Nearly $1 Billion Annual Economic Impact on Arizona Generated by Timeshare Industry

Nearly $1 Billion Annual Economic Impact on Arizona Generated by Timeshare Industry

Arizona Timeshare Resort Locations

The Real Estate and Relocation market is partly driven by the timeshare industry.

Close to a $1 billion economic impact has been contributed by the timeshare industry to the state of Arizona’s economy in a single year, according to a study conducted by PricewaterhouseCoopers (PwC) and released today by the ARDA International Foundation, the research arm of the American Resort Development Association (ARDA). A total of 84,162 Arizona residents own timeshare, according to other data compiled by ARDA.(1)

Combined direct and indirect economic impacts as well as fiscal contributions for the industry totaled $980 million of output, 11,600 full- and part-time jobs, $330 million in salaries, wages and related income, and $157 million in tax revenue during 2002.

“The timeshare industry benefits Arizona significantly with the generation of a loyal base of repeat visitors, new jobs, and consumer expenditures, as well as the industry’s elevated occupancy rates and overall stability,” said Howard Nusbaum, president and chief executive officer of ARDA.

“Arizona is unique in that such a disproportionate number of timeshare owners in the state own at resorts located in Arizona. With over 80,000 timeshare owners living here, we can see that Arizonans have embraced timeshare and have a stake in timeshare resorts in their home state,” said Jerry Sikes, president of Pro Management and chairman of ARDA Arizona.

The PwC study reveals that Arizona had 46 timeshare resorts with 4,640 individual units at the end of 2002. According to ARDA, there were 1,590 timeshare resorts nationwide with a total of 132,000 units as of January 1, 2003.

In examining direct industry output, the study showed timeshare owners:

– took 169,000 Arizona timeshare vacations during 2002

– spent an average of $1,744 per trip for the traveling party

– yielding total estimated spending of $300 million

– had a traveling party averaging 3.3 people

– spent 7.6 nights in the resort area on average

Prospective and existing owners:

– spent approximately $200 million on purchases of new Arizona timeshares (representing four percent of the $5.5 billion of U.S. sales)

– contributed $110 million toward maintenance fees for existing units during 2002

– with a combined total of $610 million in purchases representing direct industry output.

(1) Compiled in June 2004; counts based on membership in RCI and Interval International.

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