We recently read with interest that the governing body for the region of Andalucia in Southern Spain (Junta de Andalucia) passed a decree in July last year that enables hotels on the Costa del Sol to enlarge their premises by up to 20 per cent and update their facilities to attract higher quality tourism. So far according to press reports fifteen establishments are to spend nearly 200 million Euros on modernisation works, including energy saving measures and adapting to the new demands from travellers.
In the list published we couldn’t see any of the local timeshare resorts. In the past it was fair to say that timeshare resorts offered superior accommodation when compared to what local hotels offered but of late a constant complaint levelled at us by timeshare owners is that many resorts are looking tired and a little run down when compared to the past.
With new timeshare sales in Europe falling daily, net spendable income to developers has dropped, however the costs of running resorts has risen, with this in mind, something has to give.
Maintenance fees failing
Our recent story covering the demise of the Paradise Kings Club in Cyprus was clearly communicated by the management company and caused by an issue with the amount of maintenance fees collected not being enough to cover resort costs. Top of the hate list of timeshare owners is the requirement to pay annual maintenance fees, the fact that they only seem to go up is also cited as a big negative.
Without the cash injection from new sales it becomes easy to see the financial strain placed on resorts if the reliance on funding is down to the collection of maintenance fees solely. In the worst case scenario, resorts have to close, in others cases standards, refurbishment and general maintenance suffers.
TCA comment
According to the report, these initial projects are just the start of a transformation which has already taken place in competing destinations such as the Balearic Islands, Murcia and the Canary Islands. Apparently the modernisation in the Balearics has not only created over 7,500 jobs but has significantly increased their popularity as tourist destinations.
The standing jokes about package tour type hotels seem they could be a thing of the past. More and more consumers are using online booking platforms to scope out there holidays; naturally there is also an expectation of quality venues. From this news it certainly appears that at least 15 hotels so far on Spain’s sunny southern coast will be offering guests just that.
Hotels in Andalucia offer tremendous choice ranging from coastal to inland, 1 to 5 star, giant condominium styles to boutique venues. According to statistics there are approximately 455 hotels to choose from in Andalucia, compares to a very small handful of timeshare resorts. If hoteliers weren’t getting the business, they wouldn’t invest, seems to us that both the business is there and the investment is following.
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