut overall waste:

1. Reduce the need for printing and packaging.
2. Recycle any consumed items, such as metal cans, plastic bottles, and paper.
3. Compost food waste that is compostable and use the compost in plants and gardens.
4. Purchase products with high recycled content and minimal packaging.

Toxic-Free Environment
Normally unnoticed, toxic substances in products and the indoor environment take a toll on human health. There are literally thousands of substances that are used in products that have not been tested for toxicity. Ensuring that the indoor environment is toxicfree will help customers feel better, and it will contribute to their long-term health:

1. Use toxic-free cleaning products.
2. Helping a septic tank or field using a green septic tank cleaner.
3. Utilize air purifiers to remove toxins from the air.
4. Provide soy candles to avoid benzene fumes common to regular candles.

Renewable Energy
Our energy choices are causing climate change to worsen. Unless we change our energy infrastructure, the planet will warm to dangerous levels. Using renewable energy to reduce greenhouse gas emissions can be cost-effective and attractive to customers.

Consider these options:

1. Install a solar photovoltaic system to utilize solar energy, and/or install solar water heating system.
2. Purchase green energy from the local utility, if available.
3. Purchase Carbon Offsets to become a carbon neutral property.

Food
One of the amenities often found in fractional residences is access to food and snacks, which can have a sizeable carbon footprint because of the transportation required to move it around. Taking the following steps can help reduce that footprint substantially:

1. Purchase organic food grown locally to cut on transportation emissions.
2. Don’t offer bottled or canned drinks, but rather filtered water and stainless steel water bottles.
3. Consider a manual soda machine, which makes sparkling water and soda in reusable containers.

How Much Can Green Behavior and Products Save?
Fractional developments don’t have to focus on major capital improvements to see cost savings and greener buildings. A relatively small commitment in money and resources often produces significant cost savings. Sometimes it’s the unglamorous measures that are beneficial but often overlooked that produce the most immediate and effective results. Actions like insulating steam pipes, sealing leaks around windows, weatherstripping doors, or even making sure lights are not left on all the time, can add up to dramatic savings.

A typical lobby might have up to 30 incandescent light bulbs burning 24 hours a day. Replacing these bulbs with long lasting, energy efficient CFL light bulbs can save thousands of dollars. A water conservation kit for one-bathroom can save up to $3,500 in energy costs over seven years. Multiply this by the number of bathrooms in a building and you can see there’s significant potential cost savings. The energy and water saved from shower, toilet and faucets makes a positive impact on energy bills and the environment.

Greening a property should focus on common areas, where energy and resource use is typically consumed 24 hours a day. They are also the places where energy-efficient practices can help to significantly lower overall costs and keep guests and staff from being exposed to toxic elements in the environment, including cleaning products, paints, and other air pollutants. Typical areas to look at include a building’s facade, lawns, sidewalk areas, vestibules, lobby, offices, hallways, elevators, exercise rooms, play areas, laundry rooms, gardens, and basements. Additional green practices to explore would include green purchasing strategies, including electricity and renewable sources; sustainable travel and transportation options; tax credits, rebates and other financial incentives.

Getting staff (and guests) to get on board with green changes while raising awareness and pride in their eco fractional environment can be a challenge to a management company’s time. Consider an eco-partner for a green fractional makeover and to help create a custom Green Building Campaign including:

- Information about energy and water conservation, recycling, and toxic-free common areas such as spas, lounges, laundry rooms, workout rooms, hallways and lobbies.

- Owner and guest educational packets to learn generally or about specific greening activities of the building.

- Collateral materials that inform and promote green practices in specific common areas of the property. For example, water conservation, recycling, and toxic-free living tips.

- Educational materials designed to help staff members look for ways to be green, including cleaning products, CFL light bulbs, green cleaning and repairs.

- Preparing reports detailing the impact of green activities in the building, making it easy for management to update on specific green activities and their resulting cost savings.

Show your fractional green efforts to the world
Green programs and practices can lead to enhanced perceptions of fractional ownership, private residence clubs, and a developer’s reputation. The opportunity for developers, managers, and owners is to embrace environmental consciousness and some of these green solutions now. An environmentally focused and
sustainable property can only then be marketed (branded) as such and their eco-story shared with owners, guests, employees, prospects, the industry, and the media. Large capital investments aren’t always necessary to have a fractional property go green. On the other hand, more costly green investments (e.g. solar, geothermal, white roofing) have a significant ROI from energy savings in just a few years. Considering that this form of ownership and operations is for many years, green investments are for the long term. Just be sure to find the green changes that make sense for the developer, the owners, and the guests.

As more hospitality and lodging alternatives seriously embrace ‘green’, it may become less of a point of differentiation. The green movement is at somewhat of a crossroads with many green claims in the media and blogs. People need to actually see something being done to have trust in the brand. A hotel, fractional property, or vacation home should first be able to compete on its own brand foundation and greening can only add meaning to the guest experience. For now, the building green and going green for people, places, planet and profitability will continue to define what’s next for the fractional industry.

Lawrence Hefler is principal of BrandShares International (a fractional consultancy) and a certified eco-consultant. He helps hospitality businesses and fractional properties become more sustainable while
saving money by reducing the use of energy, water and resources. He can be reached at hefler@cfl.rr.com

Upscale Orlando?

Previously, when people in the shared-ownership industry talked about upscale timeshare developments, Orlando didn’t always come to mind. Sure, there were nice resorts with roomy, fully appointed villas – but not high-end resorts with impressively appointed units.

By Matt McDaniel

It’s tough to be – and stay – upscale in today’s market. Once a high total square footage, leather furniture and big screen television meant upscale, at least in Central Florida. Today, owners are looking for those big-screen TVs to be high definition and the furnishings to have certain panache – and the units still have to be huge.

There has been a trend toward quality over the years, a move to providing a richer experience, whether as an aspirational experience or to keep up with what people are used to in their own homes. Perhaps because of the demographics of visitors to Orlando, the area had been slow to embrace truly upmarket fixtures, furnishings and equipment (FF&E) and their resultant higher price tags.

But now with the Baby Boomers getting older (and increasing their disposable incomes), the theme park capital of the world is seeing a boom in luxury timeshare offerings.

Marriott Origins
Edward Kinney, the Orlando-based vice president of corporate affairs and brand awareness for Marriott Vacation Club International, credits MVCI’s parent company for opening the upscale door for his company. “In our case, Marriott was the pioneer in bringing luxury accommodations to the Orlando market with the entrance of the JW Marriott Orlando, Grande Lakes and The Ritz-Carlton Orlando, Grande Lakes. Following
that success, Marriott’s Lakeshore Reserve was a perfect compliment to the campus and an ideal match to the lifestyle of this affluent consumer,” Kinney says.

Marriott’s Lakeshore Reserve will share the 500-acre Grande Lakes grounds with the JW Marriott Orlando, Grande Lakes and The Ritz-Carlton Orlando, Grande Lakes offering a combination of impressive amenities, including The Ritz-Carlton Golf Club and The Ritz-Carlton Spa with 40,000 square feet of space dedicated to relaxation and rejuvenation.

Six spacious villa floor plans will range from 1,185 to 1,655 square feet of living space, and for the first time in North America, Marriott Vacation Club will introduce two-story townhomes and two-bedroom, two-bath lock-off villas offering two master suites. Designed to complement the luxurious design and decor enjoyed by guests of the neighboring JW Marriott and The Ritz-Carlton, the villa interiors will offer a blend of Mediterranean inspired and designed furnishings.

Each villa will feature a fully-equipped gourmet kitchen with granite countertops and GE stainless steel appliances; generous living and dining areas; multiple LG flat-panel LCD televisions with DVD players; oversized shower with multiple shower heads in master suite; washer and dryer; and wireless high-speed Internet accessibility. Three-bedroom, three-bath villas and townhomes can accommodate up to 12 guests.

The resort started sales in July 2009, with unit prices ranging from $26,000 to $40,000 per week depending on the season and floor plan selected.

Orange Lake Ultimate
Holiday Inn Club Vacations at Orange Lake Resort offers the Signature Collection, a cluster of 56 high-end units among its more than 2,400 villas.

“We introduced the high-end Signature Collection product into our portfolio because our owners and club members expressed that they wanted more ways to experience their vacation,” says Don Harrill, president and CEO, Orange Lake Resorts. “Our owners who’ve been with us for 5, 10, 15+ years and in-between love their timeshare and use it often; we weren’t surprised that much of our Signature Collection sales thus far have been from these legacy owners.”

The Signature Collection was designed to offer the intimate, residential feeling of a home away from home, appointed with upscale resort amenities to complete guests’ vacation experience. Accommodations have been designed for comfort and relaxation with special attention to detail, including soothing color palettes, luxury linens and bath amenities, surround-sound stereo, LCD televisions, screened patios and balconies, spa tubs with hydro-jets, full-sized washers and dryers, and fully-equipped kitchens.

What’s more, Signature Collection members can also enjoy personal attention from exclusive concierge staff, plus additional perks including daily newspaper delivery, a special onsite activities package and exclusive access to a private pool deck with a dedicated pool attendant.

“The cost increase for our Signature Collection villas in Orlando over our standard units was 16.7%,” Harrill notes. “This includes upgrades to construction-related items as well as all the FF&E increases.”

The Disney Difference
Disney Vacation Club’s newest resort opened at Walt Disney World on August 4. The new Bay Lake Tower at Disney’s Contemporary Resort offers a variety of accommodations from studios, and one- and two-bedroom villas to the luxurious three-bedroom grand villas. The two-story, ultra-modern Grand Villas boast a full kitchen, living room, laundry facilities and a magnificent view of Magic Kingdom or Bay Lake. Guests staying at the crescent-shaped Bay Lake Tower can access existing amenities, restaurants and shopping at Disney’s Contemporary Resort via an artistically designed covered walkway.

But according to Diane Hancock, manager of DVC communications, what really makes the grand villas at Bay Lake Tower stand out is the location: “The location is amazing and the views from the rooms are  spectacular,” Hancock says. “We believe that all of our resorts offer experiences our Members and Guests don’t get anywhere else. For example, where else could you blow a goodnight kiss to Tinker Bell?”

Aspirational Trends?
But why are extremely upscale units now coming to Orlando? Are people looking for a higher-end aspirational product? Both Harrill and Kinney seem to think the local phenomenon is a natural outcome of trends in the industry overall. “In today’s market, the option of purchasing a higher-end Orlando vacation that has the flexibility of a pointsbased system is appealing, especially for buyers who don’t want to be tied to a fixed property,” says Harrill, referring to the Orange Lake set up. “So that may be part of the reason
that we’re seeing more upscale timeshare resorts right now.” He adds that many existing owner members decide that they want to experience the resort on a different level, “so in that sense, it is an aspirational product.”

Harrill posits another possible motivation as well: “Another reason why owners would aspire to this level is access to additional upscale inventory in other destinations,” he says. “Our Signature Collection villa owners who purchase at Holiday Inn Club Vacations at Orange Lake Resort and own more than 500,000 Holiday Inn Club Points enjoy the benefits of RCI’s Registry Collection program.” The Registry Collection provides members access to an elite global network of vacation properties at some of the world’s premier destinations, as well as personal concierge service available 24 hours a day.

Kinney makes an worthwhile observation about seasonality’s role in the purchase decision. “At Marriott Vacation Club,” Kinney explains, “we find that our resorts are both a continuation of the lifestyle of our owners and aspirational – depending upon the season purchased in. (Demographics tend to vary upon seasonality.) That said, the average head of household income for Marriott Vacation Club owners is the highest in the industry, so many times we see that our resort and villa amenities meet and appeal to the lifestyle patterns typical of our owners.”

So are there any drawbacks to the current trend? Perhaps the law of diminishing returns. “Delivering such a high-end product can be a double-edged sword,” Kinney says. He notes that while MVCI is “always striving to be an innovative force in the industry and are delivering a product that elevates the standard,” MVCI owners “have high expectations that we are held to, including experiential resort amenities such as golf and
spa offerings.”

Orlando-based Matt McDaniel has been writing about the shared ownership industry since 1997.

Robb & Stucky Interiors Completes Custom Renovations to Hotels & Resorts

by Marge Lennon

In considering the status of your resort property, do any of these design challenges sound familiar?

• Your resort or hotel rooms are “tired” or “dated” and in need of a total renovation.
• Your budget can cover only a small portion of what is actually required.
• Your refurbishments may need to be spread out over several years.
• You do not want the finished work to look like it was completed in stages.
• You need to replace only a single item – while retaining the majority of your furnishings.
• You are cautious about making that purchase from a local vendor.
• You need to refurbish a single room or area, but want it to blend with the rest of your unit.
• You have a new property and want ONE organization to guide you through the entire design and installation process, avoiding multiple “middle men” who add commissions during each step.

If you responded, “Yep, that’s me” to any of these comments, read on …

Although they have handled some of the largest total furnishing assignments and renovations to hotels and resorts around the world, Robb & Stucky Interiors is equally proud of their ability to help clients with
smaller challenges. Similar to your personal residence, it isn’t always financially feasible to replace everything at one time. The design professionals at Robb & Stucky Interiors understand this and are well positioned to help you with the very important strategic planning process.

“Much like a large department store, where you can purchase everything needed for a bedroom or just a pillow, we can help with the largest and smallest furnishing item for a resort,” explained Dan Lubner, President of the Resort Division of Robb & Stucky Interiors. “After specializing in furnishing resort properties for over two decades, we enjoy the challenge of understanding and implementing the multi-step process. We recognize that some refurbishments are so large that budgetary constraints require them to be spread out over several years. While in other cases, a developer or management company has an urgent need to replace couches in 50 units … and wants them tomorrow! We also know that there may be times when a property will have to retain many items in a room but replace others. This presents additional challenges. Using our professional guidance will ensure that existing elements are gracefully integrated with all new items.”

Frequently, a developer or management firm may decide to shop locally for a replacement chair or lamp. This can often lead to problems down the road because the retailer does not have the “complete picture” of your resort. “We recognize that every item should be a reflection of your entire resort or hotel,” added Lubner.

Robb & Stucky Design Services
Until recently, the process that involves the selection, manufacturing, purchasing and installation of furnishings for hospitality properties has been accomplished through the use of many specialists with major portions of the budget going toward commissions for various coordination fees. Robb & Stucky helps its hotel, timeshare and fractional clients make wise interior and refurbishing decisions by providing all of these services with just one phone call. This eliminates the need for outsourcing or paying the middleman’s markup or designers’ commissions and allows for the maximum percentage of the developers’ furniture, fixture and equipment budget to actually be spent on FF&E.

About five years ago, Robb & Stucky decided to increase their service capabilities by manufacturing what they design, creating customized product lines for each commercial and hospitality application, often at a surprisingly affordable cost. The company also manufactures its own line of high-end bedding and related accessories and supplies appliances and televisions at competitive prices. Another specialty is the creation of custom-designed furnishings to fit tight spaces at affordable prices, as well as the selection of flooring
and window treatments. Robb & Stucky’s size and buying power and their bundling of services enables them to provide furnishings and design work at highly competitive prices, whether the client is in Denver or Dubai. With one of North America’s largest teams of licensed interior designers, these professionals can be mobilized from any part of the globe.

As a testament to their service to hoteliers, Robb & Stucky was recently named the newest Alliance Partner
for the internationally respected Preferred Hotel Group. Under the arrangement, Robb & Stucky provides interior design services for Preferred Hotel Group’s more than 700 member hotels, resorts and fractional ownership properties located in over 70 countries.

Since their beginnings in 1915 in Fort Myers, Florida, Robb & Stucky has evolved to become one of the largest high-end furniture retailers in North America. Today, there are 15 interior showrooms and eight patio stores located in Florida, Arizona, Nevada, Texas and Costa Rica.

For Perspective readers seeking advice on refurbishments or total new furnishings, Robb & Stucky Interiors is well positioned to assist with all of your interior design needs. To reach Dan Lubner, call 239-292-3717 or write to him at Dan.Lubner@RobbStucky.net www.RobbStucky.com

During the last few months, Robb & Stucky has successfully contracted for or delivered the following projects, listed below by type of property and work that was completed. Please note the wide scope and variety of assignments provided to meet each client’s specific needs.

TIMESHARE & FRACTIONAL PROPERTIES

• Casa Del Mar, Daytona, FL – This project included the total custom design renovation of 27 units for Bluegreen Resorts. The property was originally built as a hotel; the goal was to transform it to modern day
standards with a sophisticated, timeless look. The work involved total design for four different room types, requiring entirely different sized furnishings for each room. The design team is scheduled to install custom-designed and manufactured headboards, desks, armoire/wardrobes, tables and chairs.

• The Soundings Seaside Resort, Cape Cod, MA – Robb & Stucky recently completed the first phase of construction/ design out of more 100 condominiums to be renovated for Bluegreen Resorts. (The
remaining phases are expected next year.) The project began with a complete renovation and refurbishment of a beachfront structure working out from the original framing. Only the building’s footprint and roof remained. This meant that all plumbing – sinks, bathtubs, tiles – had to be reconfigured, all appliances and electronics installed and total new furnishings were custom designed for the three separate unit sizes. The work was completed after a collaborative effort between the design team, contractors and architects.

According to Leon Narbonne, owner of The Soundings Seaside Resort, “Robb & Stucky delivered everything on time. They did an excellent job of selecting and installing the high quality furnishings and accessories. We were very pleased with their service and look forward to working with them again in the future.”

• Tarpon Point Marina, Cape Coral, FL – Robb & Stucky has been working with Grosse Pointe Development to complete the interior design, manufacture and installation of furnishings for The Resort At Marina Village Residence Club. The 184-unit high-rise resort is a combination of two and three-bedroom resident suites to be sold as both fractional and whole ownership and located within Tarpon Pointe Marina, a master-planned waterfront community. Robb & Stucky is also directing and providing complete turn-key furnishings, including bedding, window coverings, artwork accessories and kitchen ware. The design professionals were also asked to assist in the design of the lobby and common areas for this luxury mixed-use community.

Commented Lauren Hagan, Director of Sales for Grosse Pointe Development, “Designing fully-furnished upscale interiors that accommodate the needs and desires of demanding homeowners of both fractional
and whole ownership residences, which will also be used as resort rooms, was a challenge that we felt Robb & Stucky was up to handling. Their ability to create customdesigned furnishings specifically for our
property, when coupled with their extensive experience provided us with a peace of mind and a stylish look that will be accompanied by designer accessories and furnishings. Not only are they creating a custom look for the resort, but they are also coordinating every aspect of the design, manufacturing, shipping and
installation process. As a result, the finished product will be beautiful and worry-free.”

Since both the fractional and whole ownership units will be sold completely furnished and to an upscale market, having the right company to handle the interior design work is an integral element to our success. We selected Robb & Stucky because of their impressive credentials, their experience with fractionals, their
understanding of the share-use concept and the expectations of this special market. Also, they will be providing custom-designed furnishings specifically for our property, creating a type of ‘Florida chic’ along with designer accessories and finishes. We are very pleased that they were able to create a new line of custom furnishings, specifically for our property. They are also coordinating every facet of the design,
manufacturing, shipping, and installation process taking away many potential headaches.”

HOTELS/RESORTS

• The Hyatt Ganey Ranch, Scottsdale, AZ – Extensive outdoor furnishings were custom designed to deliver a trendy resort living ambience for three distinct upscale outdoor areas, to include a sophisticated adult side, a family sports playground and colorful kids sandy beach. Robb & Stucky also created specially designed daybeds and custom cabanas that generated additional revenueproducing areas.

• Hotel Indigo, Fort Myers, FL - Custom-designed furnishings and public spaces were completed for this nationally branded 67-room boutique hotel, a franchise of InterContinental Hotels Group (IHG). Since franchised brands must have a uniformity and consistency of style, Robb & Stucky designers collaborated closely with the hotel company to ensure that corporate design standards as well as budgets were met
down to the very last detail. Every single piece of furniture, including luggage racks, chairs and bathroom vanities, required corporate approval.

Added Bob Haury, President of DOC Hospitality, “Robb & Stucky designed, manufactured, shipped and inspected high-end furnishings that not only met, but far exceeded brand standards for Hotel Indigo. They provided us with unparalleled logistical and customer services. It was a superb fit.”

• The Marco Beach Resort, Marco Island, FL – This Preferred Hotel Group affiliate requested a complete redesign and installation of 98 guest vacation suites for an existing property. The work included selecting new items to blend with furnishings and accessories that were to remain in the units. A “facelift” included new carpeting, custom bedding, and window treatments. The majority of the newly installed furnishings were custom designed specifically for this resort and included sofas, chairs and lamps.

“Our guests have discerning tastes and expect a certain level of quality and style while vacationing,” said Ron Albeit, Marco Beach Ocean Resort Hotel Advisor. “We selected Robb & Stucky for this project
based on their expertise, capabilities for a fast installation and ability to work within the allocated budget.”

• The Wort Hotel, Jackson Hole, WY – Robb & Stucky sourced outdoor dining furnishings for the Wort Hotel’s famed Silver Dollar Bar & Grill. The experimental project has proven wildly successful filling a niche in downtown Jackson Hole, WY. A dual branded member of Preferred Hotel Group, The Wort Hotel was recently named one of the nation’s top ten historic hotels.

Jim Waldrop, General Manager of the Wort Hotel shared, “Robb & Stucky’s timely follow-up and actual implementation of work was outstanding. We were on an extremely tight timeline and they were able
to deliver weeks before anyone else. Their turnover time was incredible. I received a return phone call on the very first day that I contacted them for information. We hope to use them in the future for other projects.”

CONDOMINIUMS

• Fairway Point at Boca West Country Club, Boca Raton, FL – In the redesign of two 8-story towers, all interior spaces, lobbies and common areas were transformed into a contemporary transitional style. New carpeting, wall coverings, lighting and furnishings were installed on all 16 floors, corridors and fitness centers.

• The Georgian, South Beach, FL – A complete makeover was completed for two lobbies in this luxury high-rise condominium. Work involved flooring, wall finishes, and a custom reception desk, created to reflect the shape of the building and its architecture.

• The Strada at Mercato, Naples, FL – Robb & Stucky completed two luxury condominium models and one “spec” residential unit for this upscale urban condominium development with mixed-use elements. They also provided space planning and interior design for the clubhouse, hallways, lobbies and public spaces on the residential side of the buildings and exterior furnishings for the pool area.

• Venetian Isles, Boynton Beach, FL – Design work here involved the total renovation of a 28,000 sf clubhouse, to include the replacement of all furnishings, accessories, window treatments, and flooring for grand lobby, corridors, cardrooms, theater, kitchen and café.

Marge Lennon, of Lennon Communications, is celebrating 31 years as a writer for the vacation ownership industry. She can be reached by calling 239-482-3891 or via email at Marge@LennonCommunications.com.

Perspective Magazine – August 2009

EDITION HIGHLIGHTS Front Cover Sponsorship: yooPhuket Supplier Review: Quintessentially Estates Developer Review: Barrasford And Bird Worldwide Resort Review: Palace Vacation Club Feature: Machrihanish Dunes, Scotland Feature: Developers – Your New Route To Market Is…? Part II Feature: Timeshare TV Education Program Feature: Group RCI Commissions Extensive Study to Measure Untapped Demand and Supply in the U.S. Resort Timeshare Industry Feature: Executive Quest’s 2009 Salary Survey Results View Digital Page-Turn Edition Online Download PDF Version To Hard Drive

This month’s front cover sponsor is yooPhuket where Absolute; one of Asia’s leading development groups has got together with Internationally acclaimed design, branding and marketing company yoo, to create a luxurious new apartment complex in Phuket, Thailand offering outright purchase or fractional ownership on a quarter share basis.

We speak to David Southworth, president and CEO of Southworth Development LLC, which is a U.S.-based golf, resort and residential development company that has served as developer, manager, consultant and/or construction manager to more than 40 properties during the past 18 years through its affiliated companies, who are now developing a fractional development at Machrihanish Dunes Golf Course in Machrihanish, a small village on the tip of the Kintyre peninsula – called the Mull of Kintyre – on Scotland’s west coast.

There is also part two of our feature “Developers, Your New Route To Market Is?…” where this month we explain in detail the new developer package by Owners Perspective Magazine that is creating new and innovative marketing avenues as well as helping with sales credibility, consolidation, communication with members and increasing rentals and referrals.

Phil Watson of Worldwide Timeshare Hypermarket discusses his continued success with TV advertising and his breakthrough with The Travel Channel via sponsorship. Recently Group RCI commissioned an extensive study to measure untapped demand and supply in the U.S. Resort Timeshare Industry; carried out by Ragatz Associates and focus on some of the highlights. Following this, another survey was also carried out by Keith Trowbridge of Executive Quest on salaries within the industry and again we look at some of the results found.

We also review Barrasford & Bird Worldwide who develop luxury resorts in Greece and the Caribbean and focus on their Halcyon Hills Resort in Samos, Greece which recently affiliated with The Registry Collection. Plus we review Malaysia’s Palace Of The Golden Horses who recently joined the RCI network of affiliated resorts.

The Future of Luxury Vacations

by Campbell Jefferys

In just a few short years, Exclusive Resorts has gone from an idea born on a Hawaiian beach to being the world’s premier vacation club, now with over 3,400 members.

Over 400 luxury vacation residences are available in prime locations around the world, from beachside villas to mountain cabins to cruise liners. Brent Handler, cofounder and president of Exclusive Resorts spoke about the outstanding progress his company has made, about the burgeoning luxury destination club industry, and about why it’s better to join a club rather than invest in a vacation home.

Exclusive Resorts has achieved tremendous success in just three years. How do you account for such success in such a short time?

I think there are three main factors to our success. First, we offer more choice and flexibility than anyone else. Second, our quality is second to none. And third, we have a fantastic group of employees, both here in Denver and on site around the world.

As far as the industry itself is concerned, at first I think members were just attracted to the idea of an effortless vacation. Before I co-founded Exclusive Resorts, when I went on vacation I had a choice: I could stay in a hotel or a resort, I could rent a villa, or I could take on the headaches of buying a second home or a timeshare. And while each of those has its benefits, they all come with their own set of problems. That’s not the case with Exclusive Resorts. Our members enjoy fantastic private residences, all the amenities and convenience of a luxury resort, and dozens of destinations like a world-class hotel chain. And that’s without
the uncertainty of rentals or the cost to own and maintain a second home.

The luxury destination club market is currently very competitive. What edge does Exclusive Resorts have over the competition?

It comes down to flexibility, ease and value. We offer over 400 luxury residences in 37 of the world’s most desirable destinations. We partner with amazing resorts and amenity providers. All the usual work of planning a vacation is made very easy for our members, thanks to our dedicated Member Services Managers and Onsite Concierges. And you can’t beat the value of getting 400 homes for the cost of a down payment on one, without any of the hassles.

You currently have residences in North and Central America, the Caribbean, and Europe, with more under development. Will we see further developments in the near future?

We have an incredible real estate team that assesses locations, development options and amenities to find projects that will be a fantastic fit for our members. We know where our members want to travel because
we listen to them very closely. We survey our members regularly and follow up on their suggestions for new destinations. We are always examining exciting opportunities that will answer the specific requests we
receive from our members.

We live in a modern world of time constraints and fluctuating property prices. What advice can you give to customers choosing between buying a vacation home and joining a vacation club?

Any prospective member needs to sit down and evaluate their vacation needs before they make a decision. If you just want to go to the same place every year, maybe you don’t need a destination club. For some, a second home in one location is right for them. But for those who want to experience vacations in locations around the world, who crave that variety, a club like ours provides that without the usual headaches.
There’s no maintenance, HOA, tax, or real estate deflation to worry about. And you don’t have to become an expert on Costa Rica or Paris or Puerto Vallarta to have an amazing vacation there. The way I like to put
it is, the first place our members should see on vacation is the beach, not the grocery store. That’s the way travel should be.

Is this the future of luxury travel? Will we see more people shying away from investing in property and turning instead towards upmarket clubs?

Our industry is still very young, but it’s growing at an unbelievable rate. Exclusive Resorts has grown from fewer than 100 members a few years ago to more than 3,400 members today. As awareness grows, so does our club. With the current concerns about declining real estate values, we predict that many will take a look at joining a luxury destination club as an alternative.

The market for luxury destination clubs is actually larger than many people think. We believe this model has the potential to continue to grow into a large piece of the luxury travel industry. Luxury destination clubs put the luxury travel lifestyle within reach of a greater percentage of the population than ever before by
eliminating the headaches and bringing together everything people want in one easy package.

How are luxury destination clubs different from basic timeshare options and fractional investments?

Timeshares and fractional investments operate on a completely different business model. The most fundamental distinction is that luxury destination clubs don’t sell any real estate interest to the purchaser.
Basically, we operate like a country club. Members pay dues and have access to the club’s services; in our case, to over 400 multi-million dollar vacation residences. With timeshares, you purchase an interest
in a particular plan and a specific property and typically have a designated time of year to use your share. With Exclusive Resorts, members can vacation at any time of year they want and at any one of our 37 destinations around the world. And our membership fee is 75 percent refundable.

What does the future hold for Exclusive Resorts?

More memorable vacations for our members. We are really excited about the future of Exclusive Resorts. We believe in providing our members with the most rewarding vacation experiences possible and we have a fabulous team in place in order to do this now and in the years to come.

Giving Members the Best

It is the quality of service which sets the leading luxury destination clubs apart from the rest. Todd Harris, senior vice president of Hospitality & Member Services, spoke about the services offered by Exclusive Resorts.

What kinds of services are available for members of Exclusive Resorts?

Exclusive Resorts combines the best of all worlds. You get a spacious, elegant private home, the amenities and convenience of a luxury resort, and the breadth of destinations of a world-class hotel chain. It’s a completely new way to travel. We provide dedicated Onsite Concierges who look after members around
the clock and make sure everything is taken care of. They buy groceries, coordinate the daily housekeeping, make the arrangements if you want a private chef and provide all the standard concierge duties including making reservations and offering advice on the local attractions, as well as unique personalized
service designed to make members feel at home from the moment they arrive.

With nearly 400 residences available, do members often seek advice when choosing their holiday location?

Our members have several options to choose from. We have a terrific Member Services team in our Denver office which looks after every aspect of planning members’ travel. Each club member is assigned a dedicated
Member Services Manager who learns the member’s travel preferences and can help them make the best decisions so they can get the most out of their vacation. We also have a proprietary member reservation system called ER Compass® that empowers those members who prefer to “do it themselves” to research
every destination and residence in detail. And we’ve partnered with leading brands including American Express and Marquis JetSM to provide even more options to uniquely customise every vacation.

You worked for 14 years with the Ritz-Carlton Hotel Company. Why should customers join a destination club instead of opting for a five star hotel or resort?

I think a five star hotel experience, like Ritz-Carlton or Four Seasons, is still a wonderful option for some travellers, particularly for business travel or couples travelling alone. Exclusive Resorts has been successful
because we offer members travelling with a larger family or other families an opportunity to really connect with each other during their vacation. Part of why the affluent traveller values time off is to help reconnect with family and friends. Obviously it’s much easier to do this in a spacious four-bedroom residence that
really feels like home than if everyone is staying in separate hotel rooms.

While Exclusive Resorts provides similar world-class service and amenities as a hotel, our concierges are more readily available to personally assist with members’ needs. A hotel concierge often has 150 or more rooms of guests and no way to deliver the in-depth personal attention our members get. Finally, the cost of four luxury hotel rooms or suites could easily run over US$5,000 a night making a week-long stay cost close to US$40,000 after paying taxes and service charges. In many cases, this is double what our members
pay in annual dues for up to three or four of these week-long vacations.

Ritz-Carlton offers fractional ownership through the Ritz-Carlton Club. How does this club compare with the luxury destination club of Exclusive Resorts?

The Ritz-Carlton Club’s fractional concept works very well for some people. Having managed the Ritz-Carlton Club at Bachelor Gulch, I think they provide a good service experience for travellers who enjoy going back to the same location over and over again. As I see it, Exclusive Resorts membership provides three major benefits over many fractional products. First, the size and quality of the homes. Compare a four-bedroom private residence with a two-bedroom condo that might have neighbours next door, above
and below. Second, the amazing variety of residences and destinations. And third, ease of use. We have a very simple and transparent way to plan and book travel, where members can either book themselves or have their Member Services Manager book for them.

Which of the residences are currently in the highest demand?

It may sound like a cliché but it is hard to say that any one location is in the highest demand. Many of our members love the beach and, therefore, we offer a significant number of residences in beach destinations. However, residences in mountain and metropolitan destinations also have great appeal to our members year-round. You could say that our members’ highest demand is variety.

Exclusive Resorts has membership levels that are tailor-made to fit a variety of lifestyles. These range from
10 nights per year for a $160,000 deposit and $13,900 annual dues up to 60 nights per year for $500,000
deposit and $59,900 annual dues. All membership deposits are 75 percent refundable should a member ever
choose to leave the club.
www.exclusiveresorts.com

The Westgate Resorts Foundation: “An Organization with a Heart”

In today’s economy with companies decreasing the human touch and replacing it with the bottom line, the Westgate Resorts Foundation continues to be a conscience for Americans. With so many people suffering on all different levels from major catastrophes to being downsized to mismanagement, the nation is searching for organizations that are not only making a difference but living it in how they treat not only their employees but their neighbors around them.

David Siegel had a vision to be an agent of this change and created the Westgate Resorts Foundation in 2001. The mission of the Westgate Resorts Foundation is to actively support charitable activities in areas where Westgate employees live and work. Emphasis is placed on the company’s employees, children, women, families, seniors and other local programs that improve the quality of life in their resort communities.

Creating unrivaled customer loyalty is the hallmark of the Westgate philosophy. They regularly evaluate and assess the needs of their owners and guests, and understand that their owners are not customers, they are family.

From a tiny orange grove and the dream of a man working out of his garage, since 1970 Westgate Resorts has grown into the largest privately-held timeshare company in the world employing over 7,500 people around the United States.

At Westgate, every employee is cognizant of their company’s unique role in the local and national community. They strive to be successful within the confines of ethical and moral standards to uphold the quality of their natural environment and community. The health and safety of their owners and employees is paramount; this belief is the cornerstone of David Siegel’s corporate standards.

The vision of Westgate Resorts is to fulfill their guests’ dreams by providing a quality vacation experience that exceeds all expectations.

Their mission is to provide affordable luxury vacations with first-class accommodations to their owners and guests. Westgate strives to be a leader in the hospitality industry by constantly focusing their efforts on understanding their customer’s needs and exceeding their expectations by remembering the motto “Good enough, is never good enough!”

Just as important, is the belief of Westgate’s owner, management and staff that not only must they provide a quality vacation for their owners and guests, they must also be involved in supporting efforts that reate a quality community. This is accomplished through the work of the Westgate Resorts Foundation.

In addition to financial support from employees and vendors, Westgate hosts various charitable events throughout the US that raise funds for this cause. On August 14, 2009, Mr. Siegel hosted “An Evening with Miss America” at his residence in Orlando, Florida. The event was a benefit for the Westgate Resorts Foundation and the Miss America Scholarship program.

The Miss America Organization is one of the nation’s leading achievement programs and the world’s largest provider of scholarship assistance for young women. Last year, the Miss America Organization and its state and local organizations made available more than $45 million in cash and scholarship assistance. This assistance is not just for the handful of young women who become Miss America, but is available to the over 12,000 young women who compete in the state and local competitions as well.

Rich in history, the Miss America Organization is a not-for-profit organization that has maintained a tradition for many decades of empowering young women to achieve their personal and professional goals, while providing a forum in which to express their opinions, talent and intelligence. Scholarships have been the cornerstone of the Miss America program since 1945 when Bess Myerson was the first Miss America to receive a scholarship from the Organization.

Participating in the Miss America system not only helps you pay for college and prepare for a career, it also provides an opportunity to gain additional life experience, working on issues of importance to society, enhancing your personal and professional skills and developing your performance-related and other talents. Kaye Lani Rae Rafko, a young woman from the small town of Monroe, Michigan, entered a Miss America local competition to earn scholarship money to pay her nursing school bills. To her surprise, she captured not
only a local and state title, but was ultimately named Miss America 1988. Kaye Lani used the scholarship money she earned as Miss America to pursue an advanced degree and fulfill her dream of opening a hospice for the terminally ill in her hometown.

On hand at the event was Mark Mrozinski (MM), Vice President of Retail, Dinning & Spa Operations of Westgate Resorts, who honored Tasha Lewis, ICC with an invitation to this wonderful and insightful event, along with Ellen Tatich ( ET), Director of Westgate Resorts Foundation (WRF), acted as facilitators and guides to introduce Ms. Lewis to all of the key figures and provide background information on the foundation and Westgate.

ICC: “What is your role at Westgate Resorts Foundation (WRF)? How long have you been with the Westgate Resorts Foundation?.”

ET: “I am the Director and have been honored to work with the foundation since it started in 2001.”

ICC: “What in your opinion is the most compelling reason for a candidate or organization to utilize the services of Westgate Resorts Foundation? What makes Westgate Resorts Foundation unique?”

WRF: “Since its inception, the Westgate Resorts Foundation has raised and distributed over $12 million to charities that provide services for women, children, families and seniors in Central Florida and other communities where Westgate owns and operates resorts. The Westgate Resorts Foundation is unique because every dollar is raised by Westgate employees, executives, owners, guests and business partners. In fact, it is well known that if you want to conduct significant business with Westgate Resorts, you must share in our commitment to the community. In addition, Westgate Resorts’ founder and owner, David Siegel, pays all of the administrative and operating costs of the foundation so every dollar raised goes directly to people in need.”

“It’s important to our company to be a responsible and conscientious corporate partner in the communities which are home to our resorts as well as our employees and their families. Westgate Resorts Foundation reflects the diversity of our company’s people. Employees on every level are involved in the foundation, from volunteering for community events to making recommendations for funding,” states David A. Siegel, Owner
and President.”

ICC: “Explain some of the programs that you offer? How does this enhance the number of opportunities for your candidates or organizations to reach their goals?”

WRF: The David’s Dollars Foundation, which is one of the principal beneficiaries of the Westgate Resorts Foundation, was created to provide a safety net for Westgate employees when an unforeseen tragedy occurs in their life. Over the past several years, the David Dollar’s Foundation has provided over $1.6 million to Westgate employees for a wide range of support and services that include medical equipment, rent and utilities assistance, emergency housing, emergency travel, and, unfortunately, funeral expenses.”

In addition to actual dollars, the Westgate Resorts Foundation supports local charities through in-kind contributions. Thousands of pieces of furniture and appliances are donated annually to local charities for use in their programs. In addition, each year gift certificates valued at more than $125,000 for stays at Westgate Resorts locations are donated to charities for use in fundraising efforts such as silent auctions and raffles. Company-wide collections for clothing, school supplies, toys and other worthy efforts are
encouraged as just another way that our company can help those in need.

The Westgate CareForce, our corporate volunteer program, encourages employee community service to support charity projects and fund-raising efforts. CareForce members feed the homeless, clean up the environment, participate in walks and provide help for charities with their programs and special events. To date, over 5,000 hours of volunteer time has been shared in Westgate’s resort communities.

It is this level of commitment between David Siegel and his employees that has energized them to commit their personal time and financial resources to making the Westgate Resorts Foundation such a valuable asset to our community. The Westgate Resorts Foundation makes a positive difference in thousands of lives every day. We believe “we make a living with what we earn, but make a life by what we give.”

ICC: “What is your criteria for evaluating a candidate or organization for acceptance into your programs/foundation?”

WRF: “Geographic Limitations.
The Westgate Resorts Foundation welcomes grant requests from otherwise eligible tax-exempt organizations under Internal Revenue Code Sections 501 (c)(3) and Section 509 (a) located and/or operating within the Central Florida; Miami, FL; Gatlinburg and Knoxville, TN; Las Vegas, NV; Williamsburg, VA; Branson, MO; Tunica, MS; Mesa, AZ; Myrtle Beach, SC; or Park City, UT areas. Other grant requests should have special interest or support from one or more of our Directors.

General Purposes.
“Special consideration will be given to distributions and grants to charitable organizations which are organized and operated to help the target populations of women, children, families and seniors.”
Typically, the average grant range is from $2,500 to $10,000.

An organization with administrative operating expenses of more than 15% (as reported on their most recent Form 990) will not be considered for funding.

ICC: “Explain your company’s philosophy and long term goals.”

WRF: Our philosophy is easily summed up in this quote from David A. Siegel, “Join us, share your gifts, and help us build a stronger circle of support. You will come away inspired, and connected to a network of people making a difference in their own lives, in their communities, and in the world.”

ICC: “ICC would like to thank Mr. David Siegel, Mr. Mark Mrozinski, and Ms. Ellen Tatich and the Westgate Resorts Foundation for the interview.”

Some highlights at the Miss America event were the common bond of all of the contestants. All of them were focused on their future goals and aspirations toward becoming an Ambassador for their respective state through service-orientated careers, volunteer work or becoming a spokesperson.

Here are some of the comments from Miss America and a few of the contestants.

Miss America, Katie Stam, “ I dreamed of becoming Miss America since I was 3 years old. After learning more about the Miss America Organization, I became more interested in becoming a contestant for the pageant.”

Miss Wisconsin, Kristina Smaby, “My main motivation for entering the contest was to have a platform to promote my charitable work with children. I want to dedicate my life to programs that work with youth in the community.”

Miss Virgin Islands, Shayla Solomon, “Mr. Siegel and his staff have been tremendous host since we arrived in Florida. They spared no expense in making our stay a wonderful experience.”

Additionally, the numerous vendors that showcased the excellent standards of food and service within the Westgate family along with those that worked with or supported the Westgate Resorts by donations and other contributions. All of the guests were entertained by the various music venues, Live and Silent Auction while their taste buds were tantalized by the wide array of delectable dishes.

International Connections Consulting (ICC) President, Tasha Lewis, would like to thank the Siegel family, Mark Mrozinski , Vice President of Retail, Dinning & Spa Operations, Ellen Tatich, Director of the Westgate Foundation and all of the Westgate staff and families for their hospitality during my stay in Florida and for providing all of the material for the article.

For more information or to donate, contact
Westgate Resorts Foundation
c/o Ellen Tatich
Director
5601 Windhover Drive
Orlando, Florida 32819
Phone 407-351-3351 x 561
Fax 407-355-1903
Email foundation@wgresorts.com
Web site www.westgateresortsfoundation.org

The Miss America Organization
c/o Sharon Pearce
Director of Communications
222 New Road
Suite 700
Linwood, New Jersey 08221
Phone 609-653-8700 Ext 117
Fax 609-653-8739
Email Sharon@missamerica.org
Web Site www.missamerica.org

The Zorgvliet Group – An Exclusive Interview with Mac Van Der Merwe

Mac Van Der Merwe, a 61-year-old South African, is the head of Zorgvliet Private Residence Club, a collection of five resorts in his country that he purchased in 2002. Matt
McDaniel spoke with the affable developer in August to talk about his resorts and the upcoming World Cup – and found out that Mr. Van Der Merwe not only seeks to grow his PRC,
but he also is looking to help other developers grow, even if he gets nothing out of it.

Have you always been in resort development?

Mac Van Der Merwe: No, no. I have had a bit of a mixed career – I had a privately owned gold mine and I sold it to a Canadian company about 10 years ago. Then our family decided to go into the hospitality business and develop the Zorgvliet Portfolio of properties backed by our brand promise of ‘special experiences for special people’. We saw a niche in the marketplace.

We started seven years ago to develop destinations that we believe are some of the best locations in
South Africa, and Africa for that matter. Zorgvliet wine estate is in the world renowned Stellenbosch areas,
Ka’Ingo where we have three safari camps on the other hand is in the Malaria free Bushveld. We have
also developed an inland resort outside Johannesburg and a hotel on the Southern Cape Garden Route.
About two years ago we started looking at the option of shared ownership, from a perspective that our developments did lend itself to the concept. It evolved through us researching private residence clubs in Canada and the United States, as well as in Scotland, England and Thailand, to find out what was going on with shared ownership in the world.

It became obvious that in South Africa we don’t have a blue print model that you can work with there
– we define fractional ownership in the country as something different than how the Europeans define
it. We’ve decided to have two legs to our ZPRC: one is perpetual ownership in a shared-block company,
and the other one is usage over a 12-year period that’s really an aspirational vacation ownership
model where we focus on experiences rather than only on facilities. In other words, when we talk
about the wine experience, we like to take people right through the process, right through the year of
everything that happens on the wine farm. And as part of the membership, members get an allocation
of personalised labeled award winning wine annually that they can actually have a hand in producing. At
Ka’Ingo private game reserve in the Bushveld, which has a safari camp environment, we invite members
the opportunity to interact with conservation programs and activities such as cheetah, leopard and elephant
management projects.

Members can acquire ZPRC membership and usage at any of the properties and what’s very important in
the model is that people must be able to exchange their vacation ownership between the different
products that we have and also internationally, we are affiliated to Interval International who facilitates
global exchanges. We believe that it’s the only multi-destination private residence club, definitely in
South Africa, with a focus on experiences rather than facilities – although the facilities are of five
star standard.

You mentioned that in South Africa you define fractional differently than in Europe.

In South Africa, when we talk fractional, we mean perpetual ownership through one of various means,
but the channel that people use most is a shared-block company. We can’t split titles, our laws don’t allow us to. You have one title in one company, with multiple shareholders. So we define fractional ownership as
perpetual ownership.

All shared vacation ownership fall within the timeshare laws but vacation ownership is a completely different model in which you have a usage right, which is a personal right over a period of time supported by destination specific experiences. We try to have a payback period for our members of around 40%/50% of the period, so if it’s a 20-year period, the payback is after eight years. Our model is based on mixed use and floating booking system – we have a five-star hospitality backbone. Our member’s rights are secured by a deeded lease agreement.

What drew you to shared ownership? What did you know about it?

Well, I had no knowledge of it. I really had to start from zero. I believe shared vacation ownership is the way
that aspirational vacations will go; total flexibility, top locations and unique special experiences will drive
the concept. I started in Whistler, British Columbia to find out how it actually worked, I took two years
and a lot of investment and resource allocation. I also researched clubs in North Carolina and South Carolina
… then I looked in Scotland and the UK, and then visited Thailand so that we could get a good, broad
perspective of what’s happening on the ground. I really wanted to understand the industry and the market
demands. I didn’t want to make promises that we couldn’t keep. There are so many developments in
the industry due to the changing demands of the now more savvy and informed consumer. I wanted to be
sure that our final model is market driven and would appeal to the needs of our target market. What is still
a bother is that almost all industry related conferences are B2B driven and that the consumer is not clear on
the dynamics, benefits and pit falls of this very exciting evolving industry.

You obviously did a lot of research. Why did you start with Whistler?

It’s a place we go on vacation from time to time, and in my gold mining days I spent a lot of time there. I stayed in Vancouver for about two years, so I know the area really well – Whistler where there are a number of vacation ownership resorts. Whistler was a point of departure because of how comfortable I was there. I went in and just told the people that I’m from South Africa, I know nothing about vacation ownership, so please help me. And that was the approach all over. People are very keen to help you because the world is so big. The purpose is to with the right products make the cake bigger, not to take more slices of the present market.

The 2010 World Cup will be in South Africa. What will you be doing in relation to that?

The World Cup coming up allows a huge opportunity for South Africa to be positioned in the international
market. We’ve contracted with UK based P1 Communication as our PR company so that we can
get our message out to the world and try to motivate more soccer tourists to come to South Africa and
to consider South Africa for vacation ownership. Our government is driving a profile of positive legacy of the
World Cup. The country is getting a lot of exposure, but the challenge is to ensure that the interest is
converted into fans of South Africa, we believe that through vacation ownership we can motivate people
to come back and explore and appreciate the country after July 2010.

Also, for people who acquire ZPRC membership now, we guarantee them periods within the two months around the World Cup. We’ve blocked out accommodation for our membership at many of our properties. That is an important tactic as they are short 15,000 rooms in the country at the moment. We also operate travel agencies in South Africa and the UK we have ZPRC member’s ambassadors to assist members free of charge with all travel related support; members will be able to access 24-hour concierge service to help with whatever they need regarding their World Cup vacation.

Tell me what you want to achieve with your company.

It’s impossible for any one of our properties to go it alone as a private residence club – they’re just too
small – between 12 and 100 rooms. We have five different properties with various different offerings which
is making ZPRC a viable and attractive model. We see ZPRC – Zorgvliet Private Residence Club – as an
umbrella organization that can act as base to other smaller operators and possibly offer a home under
that umbrella, either through alliances or associations. We have interest from Bulgaria, Scotland, and here in
South Africa. That’s one of the reasons I’m attending the Vacation Ownership Investment Conference;
in addition to learning from the bigger and more established developers, I want to interact and network
with other developers and meet people we can have an association with.

Also, in South Africa there are a lot of development opportunities that are really too big for us as a privately
owned company, so we are also creating the platform for developers that want to enter the South African and
African markets. We can assist developers that are maybe hesitant or uncertain of South Africa – maybe
to do business … or simply to help as other developers had helped us.

One of the most attractive opportunities is at our Ka’Ingo private game reserve where we are inviting
partnership in the main big five reserve as we are extending the size of the traversing area to 40 000
acres and are redeveloping a luxurious safari camp on the Mokolo River. An investment of $8/$10 million
acquires 15 000 acres of the most pristine fully managed privately owned game reserve in South Africa.

Your primary focus is on alliances and associations rather than acquisitions?

Yes, definitely so. We do not want to over extend our resources by acquiring more products. We’ve invested
in our own five products, and now to take it further we don’t want to leverage or gear it up and carry heavy
bonds on funding.

What are you looking for in a partner resort?

We don’t have coastal resorts. We have one resort on the Garden Route in the South Cape, which is not
that far from the sea, Zorgvliet is 20 minutes from the sea, so one of the things that we would look for is a
beach experience, possibly a diving experience like in Mozambique. Or possibly a niche golf experience – it
will always be experience driven in a desirable location rather than strictly facilities focused. You can’t force
people to go to a bad location. You can’t have a great product if the location is not triple ‘A’ .

If it’s the right experience and a good location, it can be located anywhere?

Anywhere in the world.

Why should international developers be interested in South Africa?

Our infrastructure is being developed to the extent that you can’t believe it. As a South African, I’m so
proud to say, “Wow, this is my country.” The airport, the roads, everything – there are great opportunities for
international investors. As one can see with the Ka’Ingo opportunity the cost of investment in South Africa is
very attractive and the 2010 World Cup offers a window of opportunity for interested investors. South Africa has a stable government and is the obvious gateway into Africa. The country offers great tourism opportunities and unique experiences.

And we may even just facilitate investors finding those opportunities, even if we have no monetary involvement.
I know one thing: If you are willing to support other people, somehow it will come back to you.

www.zorgvlietprop.co.za
Mac vd Merwe summercourt@mweb.co.za