The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

MIAMI, FL- The Bahamas must consider modernising the Timesharing Act to remain competitive and encourage new development, an industry executive telling Tribune Business yesterday that this was “fundamental” to the sector’s long-term growth and health.

Speaking with Tribune Business at the 2013 Shared Ownership Conference, Keith Stephenson, director of state and government affairs for the American Resort Development Association (ARDA), said a deed-based product should be a major pillar of any Bahamian legislation reform.

“In any destination where there is a mature hospitality marketplace there is a focus on timeshare,” Mr Stephenson said.

“The model that we see mostly is the multi-use component, where you have the development of the hotel connected with timeshare. Unfortunately, right now in the Bahamas, the only type of timeshare that can be sold to prospective purchasers is something called a ‘right to use’, which is really a contract, a license which gives them the right to occupy their timeshare interest for a certain period of time.

“One of the major priorities for the multinational developers would be for the Bahamian government to not only provide for right to use timeshare but deeded timeshare.”

Mr Stephenson added: “Major US developers have been selling deeded products for many years. It’s important because not only do they have structures built for that, but they have financing streams that will support it.

“It’s consistent with tax accounting rules in the US and it’s something people feel comfortable with. While right to use is a contract, a license, a deeded interest is an actual interest in the property, an ownership stake.

“They feel as though they have greater protections even though there is protection really on both fronts, because the timeshare laws in the Bahamas do give consumers really strong protections. We think to stay competitive with the rest of the world, it [the Bahamas] really needs to consider modernising the Timeshare Act in a way that’s really going to recruit new timeshare development ,because that’s a fundamental part of its long-term growth and health. The deed based product is a major pillar of that.”

Mr Stephenson said the Caribbean is one of the top destinations in the world, and is very attractive to timeshare owners and developers.

“Timeshare development and travel tourism is a global business, and it’s competing on a global basis. They’re going to develop where there is demand for the product and also more favourable laws that foster development, and laws that balance the interest of the developer and the consumer,” Mr Stephenson said.

“We think the Bahamas is a good example of that. It’s a highly sought-after destination and it’s focusing on new product development. The Baha Mar project is a great example of that.

“The infrastructure has been renovated, they have renovated the airport and it’s really developing a new product, which is one of the most unique experiments I have seen in the Caribbean, and we want to see it succeed.

“The Bahamas is a viable destination. I think the benefits are its proximity to the United States, ease of access, airlift is reasonable, and it has a long history with the US as being a sought-after travel destination. A lot of the US brands are already doing business there. With all the new infrastructure projects and with Baha Mar, that’s something I think the US brands would want to be a part of. I think they could help grow a lot of what’s happening right now. They would sure like that opportunity to try.”