ENGAGEThe voice of the South African shared vacation ownership industry

Edition 14 | February 2019

GREETINGS VOASA MEMBERS!Let’s engage on all matters relating to our industry!

Industry & LegislationOutcome of the NCC public inquiry The NCC finally released its much-anticipated report on the 6th of December 2018. Commissioner Ebrahim Mohamed’s presentation at the press conference included some very positive comments that recognised the industry’s role and contribution to tourism and the GDP. Below are some of the quotes he made:

• The inquiry was meant to unravel and understand the complexities of the industry, assess the extent of consumer challenges, and to after assessing all facts and balancing them with research, make recommendations to improve consumer protection within the timeshare industry. The recommendations that were made are mainly to correct the structural and behavioural problems in the industry, as identified.

• The NCC was encouraged by the response received from Vacation Ownership Association of Southern Africa (VOASA) on behalf of their members. In their response VOASA stated amongst others that: “The Association confirms that the Industry is committed to engage in discussions to resolve the matters addressed in the report; and to follow due process as provided for in relevant legislature

• In giving effect to these recommendations government will work with the industry to place it on a positive trajectory. It is no secret that the industry contributes vastly to the country’s GDP. From the outset, our intention was never to punish the industry. Ours, was to rid this industry of its ills and to ensure that consumer transactions are fair and compliant with the law.

Chief director for policy and legislation at the DTI, MacDonald Netshitenzhe, said the department would need to analyse the report and seek legal guidance with regard to the CPA and other legislation, competition and trademark issues. The department would work on this internally, but the start of the legislative process would be unpredictable because of the election this year.

The focal areas that the report addressed were as follows:1. Management of clubs2. Competition issues3. Marketing4. Credit card complaints 5. Contracting6. Legislative reform7. Points in the industry8. Quality of service or availability of accommodation

In response to the report, VOASA took the decision to release a statement that did not engage in any specifics contained in the report until the Association had time to properly review the contents thereof.

Read the press statement released on 6 December 2018

Moving ForwardA Government relations strategy has been prepared by Ethicore, which outlines the approach that will betaken in engaging with Government on the matters raised in the report, regulation, policy regulatory affairsand consumer protection.

The NCC report is being viewed as a “cog in the wheel” towards shaping the future of our industry. We believe that these developments are a positive step towards ‘cleaning up the industry’ instead of leaving the ‘good players’ to manage the current situation.

As the timeshare industry is a major contributor to tourism, a focal angle of our government engagement willbe to propose that the industry falls under Tourism rather than the DTI so that it can become the mainstreamof tourism strategic thinking.

The full government relations strategy will be presented and discussed at the upcoming RCI Industry meeting on the 6th of March.

Legislative matters The Property Practitioners Bill, its impact on the industry and VOASA’s discussions with SAPOA and other bodies regarding this matter, will be addressed at the RCI Industry meeting on the 6th of March.

9. Engagement with industry on existing complaints

Member OperationsVOASA Complaint Mediation ServiceThis service has been operational for the past 6 months and over this period wehave received the following complaints:

RCI OSCAS Gala Awards and Industry Meeting In what has become the esteemed industry event of the year,the 2019 RCI OSCAS Gala Awards will take place on the6th of March in Pretoria. VOASA has once again been kindlyinvited to address the Industry Meeting on the morning ofthe 6th, where we will be presenting our Government RelationsStrategy and discussing the pending Property PractitionersBill and the impact thereof on the industry.

Updated SA market surveyOver and above our participation in the next ARDA global survey, the Association will be conducting an updated South African industry survey to produce current statistics that effectively communicate the true value of timeshare to the tourism and economic sectors. This survey will be an essential tool for our government lobbying and PR campaigns this year.

Complaint Mediation Service – number of complaintsThe nature of the complaints were mostly cancellation issues and have been forwarded to the relevant VOASA members. The VOASA office will continue to monitor the progress thereof.

Number of general inquiries(i.e. pertaining to cancellation and/ or selling of points)

Number of Sales Related Inquiries (i.e. pertaining to the purchase of timeshare and additional product information)

REPORTING PERIOD: 1 SEPTEMBER 2018 TO 31 JANUARY 2019

TOTAL: CONSUMER COMMUNICATION

36

56

40

132

ARDA launches its ‘coalition for responsible exit’ websiteOne topic that has been at the forefront of the industry over the last decade is the lifecycle of a timeshare purchase. Many of the owners who originally purchased the product in its infancy are now coming to a season of their life where they have very different travel needs and are looking for viable options for exiting their timeshare contract. This shift compelled ARDA to address the issue and work together with the industry to create a solution. Howard Nusbaum, ARDA’s president and CEO, said: “We have a responsibility as an industry to give our owners both usage and exit options, to educate them on how to get the best out of their ownership while they are utilizing it, and how to safely exit their ownership when their lifestyle or travel needs change”. The newly formed website is a collaborative project between ARDA, a group of eight timeshare developers, exchange companies RCI and Interval International, and ARDA’s Resort Owner’s Coalition. The Coalition for Responsible Exit provides useful information for owners who are looking to safely sell, change, cancel or exit their timeshare.

PR & MarketingRCI Ventures magazineIn 2017, VOASA made a valuable contribution to the RCI white paper on the shared vacation ownership industry – Leisure Real Estate Trends and Opportunities – by providing an insightful State of the Nation for the South African region. This year, the Association has been invited to contribute to the lead feature of the next edition of the RCI Ventures business magazine, Q1/Q2 2019. The editorial will focus on the timeshare industry in South Africa, product sales and trends, emerging markets and its role in the wider leisure market.

We would like to express our appreciation to the memberswho assisted with information for this article.

Press CoverageWith so much confusion between Travel Clubs and Holiday Clubs, mostly arising from the NCC public inquiry coupled with the consumers’ misconception of the two products, VOASA released an article explaining the difference between Travel Clubs and Holiday Clubs and cautioned consumers to be vigilant when approached by Travel Clubs during the peak holiday season.

Global News

(Read the full article by Lindsay Graham in ARDA’s January 2019 issue of DEVELOPMENTS)

Local Member News

VOASA Applauds the Peninsula All-Suite Hotel for putting their buying power behind local producers in a move towards local economic sustainability

“It’s a win-win for everyone. Firstly, supporting local businesses is more cost effective for the hotel but more importantly, it stimulates the local economy in so many ways. Existing businesses are allowed to grow, and new ones are encouraged to break into the market, affording us better products and talent,” says Chris Godenir, General Manager of The Peninsula All-Suite Hotel.

Sourcing ingredients from authentic and sustainable local suppliers, the hotel’s Sunset Restaurant has brought to life a diverse culinary selection that features a number of local influences. Both the ingredients and the suppliers have been chosen with care to ensure the local economy is the prime benefactor of the hotel’s activities. The commitment to the initiative also extends to one of The Peninsula’s biggest partners, Woodstock Gin Company.

“We source our botanicals from a local nursery called the Cape Flats Fynbos Nursery, who are doing a fantastic job in preserving our indigenous fynbos and also providing jobs to local people in the area. Woodstock Gin’s own contribution to job creation has increased over the years and we now provide eight different jobs, seven of which are to previously unemployed and disadvantaged people,” says Simon von Witt, Co-Founder of Woodstock Gin Company.

Concludes Chris Godenir: “Supporting the local economy is the only way to ensure a sustainable future and the Peninsula couldn’t be prouder to be part of making the changes necessary to achieve it.”

On A Closing NoteHere’s a reminder Why your VOASA membership makes perfect sense

1. Credibility

• With the shared vacation ownership industry currently under the spotlight, there has never been a better reason to install confidence in consumers through a trade association membership and adherence to its Code of Conduct.

• Members are encouraged to use the VOASA logo on all their sales literature, website and business stationery as it acts as a positive endorsement for consumers that they are dealing with a company committed to offering the best in South African shared vacation ownership.

• Your membership shows consumers that you are engaged, taking initiative and staying current with changes in the industry.

2. Lobbying on your behalf

• As the recognised voice for the industry, a VOASA membership gives you a direct link to get your point raised on various issues.

• VOASA communicates the views, interests and value of the South African timeshare industry to key governmental, parliamentary and regulatory stakeholders through a proactive government lobbying campaign.

3. Industry insights

• VOASA keeps its members on top of important ever-changing issues, trends and new developments in legislation within the industry, which is communicated through its newsletter, direct emailers or member login portal on the website.

4. Global industry networking

• Members benefit from global information sharing and cross-border business relationships through VOASA’s membership with GATE (the Global Alliance for Timeshare Excellence).

5. Complaints mediation service

• Members have the use of VOASA’s fair and impartial complaints mediation service between themselves and consumers to assist in reaching amicable solutions.

• VOASA works closely with the CGSO (Consumer Goods & Services Ombudsman) to monitor consumer complaints and the resolution thereof.

6. PR / Marketing & advertising

• Members are marketed through the member directory on the VOASA website, which is referenced in every press release.

• SEO is available through links from the VOASA website’s member directory to the member’s website. • To ensure the continued growth of the industry, VOASA’s positive PR campaign is aimed at raising

the awareness and understanding of shared vacation ownership / timeshare for consumers through a large-scale media platform that has an advertising equivalent value of over R2 million per annum.

• VOASA runs a daily media monitoring service and where necessary engages with media to rectify and/or retract any factually incorrect reporting on the industry or VOASA members.

• Member’s benefit from their brands and resorts being featured in VOASA’s advertising and social media campaigns and are also invited to provide comment in press articles meaning further free publicity for their brands.

7. Industry research

• By pooling resources from its members, VOASA is able to conduct industry research that offers informative and useful insights for members, media and the general public.

• VOASA facilitates participation in global research studies conducted by other trade associations, such as ARDA, and makes this information available to its members, consumers, media and government.

A VOASA membership is an investment in the future of your industry – which is a direct investment in the

prosperity of your own business.