In September we published an article relating to the global financial crisis and the possible impact on maintenance fees for 2023. Since then the UK has changed its Chancellor of the Exchequer and also seen the shortest serving Prime Minister in History, Liz Truss, resigning and as we write Rishi Sunak is taking up the job as PM, not an easy job by any stretch of the imagination.
The global financial crisis is still with us and as we somewhat prophetically predicted the impact of the crisis which is starting to impact on next year’s maintenance bills.
MacDonald Forest Hills
We recently received a copy of the letter that has been sent to owners at Forest Hills. The letter is well drafted but contains the news that we feel won’t be welcomed by owners. The letter starts with the following:
“As we approach the Club’s financial year end in December 2022 and the Budget Meeting with your Chair and Committee scheduled to take place on 23rd November, I wanted to write to you directly regarding the situation that we, your Committee, but most importantly you face regarding the unavoidable and significant increases to the Management Fees and Wet Leisure Fees for the next year”
The letter goes on to give various reasons for an increase in fees and as we predicted some of the increase is to “recover the deficit” funded by MacDonald in the current year. This includes staff costs and of course the rise in energy costs which could not have been predicted when the budget was set for 2022.
So after a fairly concise explanation as to the “unavoidable and significant increases to the Management Fees”, the crunch comes with this paragraph:
“Taking all the above into account it is likely that your combined fees will increase in excess of 30% and by £200 on an average total fee payable inclusive of VAT and we felt it important to bring this to your attention now to allow you to include in your own personal financial planning. I should also make members aware that a similar level of increases is projected across all our Managed clubs, both UK and Spain, not just Forest Hills.”
In excess of 30% is that 31%, 35%, 40% or more, at present who knows. The word “average” is also of concern and implies that for some, the additional cost will be less than £200 but for others the figure will be substantially more.
TCA Comment
Are we surprised? Not at all, that said even we didn’t think the rises would be in excess of 30%. This is an enormous hike and in reality the writer seems to brush it off by allowing members to factor this in to their financial planning as if this were just another additional cost that’s affordable, why? Because you own a timeshare and affordable or not maintenance fees must be paid.
As every timeshare owner will know there are very few occasions where maintenance fees fall, the normal is an annual rise and we would guess that most owners across the MacDonald estate expected one, but in excess of 30% plus will be a significant blow to many.
Although we cannot substantiate with fact, when speaking to many MacDonald owners we get the feeling that the demographic is for a much older client base, many past retirement. As we all know, those retired on pensions are the sector of society that can least afford any price rises. Personal rises in domestic energy bills, food bills and the like has already started to hit hard with many non essential costs being curtailed. Whilst taking a holiday is something we all look forward to, day to day living expenses take priority meaning that in many cases the annual holiday is shelved or at best cut back.
Unfortunately for timeshare owners the annual maintenance fee payable waits for no man. Whether you cannot afford the travel cost and spending money associated with holidays is something only your personal budget dictates. If you can afford, then take a holiday, if you can’t don’t go. Those who own timeshare with MacDonald, or any other developer for that matter still have to pay the maintenance fee and as this article points out, at least at MacDonald resorts this will be “in excess of 30%” higher than last year.
We used the title “The first of many?” and as we approach maintenance season we are of the opinion that the announcement by Forest Hills will not be an isolated event. If one timeshare developer is feeling the pinch, they all are and as this is a global crisis it would seem that rises, as outlined in this article, will impact no matter where on the planet the timeshare developer is based.
We are by no means singling out MacDonald Hotels & Resorts it’s just, to our knowledge, they are the first to commit to writing a warning. Budgeting and affordability are at present uppermost considerations, can’t afford Netflix, cancel the subscription, can’t afford a new car, don’t buy one, can’t afford a holiday, don’t take one. The list of controllable expenses goes on and on, but whilst owning any timeshare the liability to pay whatever is demanded as a maintenance fee is a contractual liability and is therefore uncontrollable.
If you are a timeshare owner we would be pleased to hear from you as and when you receive you 2023 maintenance bill letting us know how the impact of any rise has affected you.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk