(Washington D.C.) The Nevada timeshare industry contributed $2.8 billion to the statewide economy in 2005, according to a study conducted by PricewaterhouseCoopers and released today by the ARDA International Foundation (AIF), the research and educational arm of the American Resort Development Association (ARDA). Undertaken to analyze the impact of timeshare developers and owners and their value to Nevada’s economy, the study was distributed last week to Nevada Legislators during the ARDA-Nevada Legislative Luncheon in Carson City.

The combined direct and indirect economic impacts the timeshare industry had on the Nevada economy increased 41 percent from the $1.9 billion reported for 20021. The Nevada timeshare industry directly supported 15,910 full- and part-time jobs (almost 35 percent more than the 11,820 in 2002), $640 million in salaries, wages, and related income (a 48 percent increase from 2002), and $363 million in tax revenue during 2005 (a 44 percent increase over 2002).

Senate Majority Leader William J. Raggio (R-Washoe) introduced ARDA-Nevada Chairman Foster Mullen, head of Sparks-based QM Corp., along with ARDA staff members Stephany Madsen and Keith Stephenson during recognition of the ARDA Legislative Day in the State Senate. Following the introductions, Senator Michael Schneider (D-Clark) of Las Vegas said: “Timesharing is a booming part of the Nevada economy, particularly in Southern Nevada, as Las Vegas is one of timeshare owners’ most sought-after destinations.”

Nevada Lieutenant Governor Brian K. Krolicki, who attended the ARDA luncheon, told industry representatives that he expected “Timeshare development in Las Vegas to give Orlando a run for its money in the very near future.”

Timeshare owners’ spending generates dollars for Nevada

Nevada’s 60 timeshare resorts (representing a seven percent increase from 2002) and 7,600 timeshare units (representing a 52 percent increase from 2002 and five percent of the current U.S. total), provide accommodations for a significant number of annual travelers. During 2005, one million timeshare owners, their guests, and renters visited Nevada:

  • with a typical traveling party of 3.6 people,
  • spending an average 7.4 nights in the resort area,
  • and spending an average of $2,307 per trip, 30 percent higher than the U.S. average,
  • with 92 percent of their trip expenditures at businesses outside the resorts, such as casinos, shows, restaurants and other area attractions.

New and existing owners:

  • Spent approximately $850 million on purchases of new Nevada timeshares (nearly 10 percent of the $8.6 billion of U.S. sales),
  • and contributed $200 million toward maintenance fees for existing units during 2005 with a combined total of $1.7 billion in purchases.

"The economic impact of the timeshare industry does not end with the initial purchase," said Howard C. Nusbaum, president and chief executive officer of ARDA. "Timeshare purchases, combined with other expenditures and owner and guest spending during vacation, generate tremendous income as well as a ripple effect through other parts of Nevada’s economy."

Direct resort impacts on the Nevada economy were substantial and grew significantly over the three-year period in part due to the 45 percent jump in the number of employees at resorts, corporate offices, call centers, and off-site sales offices, to 8,560 in 2005 earning $370 million from 5,890 in 2002 earning $230 million. Direct resort construction impacts, which occurred as the industry expanded existing resorts and built new ones to keep pace with sales, supported approximately 1,930 jobs (compared to 1,530 in 2002) and $100 million in salaries, wages and related income (compared to $80 million in 2002).

The positive ripple effect the Nevada timeshare industry had via indirect impacts on the state economy in 2005 resulted in an estimated $1.1 billion of purchases, 10,240 jobs, and $400 million in salaries, wages and related incomes as timeshare employees spent their disposable income and as timeshare companies purchased good and services from other businesses. These indirect impacts compare favorably to 2002, when the industry generated $810 million in purchases, 7,880 jobs, and $290 million in income.

Study Methodology | The study results are based on the survey responses of 56 timeshare entities in the U.S., covering 391 timeshare resorts, approximately 50,700 timeshare units and approximately $5.2 billion of timeshare sales nationally. The sample size represents 24 percent of existing timeshare units in the U.S. The response base in Nevada included resorts representing over 3,300 units and survey responses from almost 300 households. In addition to Nevada, PwC conducted a national study of the economic impact of the timeshare industry for AIF and state-specific studies in Florida, California, Arizona, Hawaii, South Carolina, and Tennessee.

About AIF and ARDA | The ARDA International Foundation (AIF) conducts research and develops education programming for the timeshare industry. ARDA is the Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has over 1,000 members ranging from privately held firms to publicly traded companies and international corporations with expertise in shared ownership interests in leisure real estate. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).

12002 figures previously reported have been adjusted by PricewaterhouseCoopers to accommodate changes in industry classification made by the U.S. Census Bureau.

Lou Ann Burney
202-371-6700
ARDA