FROM THE SPONSORS PEN

This new addition to Industry Whispers each month will highlight what’s happening across the industry directly from one of our Annual Gold Sponsors.

SPONSOR WRITE UP: Peninsula Bay Resort Banking on Bali’s Future

By Jeremy Skidmore

The British entrepreneurs behind Bali’s newest timeshare development have always believed in the inherent magic of the Indonesian island. Despite the turmoil of the last decade, brothers Roger and Alan Thomas, who own the Peninsula Beach Resort at popular beach spot Nusa Dua, are confident in investing US$9 million into their newest venture, Peninsula Bay Resort. Roger Thomas says it’s an ideal time to expand in Bali, which suffered from a drop in tourism due to the terrorist bombings of 2002 and 2005, and the worldwide recession, which began its surge in 2008. “Bali has already bounced back and the island is booming,” he says. “The Peninsula Beach Resort hasn’t dropped below 80-percent occupancy for the whole year [2009].”

An Island Love Affair
Thomas explains that he and his brother were captivated by the island on a visit in the early 1990s — and they’ve lived on Bali ever since. “We went on holiday there and just saw the potential of it and loved the area. The ancient Hindu culture is fascinating, and the tropical climate makes it a fabulous place to go on holiday. In the wetter months, the rain may last a day or so, but usually, you may have an hour or two and then the sun quickly comes out again.” The brothers opened their first Bali resort in 1997, successfully overcoming some challenges posed by the economic climate of the early 1990s and the slow-turning wheels of Indonesian bureaucracy. Says Thomas, “We took a contract on some land in 1991, but the recession hit us and everything had to go on the back burner until we started development in 1996.” Thomas admits that undertaking a construction project in Indonesia brings considerable obstacles. “Indonesia is a challenging place to do business, but it’s also a beautiful place and that makes it all worthwhile. You have to work at their pace and not lose your cool.” The developers faced a few hurdles with their new project. “We were planning this about three years ago,” recalls Thomas, “and just as we were acquiring the land, a new government came in and decided there were not going to be any more hotel licences granted. Thankfully, another government eventually came in and changed the ruling, but it was a further 18 months before we got the licence. Everything has to be done through the most unbelievable bureaucratic processes.” Building on the success of their first Bali venture, the brothers have located the new property just a five-minute drive from Peninsula Beach Resort — 20 minutes from the Ngurah Rai International Airport and 10 minutes from the Bali Collection, a shopping mall that draws visitors from all over the island. A shuttle service will operate between Peninsula Beach Resort and Peninsula Bay Resort, and owners are free to enjoy the facilities offered by both developments.

Growing by Phases
In light of the economic slowdown, the Thomases, who started building Peninsula Bay Resort at the end of 2008, decided to build in phases. That said, the brothers, who are funding the development themselves, report that their money buys a lot more here than it might elsewhere. “The cost of building in Bali is well below the cost of building in, for example, the United States,” says Thomas. “You can get a phenomenal house built in Bali for around US$100,000.” The first phase of the new property, slated to open in the first half of 2010, unveils nine two-bedroom units, each with 2,217 square feet (206 square meters), and a two-bedroom penthouse of 3,714 square feet (345 square meters). All will be equipped with modern furnishings and amenities (such as Wi-Fi connection) — and balconies looking out to sea. The first phase also includes a swimming pool and a small beach restaurant. Construction of the second phase is set for completion later this year. It will have 20 one-bedroom apartments, each 1,345 square feet (125 square meters), another two-bedroom penthouse, and four two-bedroom villas, at 3,875 square feet (360 square meters) each. At this phase, another restaurant, as well as a spa and gym, will be added. A third phase of construction will begin in late 2010, with completion of the entire resort expected for early 2011. The final phase will add 20 one-bedroom units, nine two-bedroom apartments, and at least one penthouse, with similar dimensions to those of the first two phases. “We’ve also just acquired another 4,000 square meters [43,056 square feet] of land and we haven’t finalized yet what we’re going to put on it,” says Thomas. “It’s either going to be villas or we might go for some studios. We’re still thinking about that.”

A Multinational Market
Whatever the decision, the additional units are bound to be popular. Already, approximately 200 weeks at the Peninsula Bay Resort have been sold, bringing in US$4 million. It helps that the property is a draw to a multinational spectrum of prospective owners. “There has been a real cross-section of people buying weeks, including Australians, New Zealanders, Japanese, Brits, and Americans,” says Thomas, who adds that the product is marketed primarily to mature adults, such as empty nesters and families with older children. “We don’t target people under 27,” he notes. The new property is also attracting the attention of owners at Peninsula Beach Resort. They have the opportunity to pay a fee to upgrade to accommodation in the development. “We provide an 18-month credit facility for people who request that service,” says Thomas. The partners continue to employ traditional timeshare methods to market and sell the fixed- or floating-week, right-to-use product, including off-premises contact in restaurants and other tourist sites. Although they currently offer the standard product only, they may look at adding a fractional option. “We will consider selling fractions in the future,” says Thomas. “We have people who’ve bought five or six weeks with us.”

The Thomas brothers have worked with Interval International for more than a decade, signing the Peninsula Beach Resort to the exchange company in 1997. Owners at the new Peninsula Bay Resort are entitled to a five-year Interval Gold membership. “We have an excellent relationship with Interval. They have high-quality resorts, and customers like being part of it,” says Thomas, adding, “Quite a lot of people choose to exchange.” Joe Hickman, executive director of Interval’s resort sales and service in Asia Pacific, anticipates that a lot of Interval members will likewise want to exchange into Peninsula Bay Resort. “Interval is pleased to add another resort from tried-and-true clients such as Roger and Alan. They have developed Peninsula Beach Resort into an outstanding property, and Peninsula Bay Resort is certain to prove as remarkable.”

EVENT: 19th National Industry Awards Night – July 30, 2010

A call for the National Awards Nominations will be out this month. Start having a think about who you will nominate. If you have someone within your company who you believe should be recognised please put them forward. That recognition for a staff member means a huge amount to them.

EVENT: 2010 ATHOC Conference - Christchurch, New Zealand

Christchurch, New Zealand will be the host city for the 2010 Australian Timeshare and Holiday Ownership Council (ATHOC) Conference.

The Conference will run from Sunday 12th September to Tuesday 14th September 2010. There will be a great line up of international and local speakers to bring you up to speed on what is happening in the timeshare industry.

This is a must attend event for anyone in the industry or suppliers to the industry. Benchmark against the best!
For more information contact ATHOC at info@athoc.com.au 

Accommodation to be booked directly with Crowne Plaza, Christchurch – Ph: +64 3 365 7799     Email: reservations@crowneplazachristchurch.co.nz - Please quote ATHOC Conference.
                                   
Room Type:
Standard Queen or Twin (2xdbl beds)
NZ$180.00 - Fully cooked Breakfast for one
 NZ$200.00 - Fully cooked breakfast for two

Club King
NZ$270.00 - Fully cooked breakfast for one plus club benefits
NZ$290.00 - Fully cooked breakfast for two plus club benefits

HOME GROWN: New Wyndham Timeshare Resort at National Harbor Off to a Flying Start

Wyndham Worldwide has reported that more than 75 per cent of units at Wyndham Vacation Resorts at National Harbor, their newly opened urban resort on Prince George’s County, Washington D.C.,  have already been sold.

The new resort, which opened in January, offers stylish accommodations in 250 condominium-style units including 42 presidential suites, as well as a health and fitness centre and several swimming pools.  The 300 acre waterfront development on the Potomac River also includes shops, restaurants, hotels and other amenities.   

This is the company’s second timeshare resort in the popular Washington D.C. area, joining the Wyndham Old Town Alexandria.

HOME GROWN: Have you considered renting your soft refurbishment?

If you are not in a position to raise a special levy to freshen up the soft furnishings at your resort, you could consider the option of renting.

Here is a typical example to highlight just how cost effective this method of funding a soft refurbishment can be…

Bills QLD Resort needs a make-over and it is agreed that a package valued at $4000 (inc. GST) is needed per apartment.

Bill decides to run the rental agreement for 5 years. He pays (pre- tax) $31.50 per week over the term of the agreement. Bill’s after tax cost would be $20.00 per week^.

At the end of the 5 year agreement, Bill has paid a total of $8,160 incl. GST.  However, the real cost to Bill over 5 years is only $5196 after tax^. This equates to a “funding” cost of $1196 ($5196 less the package price of $4000) over 5 years or $239.20 per year.

 Bill now has the option to offer to purchase the package* for only $200 or upgrade the furniture and enter into a new rental agreement.

Dependant on your resorts constitution this may be as easy as approval from the Board of Directors as it is not a loan as ownership rests with the furniture rental company.

Here is how it works:

A Company works with you on the products and interior selections that your property needs.
This list is priced.
They calculate the rental package payments over 3, 4 or 5 years.
At the end of the rental term, you can either:
Offer to purchase* the furniture for a fraction of its original cost
Upgrade your furniture for new items.
There are no set up fees.
There are no ongoing administration fees.
Rates are fixed for the term of the rental agreement.
Rental payments are up to 100% tax deductible^.
All furnishing items, no matter how big or small, can be funded through a rental package.
A rental package can be as low as $1000 or  as high as $1,000,000.
Subject to the size of your order there are no deposits required.
Other non soft furnishing items (like carpet for example), can be incorporated into the package.
Food for thought!

Article by ATHOC Member Paul Martino, Managing Director of Apartment Furniture Pty Ltd.  For more information contact Paul on 1300 668 069 or paulm@apartmentfurniture.com.au .

HOME GROWN: VMS acquire management rights to air on Broadbeach

Gold Coast, Australia - (February 24, 2010) – Vacation Management Services Pty Ltd (VMS), an experienced resort management company, today announced the acquisition of management rights to their first Gold Coast property - Air on Broadbeach – effective March 1, 2010.

Comprising 133 ultra modern beachfront apartments, Air on Broadbeach joins a portfolio of nearly 1500 rooms at 25 resorts benefiting from VMS’s 20 years of property management.

Managing director of VMS, Mark Henry, says that Air on Broadbeach is the perfect property for the group’s first management foray into Australia’s prime tourist mecca.

“Forming part of The Holiday Club Group, VMS believes that both Air on Broadbeach owners and investors and The Holiday Club members will benefit from the synergies that exist between both operations.

Mr Henry says VMS will continue to pursue the acquisition of similar properties to build on its long term strategy of becoming a leader in the management of leisure properties.

“The acquisition of Air on Broadbeach will greatly enhance our management team, asset base and cash flow, while also providing stability and continued growth prospects as we seek more opportunities that add value,” he says.

“We will be expanding and focusing on key locations throughout Australia that have real appeal to holiday-makers and owners alike.”

Congratulations to Pam McIntyre – new Resort General Manager

About VMS

Vacation Management Services Pty Ltd is a wholly owned subsidiary of a joint venture between the Beekman Brothers Group and RCI, a subsidiary of Wyndham Worldwide. For over twenty years VMS has been managing resorts in South Africa. VMS expanded its operation to Australia in March 2004. The company currently has 25 resorts under management with 3 located in the Pacific region.

HOME GROWN: Wedding vows at Korora Bay Village Resort

Jeffrey and Karen from Melton West, Victoria chose Korora Bay Village to exchange wedding vows on Valentine’s Day.  Despite a gloomy weather forecast, Coffs Harbour put on warm, sunny weather and Jeffrey and Karen were married in the gardens at the resort surrounded by close family and friends. 

HOME GROWN: Timeshare Industry Golf Open

$30,000 was raised for charity - the industry’s chance to give back to the community and have a great time as well.

A brilliant day was had by all at this year’s Foundation Fundraiser Golf Day held at the Colonial Golf Club on the Gold Coast.

140 players fronted up even though the sky looked as though it was about to split and drop its load earthward, but someone up there was smiling down upon us.

5 minutes before boarding the carts the rain decided to move on and allow us to play in the beautiful sunshine that the Gold Coast is much more familiar with.

Ernie Dingo sponsored by Accor Vacation Club got the day underway reminding us of some of the terrific grants that the foundation have given.

Among those include:

- $2,000 + a weeks accomodation for an industry staff member who caught swine flu and has had one leg amputated below the knee and one foot amputated
- $2,300 holiday for a family with a young daughter with Cystic Fibrosis
- $8,500 Leckey Horizon Stander for 16 year old girl with Cerebral Palsy
- $4,000 prothesis - running leg for 9 year old Tara
- $1,200 granted to industry staff member whose 11 year old daughter has severe type 1 diabetes
- $2,000 Coles card to help the parents of an 8 year old suffering Lymphoblastic Leukemia
- $8,500 Leckey Horizon Stander for 10 year old boy with Cerebellar Hypoplasia
- $1,800 for the donation of two weeks accommodation to be used for personal and auction to raise further fund for a young girl suffering leukaemia.
- $8,500 gym equipment for the Currumbin Special School
- $1,000 to aid an industry staff member when she received fire damage to her house
- $34,000 - Liberty Wheelchair Swing for the Cascade Gardens on the Gold Coast Australia
- $12,000 - Snozelan Room for the Mudgeeraba Special School 
- $47,000 - Christel House International 
- 4 weeks accommodation given to Cottage by the Sea for use by families in need of a break and fundraising
- 7 Night Exchange Holiday to help raise funds for a cancer victim - donated by RCI
- 7 Nights accommodation at any Classic Holidays managed Resort to help raise funds for a cancer victim- donated by Classic Holidays

President Ramy Filo wished us well and we were on our way for a shotgun start and a great day of ambrose golf.

The sponsors were out in full force on the holes with Accor Vacation Club making sure we were all loosened up by choosing a drink of choice for the destination holiday we wanted to win, while their new partner Flight Centre coaxed us in a little song and dance to win a $500 travel voucher.

Classic Holiday Club has us chipping marshmallows over their banner and spinning the wheel to win great prizes including a week’s accommodation.

Group RCI had that fabulous daiquiri machine working overtime and also the opportunity to win a holiday for the Nearest the Pin.

Interval International has the police after us with the speed cop on site checking just how fast or in some cases how slow we hit the ball. Well done to Tom Scantlebury at Wyndham for winning the slowest drive of the day at 31 clicks!

Wyndham Vacation Resorts Asia Pacific had a land on the green to win MP3 players as well as second chip shot – nearest the pin. Vince Casey went home with a paint tin of jelly beans and a life size dulux dog.

Some other great opportunities were given by Reward Corp with a competition – land on the green and go in the draw for flights and accommodation for two at the Sheraton Hotel in Fiji. Everyone was keen to win this, but like anything there is only one lucky winner who in this case was Damien John – Accor Vacation Club

Helping Hand displayed their live and silent auction items on course through the day and at 6pm were back in theclubhouse where the Auctioneers cry for more money could be heard.     

Queensland Tourism Industry Council (QTIC) wanted to see what we were like under the influence with a pair of beer goggles, and trying to get us to catch the ball. Interestingly some people had no problems at all! Not sure what that says about them.

THE WINNERS OF THE DAY

1st - Team Group RCI: Jesse Butt, Douglas Wylie, Jerry Butt, Scott Hirst (54 5/8)

2nd - Team Bartercard: Andrew Barker, Warren Anderson, Rob Morse, Peter Fenton (54 7/8)

3rd - Team Accor Vacation Club: Steve Roberts, Marcus Cain, Peter Cole, Ernie Dingo (55 1/4)

THE NAGA

Special congratulations to President Filo and one of the Classic holiday teams managing to win the NAGA. That’s last place for those not familiar with golfing terminology, and protocol tells me that I won’t write out exactly what it stands for. Ramy was helped by Denise Price, Gail O’Neil and Warren Lee.

All in all it was a fantastic day that was enjoyed by all, although some did say that there golf was not brilliant. Not much we can do about that.

A special thank you to our Platinum Sponsors: Accor Vacation Club; Classic Holiday Club; Group RCI; Interval International and Wyndham Vacation Resorts Asia Pacific.

 

Images from top to bottom: 1. The Colonial Golf Club, 2. Carts in the ready for golfing action, 3. Ernie Dingo, 4. ATHOC GM Laura Younger testing her skills, 5. Not even safe on the course!, 6. Some will do anything to win $500 in travel!, 7. CEO Accor Vacation Club – Craig Wood, 8. The Winning Team from Group RCI, 9. President Filo and his team.