Timeshare Industry Shoots Itself in Foot

Timeshare is a huge industry in SA. It has many avid supporters and arguably just as many detractors.

I have,for years,been a supporter,but am now finding myself questioning whether the definite benefits of timeshare ownership are worth the perils which suddenly seem to appear out of nowhere.

On the positive side there are so many magnificent venues worldwide that offer surprisingly good value for your money.

That value takes the form of regular holidays at the resort where you own the week(s) purchased,as well as the opportunity to space bank your time for later usage,or to exchange time owned for holidays at other resorts either in South Africa or a host of enticing resorts abroad. A local exchange fee costs around R1000 and an overseas exchange is about double this. All in all pretty good value. The system works well.

On the other hand annual levies,which seemed a pittance at the time of purchase,are always increasing at a rate above inflation owing to unexpected cost increases at the resort.

If you decide to sell your timeshare at any time you will find that there is simply no market for it. So timeshare has no investment value whatsoever in SA.

Then there is the “special levy ambush,” something you were never informed of when you first visited the resort or perused the beautiful glossy brochures their marketing people put out. Our experience in Cape Town deserves the Oscar. We own three weeks at the Bantry Bay resort where we spent many beautiful holidays in tired small units,but with views to die for.

Then the bottom fell out of our wonderful association with the Atlantic seaboard.

For five of the last seven or eight years we were unable to occupy our units,two of them due to the noise and dust of the redevelopment of the adjacent building,followed a couple of years later by major renovations of part of our resort,and then two successive years of covid 19 restrictions and shutdowns.

Annual levies of around R20000 for the three units were paid during these years without any compensation other than our right to space bank the time for possible future use. Our simple choice was to give beautiful Cape Town a miss or to stay elsewhere in the mother city at additional costs.

Now we have been informed that major renovations need to be undertaken in 2023 during which time the resort will be closed for half the year,but the management committee requires us to pay a “one time special levy” of approximately R45000 for our units, in two tranches,over and above annual levies with above inflation increases.

Timeshare resorts and management who expect timeshare owners to cough up when their resorts face headwinds,need to understand that there are two parties to the agreement and both need to ensure that the other’s needs are also met.

D Wolpert P O Box 1809 Rivonia 2128 Ph 0825636002

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Begin forwarded message:

From: David wolpert <mwbiggy@mweb.co.za> Date: 23 February 2022 at 22:00:34 SAST To: Busday <busday@bdfm.co.za> Subject: Letter

Dear Sir, Timeshare is a huge industry in SA. It has many avid supporters and arguably just as many detractors.

I have,for years,been a supporter,but am now finding myself questioning whether the definite benefits of timeshare ownership are worth the perils which suddenly seem to appear out of nowhere.

On the positive side there are so many magnificent venues worldwide that offer surprisingly good value for your money.

That value takes the form of regular holidays at the resort where you own the week(s) purchased,as well as the opportunity to space bank your time for later usage,or to exchange time owned for holidays at other resorts either in South Africa or a host of enticing resorts abroad. A local exchange fee costs around R1000 and an overseas exchange is about double this. All in all pretty good value. The system works well.

On the other hand annual levies,which seemed a pittance at the time of purchase,are always increasing at a rate above inflation owing to unexpected cost increases at the resort.

If you decide to sell your timeshare at any time you will find that there is simply no market for it. So timeshare has no investment value whatsoever in SA.

Then there is the “special levy ambush,” something you were never informed of when you first visited the resort or perused the beautiful glossy brochures their marketing people put out.

Five years ago,at a top local resort,my wife and I had our chalet burgled while we slept. Management treated us like criminals for questioning their poor security. We still own the unit and pay levies but we have never been back.

Our experience in Cape Town deserves the Oscar. We own three weeks at a Bantry Bay resort where we spent many beautiful holidays in tired small units,but with views to die for.

Then the bottom fell out of our wonderful association with the Atlantic seaboard.

For five of the last seven or eight years we were unable to occupy our units,two of them due to the noise and dust of the redevelopment of the adjacent building,followed a couple of years later by major renovations of part of our resort,and then two successive years of covid 19 restrictions and shutdowns.

Annual levies of around R20000 for the three units were paid during these years without any compensation other than our right to space bank the time for possible future use. Our simple choice was to give beautiful Cape Town a miss or to stay elsewhere in the mother city at additional costs.

Now we have been informed that major renovations need to be undertaken in 2023 during which time the resort will be closed for half the year,but the management committee requires us to pay a “one time special levy” of approximately R45000 for our units, in two tranches,over and above annual levies with above inflation increases. When they can’t supply the service we pay-when they are short of money we pay. Something wrong here.

Sent from my iPhone