"The Middle East's hospitality industry is strategically positioned to benefit from the advent of premier shared ownership concepts," says Mr. Kenneth N. May, Chairman and CEO of Cendant Vacation Rental Group (VRG), one of the world's leading providers of leisure travel services.
Mr. May is in Dubai to chair a panel at the first ever Arabian Hotel Investment Conference. The panel explores potential investment opportunities in the region for timeshare, fractional ownership, private residence clubs and condo-hotels exchange concepts, which combined make up a global industry worth over USD 10 billion, with more than six million owners worldwide.
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| Mr. Kenneth May, Chairman & CEO, Cendant Vacation Rental Group |
"Fractional ownership means that a property is owned by four people who will share it for 52 weeks," Mr. May stated when asked to clarify the difference between fractional ownership and timeshare. "Timeshare means that there are more owners, who will share the property for 2 to 4 weeks in a year. Timeshare is ideal for people who plan ahead at least 3 to 6 months."
According to Mr. May, Dubai is part of a fast growing industry of holiday rentals and timeshare properties. He says, "The region attracts over 3.3 million holiday arrivals each year that are income-eligible to purchase shared ownership and is expected to be the fastest growing tourism region in the world with an anticipated average annual growth of 7.1 percent until 2020." He further stated, "In the Middle East there is a trend towards quality. Taking in the middle and upper tier groups, they require quality and not necessarily luxury. In Dubai there is a tendency towards mixed use where people want to stay in a large place or stay in a home that is attached to a hotel."
Mr. May and RCI, a subsidiary of Cendant VRG, is working with the Dubai Economic Department to help regulate the timeshare market in the country. VRG also plans to work with various developers to help maximize their returns on investment through strategic implementation of vacation rental and inventory resources. "Dubai Government has the vision, values, and infrastructure that allow it to not just rely on natural resources. Its well planned development is the reason behind the permanency of Dubai's success."
And finally when asked which is a better investment, waterfront or inland properties, Mr. May assured us that it all depends on individual needs and requirements. According to him, some people prefer to live near cities and other near the beach. Desert environs can be best utilized by avoiding over supply and providing better utilities. However beachfront property makes up for approximately one-third of the total sales in the Middle East. "Even if some one doesn't like the beach, they will still prefer to buy beachfront property as it is a good investment."
Titled 'The Window of opportunity for new hotel investment in the Middle East', Mr. May is chairing the inaugural AHIC event in Madinat Jumeirah Resort on April 30th to May 2nd.
