Is the Timeshare Industry a Cash Cow Worth Protecting?

Mark Matthews and the Orlando Sentinel recently released an article titled,”The Time-share Industry is Safe Under Grayson’s Watch” that describes how freshman Congressman Alan Grayson successfully received an exemption for the timeshare industry in a recent bill designed to curb predatory lending practices in the mortgage industry.

The exemption essentially allows the time share industry to dodge proposed regulations on same-day purchases and lengthy escape clauses that would allow consumers to leave some contracts if they find themselves in over their heads.

The reasoning for this from Congressman Grayson stems from the fact that Central Florida (his district) is so heavily economically dependent upon the timeshare industry.  The Congressman makes the analogy that timeshares are to Florida like oil is to Texas and corn is to Iowa.

But who ultimately finances the timeshare industry?  Why do development companies, hotel chain and state & local governments love timeshares?  It’s a cash cow for all of them.  Per unit built, timeshare units are among the most profitable vacation accomodations for hotel chains.  Hence, developers can charge more and governments can increase their tax base, especially if timeshare owners come from out of state.  It’s a great way to increase tax revenues without taxing the majority of your constituency.

For timeshare owners, the vacations are lovely and the time spent with family is precious.  But know that your dollars spent in the purchase, maintenance and other fees are funding some major developments and lobbyists.  Just keep your eyes open.

5 Responses

  1. The cash cow also feeds the communities surrounding the timeshares through employment and tourist spending.

  2. […] Read more from the original source: Is the Timeshare Industry a Cash Cow Worth Protecting? « Timeshare … […]

  3. No.

  4. Does providing very high interest rates (16%)for people with a Fica scores of 680 and above fall under predatory lending? Normally the timeshare sets up the financing with a bank and gets a kickback. That kickback is the hidden charge that is not disclosed to buyer.

    • Hello Kevin! We don’t have the expertise to answer your specific question about predatory rates, although from a layman’s point of view, 16% would sound rather high. As for a kickback, that would seem illegal in many states; perhaps an investigative reporter could find out more.

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