The end of the year and the holiday season is upon us once again. It’s been a tumultuous year with surprising and shocking news across a range of issues, unprecedented volatility, historic events and major challenges on the economic front. To say that it has been an interesting year would be an understatement. Perhaps we could look to a bit less “interesting” in 2009. It is evident that the Timeshare industry is taking a hit with substantial layoffs on the part of Wyndham, Westgate and even Marriott, here in the Timeshare capital of the world, brought on, primarily by the lack of owner financing. A prudent move, no doubt. These are strong companies and will rebound. Marriott reports that their situation is not nearly as bad as some others because they finance a good portion of their transactions. (By the way, let me, and many others, including Congress, express outrage directed at the financial sector. We, the taxpayers, have given them $350 Billion, so far, to loosen credit….AND THEY HAVE DONE NOTHING! SHAME ON THEM!

If there is a bright note, more and more developers and high end vacation home owners are looking to Fractional Ownership as, perhaps, an only option in this market. I think there is some merit in that line of thinking, especially in the high end and Private Residence Club sector, since about 70% of those buyers pay cash for their purchase, rather than rely on financing. Of course, that is cash to the developer and does not necessarily mean that they have not sought financing through other avenues, but in most cases, if some financing is required, it, most likely, comes from an equity loan on a primary residence or other real estate holding, where money is available for those with a lot of equity and are well qualified.

The only thing needed, in order for the Fractional arena to rebound is a level of confidence that we are at the  bottom and that there is hope on the horizon following the inauguration of a new administration. There aren’t many who are willing to predict what may happen in the first two quarters of 2009 and I won’t either, but I am optimistic. More importantly, if anyone is contemplating a Fractional offering, may I suggest that they get started now. The planning and set-up time is, at least, 90-120 days. Registration may take more than that. Be ready to go when things start to get better.

My onsite broker at Playa Langosta Private Residence Club www.playalangostaprc.comin Costa Rica is reporting an uptick in interest and sales from European buyers. My marketing arm, Case Marketing Group, Inc. is seeing a new consumer in the vacation home arena….Scandinavia, and we are actively cultivating that market.

As we wind up 2008 and get ready to welcome 2009, let us work harder, be smarter, get ready and greet the new year with optimism and resolve.

HAPPY HOLIDAYS EVERYONE

If you have any good news to report, please, leave a comment here. When you succeed, we all succeed.