Applications have been made to the UK High Court in relation to the proposed mergers of Diamond Resorts (Europe) Limited with three of its wholly-owned subsidiaries, Diamond Resorts Spanish Sales S.L., Diamond Resorts Tenerife Sales S.L., and Diamond Resorts Balearic Sales S.L. in accordance with The Companies (Cross-Border Mergers) Regulations 2007 (“Merger Regulations“).

Pursuant to regulations 10 and 12  of the Merger Regulations the merger plan and directors’ report in relation to each of the three mergers are available to download on the Diamond Resorts’ website by clicking here.

On December 8, 2009 a group from Tenerife began a sponsored climb of Mount Kilimanjaro to raise much-needed funds for the building of Ingane Yami, a village for homeless children in the Durban area of South Africa, in particular for those orphaned by the AIDS epidemic.

Taking part in the “Kilimanjaro Climb” were James and Karen Beckley, the developers of Tenerife’s Pearly Grey Ocean Club; Dougie Kirkwood, sales manager at Pearly Grey; Ward Woods, developer of the Regency Group, also based in Tenerife; Ward’s girlfriend Drea, a Tenerife artist; and Troy Gerrity, a Tenerife
wine distributor.

The group summited Kilimanjaro on Sunday, December 13 at 10:00 a.m. “I will never forget the sheer jaw dropping beauty of Africa at dawn,” says Kirkwood.

“The memories will live with me forever.” The team raised an amazing €10,000 for Ingane Yami through the grueling five-day climb.

Ingane Yami
The first phase of Ingane Yami (or My Child in Zulu, the local language) will consist of 25 individual houses, each of which will be home to 6 children of varying ages. A “house mother” in each will help to recreate
a stable family unit and enable these vulnerable children to be brought up in a loving environment.

The village ultimately will benefit from a community hall, crèche, clinic, recreational building and a sports field, thus enabling the individual talents and strengths of each child to be nurtured and developed before they eventually move on to lead independent adult lives.

This life-saving project is part of the Restoration of Hope Ministry, a charity organization. The land for the complex was purchased in 2008 and final planning approval for the village is expected to be granted soon.
Any additional donations on behalf of Ingane Yami village will be very gratefully received. On behalf of the children, Pearly Grey Ocean Club asks that you help in any way that you can.

Excerpts from Dougie’s Diary

December 9
We were chatting to a lot of people who had or had not reached the Uhuru Peak that morning. They were on their way down, some looking very ill or very elated. Most people seem to make it, so as a group we are starting to feel confident. Our inexperience showed a couple of times today…

Being positive is definitely the most important goal you need here in Africa. We are so used to hot water,
clean toilets, good food, etc. This is a third world country and you either adapt & accept or you will soon get negative. Especially with the hygiene & food you have to live with day in, day out…
I cannot wait until we summit on Saturday. The peak has had a lot of snow this week so it will be a truly
great sight.

December 10
Today was acclimatization day. We walked up to 4300 meters to see how all the group handled 20 to 30% less oxygen. Glad to say we were all ok. Without doubt the best moment happened when we arrived at the viewing point. There was not a cloud in the sky, Kilimanjaro looked unbelievable. No clouds, blue sky awesome.

We got back down to camp for a day of chillaxing as we were going to need all our energy walking to the Kibo camp (4709 meters) tomorrow. We should get there around 13:00, eat & then hopefully sleep as we walk to the summit from midnight the same day. This without doubt is going to be the biggest challenge to date; temperatures have dropped to minus 20 up there this week.

December 13
We all finally reached Uhuru peak at 10am Sunday 13th December, all very tired but very proud to make it…

We took the obligatory photos hugged & kissed and started our descent to the Horombo camp all feeling elated.

Additional information on Ingane Yami can be found on the Web at: www.facebook.com/pages/Ingane-
Yami/158647944443
www.twitter.com/inganeyami
www.flickr.com/photos/inganeyami

John Spence, the entrepreneurial chairman and owner of Karma Royal Group, celebrates 25 years in the industry this year. Spence’s career spans a humble beginning to a 17-resort group with no debt today, and Paul Mattimoe reviews those 25 years.

Paul Mattimoe:
25 years, 17 resorts and no debt –how does it feel?

John Spence:
I feel a sense of achievement. However, I also believe in the philosophy of “keeping it simple.” For me the simple fact is that we are a sales driven company. It is our ability to sell day in and day out which has enabled us to be where we are today.

Is this a mission statement?
Most definitely. Our mission statement is “We Create”:
• We create products which people enjoy.
• We create sales and profit.
• We create customer satisfaction.

Where is Karma Royal Group today?
We are expanding. My favorite quote is the Warren Buffet saying “when people are greedy be fearful and when people are fearful be greedy.”

I see the current climate being good for the group. We can acquire assets at realistic prices. We are presently reviewing land and resort and sales and marketing opportunities in Bahamas, Canada, Philippines, Croatia and Sri Lanka.

I am in a mood for expansion. Greedy.

Where did all start?
As a sales rep in Tenerife for Global Group. I started in 1985 at Sunset Bay in Tenerife. I worked my way up within Global.

What did you learn in those early years?
Probably the need for ethics above all else. Ethics and integrity have been the cornerstone of my timeshare career. I was very disappointed at the direction the industry took in those days. Particularly the “big sale” scam. While I was in charge of Global I never allowed the sales department to take us down that route.

You became something of a leading figure in European timeshare. You were vice president of Global – the largest and most successful timeshare company in Europe. And yet in 1993 you gave it all up. Why?
Two reasons really.
First – although I was instrumental in building Global and its value I had no equity, no shares, options, etc. and I was discouraged by that. A lesson I have learned in business is that the strongest motivating factor of all is personal enrichment. Hence in KRG I have not made the same mistake.

Secondly – as a “history of timeshare” student so to speak, it seemed clear to me our industry goes through various cycles. And it was the first cycle, i.e., when the industry is new in an area and booms that interested me most. I wanted to repeat the experience of the early developers on Europe and USA.

So you packed your bags and went to India.
When I first planned things it was my intention to go to the Caribbean and Latin America. However at the 11th hour we changed course and went to India. I always say we did what Christopher Columbus did but in reverse. Columbus sailed west thinking he was going east. We thought we were going west but went east.

So how did KRG start?
OPC’ing on a beach in Goa.

Tell us the full story. Why did you choose India? Who went? How was it capitalized?
When I visited Goa in 1993 I knew I had found the place to be our home. Goa was just beginning as an international tourist destination. It has tourists from Europe and India. Land prices were cheap. (I have always been driven by a belief that we need to keep product cost under 20%.)

India had a huge population. It was an emerging market and it has a middle class of quarter of a million families, creating a huge domestic market.The team consisted of a handful of loyal colleagues from my Global days – in particular Mark Attwood the group sales and marketing director, as well as Esperansa Patricio and Ann Gilchrist (all of whom are still with me today).

And the start-up funding?
My life savings. It was all a huge gamble for me. I sold my flat in London, cashed in my assets and threw it into the pot (and looking back it wasn’t that much). But we were all driven by this vision to create something huge. Failure was just not an option we considered.

Why did you become a developer? At the time it was more normal for people to operate marketing companies?
I believe a timeshare business needs roots and continuity. By developing resorts you have that. Your product is your rock. If you just run a marketing company there is no substance behind you. You can be here today and gone tomorrow (which indeed is what happened to most of our competitors in Asia as they were nearly all marketers).

Did you have any other strongly held values?
Yes – the importance of controlling every aspect of the business. Very early in the company life I realized we had to become a vertically integrated company. Today we have divisions for design and construction, sales and marketing, resort management, customer services, spa, etc.

This means that we are the masters of our own destiny.

Was it all plain sailing?
I wish it had been. Where shall I start? The problems of getting people to adjust to life in India, the dodgy practices of Goan developers. I could write a book. No, it wasn’t easy.

What was your sales and marketing strategy?
To sell quickly. I bought the land. We placed it in trust. Then we had to sell like crazy to fund the development. That is how we became a debt-free company. We sell to live and live to sell. (It’s a principle I have adhered to ever since.)

So we opened offsites all over Asia. I think the end figure is 76 venues 18 countries. But not for us Paris, Morocco, San Francisco – instead Mumbai, Calcutta, Dhaka, Jakarta, Manila.

In those days the creation of the member base was our dominant goal. I agreed with Mark that we would stop when we reached 30,000. But somehow we never did. It’s well over 50,000 all in acquired bases, associates, etc.

How did Karma Resorts come about?
I became conscious of the fact that the perception of timeshare limited our options of what we could do with the company. I believed that if we laterally diversified and added another operation it would give the company enhanced value.

Karma Resorts has done exactly that. With our three luxury boutique resorts, association with Leading Hotels of the World and celebrity guest list we have given the group an exciting public face and opened doors.

For example we are strong bidders to develop Rottnest Island in Perth. Rottnest is an icon for Perthites. KRG is hopeful of launching the contract. We could never have done that as a pure timeshare company.

So looking back over those 25 years what would you advise new players about to start to consider?
• Profit, profit, profit.
• Keep your product price as keen as possible.
• Never believe your product sells itself.
• Invest most in sales and marketing.
• Start small grow organically.
• Be vertically integrated.

Does your mother wonder what to give as a present to “the man who has everything”?
I don’t have everything. One thing she could give me is new people. To grow and expand as our plan we need good people – at all levels. That would be a nice present. We are most definitely recruiting at present.

John, that was very illuminating. Thank you for your time.
And you, Paul. Thanks.

John Spence is happy to receive any inquiries from within the industry regarding the matters mentioned in this article or cooperative ventures. His email is johnspence88@hotmail.com.

Karma Royal Group Factsheet

Resorts
RGBC at Luisa by the Sea – Goa, India
RGBC at Royal Palms – Goa, India
RGBC at Benaulim – Goa, India
RGBC at Monte Rio – Goa, India
K2 at Ratan Haveli – Rajasthan, India
Royal Kovalam Beach Club – Kerala, India
RBBC at Candi Dasa – Bali, Indonesia
RBBC at Jimbaran – Bali, Indonesia
Royal Terranora Resort and Country Club – Gold Coast, Australia
Royal Lighthouse Villas – Phuket, Thailand
Royal Bella Vista Country Club – Chiang Mai, Thailand
Royal Reef – Lombok, Indonesia
Karma Samui – Koh Samui, Thailand
Karma Kandara – Bali, Indonesia
Karma Jimbaran – Bali, Indonesia
Karma Mykonos – Mykonos, Greece
Karma Bahamas – Little Harbour Island, Bahamas

Awards
John Spence – RCI Hall of Fame, 1998
John Spence – Most Philanthropic Developer, ARDA 2004

Karma Spa: How to Operate a Profitable Spa

From time-honored healing rituals to indigenous experiences, yoga and detox, the demand for luxury spas, say experts, is no longer the province of the 5-star boutique resort. Spas are a thriving business that can dramatically increase revenue for virtually every style of resort and hotel.

Enter the world of Karma Spa situated within the grounds of Haathi Mahal Royal Resort in Goa, India – a world of pure harmony where white stone floors, arched walls, domed ceilings and flowing drapes creates a sanctuary experience. Renew your being amid the seductive white marble stone steam room with a star-like sky. Experience spa rituals and massage curatives designed to soothe, heal and nurture the whole body.

Karma Spa is the newest creation by John Spence, the owner and chairman of the Karma Royal Group. With the assistance of Judy Chapman, an internationally known figure in the global spa industry, and other experts, by the first quarter of 2010 every Royal Resort will be home to a Karma spa & wellness facility.

“We recognized that the wellness industry is one of the fastest growth industries in the world today,” says John Spence. “I wanted Karma Royal Group to share in that growth.”

There was a time when spas in hotels, like the gym or sauna, were a service facility. How things have changed – these days, spas can generate as much revenue as an F&B department. In the near future, there will be no 3-, 4- or 5-star hotel or resort without a spa facility.

Says Spence: “While we have had spas at our Royal Resorts for years, our services were not much more than a simple massage for members. But with the baby boomer generation driving the fast-growth spa trend, we realized the financial potential of spas. Housing a commercial spa facility can dramatically augment a resort’s revenue, not to mention attract more interest to one’s brand.”

He adds that Karma Spa has revolutionized their thinking. “The bottom line of a successful spa can be phenomenal. Each month we are seeing our spa revenues and, indeed, spa retail sales, grow from strength to strength. People from all walks of life are being turned on to the health benefits of spa.”

With that learning curve behind him, John Spence is offering to share that experience with the resort development industry worldwide by offering Karma Spa licenses. Any Resort Developer with the desire to operate a spa can take a license, and Karma Spas will set up and operate the spa for the developer.

When asked why choose Karma Spa?, Judy Chapman’s reply was this: “The best spas around the world offer spa experiences that are unique and memorable, and this is where Karma Spa delivers,” she says. “The Karma Spa DNA is that we offer all that one would expect to find at a 5-star spa but with Asian service and hospitality. We are also  fortunate to have a network of incredible trainers and experts in their craft who can train any team of therapists to a top notch standard.” She says that part of the unique training program with Karma Spas is their ability to select the right managers and train them to run their department as a standalone and profitable business.

She adds that it is also the design and feel of a spa that attracts guests time after time, and yet this aspect need not cost a fortune. “I know spas that have been created in the most humblest of environments, but with the right managers and a team of well-trained therapists delivering services not available elsewhere – well this is a win-win situation.”

Just some of the treatments to be found at the various Karma Spas, for example, include Himalayan crystal salt scrubs to Indian rosewater facials, Balinese tarot reading and healing reiki. From ayurvedic curatives where warm herbal compresses are pressed and pounded along the body to soothe the muscles to a signature ‘Tibetan singing bowl’ massage, the offerings bountiful. By providing experiences second to none, the potential is boundless.

Karma Spa Licenses
Create a successful and profitable spa at your resort. A Karma Spa license offers the developer:
• The shared “know how” of a successful spa operator
• Design expertise
• An Asian theme
• Exotic spa menus
• A business plan
• PROFIT
For information on Karma Spa licenses write to karmaspa@karmaresorts.com.

On December 8, 2009 a sponsored climb of Mount Kilimanjaro will begin. While countless other teams have ascended Kilimanjaro, this trek may be one of the most important ever.

The “Kilimanjaro Climb” aims to raise muchneeded funds for the building of a village for homeless children in the Durban area of South Africa, in particular for those orphaned by the AIDS epidemic.

The first phase of the village, to be named Ingane Yami (or “My Child” in Zulu, the local language) will consist of 25 individual houses, each of which will be home to 6 children of varying ages. A “house mother” in each will help to recreate a stable family unit and enable these vulnerable children to be brought up in a
loving environment.

The village ultimately will benefit from a community hall, crèche, clinic, recreational building and a sports field, thus enabling the individual talents and strengths of each child to be nurtured and developed before they eventually move on to lead independent adult lives.

This life-saving project is part of the Restoration of Hope Ministry, a charity organization. The land for the complex was purchased in 2008 and final planning approval for the village is expected to be granted soon.

Pearly Grey and Others Involved
Taking part in the climb will be James and Karen Beckley, the developers of Tenerife’s Pearly Grey Ocean Club, and Dougie Kirkwood, sales manager at Pearly Grey. They will be joined by, among others, Ward Woods, developer of the Regency Group, also based in Tenerife, and Troy Gerrity, a Tenerife wine distributor. The climb is expected to take up to five days and the team is hoping to raise substantial funds for this vital project.

Any sponsorship or donations will be very gratefully received. On behalf of the children, Pearly Grey Ocean Club asks that you help in any way that you can. For more information and/or to donate to this worthy cause, go to www.pearlygrey.com/en/kilimanjaro.asp

Additional information on Ingane Yami can be found on the Web at:
www.facebook.com/pages/Ingane-Yami/158647944443
www.twitter.com/inganeyami
www.flickr.com/photos/inganeyami/

Merlin Software is delighted to announce that it has been chosen to provide software solutions to the Fairways Club in Tenerife and Pueblo Evita in Spain.

“Merlin is easily the most comprehensive software found anywhere in our industry today” says Mike Bailey, chairman of the two resorts. “We looked at a number of other options, but Merlin’s functionality, accessibility and interactivity could not be matched”.

“In addition, having been in the business for so long, we have a considerable amount of historical data that we needed
to have uploaded to Merlin.  We wanted the full history of our trading on our new system. Merlin has provided us with a complete audit of ownership so we can trace every sale and every owner we have ever had, no matter what they bought, upgraded or sold” he continued.

Merlin is integrated business application software served across the internet and developed specifically for today’s shared ownership industry including resort developers, marketers and management companies – regardless of size or location. It has multiple resort, company and currency capabilities and manages all known products. “It is the ideal solution for us. Our resorts and head office are in different countries and we sell different products to a number of nationalities in various currencies. Merlin brings these elements together seamlessly”.

All the functionality required for marketing and sales to front and back office is included in the Merlin application. According to Mike Bailey “we have no need for any other business software to run our operations because Merlin is so comprehensive. It covers every aspect of our operation and our staff find it intuitive and user friendly”. Users simply access it securely via a web browser from anywhere at any time. It means that management and staff can access the system from the resorts or from the company’s head office in the UK, without the need of expensive link lines and hardware installations.

One of the most important features for the team is Merlin’s Integrated Interactivity. As chief software developer Mike Pnematicatos explains “Merlin runs over the internet so it is easy for resorts to integrate their web sites directly with their business data. This means that clients can transact with resorts over the internet in real time and accessing the same data”. Mike Bailey adds “we are so impressed. Merlin has opened up new opportunities for us. Our next stage of implementation will be to have our owners access our website to make online bookings and management fee payments including credit card processing”.

Of particular interest to the team is the online trading platform which enables resorts to trade with others in the industry. Mike Bailey explains “we will be looking into this as a way to offer reciprocal exchanges and rentals and utilize unsold inventory. Merlin has done all the work for us on that one”.

Merlin is the leading industry software provider using the new technology of Cloud Computing to deliver you software direct to your internet browser. According to Mike Pnematicatos “Merlin is resource light, incredibly intuitive and allows unlimited users and multiple locations to access the software securely in real time from anywhere in the world. It enables resorts and hotels to benefit from time and cost savings – yet still be at the cutting edge of internet technology”.

Merlin Software for Vacation Ownership has been developed by Mike Pnematicatos who has over 25 years experience in the timeshare industry in sales, marketing and resort management.

Using the latest web technology, Merlin is the complete software package for today’s hospitality industry and can handle all types of timeshare and holiday product.

Merlin Software incorporates modules for sales, marketing and front and back office. Its inherent flexibility means it can operate all types of sales activity and holiday product.  As Merlin is served over the Internet there is no requirement for any expensive communication links or set up fees and can be accessed from wherever there is an Internet connection without the need for expensive communication links.

For more information on Merlin Software for Vacation Ownership contact Mike Ashton on, email at mikea@quickmerlin.com  or visit www.quickmerlin.com.

Fairways Club is located on the south coast of Tenerife about ten minutes travelling time from the airport. Built in typical Andalusian style architecture, the resort is located within the Amarilla Golf and Country Club complex, famous for its impressive golf course just bordering the Atlantic Ocean. The resort is celebrating its 20th anniversary this year.

Pueblo Evita Club is situated in an excellent position a short way from the glorious beaches and excellent restaurants at Benalmadena Costa. It is a delightful gated holiday ownership resort built in typical Andalusian pueblo style and set between the sea and the mountains on the Costa del Sol in southern Spain. It is perfect for a family holiday being very secure and safe and including two outdoor pools and one indoor heated swimming pool.

For more information on the Fairways Club and Pueblo Evita Club contact Mike Bailey by email at general@evencharge.com.

An Interview with Denis Ebrill, executive vice president of Sol Meliá Vacation Club, about the company’s parent company, marketing in the United States, and what’s next for SMVC.

You’ve been at the helm of Sol Meliá Vacation Club (SMVC) for a year now. What has that experience been like?
Let me put that question into perspective. I started in this position on September 1, 2008. A week later it was announced that Fannie Mae and Freddie Mac would be nationalized. Two weeks later Lehman Brothers filed for bankruptcy on the same day that Bank of America bought Merrill Lynch. Before the end of that month AIG was bailed out by the Federal Reserve to prevent it from collapsing, all of which wreaked havoc on one of the key indicators for the vacation club industry – the consumer confidence index.

On a more personal level, I received a tremendous welcome from the Sol Meliá team and have enjoyed great support for our vacation club business from the parent company’s leadership. There were nuances to the nature of the business model that I had to learn along the way. But all in all, the structure and approach to the business was very similar to that with which I was familiar from prior experience. Probably the toughest aspect of the past year was having to cut back our operating costs, which meant losing some great employees. We went through some difficult decisions that resulted in some lay-offs within our organization. That is not only tough on those who are laid off, but also on those who remain, especially in a relatively small, closely knit team like ours. We had, and continue to have, a great team of professionals.

Hopefully as we climb out of the current economic slowdown we will be able to re-integrate back into our
team some of those that we were unable to keep.

How does SMVC benefit from being a part of such a large, well-known and long-lasting European hospitality company like Sol Meliá?
Our vacation club business at Sol Meliá benefits significantly not only from the brand awareness, but even more so from the credibility and trust that are associated with our company. It is a huge advantage in the
European and Latin American markets where the brand awareness is high, and those are essentially the continents in which we do most of our business. One of our goals as we grow into the future will be to increase the awareness of our brands in the United States and Canada, which continues to be where the
majority of our SMVC members reside.

On the operating level, our vacation clubs are fully integrated with our hotels and resorts, and share a common campus in every one of our current locations. One hundred percent of our SMVC resorts are mixed use, which allows us to consistently provide the full-service resort experience to our members regardless of
where they choose to stay within our network. While there are other hotel companies that also focus on the mixed-use model, they typically have a blend of standalone timeshare resorts and mixed-use hotel/vacation club resorts within their systems.

How does SMVC strengthen Sol Meliá’s global hospitality offering?
There are clear advantages to both the vacation club and hotel in the nature of the mixed-use structure that we have adopted. There are two examples that come immediately to mind as to how SMVC contributes to the success of Sol Meliá as a whole.

One, in tough times like those we are currently experiencing, the vacation club business as part of its in-house marketing initiatives can continue to provide personalized services through the concierge, guest service and activities staff while at the same time provide an opportunity for hotel guests to learn more about our vacation club products and facilities. These are the types of services that often end up suffering when hotel RevPAR [revenue per available room] starts to decline.

Two, the nature of the vacation club business is such that we strive to maintain a consistent flow of prospective buyers through our sales facilities. This means running lead generation programs that enhance hotel occupancy while providing tour flow to the sales and marketing teams. Even if the pricing of these hotel vacation packages is heavily discounted, it helps create more activity and atmosphere at the resorts and generates incremental spending at the hotels’ revenue-producing facilities. As you know, the vacation club business is highly intensive in the area of sales and marketing. We have great talent in our team and everything that they work on inevitably has a positive halo effect on the image of the brand and overall brand awareness, which clearly benefits the company as a whole.

What are SMVC’s strengths in weathering the economic situation affecting everyone in the industry right now?
Our strengths come from within Sol Meliá as a whole. The company has done business in international destinations for decades and as a result is accustomed to dealing with and responding to the economic volatility that comes with the territory. Sol Meliá is a solid, well-respected company with the know-how to confront the current challenges and a strong balance sheet to back that up. The hotel and vacation club teams work closely together to take advantage of synergies and to support each other’s initiatives whenever
possible.

As an example, we have worked with some of the traditional hotel suppliers to develop marketing programs that benefit the vacation club and at the same time increase hotel occupancy. We have been able to help specific hotels increase their market share by providing marketing support and by sponsoring events and activities that help build trust and credibility with the hotel guests, thereby supporting vacation club sales efforts.

SMVC is purely an international product. How does that make you different from other companies with U.S. based products and what they are experiencing right now?
We deal with most of the same issues as our competitors with U.S.-based resorts. In addition, however, we face a number of novel challenges as a result of the venues where we do business. These include, among others, a variety of different sets of labor legislation that has significant relevance to our operating costs, currency exchange volatility, different legislative jurisdictions and regulations relative to the vacation club industry, and an array of political and geographical considerations that can impact the public’s perception of the destination. Overall, our U.S.-based colleagues enjoy a higher degree of political and economic stability and for the most part have U.S. employees selling to U.S. customers. We have to develop multi-skilled teams that can handle a variety of cultures and languages. So finding the appropriate talent and ensuring that
the quality of the sales process is consistent with the brand image and the values of the company is a primary objective. We believe we have some of the best, most versatile teams in the business who have demonstrated their proven ability to produce effectively in multiple cultures and languages.

What are your goals for SMVC?
To establish realistic and achievable objectives, focusing on what is profitable and works within the framework of our company’s beliefs and values. We are committed to achieving a balance between the success of our vacation club business and ensuring a positive guest experience. We will not sacrifice
hotel-guest satisfaction to generate a vacation club sale. If this means lower volume and/or slower growth, then so be it. We will adjust our business to that model. That said, we will continue to grow and expand in key destinations and focus on the satisfaction of our existing members through quality facilities and quality service. We want to keep our members within our network, are acutely aware of the value of a positive referral from an existing member, and are hugely encouraged by the volume of new sales we see generated by existing members through upgrades or additional purchases. There is no greater indication of members’ satisfaction than to see them buy more of our product.

What are your most successful locations now and what’s ahead for SMVC by way of new product and development in the next five years?
Our newest resort is the Gran Meliá Palacio de Isora in the southern part of Tenerife in the Canary Islands, Spain. We believe it is the most stunning vacation club product in Europe today. We have been in sales for
approximately nine months and are excited to see the level of acceptance and interest our hotel guests have in this product and the rapid growth we have been able to achieve in sales. We have similarly spectacular resorts in Punta Cana in the Dominican Republic with The Reserve at Paradisus Palma Real and just outside of San Juan at the Gran Meliá Puerto Rico, both of which are performing well despite the current economic environment.

We also have a new project under development in the Playa del Carmen area of the Riviera Maya near Cancun, in Mexico, that will be a great addition to our network of resorts, and to the existing ME Cancun and Gran Meliá Cancun resorts in the region. We will continue to look to grow in markets where our existing members tell us they want to be. We will plan carefully for intelligent growth opportunities, taking advantage wherever possible of existing resort facilities and the possibility of distressed asset acquisition if it fits our long-term growth plan.

How do you think the industry will change in the next five years and how will SMVC be affected by that?
The change is already well underway. We see a narrower choice of marketing programs simply because of the need to ensure profitability. I think it will be a long time before we see the type of receivables securitization
opportunities that we saw in the past. That factor alone forces us to rethink our approach to the business and restructure our teams so that we can achieve profitability on operations alone without having to be heavily dependent on financing income to do so. At SMVC we will not chase sales and marketing programs just for the sake of increased sales volume. We have already streamlined or eliminated a number of our
operations with a higher degree of profitability in mind. It hurts and it takes a change in mindset, but we have an obligation to our parent company and to our shareholders to ensure the profitability of our ongoing
operations – and that is what we intend to do.

Fast response to changing trends is at the core of Club La Costa Resorts & Hotels’ ability to snatch success even from the jaws of the worst global recession to affect the holiday industry.

Recently, the company moved to close down four of its five off-site sales operations in the UK, due to the country’s continuing economic battering, to refocus on new programmes aimed at increased Fly-Buy/SIV activity.

CLC’s prestigious sales and exhibition centre in London’s best postcode, the West End, continues to operate, but a decision was taken to shut its other UK off-sites as their effectiveness in the current financial climate was under question.

“Right now, the best thing we can do is offer great price family holidays where customers can come and sample the quality and value of the Club La Costa experience, and we are doing this through a number of channels,” said chairman Roy Peires.

Club La Costa’s Essex-based marketing operation is at the centre of a flurry of Fly Buy activity handling data from a mix of sources, such as shopping centre booths, emailings and websites, while independent marketers have promotions at airports both in the UK and Spain.

UK off sites have been integral to the company’s success across its 25-year history, resuming in 1991 after a break in the 1980s. However, the continuing poor shape of the UK economy, have led to a major sales rethink.

About Club La Costa Resorts & Hotels
• Club La Costa Resorts & Hotels is widely regarded as a leading provider of holiday products in Europe.
• Founded in 1984, the company has more than 50,000 members and 23 wholly owned resorts in England, Scotland, mainland Spain, Tenerife and Austria.
• CLC Estates is the company’s successful real estate business.
• Club La Costa also has its own in-house travel agency and resort management arm.
• Developing a mixed use model of whole ownership homes – offered with a leaseback programme – and timeshare resorts, Club La Costa has expanded into Turkey during 2009, opening a new resort with a second planned for 2010.
• In 2007, Club La Costa launched its unique Yacht Club with sailings in the Red Sea, Turkey, around Mallorca and, planned for next year, Greece.
• Across its operations, Club La Costa employs more than 2,000 employees.
• The company is a founding member of the Organisation for Timeshare in Europe, now the Resort Development Organisation (RDO) of which it continues to be a key supporter.
• The Smile Foundation, a charitable organisation which Club La Costa helped found and helps raise funds for, and the private Roy Peires Foundation, help many needy causes. 
• Club La Costa prides itself on impeccable levels of service, innovative products, a pioneering spirit and the outstanding quality of its resorts, which occupy top locations and offer a wide range of excellent facilities.

For further information please visit www.clublacosta.com

European Seminar Included Timeshare Professionals and Owners for Frank Discussions

Late September 2009 saw Dial An Exchange host a controversial seminar titled Timeshare Stripped Bare. The venue was the picturesque Barnsdale Hotel & Country Club timeshare resort, located in the middle of England’s smallest county and nestled on the banks of Rutland Water – and arguably one of the most popular resorts in the UK.

The seminar saw a unique combination, with timeshare industry professionals and timeshare owners invited to attend. Some industry insiders even expressed nervousness at involving owners in sensitive discussions on some of the industry’s biggest challenges and most controversial subjects.

As the conference proceedings unfolded though, it became clear that there were no grounds for such concerns. The event attracted an intimate but engaged group, consisting of some of the major players within the timeshare industry, resort committee members and individual timeshare owners who were keen to hear what the experts predicted for the future of timeshare.

The seminar was organized and moderated by David Lilley of Dial An Exchange and supported by parent DAE Live, representatives of which had journeyed from Australia to support the event.

Given the provocative title to the seminar, independent observers could have been forgiven for thinking the event was being staged to attack and undermine the timeshare industry. This was definitely not the case.

Lilley made a point of drawing out the many positive experiences that timeshare extends to its customers, and despite the fact that there were many disgruntled owners in the audience, when Lilley asked his ritual question about the levels of satisfaction that owners get from the product, many hands were raised in acceptance of the undisputed fact – that when timeshare is sold and serviced correctly, it is a wonderful product.

Lilley kicked off the seminar with a typically forthright appraisal of the challenges the timeshare industry in Europe faces. The concerns raised in Lilley’s opening address were emphasized and quickly justified by the opinions expressed by three of the business delegates in attendance.

When Lilley asked the question What percentage of timeshare owners in Europe wish to exit?, however, the weighted answer from the three knowledgeable people in their opinion was a remarkable 50%.

Legislative Issues
Following on from the opening introduction, Geoff Chapman, a director of TATOC, delivered an interesting and precise summary of TATOC’s work to support timeshare owners. Chapman presented a variety of statistics sourced from the existence of the TATOC help line. The most pertinent parts of Chapman’s presentation centered on where consumer issues originate from, with bogus resale companies and holiday clubs being the biggest issues.

Simon Jackson, managing director of Macdonald Resorts, shared his views on the subject of product repositioning and new product development. Jackson has already developed a reputation as an executive who would happily engage in a united alliance to tackle the industry’s biggest challenges, but with the seeming absence of such initiatives, he is clearly prepared to pioneer new activities. This was evidenced by the Macdonald 5 Year Holiday Product, which was very well received, commended by all members of the audience and described as the product of the future.

One of the most memorable presentations of the seminar came from Ramy Filo, chairman of DAE Live and CEO of Classic Holidays. Filo revealed that the Australian timeshare market is somewhat ahead of Europe in many areas.

Australia already has a sales certification platform and a clear appetite to create products that have appeal to the customer. One of the most poignant messages that emerged from all the speakers on display was Filo’s simple but powerful statement: “The way I see it, we have products and we have customers. If the products are not appealing, we need to change the products because we cannot keep changing the customers.”

Phil Watson, managing director of Worldwide Timeshare Hypermarket, gave a lively and frank discourse on the subject of resales. Watson encouraged owners to be less clumsy in handing over money to companies that make unsolicited cold calls and stated that members wishing to relinquish their ownership needed to be realistic about the value of their timeshare.

Watson shared some examples of his company’s media work and his personal attempts to change the perception of timeshare by embracing some of the more expensive but higher impact advertising vehicles, such as television.

New timeshare legislation is set to have a profound impact on the timeshare industry in Europe. Alex Radford, a solicitor from leading law firm Irwin Mitchell, gave a condensed and layman’s term summary of the EU legislation that becomes active in 2010.

In the audience debate that followed Radford’s speech, it became clear that whilst there are some commendable elements to the new legislation, other parts of it could be described only as a suppressant to reasonable and honest business. The total ban on any form of deposit, for example, is a restriction that is not placed on too many other industries around Europe.

Maintenance-Fee Defaults
The subject of increasing maintenance fees and the growing trend toward court action for defaulting owners was expected to create fierce debate. The reality, however, was that there was quite a degree of empathy and understanding toward those developers who now see it as necessary to take defaulters to court.

Martin Beesley is one of the few respected timeshare resort developers in Europe. He boldly took to the floor to explain why his two resorts (Fairways Club in Tenerife and Pueblo Evita on the Costa del Sol) had this year started to take court action against defaulters. Beesley explained that those owners who were choosing to default were simply placing an increased liability on the remaining members of the club, and this served only to compound the challenge of suppressing maintenance fee increases.

Beesley also pointed out that the bogus holiday pack companies seem to regard the owners at resorts where court action was not being taken as easy prey for their fraudulent products.

In summarizing the maintenance fee session, Lilley drew out a diagram to explain the consequences of taking court action versus those of doing nothing.

Whilst Lilley made the point that he personally had very mixed views on the subject of taking owners to court, the audience offered little resistance to the suggestion that court action, when thoroughly considered from a holistic viewpoint, was not necessarily as negative as some owners would suggest.

Other Noteworthy Presentations
One of the more eagerly anticipated speeches was delivered by Matthew Moody, former head of Revenue Management at RCI Europe. Moody covered the subject of trading power and had the business delegates transfixed at the complexity of the subject.

Paul Mattimoe of Perspective International took the delegates through a chronological summary of his company’s evolution, his survey on timeshare owners and general attitudes toward timeshare. He also shared the objectives of their two magazines. Mattimoe has broken many perception barriers with his new consumer magazine, Owners Perspective, arranging distribution deals that include the likes of British Airways’ First Class Lounges worldwide, more than a dozen similar airline, hotel and resort agreements, and respected UK supermarket chains such as Tesco’s and Sainsbury’s.

Consistently growing at a rapid rate and currently reaching more than 50,000 consumers a month, the magazine is attracting advertising support from many major hospitality brands and leading developers around the world.

TATOC Chief Executive Harry Taylor concluded his short interview with David Lilley to publicly recognize the work that David had done to support TATOC over the past few years with the award of six bottles of fine wine.

Veteran Sutton Hall resort chairman Neville Greenwood, with 18 years on his resort’s committee behind him, shared some insight into the trends that he has observed over the years, particularly in relation to  repossessed weeks and the methods his resort use to get them back into ownership.

The concluding session of the seminar was on the subject of sales certification.

The panel of the speakers and other business delegates all agreed that a sales certification platform would benefit European timeshare but this really needed to be backed by the authorities and enforced, for it to have any major impact and sustained value.

Under the spotlight of scrutiny and some heavy criticism for daring to cover such sensitive subjects in such a public way, Dial An Exchange emerged with strong credibility after tackling such thorny subjects. The comments made on timeshare owner forums has already justified and confirmed the value in such events. Timeshare owners want to see their issues discussed and debated with a solution-focused attitude.

With such a positive response and some useful networking sessions for the business delegates, you can expect that the next event will have at least a few more attendees – and draw even more attention.

David Lilley chooses to leave Dial An Exchange
While no announcement was made at the event, it transpires that the Timeshare Stripped Bare event was Lilley’s last public performance as Managing Director of Dial An Exchange Europe.

While working for DAE, Lilley had continued to operate his own marketing company (www.marketinginnovations. co.uk) since 2007.

When asked about his reasons for leaving DAE he commented: “Philip Green (the owner of DAE) and I decided we did not want to make an announcement about my departure at the seminar because we did not want to take the focus away from the objectives of the seminar.

I’ve had an enjoyable two years at DAE. I think they are a terrific, customer-focused company and Philip and I part as friends. Indeed, I will still be doing some work for DAE in 2010 at two of their members Roadshows, as well as organizing and moderating another business seminar. I will also continue to be editor of their
Holiday Access Magazine.

My decision to leave DAE was purely that I wanted to explore other business opportunities and dedicate more time to some of my personal business projects. These projects include a specific rental service for owners at independent resorts called Rent Your Week and a rescue package called Resort Rescue for resorts that find themselves in financial difficulties.”

David Lilley can be reached at +44 (0)7872 13 13 14 or visit www.marketinginnovations.co.uk

An interview with Roy Peires, chairman and founder of Club La Costa Resorts and Hotels, a company that is among the leading lights of timeshare in Europe and one that is, by its innovative and progressive approach, defining the standard and shaping the way in which its more than 50,000 members enjoy their holidays.

1. When did you enter the timeshare industry and what led you to do so?

From the age of 19, I got involved in the hospitality industry, in restaurants, and I might have stayed to build a business in that sector but for what I considered to be an even more interesting opportunity that came along. In 1984 I entered the timeshare industry in London and Spain. It began with access to a few units on the Costa del Sol, and as I sold these successfully I began adding more units and over time acquiring more resorts. And soon after this time I started purchasing a landbank on which to build new developments. This was done steadily and gradually to ensure growth was efficiently managed, but also to ensure financial stability and confidence and soon it was clear that Club La Costa was being appreciated by a growing number of satisfied clients.

2. Has your business strategy remained the same over the years or have you adapted it to changing holiday trends?

Today the company has 22 fully owned and managed resorts, with some 2,000 accommodation units in Spain, Tenerife, Austria, Turkey and the UK. This would never have been achieved without modifying our business strategy over time. Our business model has frequently changed to meet the ever changing marketplace. A defining trait of Club La Costa is its ability to respond quickly to trends and also to anticipate them. This is evident in the way that we have developed better resorts and different products, moving from fixed weeks to floating weeks to multi-destination points based clubs – and even our own yacht club. We are fortunate that, as a private company, we can react rapidly when appropriate and this flexibility keeps us competitive both as a business and in what we offer our owners and marketing prospects.

3. What pivotal moment or moments during the history of Club La Costa contributed in a major way to making the company what it is today?

In 1991 the UK economy was suffering, interest rates had gone through the roof and Club La Costa was forced to find new markets. This opened our eyes to the untapped timeshare markets throughout Europe including the domestic market in Spain, plus those of France, Germany and Eastern Europe. When legislation came in the mid 1990s (such as banning deposits), we reacted positively by launching our three-year trial membership which was, and still is a very attractive and popular option allowing new members to ‘test-drive’ our product. It generates large numbers of new members to our off-site sales centres many of whom like what they experience so they upgrade to full membership on their first or subsequent holidays. This two-step sales approach now prevails through all Club La Costa’s on and off-site sales operations with excellent commercial sales results.

4. What made you so passionate about the timeshare business at the start and what about it continues to drive you?

It was immediately apparent to me that timeshare is a fantastic product and an exciting one with so many possibilities. My enthusiasm has been evident in the way we have been able to diversify and reflect the changing holiday needs of our growing membership, driven by the desire to give our owners a holiday experience that not only lives up to expectations but exceeds them. It continues to excite me because Club La Costa always has something new to say. Standing still is not an option for us – like most successful companies, there is always the need for innovation. Of course, this also makes for good sales and upgrade possibilities too.

5. What are the tangible changes in the holiday experience for Club La Costa members?

We constantly look to increase the levels of luxury, amenities and service that we offer. Developing our own resorts has allowed us to include such things as private Jacuzzis on apartment balconies and quality branded white goods as standard, and we are especially proud to have developed a signature interior design based on our Costa del Sol California Beach resort that sees the use of modern, high quality materials and furnishings. And we continue to look at ways of raising standards. It is important to create excitement within each new project and even more so with the public’s access to and awareness of a vast array of holidays and holiday products via the media and internet. So we are meticulous to ensure we effectively communicate with our members, in order that they can see just what we are doing ourselves and how, via ’cross-utilisation-agreements’, we are also handpicking partner resorts that fit the Club La Costa model and increase the choice available to them. Also our continually evolving websites (member and corporate), and regular e-mail bulletins and printed materials play an essential role in this.

6. In recent years, Club La Costa has been characterised by rapid growth, adding new resorts and a yacht club, what other projects are in the pipeline that you can tell us about?

For a long time, it has been our objective to create a pan-European product to be enjoyed by families of all nationalities – adding new resorts and offering new and varied holiday experiences from short breaks in the British countryside to our luxurious sailing adventures aboard our expertly crewed catamarans. Now we are adding more destinations in the Eastern Mediterranean to cater for all our members including our growing Russian market. We are seeking further opportunities in many new countries with resorts planned for example in Russia, the Dominican Republic and the United States – as central Florida is still a top 10 destination for our core British market. In Europe we already have several new resorts at various stages of development at our Costa del Sol site, in Tenerife and in Turkey. Right now we have started construction in Spain of an exciting new spa and leisure resort, with the first 84 deluxe residences soon to be launched, as well as a new standalone resort, Rancho Santa Fe.

7. What prompted Club La Costa to move into the freehold property market?

It became apparent that some members, having ‘grown’ in their holiday expectations with us, desired to own a holiday home outright – but without the hassle of maintaining it year-round or leaving it empty most of the time. These members love and trust Club La Costa and for us it was a great way to satisfy our own marketing needs via a rentals programme. Developing resort homes this way allows us to ensure CLC standards of build and design apply, and spurred on by our early successes we have gone on to expand this programme and we are currently seeking new resort locations. Owners benefit from excellent leaseback guarantees and a ‘peace-of-mind’ investment.

8. In what way do you think you and your company excel above the competition?

We continue to sell because we are ready and willing to embrace change and seek out new opportunities. I know I need to expand and vary the holiday experiences for Club La Costa members around the world and at the most popular holiday locations. In doing so, we plan and succeed in staying one step ahead.

I believe that the timeshare industry is changing so that only the dominant major hotel companies and strongest independents – with great products and truly effective sales and marketing – will survive. Club La Costa will be among them. In the long term these changes are creating an improved industry with an ever improving perception of timeshare, and this can only result in more satisfied customers.

We see the big winners in the hospitality industry are those merging hotels and timeshare into one seamless operation; hence our plans for more hotel units to be developed at our multi-resort site near Marbella, as mentioned earlier, and also at our UK country resorts and elsewhere.

9. Having become an industry leader, is there still an ultimate goal that you work towards?

Yes. Not only do we want to establish a global network of timeshare resorts that will satisfy the hunger for quality holidays for our member families, but ultimately we want to serve them through our own reservation system; which, of course, we already do to a significant extent. In the future, all their holiday aspirations and needs will be satisfied within Club La Costa, it is what we are working towards. We know this is what our members want; it means they can rely on getting a true Club La Costa experience wherever they choose to go.

10. Finally, what are the most important factors in the successful development of your business?

Without doubt, the expertise and commitment of Club La Costa staff is, and always will be, a vital part of the company’s success. I believe we have some of the best people in the business working for us and the ethos and work attitude of the staff, from top management through to our cleaners and gardeners, is excellent.

One of my biggest challenges is finding more good people of the right calibre to work with us at all levels and in all locations. One thing is for certain, dedicated high achievers, will always do well in this industry. They can also be sure of a place with us and an exciting career. Of course, like the company itself, they need to be open to change and not stuck in a rut. Sales and marketing, like every other aspect of the company, is dynamic, adapting to market conditions. There is a lot of despondency being voiced in the holiday market, with airline collapses and the effects of the credit crunch hitting the headlines, but we are lucky, our members have shown they love holidays with their commitment to purchase with us not just once but again and again. They view their hard earned holidays as a priority and necessity, not a luxury.

Orlando-based Sol Meliá Vacation Club (SMVC), an international leisure vacation membership club with locations in the Caribbean, Mexico, Central America and Europe, has been presented with the 2008 Developer Innovation Award for the new Sol Meliá Vacation Club at Gran Meliá Palacio de Isora in Tenerife, Canary Islands, Spain, by Group RCI, a worldwide leader in vacation exchanges with more than 3.5 million members globally.

Pictured from left to right for the award presentation at SMVC at Gran Meliá Palacio de Isora are: Ovidio Zapico, RCI Spain; Fernando Navarro, SMVC at Gran Meliá Palacio de Isora; Ignacio Diaz, General Manager of Gran Meliá Palacio de Isora; Denis Ebrill, Executive Vice President of Sol Meliá Vacation Club; and Dimitris Manikis, RCI VP Business Development.

RCI’s Annual Awards for Developer Achievement include the Developer Innovation category, recognizing resorts with new vacation ownership projects that are eco-friendly, have unique features, are family friendly and provide a high level of service, starting with the point of arrival.

“The Gran Meliá Palacio de Isora is one of the finest quality resorts in the Canary Islands and is a great new location for us,” said Denis Ebrill, Executive Vice President of Sol Meliá Vacation Club.  “We are proud to receive this award and RCI’s recognition of our unique product offering.”  SMVC at Gran Meliá Palacio de Isora features 200 one and two-bedroom oceanfront suites with lavish amenities such as plasma TVs, fully-equipped kitchenettes, upscale wood and granite accents.  Resort features include five restaurants, six bars, room service, wine cellar, golf simulator, two tennis courts, world-class Yhi Spa, four adult swimming pools, two children’s pools, including one of the largest swimming pools in Europe.

Sol Meliá Vacation Club is an internationally-branded membership club that focuses on providing leisure lifestyle experiences that include exotic destinations, designer-appointed luxury suites, exclusive services and unforgettable amenities.  Each Sol Meliá Vacation Club vacation experience is different from the other, aligned with the local culture and customized to fit Members’ leisure lifestyle needs.

SMVC is part of Spain-based Sol Meliá Hotels & Resorts, a 50-year-old international hospitality company with over 350 hotels in 30 countries on five continents.  Sol Meliá Vacation Club Members have more vacation lifestyle options through global luxury accommodations in a variety of unique resort and urban destinations around the world, as well as flexibility to choose the length of stay, season and size of unit.  Featured Sol Meliá Vacation Club locations include Cancun, Cozumel and Puerto Vallarta in Mexico; Puerto Rico and Punta Cana, Dominican Republic in the Caribbean; Panama in Central America; and the Canary Islands, Spain, in Europe.