Timeshare under threat from possible new legislation!

Recent media headlines generated by possible changes to European legislation are blurring the line between true timeshare and a number of dubious non-timeshare products such as Discount Travel Membership Clubs.  These products, not even based on real estate, are clearly not timeshare under the existing legal definition.

Headlines such as ‘EU plans legislation to thwart timeshare scams’ can only harm reputable timeshare businesses. Impugning the reputation of true timeshare could have a seriously detrimental effect upon hundreds of thousands of timeshare owners. Casting unfair doubt on the value of real timeshare ownership could well affect the resale value of timeshare properties for those owners wishing to resell their weeks.  This legislation is probably the most important issue for timeshare owners and their resorts since the original timeshare legislation changed the industry forever in the 1990’s. 

Further legislation against timeshare resales businesses is also being considered.  As the real issue is with fraudulent companies (mostly operating out of Spain) who prey on existing timeshare owners, no amount of legislation can possibly make any difference.  Only enforcement of existing legislation and education can.

Legislation with regard to the management of timeshare resorts including the capping of management fees to inflation and the transfer of management responsibility to timeshare owners may be imposed.  As management/maintenance fees are already under the control of either owners’ representatives or trustees for most resorts, this would be unnecessary and unworkable in any event.  It may also result in Owners Committees making substantial increases in fees now to protect owners and resorts in future.  There is no evidence that timeshare owners, in fact, want the responsibility for running resorts – one of the key reasons for purchasing timeshare is that owners don’t want this kind of obligation. 

Given recently publicised research findings by the OTE (Organisation for Timeshare in Europe) of over 15,000 UK timeshare owners that 75% are pleased with their decision to buy timeshare and 72% would recommend it to their friends, one can only wonder if this is not a case of legislation for legislation’s sake albeit with the best motives for consumer protection in mind.

How can you help?  If you are a timeshare owner and concerned about this legislation, contact your local MEP.

Click Here for TATOC's Submission to the EU Commission NOTE:  Registered users only, you must log on to access, Click Here to log on.