A List: David Clifton, Managing Director EMEAA Interval International
September 27, 2009 by Perspective Magazine | Timeshare & Fractional Reviews
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.
For information on advertising and editorial opportunities with Perspective Magazine & Owners Perspective Magazine; the leading independent B2B & B2C magazines for the timeshare and fractional ownership industries visit www.perspectiverates.com
