Talking point

Time Share Demands Its Share

The world over time share is looked upon as one of the fastest growing segments of the hospitality industry. Although in its infancy in India (it made its debut barely a decade ago), in the west, particularly north America and Europe, the number of time share owners runs into millions and those exchanging their vacation periods into hundreds of thousands. According to statistic available with RCI - Resort Condominium International - which acts as a bank for time share exchange globally and has a presence in India too, over 212 million travellers took time share holidays during 2000. The industry has a turn over of US$ five billion. Big league chains like Hilton, De Vera, Hyatt, Four Seasons, Sheraton and Marriott are active participants in time share.

In India the number of time share resorts is now over 50 and more than 40,000 families are unit owners. Interestingly, a large number of time share owners overseas exchange their holidays in Indian resorts through RCI. And as far as UK is concerned, India is among the top ten preferences for time share exchange while this country is nowhere near that position in terms of general tourists.

Capital View

Rabindra Seth

It is true that in the initial years, thanks to some unscrupulous developers, time share’s image suffered a set back. But concerted efforts by RCI through a stricter regime of affiliation and self-regulation attempted by the Chennai-based All India Resort Development Association (AIRDA) has led to consumer confidence largely being restored. It was at this stage that the time share segment started looking forward to recognition and support from the tourism authorities. It managed to take in its stride the absence of any reference in the national tourism policy to the potential of time share (or even a mention of it). But it was not prepared for the bombshell that dropped when the revised norms for hotel classification were announced in May this year. Far from even providing a restricted or stringent procedure for classification, or leaving the door open for later entry, the department of tourism (DoT) has rather harshly provided that any hotel which spares even a few of its rooms for time share will be denied classification.

There has been no official statement from DoT explaining the reasons for excluding time share from the classification loop or for creating a separate category or procedure for it. Unofficially it is learnt the department is wary of associating itself with a segment with an image problem. But, this does not explain why hotels which see merit in time share, both as a facility for travellers as well as a business opportunity, should be forced to deny themselves this economic activity, especially when it helps the growth of international tourism.

Faced with this road block, AIRDA has approached CII for help. A meeting of CII’s national committee on tourism and heritage in the Capital, a member Ravi Santhanam, CEO, Mahindra Holiday Resorts, a major player in time share, presented a draft proposal towards CII accreditation for the segment. B S Rathor, a management expert who is principal advisor to AIRDA, was a special invitee. Santhanam felt that CII accreditation would considerably strengthen the credibility and stature of time share apart from ensuring government recognition. FHRAI secretary general, Shyam Suri said in the discussion that followed that not enough was known in the official circles about time share and its contribution to tourism. He agreed that image too was a factor which may have influenced the DoT’s thinking. He suggested that a seminar or workshop on time share be organised to which DoT and other officials functionaries be invited to create greater awareness of what time she could contribute to tourism. Finding a consensus emerging. committee chairman Maharaj Gaj Singh decided that a seminar/workshop will indeed be part of the next meeting of the committee in about three months time. AIRDA now has its work cut out and Rathor told this writer that the association would seek assistance from RCI in putting the seminar/workshop together.

Members were also briefed about the China initiative launched by CII during prime minister Vajpayee’s recent visit. The good news for tourism is that China has become a partner country in CII’s international conference in December which will be attended by the country’s tourism ministry as well as the head of the national carrier. China is also opening a tourist office in Delhi in November. And, as is already known, Air India is starting a bi-weekly service to Shanghai via Bangkok in December.

In a presentation on Rajasthan the state tourism secretary Arvind Mayaram said Jaipur would soon be an international airport with daily charters from Finland.