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Key regulations in timeshare market
Timeshare and fractional ownership is still in its infancy in Dubai, but that is about to change with new regulations expected to be passed soon. Gulf News spoke to David Clifton, managing director of Interval International, on industry trends and Dubai's potential.
- By Gaurav Ghose, Financial Features Editor
- Published: 01:15 March 10, 2008
- David Clifton, Managing Director of Interval International.
- Image Credit: Press Release
Gulf News: Where is the timeshare ownership industry today in Dubai?
Clifton: Today there's been only one project in Dubai that has been sold on a timeshare basis and that is Royal Club at the Palm, although there have been a number of sales galleries that have been selling non-Dubai products. The Royal Club at the Palm has been recently sold out and they are getting ready to start their second project which is going to be Royal Club at downtown Dubai. I think there are a number of major players that are sitting on the sidelines who will enter the business industry once the new regulations are approved.
Gulf News: What are the key components of the regulations in the works?
Clifton: I think the government and industry's objective is to develop balanced regulations that will protect the rights of consumers but allow legitimate business persons to grow. The consumer must get what he or she is supposed to get if they pay a one-time purchase price and they have agreed and made the annual maintenance fee payments as well. There must be a cooling-off period that allows the new purchaser to step away from a sales person and have an opportunity to think about what they have done in terms of filling a contract and making a deposit. And then if they decide, during a 10-day period, they don't want to go through with the purchase, they ought to have the opportunity to cancel the contract and get their funds returned.
Next is long-term protection of rights of the consumer. There has to be an uninterrupted use right and that ultimately if for some reason the asset changes hands then it has to change subject to the rights of timeshare or fractional ownership purchaser. The next thing is if the property is selling off-plan it is very important that ultimately the buildings get built and that it is necessary that there be assurance provided to the regulatory body. There could be a completion bond or some other form of assurance.
Gulf News: How optimistic are you about Dubai?
Clifton: We continue to feel that this market will prove to be one of the top three timeshare ownership markets in the world in the not so distant future. When we look at its geographic location, its proximity to 1.3 billion people living within a three-four hour flight, we got the weather, we got the beach, we got the shopping malls, and the huge part that Dubailand will play in tourism growth, I have no doubt that this market has huge potential for successful timeshare and fractional ownership opportunities.
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