30 Minute Interview

'Timeshare concepts will boost resort development in India'

At a time when the vacation ownership industry is looking to take off in India, the All India Resort Development Association (AIRDA) has pinned its hopes on long term committed players venturing into the development of resorts, says B S Rathor, chairman and principal advisor, AIRDA. By Sanjeev Bhar

B S Rathor Chairman and Principal Advisor, AIRDA

How is vacation ownership development positioned in the country? How will the timeshare concept enhance the scope for further hospitality development?

India is a booming hospitality market, yet it has minuscule contribution to the timeshare business model existing worldwide. USA alone comprises two-thirds of the global market. Though vacation ownership has been growing at a CAGR of 20 per cent for the last three-four years, and has become the reason for resort developments in India, the concept of timeshare is still not understood well enough here. There are a number of products in leisure real estate development where India has potential to embark on a growth journey. It is the timeshare concept that will take resort development in India to new heights and unexplored locales.

What is the potential of timeshare resorts?

The market for timeshare models is huge, and more importantly, domestic traffic is adopting a lifestyle that supports the timeshare model. The customised leisure travel options in India are limited and therefore more circuits need to be developed, which can be done through resort development. Also, there is a need to address customers with consumer friendly policies, since vacation ownership resorts have potential to be developed in hills, beaches, wildlife zones, plantations and even health circuits. The interesting fact is that resort development is going to pilgrim spots as well. Therefore, we can look forward to three to four key products in this category; namely, traditional timeshare, condominium hotels, traditional fractional and private residence clubs.

What role will AIRDA play in promoting such leisure real estate developments?

AIRDA was set up in 1998, with an aim to achieve self-regulation in resort developments. Accordingly, we facilitate the resolution of issues between owners and consumers, which are not subjudice. The association initiated and achieved classification guidelines from the Ministry of Tourism for resorts affiliated with us, which ensures quality standards for Indian resorts. AIRDA will ensure the addressing of domestic leisure tourism as national priority. For developers, our broad aim would be to promote the knowledge about timeshare (or vacation ownership) to more investors, as timeshare directly contributes to the leisure segment; the benefit of which translates to the travel sector.

What are the key issues AIRDA is looking to address?

AIRDA currently represents 18 members who are in resort development, and it is expecting vacation ownership (timeshare) industry developers, exchange companies and other stakeholders, committed to the development and growth of vacation ownership to join soon. We are looking for members venturing into resort development with long term commitment, to share AIRDA's code of ethics, rules and regulations. Further, to identify the scope of the sector, we have undertaken an industry survey for vacation ownership, for the first time in India. This growing industry needs to consolidate by fending for its cause through learning, where our association will play the role of enabler and facilitator for the industry at the apex level.