Timeshare to contribute Dh14bn to Dubai
Dubai is set to be the fastest growing timeshare market in the world and this sector will give the emirate's economy a Dh14 billion boost by 2020 – thanks to the significant increase in the number of tourists, real estate prices and hotel room rates in the emirate over the next decade, according to a new study.
“Dubai is one of the top cities in the world that receive frequent international visitors – new and returning ones – both for business and leisure, exceeding those registered by many tourist destinations globally. And this makes Dubai an ideal place to invest in the timeshare sector,” said a report by Arabian Flacon Holidays (AFH), a Dubai-based timeshare sales and marketing company.
"With property prices in Dubai clocking the fastest growth rate in the world in 2013, many aspiring property owners in the emirate are being priced out of the second home or vacation home market. For such people who visit Dubai on a regular basis and stay in one of the hundreds of hotels around the city, an investment in timeshare makes perfect financial sense," said Mohannad Sharafuddin, Chairman and CEO of Arabian Falcon Holidays.
In the UAE, the timeshare industry grew by 15-20 per cent in 2013 and is estimated to have grown by 30 per cent in 2014, according to AFH report.
Titled 'Demand Outstripping Supply', the report maintains that the growth is spurred by global economic recovery in general and robust growth in the UAE in particular, buoyed by strong tourism and hospitality sectors and a property market that is back to the boom cycle.
The timeshare industry, also called vacation ownership, received a massive boost in 2014 from the sustained recovery in the global economy and a resultant rise in both hotel room rates and property prices in major tourism destinations.
The report maintains that the demand for timeshares in the UAE has been outstripping supply, prompting vacation ownership players to look for other destinations to meet demand.
“While the demand has been growing year-on-year at around 80-90 per cent, the number of timeshare properties in the UAE has not been able to catch up with this growth,” the report said.
“One of the reasons supply has not been able to catch up is that developers and other multi-national hospitality companies are still waiting for the finalisation of the draft regulation for the timeshare sector.”
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