RCI Ventures - April 2008

FINNISH AT THE STARTINTERNATIONAL INVESTORS GEAR UP TO MAKE MOST OFOPPORTUNITIES IN FINLAND

LOOKING AHEADPLENTY OF POTENTIALIN ITALIAN MARKET

LEADING LIGHTPROFILE OF GERMANY'SMONDI-HOLIDAY CLUB

IN THEFAST LANE

Enterprising ideas for the vacation industryEnterprising ideas for the vacation industry

VENTURESVENTURESApril 2008April 2008

INSIDE: FOOD FOR THOUGHT | IMAGE CONTROL

INDUSTRY KEEPS PACE WITHMIDDLE EAST’S RAPID DEVELOPMENT

FINNISH AT THE STARTINTERNATIONAL INVESTORS GEAR UP TO MAKE MOST OFOPPORTUNITIES IN FINLAND

LOOKING AHEADPLENTY OF POTENTIALIN ITALIAN MARKET

LEADING LIGHTPROFILE OF GERMANY'SMONDI-HOLIDAY CLUB

IN THEFAST LANEINDUSTRY KEEPS PACE WITHMIDDLE EAST’S RAPID DEVELOPMENT

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Contents

Ventures is published by Group RCI, Kettering Parkway, Kettering, Northants, NN15 6EY, United Kingdom. Tel: +44 (0)1536 310101. Fax: +44 (0)1536 314682. Email: [email protected] EDITOR: Helen Foster.ASSISTANT EDITOR: Sarah Lee. STAFF WRITER: Simon McGrath. PRODUCTION EDITOR: Sarah Young.PRODUCTION CO-ORDINATOR: Claire Williams. ADVERTISING SALES: Media Line Ltd. Tel: +44 (0)870 2508701. Repro: JP Repro. PRINTING: CKN Print Ltd. Pictures courtesy of Finnish Tourist Board, Digitalrailroad andGetty Images. Original articles and contributions may be reproduced or transmitted only with written permissionfrom the publisher. No responsibility is accepted by RCI Europe for any losses or other consequences resultingfrom advertisements or other material appearing in this publication. RCI Europe reserves the right to accept orrefuse advertisements at its discretion without assigning any reason for doing so. © RCI Europe 2008.

4 Market outlook: A news and views round-up from around the world

10 Cover story – In the fast lane: A variety of products are helping the leisure real estate industry to keep pace with the Middle East’s phenomenal development

14 The German giant: Mondi-Holiday Group, one of Germany’s leading developers, has plans to expand its enterprise even further

16 Market report – Pride and passion: Timeshare is flourishing in Finland, where a stable economy, government support and legal safeguards go hand-in-hand with an increasingly popular tourist destination

22 Optimising opportunity: Italy has all the attributes of a top tourist destination and much to offer the forward-thinking timeshare developer

26 Hot tables: Food and beverage has always offered an additional revenue stream, but modern menus and restaurant styles are also starting to define and differentiate resorts

28 A story of health and wealth:A look at how health is starting to mean wealth when it comes to modern resort amenities

30 Final call: Despite global economic pressures WTTC president JEAN-CLAUDE BAUMGARTEN predicts more travel and tourism growth in 2008

I am pleased to be able towelcome Jonathan Back toGroup RCI as managing directorof our European operation.

He joins us from PictureFinancial Group where he wasboard director and, prior to that,served for 13 years in a rangeof executive posts with MBNAEurope. As you will see fromthe lead news story on page 4,I believe Jonathan has thepersonal qualities andprofessional experience to takeGroup RCI and its developer

and owner communities forward, helping to enhance thevalue of affiliation for developers and the holidayexperience for their owners.

The Middle East is clearly going to be a source ofmany diverse and exciting new holiday experiences forvacationers. As the implementation of timeshare law inDubai is now imminent, this market is opening up to ourindustry. It is anticipated that other emirates will followsuit, basing their laws on those of Dubai. Group RCI hasbeen working with leading leisure real estate developersand legislators in the Middle East for many years inshaping legislation and identifying the right product forthe market. As you will see in the cover story on page10, Group RCI’s long-term support of developers in theregion has formed the basis of several strong workingrelationships and a series of valued affiliations at flagshipdevelopments. And this is just the start of what promisesto be one of the fastest-growing leisure and hospitalitymarkets in the world.

It is important not to overlook Europe, however.Several established European markets are experiencingan increase in levels of activity and we highlight some ofthose in this issue of RCI Ventures. The market updateon Italy on page 22 reveals the potential in that marketfor fractionals, while in Finland, featured on page 16, theindustry has benefited from strong legislation and atransparent and open approach to sales creating anenvironment which attracts new developers and in whichestablished ones flourish.

We are seeing a steady increase in newdevelopments coming into the shared-vacationownership portfolio in the region. Certainly, Group RCIexperienced a higher level of affiliations in Europe lastyear than in 2006. Not only did we affiliate moreproperties, but we made good progress in expanding thegeography of our exchange network.

On page 7 there is a small selection of newly-affiliated resorts offering a wider range ofdestinations and exchange options to our members andyour owners. The potential for growth is there in Europe.It’s a question of identifying the right business model forthe market and selecting the right partners to help youfulfil the potential of your development.

Sincerely

John Paul Nichols,

President and managing director, Group RCI, EMEA

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4 l RCI Ventures, April 2008

Club LaCosta Resorts & Hotels(CLC) is expanding itsbrand across Europe tosatisfy memberdemand for its qualityproduct.

The new resorts thecompany will be bringing intoits CLC Vacation Club will beeither new-build projects oracquired properties, though inthe first instance they will berented.

In the short term, 50- to100-unit complexes havebeen rented in France,Greece, Italy and Portugal.Where appropriate, partnerresorts will be given the ClubLa Costa California Beachtreatment, with interiors beingdesigned in the luxury styleshowcased at the CLC resortof the same name on theCosta del Sol. CLC teams willbe overseeing the work toensure consistent standards.

New-build projects at itsCosta del Sol site include the90-unit Santa Fe resort, andthe California Beach Hotel and

Residences, housing215 apartments, oneof Spain’s largest spasand a 7,000m2

commercial centre.Both projects areexpected to completein 2010.

CLC also plans to build aresort on Tenerife, and isprogressing a restorationproject at historic TrenythonManor in the UK. In Turkey,CLC is branding units at theLoryma resort in Marmaris,and the company has enteredinto a joint venture toundertake a mixed freehold/timeshare development nearBodrum.

Chairman and founder RoyPeires said: “We aim to add500 units across Spain,Tenerife and Turkey over thenext two years and ultimatelyto have our own network ofbuilt, developed and managedresorts in all the bestEuropean locations.”

Club La Costa currently has22 resorts in Spain, the CanaryIslands, UK and Austria.

INDUSTRY:

CLC expands the brand

UK visits to Turkey flourishFigures announced by the Turkish Culture and

Tourism Office (TCTO) have revealed that UK visitor numbers

are up by 13.74 per cent.

There were a total of 1,840,307 visitors between January

and October 2007, compared with 1,606,180 in the same

period in 2006.

TCTO UK director Sermin Ozduran said: “We are

incredibly pleased to see the number of travellers to Turkey

grow among new and repeat visitors.

“These figures demonstrate that Turkey is a year-round

destination offering something for everyone.”

Turkey is predicted to be among the top three leading

tourist destinations in the Mediterranean by 2020 and

Istanbul will be European Capital of Culture in 2010.

A newmanaging director hasbeen appointed to leadGroup RCI in Europe.

Jonathan Back joinsthe company from PictureFinancial Group, a leadingsecond mortgagespecialist funded byMerrill Lynch andDeutsche Bank, where hewas board director, chiefoperating director anddeputy CEO.

John Paul Nichols,president and managingdirector, Group RCIEMEA, said: “In JonathanI believe we have found adynamic and motivatedleader who will drivebusiness in new marketsfor both Group RCI and itsdeveloper communitywith enthusiasm andimagination.

“Jonathan also hasmuch valuable experiencein many of the operationalfields that are crucial togrowing our business. Hehas a strong businessdevelopment andmarketing orientation, aswell as a focus oncustomer service andsatisfaction which will bekey in assuring a 100 percent customer-centricenvironment within GroupRCI.”

In his previous role,Back drove the tactical andstrategic development ofcustomer service,

including call centreoperations. A charteredaccountant, he spent 13years of his career withMBNA Europe, theEuropean subsidiary ofMBNA Corporation. Back’swork at MBNA saw himplaying a major role in thelaunch of one of the UK’sleading financial servicecompanies.

Back will be workingout of offices in Ketteringand Earby in the UK, andwill be travellingextensively and workingwith Group RCI’s BrettArchibald, senior vicepresident, businessdevelopment, and DimitrisManikis, vice president,global business group, toenhance the value ofaffiliation to the developerand owner communities.Nichols added: “Jonathanwill be working with ourdevelopers and our globalbusiness developmentteam to enhance thevalue of affiliation byensuring both establishedand new business modelsreceive all the supportthey need to help themgrow their business.”

PEOPLE:

Roy Peires

market outlooka r o u n d - u p

New MD forGroup RCI in Europe

Jonathan Back

TRENDS:

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RCI Ventures, April 2008 l 5

The Pestana Group is celebrating a doublefirst with the opening of its first London hotel and thelaunch of its first hotel room leaseback programme.

The Pestana Chelsea Bridge Hotel will be ownedand operated by the group when it opens inSeptember next year. Peter Booth, managingdirector of Pestana Group, said: “Buying a room atthe Pestana Chelsea Bridge Hotel is a way ofinvesting in London’s burgeoning hotel and propertymarket without an enormous outlay. It also providesa base in London with flexible usage alternatives.”

The four-star hotel has 218 rooms, 66 of whichwill be put into the leaseback scheme. Purchasers ofthe rooms will buy into a 990-year lease with prices starting at £295,000.

Room rates at the hotel are anticipated to be between £130 and £160 per night. Thehotel will manage the room rental and owners will receive 50 per cent of net roomrevenue with a gross six per cent per annum guaranteed return for the first two years andan option of 30 days’ personal use. Pestana offers the opportunity for 15 of those usedays to be spent at any of its hotels in Portugal, Brazil, Argentina, Cape Verde,Mozambique and South Africa.

HOTEL:

Pestana chooses Chelsea forfirst leaseback property

o f i n d u s t r y n e w s , v i e w s , a n d p e o p l e t o w a t c h

Anthony Arke, formerchief executive officer of theOrganisation for Timeshare in Europe(OTE), has died aged 48.

Anthony, pictured, a former directorof external relations for the EuropeanAdvertising Agencies Association,joined OTE in June 2004.

He had previously headed up theEuropean Association of Biotech andwas a former director general of theEuropean Spirits Association.

Anthony didn’t just work in theindustry, but owned timeshare, andwas an accomplished linguist –speaking English, German and French,as well as his native Dutch.

He held two Masters Degrees, inInternational Relations and EuropeanStudies, working as a managementconsultant to multinationalcorporations after his studies.

Anthony stepped down from hispost at OTE in April 2007 and lost hisbattle with cancer on February 10. Heleaves his wife Gaëlle and two youngsons Charles-Quincy and Laurenzo.

OTE chairman Dénis Pieke, ofHoliday Club Hungary, said: “Industryfriends and colleagues will want to joinus in conveying their condolences toAnthony’s family and many friends.”

OBITUARY:

Anthony ArkePestana Chelsea Bridge Hotel.

BAXL Europe,

suppliers of wireless and

wired broadband solutions

to the hospitality industry,

has launched the Merlot

Solution, its new European

brand.

The technology has

been marketed and

distributed in the UK as

vRoom, one of British

Telecom’s core portfolio

products. Throughout

Europe the product will

now be marketed as Merlot.

BAXL has also appointed a new

strategic account manager in Europe.

Ashley Hall joins the company from

von Essen Hotels where he worked for

five years as IT and web manager.

Prior to that, he was a business

development manager in the leisure

industry.

Hall said: “It was as IT

manager with von Essen

Hotels that I was

introduced to BAXL and

the Merlot Solution line.

Increasing demand from

guests for wireless

broadband led us to look

at five different suppliers.

There was no question

that BAXL was the best

solution. We implemented

the product in eight of our

26 prestigious properties

and found that the discrete and reliable

in-room wall-mounted device took the

place of a lot of ugly bulky units, and

met both guest and hotel needs.”

BAXL has recently launched a new

Merlot product, the wireless LapJack.

It delivers resort-wide and wireless

hotspots broadband connectivity from

a small device.

PRODUCT:

BAXL takes technology to Europe

Ashley Hall


Organisation forTimeshare Europe (OTE) isrunning a seminar in Edinburgh,Scotland, on May 22.

The seminars have become aregular feature of the annual OTEevents programme and providean opportunity for everyoneinvolved in resort developmentand operations to put questionsto the experts and to receive anupdate on industry issues.

Scottish DevelopmentInternational is hosting both theseminar and the dinner. Theseminar venue is the DynamicEarth science centre andsubjects covered will include thefuture of tourism in the UK,digital and electronic marketing,an overview of OTE UK chapteractivities and a review oftimeshare in the UK. During anopen session, delegates will beinvited to quiz both the OTEteam and the guest panelexperts and speakers.

In the evening there will be ablack tie dinner for delegates andtheir partners to be held atPrestonfield, a 17th centuryhouse and hotel just minutesaway from the Royal Mile.

OTE’s Athens seminar set forApril has been cancelled and willnow be rescheduled next year.

The OTE11 Forum takes placethis year from October 13 to 15at the Hotel Melia Castilla inMadrid.■ For details of how to registerfor the Edinburgh seminar orfurther information about OTE11,visit www.ote-info.com

Finland has become a foreigntourist hotspot with over €970 millionbeing spent in the country last summer.

The figures, released by StatisticsFinland and the Finnish Tourist Board,represent an increase of four per centon the same period – May to October2006.

On average foreign tourists spent€291 while in the country, equivalent

to 49 a day. A third of the money spentwas on shopping, a quarter onrestaurants and cafés, and a fifth wenton accommodation.

Most of Finland’s visitors comefrom Sweden, Estonia and Russia,with the number from the latter rising15 per cent on 2006.■ See page 16 for our market reporton Finland.

OTE onthe road

Finland basks in the Midnight Sun

Market Outlook


INDUSTRY:

INDUSTRY:

The Registry Collection, aluxury exchange platform for high-endfractional properties backed by Group RCI,now has 130 associate propertiesworldwide.

European affiliations are starting togather pace. Two of the most recentdevelopers to join are IFA Hotels &Resorts with its upscale Pine Cliffsproperty in Portugal, and Ward Woods,CEO of Regency Resorts, with theprestigious Regency Country Club insouth Tenerife.

The PKN Princess Resort in Dubai (seepage 13) has also signed up to join TheRegistry Collection.

Fractionals are all about location andThe Regency Country Club benefits frombeing in the quiet residential area ofChayofa, while being close to six golfcourses and the beach. The price of a 12-week fractional ownership ranges from €100,000 to €400,000.

The relationship with a fractionalspurchaser is developed over a period ofweeks rather than hours, but the revenuereturn per unit on each sale is very muchgreater than on a traditional timesharesale.

Woods says sales at his property aregoing very well. He added: “It’s atremendously successful model. Thereare a lot of cash rich, time poor people outthere unaffected by the credit crunch. Andfractionals overcome the main objectionsto buying holiday real estate which is thepurchaser not necessarily foreseeing theywould always want to holiday in thatsame property.

“The Registry Collection offerspurchasers the option of being able toexchange their property use for one of thesame high quality in other desirableholiday locations. This flexibility is awelcome add-on for purchasers and apersuasive reason to buy.”

PRODUCT:

Growth in European luxury marketThe Regency Country Club.



Though Group RCI prides itself on aprogramme of continual innovation which

has brought many exciting new concepts tomarket, some things will never change.

There is one area in which we believe lesschange is more. When it comes to the peoplewho deal with our developer community andindustry associates, we at Group RCI are proudof the fact that the majority of them havecareers spanning 10 years ormore with our company.Between them, our globalbusiness group resort salesand services team have 300years of experience andservice with Group RCI. Imyself have been with thecompany for 17 years, while colleagues such asTina Prati, who will be known by many in theUK, and Paula Rodrigues of our Albufeira officein Portugal have each been with us for 18 years.Longevity of service and staff loyalty is adistinguishing characteristic of Group RCI whichbenefits the company and its clients.

Group RCI has more people workingalongside its clients in local markets than any ofits competitors because we know how muchour affiliates value local representation.

Group RCI’s strength in maintaining solidworking relationships paid dividends last yearwhen our group had a higher level of newaffiliations than in 2006. But it’s more than anumbers game. It’s also about expanding thegeography of our exchange network to enhancethe value of membership and give our affiliatesa better offering at the sales decks. On the rightare examples of just some of the exciting newdestinations and resorts that came into theGroup RCI exchange portfolio last year. I’d liketo take this opportunity to thank our establishedaffiliates for their loyalty, and to welcome our new developers to the Group RCI family.

It’s not all change

Expanding the network

Dimitris ManikisGroup RCI’s network of affiliated resorts has been expanding

across Europe.

Among the new affiliates is one of Germany’s oldest hotels –

the 400-year-old Parkhotel Wehrle. The property is set in the

picturesque Black Forest close to the Swiss and French borders,

and has two award-winning restaurants.

RCI’s first Russian affiliation, Holiday Club St Petersburg,

has been built by Holiday Club Resorts and awarded provisional

RCI Gold Crown status.

The resort – designed as a spa haven – is situated on Vasil

Island, which is connected to St Petersburg by a 200-metre bridge.

Menzies Welcombe Hotel Spa & Golf Club offers guests the

chance to explore Shakespeare country in England.

The Jacobean-style building dates back to 1866 and is set in

64 hectares on the edge of Stratford-upon-Avon. The provisional

RCI Gold Crown hotel has undergone a major refurbishment,

including the opening of its Welcombe Spa.

A prestigious Portuguese hotel group has entered its prime

property in the heart of Vilamoura into RCI’s exchange network.

The Royal Dom Pedro Vilamoura Resort – part of the Dom

Pedro Hotel Group – has RCI Gold Crown status and all apartments

have balconies with sea views.

Holiday Club Ekerum Golf Resort is located on Öland,

Sweden’s second largest island just off the country’s south-east

coast. Its two-bedroom apartments run alongside the greens of

one of the two 18-hole golf courses annexed to the resort, and

many have sea views.

INFORMATION EXCLUSIVELY FOR GROUP RCI - UK AFFILIATES

Group RCInside

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Dimitris Manikis, vice president,Group RCI global business group,highlights the benefits of consistentand loyal affiliate-facing teams.

Clockwise from top left: The Parkhotel Wehrle. An artist’s impression of a guestarea at Holiday Club St Petersburg. Holiday Club Ekerum Golf Resort. RoyalDom Pedro Vilamoura Resort. Menzies Welcombe Hotel Spa & Golf Club.

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The drive for a better industry reputation

should be endorsed by all areasof the business. If we go onmaking mistakes individually itwill serve to perpetuate a‘dodgy’ image of our industryand everybody in it will suffer.

Making a quick killing onthe sales deck does notnecessarily assure a future.Short-term profit does notalways equate to deliveringsatisfactory service or happycustomers, and it meansnothing in terms of a healthylong-term outlook. A goodreputation, on the other hand,will increase bookings, heighteninterest in your product and aidlong-term profitability.

The entry of the big brandnames into the business hascertainly been influential inmaking the media sit up andtake notice and making theconsumer think again.

Although not everytimeshare operator has thebudget to create an instantlyrecognisable brand, there arepartnerships and brandimprovement exercises inwhich all companies, no matterhow small, can participate.

First things firstYou can start by assessing whoaffects your reputation anddrawing up a strategy forensuring you meet theirexpectations. There will be anumber of people ororganisations with which you

should be engaging to raise yourreputation and profile.

Your owners are the mostimportant people, and theirreferrals are worth their weightin gold if you are to build yourbrand and product reputation.

Ask yourself the followingquestions: How do you handletheir enquiries? What is yourresponse to complaints andsuggestions? Are bookings andrequestsforinformationhandledefficiently and quickly? How doyou respond to people who say‘no’ at sales presentations?

These are just a few areaswhere your response is crucialin forming opinion and buildingreputation in the immediateand wider communities.

Involvement in theindustry’s trade bodies,including hospitality and travelsector organisations, is a veryeffective way to raise yourprofile and get your operationtalked about in the right way.

Good touch points in local


Poor consumer perception of product continues to frustrate the industry. JACKIE MURPHY, managing director of Flagship Consulting – PR advisers to Organisation for Timeshare Europe (OTE) in the UK – calls for a continued focus on key messages andunfailing professionalism if the industry is to get the respect it deserves.

communities include decision-makers such as politicians,councillors and regional tourismbodies. Good relationships withthese groups will not only raisethe industry profile, but canhelp with development plans.

Are you on good terms withlocal lobbying groups and canofficial bodies such as tradingstandards organisations come toyou for help and information?Remember, these people canmake life difficult for all traveland tourism sectors if nothandled in the right way.

Are you confident in dealingwith enquiries from journalists,be they local, national or fromthe trade media? These peopleare opinion-formers and failureto engage with them, especiallyover ‘bad news’ stories, can onlyharm your case.

Have you assessed what youwant your corporate reputationto be? Look at your key marketsand decide how they shouldperceive you. There is littlepoint developing a reputationstrategy if you don’t know whereto start.

This will change accordingto audience, but you shouldhave some consistent messagesin place to enable people toform a positive picture of yourbusiness and build confidence.

Try to be as open as possiblewith people and remembertimeshare will have to tryharder than other industries toget its message across.

It’s important to find out

what your local community andinterested bodies think aboutyou and alter yourcommunications or practicesaccordingly. Make sure youundertake regular reputationchecks and don’t dismisscriticisms – use all feedback ina positive way.

Also, consider abenchmarking survey andsetting a standard to underlineyour commitment to quality.

ProactivecommunicationsThink about publishing yourown newsletter. This could bemailed out, on a website or sentby email.

Look for contributions andexperiences from owners. Thereis nothing like first-handtestimonials or a humaninterest story to reach yourreaders, and it will lead to moreinvolvement from your keypartners.

Get staff involved with yourcommunications. This willenhance team spirit, generatinga stronger feeling of ownershipin the business and new ideas.

A media relationsprogramme at local andnational levels is also helpful informing reputation. It gives youtotal control over your messagesand a valuable opportunity toshape people’s perception ofyou, your product and yourindustry for the better.■ For more information visitwww.flagshipconsulting.co.uk

Climbing the image mountainM

EDIA

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COVE

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ORY

ecently dubbed ‘the world’s leadingexample of a state to have successfully

embraced travel and tourism as a catalyst foreconomic growth and prosperity’ by no less anauthority than the World Travel & TourismCouncil (WTTC), the astoundingdevelopment of Dubai shows no signs ofslowing.

Fantastic leisure real estate projectscontinue to dominate the headlines – and theskylines – of the region’s tourism hotspot(Dubai now receives about seven millionovernight hotel tourists per year), and otherMiddle East states are waking up to thepotential of leisure real estate, according toNick Turner, managing director of Group RCIMiddle East.

“Dubai has been the pebble in the pond,with a positive ripple effect being feltthroughout the United Arab Emirates(UAE),” he said.

While Dubai is pitching itself as a familyholiday destination, other parts of the Gulfare focussing on niche markets, according toTurner.

“Oman is positioning itself as an outdoorsadventure holiday destination, with ocean,scuba-diving, mountains and very friendlypeople, while Abu Dhabi tends to focus onculture and the arts,” he explained.

Turner reported that Abu Dhabi, theregion’s capital, is also due to host a FormulaOne Grand Prix in 2009, staged on a purpose-built tourism island that will also includeFerrari and Warner Brothers theme parks.

Dubai is adding similar attractions, withmajor brands such as Universal Studios andDreamWorks building new theme parks, whileDubailand is set to host more than 30 family-themed experiences.


As the Middle East continues its phenomenal transformation into one of the world’s most popular tourist destinations, the leisure real estateindustry is aiming to take full advantage with a variety of newdevelopments and products, reports STEVE ADAMS.

“Dubai tourism is currently drivenby three-night stopovers – Europeanson route to Asia and vice-versa,” saidTurner. “That stay needs to beextended to at least seven or 10nights, and the only way to do it is toreplicate what Orlando has done andgive tourists a reason to stay longer.By the time the theme parks open in2010/2011, the average length of stay willhave risen considerably.”

Turner explained that ever since theDubai government first allowed overseasindividuals to acquire freehold properties inthe Emirate in 2003, there has been anexplosion of interest in purchasing real estatefrom around the world.

“What’s not to like?” he says. “It’s sunny,tax-free, very safe from a crime and securityperspective and easy to access, particularlyfor Europeans and Asians.”

From strength to strengthThe popularity with buyers is mirrored by agrowing recognition from the authorities thattravel and tourism is becoming increasinglyimportant to the region’s economy. Lawscovering a wider variety of leisure real estateproducts are due to be announced (see panelopposite), while the recent Department ofTourism and Committee Marketing (DTCM)‘Marketing For UAE 2007’ report showed thatthe contribution of the hospitality sector, bothdirectly and indirectly, to the UAE’s totalGross Domestic Product (GDP) is in excess of20 per cent and 30 per cent respectively.

WTTC figures also show that the industryis expected to grow by 4.4 per cent perannum in real terms to 2016, with MiddleEast travel and tourism investment estimated

In the fast laneIn the fast lane

to reach US$39.4 billion during the sameperiod.

UAE Minister of Economy, Sheikha LubnaAl-Qasimi, acknowledged the importance ofthe region’s hospitality and leisure sectors.

She said: “In the UAE particularly, wehave witnessed excellent economic growth in tourism, aviation, hospitality real estateand complementary sectors. The UAE’s non-oil sector represents over 60 per cent ofour GDP.

“In addition, there are many by-productsof these sectors that are of interest tobusiness investors, and so further drivegrowth.”

Despite the ongoing investment, recentincreases in construction costs – steel,concrete and cement prices have risen by upto 20 per cent in the past 12 months – and toa lesser extent land, mean decisions over thescale and style of developments have neverbeen more critical.

“The Middle East is apparently one of thefew markets left globally that’s still got thepotential for growth on capital appreciationfrom an investor’s perspective,” said Turner.“But from a developer’s perspective, the priceof raw materials is going up almost daily sothe increased cost burden is making it verydifficult to deliver the sort of margins they’veenjoyed between 2003 and 2006.”

R

Nick Turner Piaras Moriarty Peter Giamalva

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Upping return on investmentTurner argued that in order to sustain thesemargins, developers will increasingly need torevert to marketing innovations, and sellingthrough other models will play a key role.

“By diversifying into rental properties,high-end fractionals and timeshare,developers can derive significant advantagesfrom their real estate and over their

competitors,” said Turner.“The leisure real estate market is growing

rapidly. With more and more inventorybecoming available, developers need toexplore a variety of innovative techniques tosupport the success of the market movingforward. Both contemporary sharedownership and rental and exchangeprogrammes can provide excellent benefits

for all stakeholders.”His comments are well substantiated.

Research conducted by NorthCourse LeisureReal Estate Solutions has indicated thatresidents within the Gulf CooperationCouncil (GCC) will spend approximatelyUS$1.2 billion each year on shared-ownershipproperties by 2020, with similarly attractivebusiness being generated for short-term

The rapid development of the leisure real estate market in the

Middle East – and the arrival of timeshare and its derivatives –

has inevitably brought the need for new laws and regulations.

But while timeshare legislation has often been a thorny

subject in Europe, it’s almost been a bed of roses in Dubai,

with industry leaders forming a Timeshare Working Group

to help to draft the law themselves.

The new law, soon to be announced by Dubai’s Real

Estate Regulatory Authority (RERA), has been formulated

with the help of developers, marketers and exchange

companies, according to RERA CEO Marwan Ghalita.

“We welcome the involvement of the commercial sector

in formulating practical and responsible regulations,” he

said. “The new law will safeguard buyers and provides

clarity for developers.”

David Evans, head ofgovernment relations for Wyndham

Worldwide, parent company ofGroup RCI, has played a key

role inhelpingdraft the legal framework.Heexplainedthat

timeshare and fractional development in the UAE is governed

by the Department ofEconomic Development (DED),but basic

licensingrules inoperationprior to2006neededupdating.

He said: “As the number of proposed timeshare

developments grew, so did the potential for abuse by rogue

marketers. Both the industry and the DED reacted – the DED

by suspending the issuance of timeshare licences and the

industry by submitting a proposal for comprehensive

timeshare regulation.”

The Dubai timeshare law is expected to address five

main areas:

■ The proposal will have a broad application, encompassing

any leisure real estate products where the consumer

receives exclusive use rights to accommodations during

periods within any single year on a recurring basis.

■ The law is expected to require commercial licensing of

timeshare developers, sales agents, marketing companies

and others engaged in offering timeshare in Dubai. A deposit

of one million UAE dirhams (approximately US$270,000) is

expected as a precondition for obtaining a licence.

■ There will be a legal structure for

timeshare products and minimum

standards for their sale and marketing,

including registration of ownership

contracts with the Land Department.

Promotional and marketing literature is

likely to be subject to DED approval, a

cooling-off period for purchasers will be

mandatory and developers will be required

to escrow consumer deposits with an

independent third party.

■ Ongoing management of the resort – including insurance

coverage – will probably need to be established prior to the

sale of the first timeshare interest.

■ Provisions authorising government agencies to adequately

enforce the measure are also likely to be included, enabling

the Emirate to suspend or revoke licences, impose monetary

penalties, or cancel consumer contracts.

Evans said: “The pace at which Dubai’s hospitality and

leisure real estate market is expanding makes it critical that

effective timeshare regulation be implemented to foster a

healthy environment for our industry to flourish.”

Piaras Moriarty of IFA Hotels & Resorts, added: “We have

been participating in the draft legislation and giving

feedback for quite some time now, so we’re looking forward

to [the law] happening as soon as possible. It’ll certainly be

a benefit to the industry and we welcome it.”

Group RCI’s Turner said that prior to the law being

passed, companies could apply for a provisional licence or

‘no-objection letter’ from the government to proceed with

their operations.

“Several have been passed, which gives an indication

of how close we are to getting a public communication

from the government on the wider piece of legislation,”

he said.

“Once a law is passed the remaining Gulf states without

a timeshare framework are likely to follow – Dubai will again

be the pebble in the pond.”

RINGING AND REGULATING THE CHANGES

David Evans


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vacation rentals, apartment hotels and rentaland exchange programmes.

In addition, GCC nationals have showngreat interest in shared-ownership leisurereal estate, as NorthCourse revealed that atleast four per cent of those interviewedalready owned a timeshare. The study alsoshowed that Gulf Arabs are keen to buy intofractionals, and the vast majority chooseholiday destinations based on easy access toshopping and leisure facilities – all factorsthat prudent developers should bear in mind.

Some already have. Qatar Real EstatePartners, on behalf of Qatari Diar, one of theregion’s largest developers, is marketingproperties under the Sotheby’s InternationalRealty brand. The scheme allows owners touse their property periodically for visits andholidays, exchange weeks through The RegistryCollection resorts or earn rental income.

Peter Giamalva, acting managing directorof Qatar Real Estate Partners, a joint venturebetween NorthCourse and Qatari Diar, saidthe proposition provided a real point ofdifference to its marketing activities.

He said: “We operate in a competitivemarket around the Middle East and NorthAfrica region. Being able to assure prospectivepurchasers that we have their long-terminterests in mind is a major advantage.

“Many of our clients are looking to usetheir real estate interests in a flexiblemanner. Rental and Exchange is an idealsolution, offering a potential rental incomefrom short-term lettings, reliable propertymanagement and access for the owner’spersonal use, as well as the possibility totravel to other destinations.”

Dubai also attracts visitors likely to be pre-disposed towards timeshare, according to

Shibani Pemmaiah, marketing managerof Ivory Grand, which opens its firstresort in 2009 (see opposite page).

He said: “Being in the hospitalityindustry for the last five years we haveseen a pattern with visitors. Iranian,Saudi and European nationals visit Dubaievery year. The customer profile wasfocussed mainly on family travel withloyalty towards Dubai and propertiesowned by our company.”

Pradeep Lobo, managing director ofIvory Grand, added: “Dubai is one of themost dynamic tourist destinations andtimeshare will add that extra flavour inredefining holiday lifestyle for tourists.”

Mixed-use popular optionAnother flavour in the leisure real estaterecipe is mixed-use resorts, which containhotel, timeshare and residential elements,and are a popular option for developers andconsumers alike.

IFA Hotels & Resorts’ new projectKingdom of Sheba is set to be one of thelargest mixed-use integrated resorts in theMiddle East and Europe when it opens in2010, with over 1,000 units including hotelrooms, condo-hotel rooms, fractionals,timeshare and wholly-owned residential villas.

Piaras Moriarty, IFA’s vice president –vacation ownership, said: “We’re finding themixed-use resort environment is veryappealing, not only from the developer’sperspective – because it better utilisesresources and is more cost-effective – butalso from the consumer’s perspective becauseclients can enjoy different facilities andservices throughout the resort. At a single-usedevelopment it may not be possible or

feasible to have that amount of retail orrestaurant outlets on site.

“This model, which we’ve pioneered in thispart of the world, is working very well and, asa result, our developments are sold quickly,very profitably and at a very good price. It’s allabout coming up with structures and projectswhich are desirable and designed to work.”

Moriarty added: “The amount ofdevelopment and construction going on isphenomenal and it’s an interesting time to behere. With a busy few years ahead, Dubai hasa lot to offer and the way things are going it’llbe happening for the foreseeable future.”

Turner agreed, adding that diversificationaway from the traditional “tower block with 200apartments that’s sold off-plan” was likely toyield the best results in a region with growthpotential for “perhaps another five years”.

“Leisure real estate is still only emerginghere,” he explained. “As with anything, thedevelopers who are earliest into the marketare the ones who will see the greatest benefitand will ultimately dominate.”


Pradeep Lobo, managing director of Ivory Grand – duefor completion in 2009 – with Group RCI’s Nick Turner.

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ONES TO WATCH

Ivory Grand With all the comforts of a five-star resort and

a perfect location in Al Barsha near the renowned Mall of

the Emirates, Ivory Grand Hotel Apartments will cater for

both business and leisure visitors.

The development, due for completion in 2009, consists of

70 units destined for the timeshare market and a further 150

one- and two-bed apartments for short-term rentals.

Affiliated to Group RCI, the resort is a good example of a

traditional timeshare product, according to Turner. He said:

“The developers wanted to build a resort but retain the

asset, so they’ve opted for a timeshare vacation club, and

will be selling right-to-use on the 70 apartments over a

period of 10 to 20 years.

“They gain the income today – which assists with cash

flow – and the asset reverts back to them at the end of the

right-to-use period.

“This type of product gives

some security today for an

uncertain future. There are over

50,000 hotel bedrooms and

apart-hotel rooms being built in

Dubai at the moment, so a

concern is that there will

eventually be over supply. For a

hotelier or developer to have a

cheque today guaranteeing

commitment from a tourist to

come for the next 10 years is

quite reassuring. That’s probably one of the reasons that

hoteliers are considering vacation clubs.”

Princess Resort PKN Group’s new mixed-use resort – set

among Dubai’s hilly peaks – is a unique concept designed to

embrace the glamour of a Las Vegas-style experience, with

entertainment, palaces, lagoons, equestrian trails and even

snow-capped towers.

Developed with the

guidance of Sheikh

Humaid Bin Rashid Al

Nuaimi, Ruler of Ajman,

the resort comprises

nearly 1,600 one- to three-

bedroom apartments

along with 100 exclusive

villas and chalets, and two

luxury five-star hotels with

488 rooms. The

development is due for

completion in 2010 at an

estimated cost of

US$1.25billion.

Group RCI will

manage a rental and

exchange (R&E)

programme for the

resort, giving purchasers

rental opportunities

through its Arabian

Breaks programme as

well as the chance to

exchange into other RCI-affiliated resorts. In addition, some

of the high-end residential units will be included in RCI’s

Registry Collection, the world’s largest luxury exchange

programme.

Barka Resort Located some 60 kilometres east of the

Omani capital Muscat, the mixed-use Barka Resort consists

of 65 units destined for the timeshare market and a further

131 residential units intended for a rental programme.

Set for completion in 2009, the RCI-affiliated Allied Oman

development is inspired by traditional Arabian architecture,

with luxurious apartments set in a landscaped community

adjacent to the beach.

Residents will also have free access to a beach club and

the facilities of a 200-room five-star hotel being built on the

same development. An extensive range of amenities and

concierge services will be available, including a spa, country

club, cinema, restaurants and sports facilities.

The luxurious Castle Apartments will form part of the PKN Princessresort in Dubai, due for completion in 2010.

The mixed-use PKN Princess will containhotel rooms, offices and apartments.

Max Paxima, president and chairmanof PKN Enterprises Inc (left), withGroup RCI’s Nick Turner

The Ivory Grand will contain70 timeshare apartments.



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ermany is a country with nine direct neighbours and its residentscan comfortably drive to 15 different countries to take a holiday.

With such an array of accessible destinations, a product offeringquality holiday choices in all of its neighbouring countries should bepopular. But it has been, and continues to be, a difficult journey fortimeshare in Germany.

After a bad start with the industry being strangled by negativemedia coverage of timeshare in Spain, things began to change for thebetter when German retail giant, the Metro Group, brought its trustedbrand into the business and consumers began to view timeshare morepositively. The mega retailer, better known for hypermarkets thanholidays, offered customers a share of the tiny 17-apartment resortwhich is now Holiday Club Siesta in Austria as a trial and promptlysold 1,000 timeshare weeks in 10 weeks. Customers simply walked upto the regular Metro cash desks and handed over their money.

The travel arm of Metro grew exponentially from this small-scaleexperiment in 1983 into the hugely successful Metro Ferienclub. Butthe success story started to falter a decade on when a surge ofnegative media focus on the timeshare concept impacted sales. Withthe seventh project in 1993, Grundlsee in Austria, sales were fallingand, by 1998, the retail giant decided to sell.

Enter Leonhard Dörr, who bought the company which is now knownas the Mondi-Holiday Group and currently has eight resorts with a totalof 803 apartments and has sold tens of thousands of timeshare weeks.

These days Leonhard’s son Dr Mike Dörr and daughter SandraKrause are the driving forces behind the Mondi-Holiday Group. Dr Dörr said: “It was fairly clear that the timeshare market wouldremain difficult for a while, so my father started to market the unsoldweeks as a regular hotel product through different channels, fromtour operators to the internet and simple walk-ins. Though small inthe beginning, this business became more important for us and it nowgrows very strongly year after year.”

Today the timeshare/rental split for the Mondi-Holiday Group is40:60 and of that rental figure about 30 per cent of business comesfrom tour operators. However, the company is very keen to grow thetimeshare element of the company, despite the battle it is fightingwith the industry’s poor media image.

Dr Dörr explained: “We are focusing strongly on growing thetimeshare business as we believe that the image of timeshare in theGerman market will recover in the next three to five years. The

younger generation doesn’t really have any specific image oftimeshare, most have no idea what it is. This gives timesharecompanies a fresh start in a country which has the largest economy inEurope. It is our feeling that many large timeshare companies are justwaiting for the first signs of recovery to invest in this crucial market.”

Obstacles to be overcomeDr Dörr says the main problem is finding qualified sales people, asmany good sales staff still think negatively about selling timeshare.“We are confident that this will change quickly when the market picksup again, as there are hardly any other industries where good salespeople can earn as much,” he explains.

The Mondi-Holiday Group also has ambitions beyond the Germanmarket and has been trying hard to get a foothold in other sourcemarkets, including the UK, Italy, Austria, Switzerland and EasternEurope, but with little success as yet.

Dr Dörr said: “Since 2004 we have made many attempts to growinto foreign markets in Eastern Europe, the UK and Italy. The strategyhas not been successful however and I think this has been down tonot finding the right marketing partner.

“Typically we’d be approached by a company wanting to marketour product, I would then spend a lot of time fixing the deal structureonly to sell 20 weeks at most through this marketer. The results didn’tjustify the efforts. It’s a shame that we haven’t managed to market ourhigh-value product really substantially to other nationalities in a moresystematic manner.”

Not easily deterred, the Dörr family is currently running a test withan Italian marketer to sell timeshare at its ski resort Holiday ClubBellevue in Bad Gastein and its beautiful Tirolensis resort in SouthTyrol. Dr Dörr says it’s too early to say whether the experiment will bea success.

So, with Germany being Mondi-Holiday’s number one sourcemarket, what sort of holidaymaker is it dealing with?

Dr Dörr said: “In general, the 45-plus generation in Germany whodon’t own timeshares still have a negative image of the product. Wedon’t think that it will be possible to sell to this target group in thenear future because older Germans will not buy timeshare.

“One problem with the German market is that many journalistsand media representatives, especially in responsible positions, areolder. Thus the media are still much more likely to report on negative


Leading German developer, the Mondi-Holiday Group, has big plans.DINAH HATCH talks to the family who own the company about thegoals they have set and the challenges they face.

The German giantG

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Congress Center. Our events package, Weddings & More, also providesgreat leads and we are more and more successful in selling to them.At the same time we keep our timeshare offering up-to-date andadjust it continuously to meet changing consumer needs and traveltrends.”

For now, the German-speaking market is the way forward andMondi-Holiday Group won’t be opening up any sales decks in the UKuntil it finds good partners to underpin the marketing operation. Dr Dörr talks instead of investing heavily in his sales force, motivatingthem and looking to increase their numbers in Germany.

He said: “Our main focus will remain the German-speaking public.We have other nationalities in our sales force but between 80 to 90 percent deal with German-speaking customers. We aren’t giving up onother source markets however, so we hope this will change in the nearfuture – when the right partners come along.”


aspects of the industry rather than positive ones. When it becameclear that new EU timeshare legislation was on the way, the newspaperheadlines were just the same as during the time of timeshare horrorstory hype – despite the market being really clean now.”

Dr Dörr thinks the fact that studies consistently show the majorityof timeshare owners are very happy with their properties should speakfor itself. For example, up to almost 70 per cent of owners in the eightMondi resorts say they are “very happy” or “happy” with theirtimeshare. A further 20 per cent are “happy for the most part”.

With the older German market resisting the industry and foreignsource markets yet to be cracked, the Dörr family is looking for otherways forward towards growth.

Dr Dörr outlines the medium-term strategy, saying: “We are aiming tosee double digit growth in our rental business each year. This helps toattract new target groups for the timeshare product. Hotel guests areperfect leads for timeshare. They experienceour high-value resorts, they pay high rentalfees and see that our group is a very reliablepartner.

“We recently invested in an exclusivemountain chalet hotel called Schiefe Almin Bad Gastein. It has no links to ourtimeshare operation but we have found itprovides perfect leads for our timeshareproduct.

“The same goes for the Bellevue

Clockwise from top left: Holiday Club Grundlsee in Austria is Mondi-Holiday group’s seventh property. Serving as a convention and social events centre as wellas a resort, Holiday Club Bellevue generates many sales leads for the group through its wide variety of visitors. The Dörr family are the driving force behindMondi-Holiday. Pictured from left are, Dr Mike Dörr and Sandra Krause with their father, Leonhard Dörr.

THE MONDI-HOLIDAY OFFERINGHoliday Club Siesta (Innsbruck, Austria) – 17 apartments

Holiday Club Breitenbergerhof (Meran, North Italy) – 36 apartments

Holiday Club Schloesslhof (Innsbruck, Austria) – 35 apartments

Holiday Club Tirolensis (Meran, North Italy) – 55 apartments

Holiday Club Oberstaufen (Allgaeu, South Germany) – 193 apartments

Holiday Club Grundlsee (Salzburger Land, Austria) – 174 apartments

Holiday Club Mitterfels (Bayerischer Wald, South Germany) – 85 apartments

Holiday Club Bellevue (Bad Gastein, Salzburger Land, Austria) – 208 apartments

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omeone once told me that visiting Finland was like stepping intoa refreshing shower on a hot day.

Clean air and breathtaking scenery make it relaxing and uplifting,while the availability of a varied range of activities such as skiing,canoeing and golf keep the mind and body revitalised.

Maybe that’s the reason why the number of foreign visitorsenjoying overnight stays in Finland increased by six per cent between2005 and 2006 and the total number of overnight stays by inboundvisitors in 2007 was more than five million.

Or maybe it’s because Finland is a multilingual country with aneye for detail and a dedication to customer service.

Whatever the reason, increasing numbers of foreign tourists arevisiting Finland and the growth looks set to continue, with the WorldTravel & Tourism Council (WTTC) estimating that internationalvisitors to the country will grow a further 33.7 per cent by 2016.

MAKING IT EASY TO INVESTSuch potential makes Finland an exciting prospectfor timeshare developers looking to expand into agrowing market.

Minna Hakaoja, marketing and communicationsmanager for Invest In Finland, a government agencyset up to encourage and aid foreign investment,believes the tourism and timeshare markets are ripe

for foreign investors.She said: “There are a lot of investment opportunities. Finland has

become a really attractive target for international investors. Thenumber of new companies investing in Finland rose by 46 per cent in2007.”

Hakaoja said there are a number of reasons why people should belooking to invest in Finland.

“When providing superior travel and tourism services, safety isvital,” she explained. “In this respect Finland is one of the safest traveldestinations in the world. This, combined with an unspoiled nature,good transport connections, a stable economy, modern infrastructureand an environmentally-friendly outlook, is the cornerstone forprofitable tourism investments in Finland.”

According to the WEF Global Competitiveness Report 2006/2007,Finland is one of the most competitive economies in the world. It isthe least corrupt country in the world (Transparency International);

it is ranked the best in the Environmental Sustainability Index(WEF), it boasts Europe’s top educational system (IMD WorldCompetitiveness Yearbook 2006) and it is the only country inNorthern Europe to use the euro.

You might think these would be enough reasons to attractinvestors into Finland, but the country recognises it is in acompetitive market and offers many incentives to foreign investors.

For example, foreign-owned companies are eligible for governmentincentives on an equal footing with Finnish companies. Support isgiven in the forms of cash grants, loans, tax benefits, equityparticipation, guarantees and employee training.

The Finnish Funding Agency for Technologyand Innovations (TEKES) offers financialassistance for companies operating in Finlandand actively developing their services, businessor technology. The funding also supports theestablishment and expansion of start-upcompanies.

And the Finnish Employment Offices offermany services to new companies, includingtraining and recruitment, all free of charge.

WHAT’S NOT TO LIKE?Such incentives are not the only reason Finland should be on theradar of foreign resort investors.

The country is famed for its beautiful scenery and nature, friendlypeople and fresh air. It has 180,000 lakes and a south-western coastfringed with islands. Sailing, fishing, skiing, canoeing, golf, saunas andspas all form part of Finnish life. And holiday resorts covering allaspects of that life can be found across the country from the beachesto the inland lakes.

Even in the cultured capital of Helsinki, the air is clean and thecountryside has a cool beauty. So it’s no wonder that it’s a countryforeign tourists are discovering.

In Lapland, to the far north, the indigenous Sami people still tendtheir reindeer herds, and visitors can meet the ‘real’ Father Christmas,which is the primary reason UK tourists visit Finland in the winter.

Finland has a rich and turbulent history, which can often be seenin its buildings – domed Orthodox churches speak of the days when itwas part of Russia, while fortresses such as Suomenlinna Castle recall


Tourism in Finland is going from strength to strength. The Nordic country has astable economy, government support, positive timeshare image and tough lawsthat are enabling the industry to flourish. And at the heart of the success story, writes GAYLE GREEN, is Finnish

PRIDE AND PASSION

Eastern Finland isincreasing inpopularity as aholiday destinationand is on HolidayClub Resorts’planning board ashome to one of itsnew resorts.

S

Minna Hakaoja

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complete transparency. As a nation we are hardworkers and our target is to ensure the highest levelsof customer satisfaction.”

This is a sentiment echoed by Hannu Mäntyharju,vice-president of Holiday Club Resorts (HCR). Thelevel of service offered by HCR meant there were noofficial complaints to consumer authorities fromclients in 2007, a fact Mäntyharju is very proud of.

FINLAND’S BIGGEST TIMESHARE PLAYERHCR is Finland’s biggest timeshare developer. It boasts 18 resorts inthe country with 1,100 apartments and more than 30,000 timeshareowner families. The company was established in 1986 and spent 18years developing its brand in Finland, before expanding into Swedenin 2004. It has also recently opened its first resort in St Petersburg,Russia. All the company’s resorts are affiliated to Group RCI.

Mäntyharju believes timeshare is popular in Finland because ofits positive image and strict laws.

He said: “In 1992 Finnish timeshare companies got together to


centuries of Swedish rule. During the first millennium BC, variouspeople settled in Finland, including the nomadic Sami, who inhabitedthe north of the country, and the Tavastians from central Europe.

Today the benefit of the multi-cultural influence can be seenthrough the language skills of the Finnish people. Many have Englishas their second language, with German also a popular choice for study.And four to six per cent of Finns speak Swedish as their mother tongue.

FINLAND’S GREATEST ASSETFinland-born Riitta Apiola, Group RCI regional director for Finland,Scandinavia, Germany and Hungary, believes her country’s people andtheir quality of service go a long way to making it an attractiveprospect for tourists and developers alike.

She said: “We have very high-quality resorts,reputable affiliates and we, as Finnish people, arevery dedicated to customer service.”

“As a nation we are very proud of what we do. Forexample, Group RCI employees, want to make surebusiness is conducted professionally and with Riitta Apiola

HannuMäntyharju


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agree a set of rules. We ‘self regulated’ our timeshare business and,in 1998 as timeshare became more popular across Europe, wefurther tightened our laws in Finland within the parameters of theEuropean timeshare law.”

One of the main differences with the Finnish laws is that peoplesigning up to a timeshare are given a cooling-off period of seven days(soon to be increased to 10) and no monies or any deposit at all is taken.Similar laws may be introduced across Europe within the next two years.

“The key issue in the success of timeshare in Finland has been its

image,” added Mäntyharju. “As a company we havecancelled many deals, not for any legal reason, butsimply to protect our image.

“If the consumer perception of timeshare is poor itwouldn’t matter how many exclusive resorts we build,people won’t trust us nor would they buy from us.”

The majority of timeshare owners in Finland areFinnish residents, though increasingly more international visitors –particularly Russians – are buying into the Finnish way of life. Thisis a trend that is expected to increase, with Russia and Swedenthought to be the largest source markets for Finland in the future.

Timeshare in Finland is also sold verysuccessfully to corporate businesses, whichthen rent the weeks out to their employees aspart of incentive or loyalty programmes andHCR leads this corporate market sector.

HOW THEY LIKE TO HOLIDAYThe home-loving nature of the Finns goes someway to explaining why corporate staff schemeshave taken off so well in Finland.

Anne Lind, marketing director for the Finnish Tourist Board, saysFinland has always had a strong domestic travel market, whichremains as healthy today as ever, with approximately 50,000 of thepossible 2.4 million households owning a timeshare.

Lind said: “In Finland everybody wanted to own their own holidaycottage 20 years ago. It is typical for Finnish people to spend wholesummers in a holiday cottage. Now with timeshare, people realise theyhave the flexibility of staying in their own country or going abroad,”she added. “Finnish people are quite happy with the way timeshareownership works in Finland.”

Lind says foreign visitors to the country tend to fall into severalcategories. “The Russians come for skiing, shopping and fishing, theBritish come to see Santa Claus and to ski, and the Germans mainlycome to rent cottages in the summertime,” she said.

NEW TO THE INDUSTRYAntti Tuomaala, managing director of Tahko Spa Suites, joined thecompany last spring after moving south from Lapland.

He agrees with Lind. “We recognise that timeshare is popular


Main picture: Withso many lakes,Finland has manyareas with much tooffer as a tourismdestination. Picturedis Lake Pielinen inKoli, in the east ofthe country.

The interior of a unit at HCR’s Holiday Club Tampereen Klpyla offers atraditional Finnish-style experience, with each unit having its own private sauna.

Holiday Club Tampereen Klpyla is one of HCR’s flagship resorts. Set in arefurbished old mill at the centre of Finland’s second-largest city, it alsobenefits from sharing the shores of two lakes.

Anne Lind

THE RUSSIANS COME FOR SKIING, SHOPPING ANDFISHING, THE BRITISH COME TO SEE SANTA CLAUSAND TO SKI, AND THE GERMANS MAINLY COME TORENT COTTAGES IN THE SUMMERTIME‘‘

’’


because it is a convenient way of owning or having a holiday home.Our product is easily reached and we have activities all year round,so it’s a logical solution,” he said.

Tahko Spa Suites is one of the latest Group RCI affiliates inFinland, having joined in October 2006, seven months after theresort opened. It is situated about 350 kilometres from Helsinki andhas 82 apartments in three buildings, nine of which are timeshare.

Tahko’s main selling point is its spa, but it also boasts agrowing range of activities in the surrounding area includingdownhill skiing in winter, water sports such as water-skiing andcanoeing, and on-site sports including badminton, tennis andbowling. What’s more, two new golf courses are due to be built inthe area next summer.

The popularity of Tahko Spa Suites is such that there arealready plans in the pipeline for a fourth building of spa apartmentson the site.

“We have a number of strengths,” added Tuomaala. “We havehigh-quality apartments, active holidays and easy access. Thelogistics are very good for us.”

THE FUTURE FOR FINNISH TIMESHAREHCR has plans to develop two new large-scale timeshare resorts inFinland over the coming years. The first, Holiday Club Himos, to belocated in central Finland in a popular area for downhill skiing, will bea spa hotel combined with timeshare development. It will comprise300 apartments with golfing facilities. Mäntyharju says the target is tohave the spa hotel and first timeshare phase open by Christmas 2009.

The second development is in eastern Finland, about 230km fromSt Petersburg in Russia, on the shore of Finland’s largest lake, Saimaa.HCR is currently planning to build another spa hotel and timeshareresort here, having 300 timeshare apartments, a golf course and amulti-purpose sports hall.

Lind believes more growth is on the cards. She said: “All the mainresorts have their own masterplans for growth and the Finnishmunicipalities are working with the Finnish tourism authorities tomake sure investors have land.”

In her opinion, the regions ripe for growth are the eastern andwestern lakeland areas plus Lapland. She also believes there ispotential for timeshare growth near to Helsinki.


Tahko Spa Suites, a newresort and Group RCI’s

latest affiliate in Finland,is an example of the high-

quality accommodationtypical of this market and

offers a range of leisureand sporting activities

that help to make Finland a year-round

holiday option.


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“Helsinki as a capital is very popular,” said Lind. “We shouldhave more timeshare facilities near to Helsinki. We know there isdemand because of the area’s excellent travel connections.”

A CAPITAL LOCATIONOne timeshare resort and Group RCI affiliate already close toHelsinki is Club Vierumäki. Situated on the edge of a lake just overan hour’s drive from the capital, the leisure and sports resort hastwo 18-hole golf courses, an 11-hole par three training course,shooting area, tennis and squash courts, and an indoor ice rink.

The beautiful surrounding countryside offers plenty ofopportunities for swimming, fishing and hiking, and in winter thearea is famous for its cross-country ski trails.

Pekka Vasala, managing director of Club Vierumäki, agrees withhis colleagues as to why timeshare is so popular in Finland. Hesaid: “In Finland we have high-quality timeshare resorts withversatile interests. Also Finnish developers are reliable. Theaffiliation with Group RCI also gives the possibility of overseas

travel and Finnish people have found out how easyand affordable it is.

“Nowadays people want care-free holidays nearnature. Timeshare matches that demand.”

Vasala does not believe timeshare is growing asrapidly in Finland as it is in other European countries,but he does think overseas visitors will increase.

He explained: “The overseas tourist market willgrow, mainly in the north where we have manyresorts offering versatile interests between downhillskiing and golf in every season of the year and inunspoiled surroundings.”

THE INFLUENCE OF GROUP RCIGroup RCI, which has its north Europeanheadquarters in Helsinki, has 30,000 members inFinland, the majority of the national timesharemarket. It is the leading exchange network providerin a country where timeshare has a good reputation.Apiola said: “We have very reliable and innovative

developers with strong brands such as Holiday ClubResorts, and Club Vierumäki, as well as exciting new

brands such as Tahko Spa Suites. We also have well-trainedtimeshare sales people and a properly controlled sales practice.”

Apiola says a further strength of timeshare in Finland is its OTEnational chapter.

“Our OTE national chapter keeps control,” she added. “You knowyou can trust the member companies belonging to it.”

But it is also Group RCI’s newest products that are helping thecompany to win favour with timeshare developers in Finland.

Both The Registry Collection – the name given to the shared-vacation ownership programme for luxury holiday properties– and the Group RCI R&E (Rental and Exchange) Programme,which allows property owners to join the Group RCI exchangeprogramme – are proving popular with both resort and real estatedevelopers.

“We at Group RCI cooperate with our customers by creatingtailor-made programmes for our affiliates in Finland,” added Apiola.

“We support affiliates and help them with every aspect of theirbusiness, including enrolments, joint marketing campaigns,problem solving and more. And we attend owners’ events to giveaffiliates’ customers more information about Group RCI, itsproducts and how the exchange process works.

“Everything we do at Group RCI is based on the building andmaintaining of reliable and long-term relationships between notonly ourselves and our developers, but also between developers andtheir customers.”


Invest in Finland is an expert service organisation with 15 years’

experience, promoting foreign direct investment in the country. Part of

its remit is to ensure successful investments to new markets by

matching the right partners. Invest in Finland has assisted numerous

companies in this way. For further information visit www.investinfinland.fi

One current opportunity for investment is a holiday property business

called Laatumaa. It sells and leases plots administered by Metsähallitus

and buys and sells forest estates in central and northern Finland. Each

year Laatumaa carries out close to 1,000 property deals. For more

information visit www.laatummaa.com

INVESTMENT OPPORTUNITIES AND HELP

Pekka Vasala

Left: Club Vierumäki has two 18-hole golf courses and many other sporting activities to occupyguests all year round. Right: Club Vierumäki enjoys a beautiful lakeside location in an arearenowned for its cross-country ski trails. All this and yet it’s just an hour’s drive from Helsinki.

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f each country had a checklistfor its potential as a key

timeshare or fractionalownership market, Italy wouldtick all the right boxes. Aplethora of beach, city and skihotel and resort options? Check.Countryside retreats? Check.Easy access for flights andtransport? Check. Everyone’sfavourite cuisine? Check.

A new viewOne company to recognise thisis Gruppo LCL, a family-ownedmarketing company that hasbeen active in the business for the past 20 years and hasbeen enjoying success in thisarena.

The company’s founder andsole administrator, LorisCappelli, first experienced thetimeshare market not as asalesman but as a customer. Hebought a week for his family,with which they were all

satisfied. Reinforcinghis belief in thebusiness model, hestarted to promotetimeshares to relativesand friends.

Gruppo LCL hastaken an empatheticapproach to theircustomers’ needs eversince. “For three generationsthe client has come first,” saidCappelli. “Our market hasalways been Italy and we’vestuck with it through all itshighs and lows.

“We at Gruppo LCL prideourselves on our transparencyin sales – in both legal mattersand in explaining how theexchange network actuallyworks, with complete clarity onthe trading power of theproducts and weeks beingpurchased.”

In 2002 the companylaunched its ‘LCL-assistance’brand to exclusively handlecustomer assistance. Cappellisaid: “The new brand was asignificant opportunity, beingexclusive to LCL clients it was,and still is, an innovation in theItalian multiple ownershiplandscape.”

Gruppo LCL now sells RCIPoints. It markets six properties,all in Italy and in areas with astrong touristic appeal. LCL’sclient resorts are all Group RCI-

affiliated andcomprise two inSalento-Puglia –Resort I Tramonti andResort Portoselvaggio,one in Ischia – ResortIschia Uno, one inSardinia – ResortVerde Mare, one in theSiena hills – Resort Il

Poggio, and one in the ItalianAlps – Resort Borgo al Sole.

One of the latest propertiesto come into the group’sportfolio has set a newstandard for future resorts.Opened in 2006, the Salento-Portoselvaggiocomprises 108 rooms spreadacross several units, varying insize and style to cater todifferent palettes and pockets.The panoramic swimming poolcomes with hydro-massage andnearby solarium. In addition toan amphitheatre, there are spafacilities and ample gardens.

The 24-hour service is also abonus, but simply part of thepackage you’d expect of thisservice-focused group.

Cappelli says at times ahotel’s service level canoutweigh the prestige factor. Heexplained: “Special features fora residential hotel are itsservices rather than the unit’sprestige. What is important is anunderstanding of the traditionsand history of the location, and

to use these to convey the rightemotions to the clients.”

Danilo Ferri, Group RCIaccount manager, Southern Italy,said: “Gruppo LCL is an attractiveclient for us because of the qualityof its customer assistance, whichsupports purchasers with correctand useful information. As a resultof this, its members are active inexchanges and satisfied with theproduct, which is what Group RCIwants for all its members.”

Given the success of itstimeshare sales, Gruppo LCL isnow concentrating on a future inthe industry. “Gruppo LCL wantsto increase revenues, expand itsresort portfolio and find newlead generation programmes,”Ferri added. “It is also interestedin growing into new marketsoutside Italy.”


KATHERINE STEINER-DICKS discovers that Italy has much to offer the timeshare industry and those savvy enough to use itsstrengths to their business advantage.

Optimising opportunity

I

From left: Ambra, Loris andAlessandro Cappelli.

Danilo Ferri

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Breaking barriersValeria Dallora, a resort sales andservices manager for Group RCIin Italy, considers the Italiantimeshare market as it standstoday as different to otherEuropean markets.

She said: “The Italian marketis very domestic and, as a directresult, very seasonal. Italianspredominately want to travel inItaly and in peak season – July,August and Christmas.”

Alessandro Cappelli,marketing manager of GruppoLCL, believes the group is in theprocess of overcoming what herefers to as the “July and Augustproblem”, both as far as hisclients’ habits are concerned andin filling the properties.

He explained: “We’re findingthat Italians’ tastes are changing

and with them the possibility ofvacationing in periods outside thehigh season. Opening up saleslines to the British market is alsoa great opportunity.”

A strong case for creatinginternational marketingprogrammes is the fact thatspending power for Italianfamilies at present has decreasedcompared to recent years. GroupRCI’s Ferri said: “The turningpoint for the Italian shared-ownership and timeshare marketwill be when the Italian product ismade more readily availableoutside Italy.”

He is confident that as Italyticks the majority of boxes for akey holiday and timesharemarket, hard work now will payoff in increasing both thedomestic and international

demand for the product in Italy.Dallora adds: “Strict selection

of sales companies with newblood is a start. Trying to findforeign sales lines for the Italianresorts and bringing in newinventory will help to give resortdevelopers and marketers whatthey need to generate consistentrevenues.”

Buying a piece of ItalyThe key source markets for therelatively new concept offractional ownership are the USand the UK. And Italy is a primelocation for the product.

Owning a fraction or largerslice of an Italian property, albeitwith a set amount of weeks basedon the percentage ownership, isbecoming ever more popular forBritish and Americans who buy

into the second home dream inItaly in a big way, and yet can’tjustify the financial outlay for anItalian holiday home they will visitonly a couple weeks a year.

Fractional ownership is theideal solution and high land,property and rental values in Italymake it a prime market for thistype of product. Marketing the


Main picture: Tuscany is one of Italy’s most popular touristdestinations. Group RCI has 10 affiliated timeshare resorts here, andthree Registry Collection associates. Right: Resort Portoselvaggio inSalento-Puglia. Below: Resort Il Poggio in the Siena Hills.


with a new type of client.”Keeping all options open,

Gruppo LCL is not ruling out themid-market either. Loris Cappellisaid: “There is great potential inItaly. As many as 15 million Italianfamilies go on vacation every year.We’re convinced the multiple-ownership market in Italy willdevelop further. The convenienceand benefits of the product aretangible and calculable.”

The family believes the LCL-assistance programme has helpedto overcome the challenge of adecrease in consumer spending.Ambra Cappelli, LCL-assistance

manager, said: “Our clients have astrong sense of ownership towardsour brand and they introduce usto many new clients. Ourcustomer-focused LCL-assistancemeans we have a constantpresence at the marketedproperties which is fundamentalin giving a real feel of what we sell.We can state without a doubt thatour brand is the driving force ofour success.”

A dominating forceDomina Vacanze – part of the AsPro Kapital Grupp-owned DominaHotel Group – is one of few Italianhotel chains with an internationalfocus both in the business andleisure tourism sectors. It is also amajor player in the Italian sharedvacation ownership arena.

Founded in 1989 andheadquartered in Milan, DominaVacanze accounts for 65 per centof the Domina Hotel Group’s totalturnover. There are 32 hotels inthe chain across nine countries,

Italian timeshare and fractionalownership model to British andAmerican investors is where newgrowth will take place in Italyover the next few years.

Gruppo LCL’s AlessandroCappelli believes that fractionalscould be a strong market in Italy.He said: “Flexibility is without adoubt the fundamentalcharacteristic for lasting

business growth. At this timeGruppo LCL is searching for newopportunities. Its main activity ismultiple-ownership sales and weare ready and willing to add newproducts to our establishedoffering. The fractional productis not just different, but it’s anew market. The approach tomarketing and sales has to bedifferent because we’re dealing

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Gruppo LCL’s Resort Il Poggio in Tuscany has captured Italians’ interest in agri-tourism.

Main picture: Domina HomeGuidecca-Venezia. Above:Residence Portoselvaggio inSalanto-Puglio.


including Slovenia, EstoniaHungary and Poland.

Domina Vacanze has longdominated the timeshare marketbecause of its consistently uniqueand upscale propertiesthroughout the country, fromPortofino and Venice to the ItalianAlps, according to Group RCI’sValeria Dallora.

She said: “Domina is a valuedGroup RCI affiliate because it ispart of the biggest hotel group inItaly and is a major generator oftimeshare enrolments. It isnumber one for Italian timesharesales.

“Given that Domina Vacanze isowned by a resort and hoteldeveloper, its executiveleadership understands therevenue and profit potential of thetimeshare investment.”

At present, Domina Vacanze istargeting Italians travelling to itsresorts and hotels through itstravel agency, Domina Travel andhas yet to expand its sales tointernational source markets.

Domina Vacanze operates 11timeshare resorts (10 in Italy andone in Egypt), 10 of which areaffiliated to Group RCI. Itsproperties embrace all the

country’s attractions, from four-star hotels in the Alps, includingDomina Home Miramonti, anature lover’s retreat in Corvara,Domina Home Alaska, filled withrustic charm in Cortinad’Ampezzo, and Domina HomeParco Dello Stelvio in Cogolo DiPejo, a snow lovers’ getaway in theItalian Alps with rustic-styleaccommodation.

For the more urbane customer,the Domina Home Ca’ Zusto, anhistoric hotel in Venice, offerscustomers a unique city getaway.

Domina Vacanze also givescustomers a second choice ofvenue in Venice with its classicallymodern three-star hotel DominaHome Giudecca-Venezia.

And, as you’d expect of agroup of this scale, it’s not withouta selection of hotels in sun andsea locations. Keeping couples aswell as families in mind, theDomina Home Palumbalza on theCosta Smeralda in Porto Rotondois spacious with vast pool facilitiesoverlooking the sea, making it aguest favourite. And then there’sthe Domina Home Piccolo inPortofino, a quaint and elegantfour-star hotel with 22 rooms,each with a balcony, just 30


Ovidio Zapico, Group RCI regional sales

director for Spain, Italy, France, Portugal

and North Africa, notes several trends in

the Italian market that prospective

developers should consider.

“The market is moving in Italy and we

are seeing new developments in the north

of the country with the growth of spacious agri-tourism

developments which are proving popular with the UK and

US source markets.

“These products are different from traditional

timeshare. They are intimate resort properties converted

from 15th and 16th century villas featuring spacious

accommodation and delivering an aspirational lifestyle

product. Many are very upscale and would be a fit for The

Registry Collection and by embracing culture, history and

excellent cuisine, they are attractive to a higher spending

consumer.

“Another development is the increasing propensity of

the Italians to travel. Low-cost airlines are now opening

up routes between Milan and Tenerife and mainland

Spain. This, coupled with an increasing appreciation of the

Italian owner/member that quality is consistent

throughout the Group RCI exchange network, is

encouraging them to travel abroad. Plus the purchasing

power of the Italians has not increased which makes

timeshare an attractive and more affordable second-home

proposition to them.

“For new developers entering the industry with no

experience of the timeshare or fractionals market, all

discussions end on the same question and that is ‘who is

going to sell it and how?’ What is really needed in Italy are

good marketing companies selling to UK and US

consumers. It is a big opportunity for the right operation.”

Domina Vacanze’s luxurious hotel property Domina Home Giudecca-Veneziais ideally located to explore the culture and history of Venice.

kilometres from Genoa airportand close to the beach at Paraggiand Rapallo Golf Club.

The Italian market continuesto deliver a good return andgrowth for those companies with aquality approach throughout,from sales deck to property. Highland and resort development costs

are quickly recouped by selling aquality shared-vacation ownershipproduct, especially fractionals.

With its place in the top 10preferred destinations for theBritish second home-buyer – thelargest in the world – Italy is theperfect place for both developerand consumer.

■ An apartment in a residential complex

set in the hills above Gardone Riviera

close to Lake Garda has a weekly rental

value of up to €1,350, rising to €2,300 for

similar in the heart of the lakefront town

of Salo.

■ A one-bedroom apartment in Umbria

comprising 60 square metres of

accommodation with large private

garden is priced at €185,000.

■ A newly restored agri-tourism farm

house development in the Northern

Maremma, in Tuscany, one kilometre

from Le Spiagge Bianche (White

Beaches), with two kitchens, two

lounges and 15 bedrooms would cost

€2,050,000.

(Source: World Travel & Tourism Council.)

ITALY – THE FACTS

GROUP RCI VIEW

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he mention of hotel cuisine used toconjure up platters of boring food

served in gaudy banquet rooms or blandfamily fare dished out in dull, cookie cuttercoffee shops. However, that era has long passed.

These days, hotels are redesigning their food and beverageofferings, keeping ahead of current trends and creating cosy eateriesto appeal to today’s health-conscious travellers.

In the past year alone, Starwood Hotels & Resorts, EmbassySuites Hotels, Wyndham Hotels and Resorts, Westin Hotels &Resorts and Fairmont Hotels & Resorts have all launched health-oriented, environmentally-friendly initiatives – everythingfrom removing trans-fats (as Starwood has done), to linking F&Boperations with companies specialising in nutrition.

Westin, for example, recently entered into a partnership withSuperFoods LLC, a company with expertise in food ‘synergies’ – thescience of boosting the nutritional values of food by combiningcertain ingredients.

HEALTHY BRANDINGThe trend towards more nutritional foods is being fuelled by risingrates of obesity and the health problems associated with beingoverweight, such as heart disease, cancer and diabetes. Theseconcerns, coupled with the popularity of celebrity chefs andtelevision programmes about food preparation, have educated thepublic about what they are eating. At the same time, consumers arediscovering the benefits of a nutritious meal and the fun of samplingsomething new. But for hotel companies,offering healthy food is also a way to boosttheir brand.

Fernando Salazar, vice-president, foodand beverage for Wyndham Hotels andResorts, said: “We’ve come to realise thatthe sexy part of hotels is F&B. Consumersare becoming more educated about howfood is prepared and our guests areconstantly asking for organic produce.”

He notes that diners are demandingfresh ingredients and seeking out thetasty flavours characteristic of fusion

cuisine – lemongrass, coriander, chipotle andthe like. Finger food and small portions of tastynibbles like tapas, Middle Eastern mezzes,skewers of Thai chicken, and, the universalfavourite, sushi, are also hugely popular.

Wyndham Hotels and Resorts has responded to this demand bytweaking its breakfast offerings, upgrading F&B choices with sugar-free granola, a choice of eight fresh fruits and low-fat yoghurts.Its morning meal is dubbed the Fields and Sun Breakfast, atempting description that will be augmented by a chain of ERL (Eat, Refresh and Live) cafés, to be introduced later in 2008.

Riding the fresh food wave strengthens brand image, but it’s onlyone of several moves that hotels are making to attract guests. Stylishdécor is also being used as a lure.

In January, Embassy Suites Hotels introduced restaurants calledFlying Spoons in the lobbies of some of its North American properties.A cross between a European café, an office-space-on-the-run and aplace to just hang out – Flying Spoons is a concept the hotelcompany describes as ‘hip casual’.

Kris Beck, director of brands operation support for EmbassySuites, said: “Our restaurants weren’t offering what our guests were

looking for. As a hotel operator we wantedto offer a dining experience that was instep with what people are eating today.”

Flying Spoons restaurants are repletewith designer details and offer three levelsof seating – belly bar tables, regular smallcafé tables and wingback chairs.Numerous power outlets allow travellers toplug in their laptops while they sip on askimmed milk mocha latté or munchlobster enchiladas with roasted tomatoes.

For Embassy Suites Hotels, the newlobby restaurants will not only help its


HELGA LOVERSEED takes a look at some of theideas and developments in food and beverage linesin some of the world’s leading hospitality groups.

The new Fields and Sun breakfast buffet atWyndham Hotels and Resorts’ properties.

Cod with locallygrown peas andmicrogreens,served at TheFairmont Chicago.

T

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wrong with simple, nutritious food servedwith style.”

Fairmont Hotels & Resorts is at theupmarket end of the hospitality industryand for this Toronto-based chain, servinghealthy food is not just a matter of brandimage – it’s part of the corporate DNA. Thecompany has its roots in Canadian PacificHotels & Resorts, a century-old hospitalitychain that was known for its regionalcuisine and concern for the environment,years before either became global trends.

Fred Lawlor, vice-president purchasingfor Fairmont Hotels & Resorts, said: “Westarted recyling programmes back in theearly 1990s. That led to otherenvironmentally-friendly initiatives andnow we’re focusing on food.”

The hotel group, whose brands includeluxury chain Raffles and Swissôtel, aswell as the recently launched FairmontHeritage Place and Fairmont Residences(vacation ownership properties) areintroducing changes. Under the title ‘fromthe farm to the fork’ the group isreviewing purchasing and food sourcingpolicies to determine how best to

implement sustainable practices. Across the network, chefs arebusy finding food that is grown or raised as close to Fairmont’shotels as possible, seeking out organic produce and sourcing fairtrade beverages.

These foods are highlighted on menus, so that diners can makean educated choice. Some Fairmont hotels also offer food-orientedprogrammes that include cooking classes, trips to the countrysideto visit farmers and food producers, and Shop with the Chefexcursions to local markets during which participants can askquestions and learn even more about their passion.

These are engaging ideas that could be taken on board bytimeshare resorts, adding another dimension to the guest experiencewhile helping to keep guests on-site and happy to be there.


brand image but will also boost thebottom line. The hotels have large atriumsand, according to Beck, the new cafésutilise wasted space and maximisebusiness in a high traffic area, helpinghotels to cover the cost of light and power.

While oversized lobbies are not usuallya feature of resorts, for timeshareoperators converting an empty space intoa small, trendy snack bar or café couldwell be a profitable idea, adding anadditional revenue stream. Introducingmodern design features such as elegantchairs, splashes of art and tasteful colourscan also be a practical way to refresh theimage of a resort that is beginning to showits age. It’s also a less expensive refreshthan a structural expansion or a majoroverhaul to a building.

Jody Pennette of CB5 RestaurantGroup LLC, a Connecticut-basedcompany that designs hotel restaurants,said: “The key is to create a welcominggathering place. We like to create acocktail party feel where people canmeet and mingle. The restaurant shouldbe fun and funky, but it doesn’t have tobe fancy.”

Pennette dislikes the current tendency for over-the-top menusand pretentious descriptions – calling soup ‘velouté’ for example, aterm that many people might not understand – but at the same time,he stresses the importance of showcasing a hotel’s brand. If it’s aluxury property with a sophisticated clientele, then the restaurantshould reflect that. If it’s a family-oriented resort then the restaurantshould cater to that segment of the market.

Jody explained: “The architecture, the standard of service, thebrand, all of them come together.

“The food has to balance the overall design of the place, butthere’s no need to overload the menus. More isn’t necessarily better.The dishes should be colourful and appealing, but there’s nothing V

FernandoSalazar

KrisBeck

FredLawlor

One of the restaurants designed by CB5 RestaurantGroup – Pao at the Clinton Hotel, in Miami.

The executive chef at The Fairmont Royal York,Toronto, in the hotel’s rooftop herb garden.

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PROD

UCT

waking up to a whole new world. Aworld where you can enjoy the most relaxing night’ssleep you’ve ever had, surrounded by pure air withmineral-rich water on tap to help revitalise andreinvigorate.

This is the world of Nikken Wellness – a Japanese-inspired collection of products designed to deliver abetter quality of life and fitness levels to customers intheir own homes.

The Wellness Room concept has been around formore than 30 years, with approximately 400,000 NikkenWellness Homes around the globe. Its products are aperfect fit for the health-conscious consumer of today soit’s no surprise the Wellness Room concept is moving intothe hospitality sector.

The industry has been quick to capitalise on healthand fitness trends to the point where a spa is now a ‘musthave’ in any new build resort property.

The Wellness product is being introduced to theindustry by Irish-based company Wellness RejuvenationRooms (WRR), founded by Kathryn Duffy and GinaSivyer, who are converts to the Nikken Wellness concept. They areadvocates of the benefits these products can bring, not only to thehealth of customers, but also to the bottom line of the resorts thatincorporate them.

Duffy, sales and marketing director at WRR, said: “I’m enthusiasticabout these products because they have made such a difference to myfamily and I. It’s the products that do the talking.”

Sivyer had previously helped to set up the East Clare Golf Villagetimeshare resort in Ireland and this became the first resort in Europeto have its own Wellness Room. The popularity of the productsprompted the resort to convert nine units into Nikken WellnessHomes, and plans are in hand to convert another five a year on its wayto becoming a full Wellness village.

“It has made a big difference,” said Sivyer, who is also a director ofWRR. “Last year was our first year of marketing WRR and it’s taken offincredibly well.”

Now word is starting to spread among other timeshare resortowners in Europe – helped by the duo’s attendance at OTE’s industryforum and by becoming an RCI Preferred Alliance Partner.

A Wellness First with Fortina SpaThe first hotel in the world to sign up to the WRR product was theFortina Spa Resort in Malta, which was already renowned for itsground-breaking spa bedrooms. It started marketing its first twoWellness Rooms in January and plans to have 25 more by the summer.

Managing director Michael Zammit-Tabona said he had long beeninterested in magnetic Far-Infrared technology and decided to samplethe Nikken products himself first.

“I tried them for a month and they’ve been fantastic and made areal difference to how I feel,” he admitted.

“I see this as the next step up from normal five-staraccommodation. It’s new and it gives people a reason to choose us.”

It is also a good hook to attract publicity. “We had a group ofjournalists here to see the rooms and they loved them. This conceptgives them something new to write about”, said Zammit-Tabona.

He estimated the cost of converting a normal bedroom into aWellness Room to be €7,000 – and then there are marketing costs tobe factored in.


The road to recovery for Kathryn Duffy led her into a worldof wellbeing and a successful new business that is nowWellness Rejuvenation Rooms. SARA MACEFIELD reports.

A story of health and wealth

Wellness Rejuvenation Rooms components, such as air systems, water purifiers and theNikken Sleep System, can all be fitted to a room without making any structural changes andcan be positioned anywhere in a room to accommodate design features.

Imagine

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Kathryn Duffy’s storyKathryn Duffy’s life had collapsed and she was simply

feeling grateful to be alive when an acquaintance

introduced her to the Nikken Wellness products.

Following a double brain haemorrhage and a stroke,

she was not given great odds for survival.

But survive she did and while recovering she came

across details of the Nikken Wellness products.

She created her own Wellness Home, and claims the

results speak for

themselves. She said:

“My husband no

longer has back

problems and my

son, who was a

chronic asthma

sufferer, is clear of

the illness. My

disabilities suffered

after my illness

gradually

disappeared.”

By April 2003, Kathryn felt well enough to return to

work and marketing Nikken products seemed the obvious

thing to do. Kathryn’s holistic therapist introduced the

products to Gina Sivyer and Emelyn Heaps who run Irish

timeshare operation Clare Resorts. They purchased their

own Wellness Home and were “blown away by the

product,” says Kathryn.

As a result, the couple introduced the concept to their

East Clare Golf Village and have installed it in nine of the

51 self-catering homes.

In October 2006 Kathryn and Gina agreed to start

working together and, on Emelyn’s suggestion, contacted

Group RCI with a view to forging closer industry links and

Wellness Rejuvenation Rooms became a Group RCI

Preferred Alliance Partner.

“This gave us the opportunity to meet with many of

Group RCI’s affiliates which has helped to kick-start our

business – the first of its kind on this scale,” said Kathryn.


However, Fortina Spa Resort ischarging an extra £70 a week for theserooms. Duffy said: “When people startusing these technologies, they becomevoracious consumers of the product –and selling the products in the resortsalons and shops is another source ofrevenue.”

The Wellness concept can beleveraged in several ways to generateadditional revenues. The WellnessRooms themselves will attract guests inthe first place, as well as tempting themto upgrade their units.

As part of WRR’s agreement withNikken, any resort that signs up will gainaccess to Nikken’s 400,000 Nikken Wellness Homes owners around theworld.

The resorts will be listed on WRR’s website and on a global page onthe Nikken site which will name all the worldwide resorts offering itsproducts. Each new resort will also be featured in the Nikken quarterlymagazine which is sent to all the organisation’s distributors.

The start of something bigAs for WRR, this is just the beginning and momentum is growing. The

company wants to target hotels and resorts inthe four- and five-star bracket, along with sparesorts, and ambitiously aims to sign up 300resorts this year.

It also aims to convert a minimum of 10rooms per resort, for which it provides a fullpackage of products, guest information,including a dedicated TV channel, and stafftraining.

Now WRR is talking to resorts in Tenerifeand the Red Sea, and has set a goal to have atleast eight or 10 more signed up by the end ofApril.

Duffy said: “Our biggest problem now issimply keeping up with demand.” V

Kathryn Duffy met with MichaelZammit-Tabona, who has trialledthe WRR products himself, tosign up the Fortina Spa Resortin Malta.

A belief in Nikken Wellness productsbrought Kathryn Duffy, left, and GinaSivyer together to launch a successfulbusiness.

The Air Power 5System is a neat 70cmtall, 25cm wide and20cm deep, anddelivers purified,ionised air to the room.

What is Nikken Wellness?Founded in 1973 in Japan by Isamu Masuda.

Inspired by Japanese customs and the use of

magnetism prized in the Far East for its

invigorating qualities, he set about creating a

series of wellness and rejuvenation products.

Nikken is now an international company with

an army of home-based consultants in more than

35 countries. It became the fastest-growing

direct-sell company in Japan’s history, grossing

billions of dollars in sales and building a

state-of-the-art base in the US. Customers can

even create their own Nikken Wellness Homes.

Products include:

■ Mountain fresh air – using negative

ions in the atmosphere to create a pure

air environment

■ Living Pi water – water purifiers

remove 99.7 per cent of impurities and

add minerals to water systems

■ Sleep System – comprises mattresses,

quilts and pillows, containing magnetic

discs using Far-Infrared technology,

known for its therapeutic effects.

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Travel and tourismenjoyed another solid

performance in 2007. International tourism

arrivals increased last yearby almost six per cent,totalling nearly 900 milliontourists and marking thefourth successive year thatarrivals’ growth hasexceeded its long-standingtrend of four per cent(source UNWTO). Ourresearch shows that withinmature markets such as theUS and Europe, people aretravelling more frequently.

Nonetheless, the traveland tourism industry doesface challenges in the yearahead. Deterioratingeconomic conditions,particularly in the housingand credit markets acrossthe globe, are increasingconcerns for the industry.Higher energy prices are atwo-pronged challenge asthey squeeze householdbudgets globally,simultaneously raising thecost of flights and otherassociated travel expenses.

However, even thesechallenges have offsets as

higher revenues areboosting incomes in oilproducing countries andraising available funds forinvestment in diversificationprojects which often focuson tourism’s undoubtedpotential.

Tourism growth has beenparticularly rapid indeveloping countries, withthe fastest average growthin tourism arrivals seen inthe Middle East. Suchcountries are not onlyrecognising the developmentpotential of travel andtourism and, therefore,investing heavily in newinfrastructure and facilities,but they are also seeingrapid economic growthboosting incomes beyondthe level where internationaltravel becomes both afeasible and desired option.

Tourism from China, forexample, is growing rapidlyand such growth is unlikelyto be stemmed by the

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Despite the repercussions of the ongoing global credit crunch, World Travel &Tourism Council (WTTC) research reveals the travel and tourism industry willbe only moderatelyimpacted. WTTCpresident, Jean-Claude Baumgarten,predicts reduced butcontinued growthrates throughout2008.

modest downturn in worldeconomic growth currentlybeing forecast. Visitors fromChina are still expected toincrease by more than nineper cent in the next threeyears.

Although the recentdeterioration in economicconditions has clearlyincreased downside risks,we at the WTTC expect theslowdown in travel andtourism growth to bemodest.

It is most probable thatthe slowdown in worldgross domestic product(GDP) growth will be limitedbecause the rapidlyexpanding emergingeconomies have felt littledirect impact from the creditcrunch.

The growth of tourism inthe emerging markets ofAsia will continue to besupported by strongdomestic demand and thestimulus from increasing

trade among themselvesand with the oil producingcountries. The easing inmonetary policy by centralbanks and emergencyprovision of liquidity willprovide on-going support inother regions, while it mustbe remembered thatoutside the financial sectorcorporate profitabilityremains strong.

■ The forecasts highlightedin this article are aprediction. Since thisinterview, the WTTC haslaunched its 2008 TourismSatellite Accountingresearch which measuresthe economic performanceof 176 countries. Thiscredible and professionalstatistical information canassist in informinggovernment policy andbusiness decisionprocesses. For furtherinformation please visitwww.wttc.travel

Pointing out the positives

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Documents

RCI Ventures - April 2008