Timeshare takes off as Hotel occupancy drops

A recent Reuters news article reports that hotel occupancy in the USA is down in some top holiday spots – not for lack of visitors, but because more people are choosing to invest in permanent holiday accommodation like property and timeshares in their favourite destinations.

According to Peter Yesawich, chief executive of travel advertising agency Yatters, it’s easy to see why: ‘The pattern goes like this: visit destination, fall in love, buy the real estate.’

The shift is so significant that the big hotel chains are jumping on the timeshare trend, expanding their vacation ownership accommodation to capitalise on the boom. ‘These hotel guests are natural timeshare buyers,’ commented Scott Berman, head of PriceWaterhouseCoopers’ hospitality and leisure consulting practice.

Sales of timeshare property alone rose to $10 billion in 2006, up 16 per cent from 2005, according to ARDA (the timeshare trade group American Resort Developers Association). Today, over 4.4 million people own timeshare in the States.

A similar trend is emerging in Europe. Sales of holiday homes and timeshare approach record levels this year, as timeshare products are gaining popularity on this side of the pond. Value for money, generous accommodation space, self-catering facilities and a host of on-site leisure amenities are among the reasons why more families are opting for timeshare.

As thousands of people return from holiday having found their dream place in the sun, the number of Britons buying second homes and timeshare property abroad is set to soar this autumn, fuelled by an unusually wet British summer this year. New research just out from Moneycorp, the UK’s leading foreign exchange specialist, reveals that the number of people buying abroad rises by as much as 26 per cent in the autumn months.

European resort developers Club La Costa Resorts & Hotels recently reported a record summer season for their timeshare division, with occupancy rates at their Spanish resorts outperforming average hotel occupancy on the Costa del Sol. And their new Club La Costa Yacht Club, about to complete its first season in Mallorca, has been an unprecedented success.

Club La Costa Chairman Roy Peires commented, ‘The Yacht Club has been exceptionally popular with our members, I’m absolutely delighted. We’ve just announced our new winter sailing season in the Red Sea and will be back in Palma again next year. With ‘lifestyle’ holidays becoming more and more popular, our philosophy remains clear and simple: Club La Costa is dedicated to providing wonderful holiday experiences for our members.’

While Europe’s top three timeshare destinations continue to be mainland Spain, the Canary Islands and France, Turkey and Morocco are two new rising stars on the tourist map. Americans on the other hand (when they’re not holidaying in Hawaii, Florida or California) love Britain. A quarter of all Americans come to our shores for a change of scenery; those put off by the British weather head for Italy.

No matter what stage in life you’re at, it isn’t always easy to make new friends. Whilst at school, college or university, making friends is relatively easy, even for shy people, as people are of a similar age, with fairly similar interests, in the same location. However, making friends later on in life can be much more difficult. There may be colleagues at work, people you know at the gym, somebody you walk past every day, acquaintances in the pub, but how many of these are your real friends? How many would you trust with a secret, or a problem? For people who have moved away to a new town, or whose relationship circumstances have changed, having to make new friends can be a daunting prospect. Following these suggestions can help make finding new friends a bit easier.

1) Do something! Don’t stay in waiting for new friends to suddenly appear. They won’t. Sign up for an evening course and you could learn a new language, become a wine expert, improve your cooking skills, or make better use of your computer in just a few weeks. Find a gym, play sports at a sports centre or at a local pitch, join a film club, learn to dance, take up a martial art, or do voluntary work. Go on the works night out, anything rather than spend another night in front of the TV.

2) If you can’t find a hobby or a social activity that interests you, why not see if there’s a Friendly Society or Friendship Club nearby. These are a great way of meeting people, and can be invaluable if you have moved to a new town, and don’t know anybody. As well as like minded people, these clubs offer many social activities and social group events which can range from quiz nights at a local pub, to foreign travel, and may include special offers on such products as medical insurance.

3) Although easier said than done, try not to be shy when meeting people for the first time, even though you may feel you lack confidence. When you are in a social situation, aim to make the first move, and other shy people will be glad you broke the ice. Remember to listen more than you talk as people usually like to talk about themselves, so give them the opportunity, but don’t talk about yourself unless asked. Ask plenty of questions but nothing too personal or controversial. You can ask them how they got to be invited, or how they know the host, about their job, about their hobbies, music, film and TV tastes and more. Be yourself, and try not to change just to fit in. Accept that you won’t like everyone you talk to, and not everyone will like you.

4) You may be able to tell a little about a person from the way they dress, or from what they are carrying. If somebody is carrying a camera, listening to a portable music player, reading a book or magazine, walking a dog, or pushing a pram, you might have something else to talk about.

5) Try to ask open questions such as “What do you think of ….?” rather than “Do you like …..?” as they require a more detailed answer, and encourage conversation. Questions that require a Yes or No answer don’t make for an easy conversation.

6) Like minded people can often become friends. If you’ve always wanted to do something different, or take up a new activity, this could be the ideal time. From abseiling to zoology, there’s bound to be a local club or society that you can join. For example, if you play a musical instrument, why not visit a local music shop and see if you can find a band to join, or musicians to play with. If you’re an avid reader, why not join a book club. Volunteer work can be very rewarding if you have the free time. If you’re an animal lover, there may be an animal rescue centre that you could help out. Cycle shops will often have information about local routes and the local cycling club. Getting to know your neighbours can also be an easy way to make friends.

7) You can also make friends online using social media sites or chat rooms. However, these types of friendships are not usually the same as real life friendships. You might have a great time talking to someone in a foreign country who likes the same music and films as you do, but this friend probably won’t be able to give you a lift if your car won’t start.

Once you’ve made friends, don’t forget to get a phone number or email address, and be positive! Contact your new friend, but don’t be put out if they are too busy or unable to meet you for a while. Remember not to seem clingy or desperate. If you have the opportunity to make more friends, then do so, don’t feel like you have to rely on just one person.

9) Being an honest, dependable and trustworthy person and not divulging too much about yourself or other people is important. People value loyalty and punctuality too, so treat other people as you would like to be treated. If you turn up late, and start divulging secrets, repeating rumours or spreading gossip, people will be less likely to be friendly towards you, and may not trust you again.

10) As well as the good times like going out for a drink, or to a gig, you should be prepared to help out when a friend really needs your help. Whether a shoulder to cry on, a late night lift home, or advice, friends should be reliable and there might be a time when you have to be a real friend to someone who needs you.

Finding a good friend won’t happen overnight, and you will probably need to work at maintaining friendships. Sometimes a friend won’t be able to see you for a while, and sometimes that friend will want to see you daily. Some people need time to themselves, and others don’t.

Remember your old friends can still be contacted by phone or email even if you no longer live near them. As well as phone calls and emails, why not make a special effort to see them once in a while and make a weekend or a holiday out of it.

Friendships can last a lifetime, and there are plenty of people who still keep in touch with people who are thousands of miles away. Get out there, find yourself some new friends and have a hectic social life!

Michel Platini, the UEFA president, has already made quite an impression since his appointment. He has already reached an agreement over disputed matters, which resulted in the G14 group disbanding, so withdrawing the threat that it would form a breakaway European league.

A European Club Association (ECA) is being established in its place and the planned make-up means that a majority of its members will almost certainly be supportive of Platini’s plans. The chairmain of the ECA, Karl-Heinz Rummenigge, has stated “Football is sick”. The former Germany striker told Kicker magazine “I read a statistic which says 85% of all professional football clubs are running at a loss”.

I have had a look at the main problems that seem to be affecting world football and how we could begin to solve them, including inflated transfer fees, sky-high player wages, clubs heavily in debt and proposed rules on player quotas.

Transfer fees

Is Cristiano Ronaldo or Kaka worth 80 million pounds? If a player wants to leave a club then the minimum that the player should leave for is the value of the remainder of his contract. For example, if Joe Cole is on 75,000 pounds a week, that equates to 3.6 million pounds a year. If he has 4 years remaining, his minimum value is 14.4 million pounds yet if he has two years remaining he is worth just 7.2 million pounds. These are quite realistic values that are often paid for players of this calibre. But, this minimum valuation ensures that clubs are not held to ransom.

Yet, should there be a maximum limit? For example, maybe if twice the value of the remaining contract is offered then it has to be accepted. A realistic way of implementing this would be setting a release clause in every players contract, which would be reviewed yearly. So, if players sign an extension then their release value could rise, whereas if they continue to work out their current contract then their release value would drop.

Release clause value = 2 x remaining contract value

So, relating to the previous example, if Joe Cole had a four year contract and Real Madrid offered 28.8 million pounds then the offer would have to be accepted. Whereas, if he only had two years remaining the release clause would be activated at 14.4 million pounds. Although at first glance it may seem that bigger clubs could take advantage of the smaller clubs. The smaller clubs would be able to re-invest any money from players sold into similar players as they won’t be held to ransom, as players will always be available for between one and two times their remaining contract.

Spiraling wages

It would not be possible to ‘fairly’ implement these regulation without getting to grips with the financial issues in football, particularly rising wages. Deloitte, a top business advisory firm, recommends a 55 per cent wages to turnover ratio to ensure financial stability. Only three Premiership clubs currently meet that criteria; Arsenal, Manchester United and Tottenham. I believe Chelsea’s ratio is around 70 per cent, 133 million pounds on wages, out of 190 million pounds turnover.

UEFA president Michel Platini has set his sights on reforming the finances of Europe’s top clubs. He has warned that Europe’s governing body is going to “fight very seriously” to restrict entry into the Champions League and Uefa Cup for clubs that are in debt. I believe it wouldn’t be right not to allow clubs entry due to debt. I will look at this in more detail later. I think that clubs should be allowed to participate as long as they demonstrate sustainability. Platini should look at implementing the 55 percent turnover ratio.

This could be phased in to ensure clubs have time to reassess their spending. I.e Season 1, no criteria for wages to turnover ratio; Season 2, maximum 65 per cent wages to turnover ratio; Season 3, 60 per cent wages to turnover ratio; Season 4, 55 per cent wages to turnover ratio. Any club that defies these regulations could be banned from playing in European competitions until they meet the criteria.

The regulations on transfer fees and wages would have to be introduced together and implemented throughout Europe by UEFA. To ensure global competitiveness, i think it would be vital that FIFA also adopted the regulations to ensure they were administered worldwide. As if European teams were restricted in terms of the wages they offer, etc, then a different league could take advantage. For example, if the Premier League, Serie A, and all European leagues restrict the amounts players can earn, then maybe the MLS could offer ‘mega-deals’ to players in order to create a super-league in America.

Levels of Debt

Back to our current world super league, the English Permiership. There is no doubt that this is currently the world’s top league, emphasised by the fact that two english teams competed in the final. UEFA president Michel Platini warned that “this success is often built on an unsustainable level of debt which, in all fairness, is distorting the level playing field in Europe”.

That warning is pertinent to the two Premiership clubs that reached the Champions League Final in Moscow with their talented, highly paid squads, and staggering levels of debt. Manchester United and Chelsea have acquired almost equal shares of a combined 1.5 billion pounds owed to creditors in contrasting styles, illustrating the random nature of takeover. Chelsea’s debt takes the form of an interest free loan from Roman Abramovich.

Whereas the Glazer family bought United in 2005 with huge borrowings, and loaded their own debts and swingeing interest payments on the club. United’s most recent accounts showed the club, who had no debts before the Glazers arrived, with borrowings now of 666 million pounds, including 152 million pounds owed to hedge funds, and interest due last year of 81 million pounds. United Investigating the debt of the two clubs would be an article in itself, but surely if an investor’s only investment in the club is debt then they shouldn’t pass the fit and proper persons test.

6 + 5 = illegal

FIFA, well Sepp Blatter at least, has been widely publicising their/his “6 + 5″ rule, aiming to ensure that at least six players in every clubs squad are from the club’s own country. Vladimir Spidla, Europe’s commissioner for equal opportunities, has ‘given the red card to the 6 + 5 rule’. The 6 + 5 rule is directly discriminatory and therefore incompatible with the EU law.

It seems that it will be impossible to implement this rule [sigh of relief] due to the EU’s trade laws regarding free movement of labour within member states. It also seems slightly odd that they are pushing for this in particular, considering the “home-grown players” rule that has been successfully proposed by UEFA. Maybe it’s because these regulations have yet to be applied to the major domestic leagues, only the Champions League and some smaller domestic leagues.

UEFA defines “home-grown players” as those who, regardless of age or nationality, have been trained by their club or by another club in the national association for at least three years between the age of 15 and 21″. The commission has approved the Uefa arrangement because it contains no player conditions based on nationality. “

Compared with the intentions announced by Fifa to impose the so-called 6 + 5 rule which is directly discriminatory and therefore incompatible with the EU law, the ‘home-grown players’ rule proposed by Uefa seems to be proportionate and to comply with the principle of free movement of workers”.

An independent study has been carried out on the “home-grown player” rule under which clubs in the Champions League and the Uefa Cup would have to have a minimum number of “home-grown players” in their squads. The European Commission said the underlying objectives of the UEFA scheme, to promote training for young football players, were legitimate. UEFA have phased in this ruling, starting with a minimum of four home grown players, rising to six a
nd now eight, out of the squad of twenty-five, must be home-grown players. Uefa have hit upon a formula that is practical, feasible, and effective, especially when compared to Blatter’s doomed ‘6 + 5 rule’.

Aside the fact that it would be illegal, the 6+5 rule would result in the wealthiest clubs scooping up the best British talent. It would thereby defeat one of its own objectives, which is to increase competitiveness and give smaller clubs a chance. A case in point: Manchester United have been portrayed by many of Fifa’s advocates as a shining example of how six plus five is the way to go. In the Champions League Final this year United operated with six home players. Yet a second glance revealed that four of these players (Wayne Rooney, Rio Ferdinand, Owen Hargreaves and Michael Carrick) were bought for colossal sums of money, partly due to the over-inflated price that normally accompanies homegrown players. Fifa’s ruling would merely make these players even more highly valued commodities, and as such only affordable to the top clubs.

Summary

I would argue that a combination of these factors would make all players more widely available all the way through the football pyramid, increasing competitiveness. Firstly, i feel that it is vital to ensure that our football clubs are kept out of the hands of so-called investors, that end up saddling the clubs they have bought with huge amounts of debt. Secondly, introducing the wages to turnover ratio for clubs and having a set value for all players depending on their contracts (with the contracts offered being limited so as not to break the wages to turnover rule and risking major punishment). The continuation of UEFA’s home-grown rule would ensure investment in youth is maintained by the top clubs.