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HomeMy WebLinkAboutCOM 0704.001 1998-2000 i'1' is ,~~it~, SidneyFuke, Planning Consultant ` 100 Pauahi Street, Suite 272 • Hilo, Hawaii 96720 _ • Planning • Variance • Zoning Telephone: (608) 969-1522 • Fax: (806) 969-7996 ! • Subdivision • Land Use Penntls ' ~ - • Environmental Repwis March 14, 2000 t'" ' ' Ef~ i l~; Z~ Honorable Bobbie Jean Leithead-Todd, Chair • Committee on Planning Hawaii County Council 25 Aupuni Street Hilo, HI 96720 Dear Honorable Leithead-Todd: Subject: Proposed Timeshare Resolution -Bridge Puako, LLC. Waikoloa, South Kohala, HI, TMK: 6-8-1: Portions of 25,36 to 40 At the Planning Commission meeting of March 3, 2000 regarding the subject matter, the contents of the enclosed report, entitled Timeshare Industry Economic Impact Summary, prepazed by KPMG for Bridge Capital, LLC. was shazed the Planning Commission. The report discusses specifically the economic and some of the related impacts of timeshare. Some of the more salient points made include: • there has been a growth in this industry, and a number of well-known hotels (such as Disney, Mazriott, Hyatt, Hilton, Four Seasons, and Westin) "have established thriving timeshare development and management operations." • the County of Hawaii is under-represented in terms of number of timeshare units compazed to visitor arrivals. • the timeshare demographics for Hawaii indicate a fairly wealthy group who is well educated and middle aged (53 years); and stays longer, has a higher repeat visitation rate, and collectively (by room) spends more than a typical visitor. • "timeshare owners spend more time in their units than hotel guests or whole- owned condominium owners." Thus, the traffic impacts would be equal to or less than a typical hotel visitor or a condominium renter. We would appreciate your sharing this report with the rest of your committee. Please also note that the author of this study will be present at your committee meeting, tentatively scheduled for Apri14, to discuss the report and answer any questions you and/or your committee may have. Cr~mm. No, f7~•DO ZN~ Filc N[r. lief. Date MAR 16 2000 Honorable Leithead-Todd March 14, 2000 Page 2 In the meantime, if you or your staff have any questions relating to the proposed timeshare resolution, please feel free to contact me. Thank you very much. rely, S Y~~ Planning Consultant Enclosure cc Planning Director w/ enclosure Mr. Sandy Marr, Bridge Puako, LLC. w/o enclosure ln~ TIMESHARE INDUSTRY ECONOMIC IMPACT SUMMARY Prepared for Bride Capital LLC March 2000 P. O. Box 4150 Telephone 808 531 7286 Honolulu, HI 96812-4150 Fax 808 541 9321 March 3, 2000 Mr. John K. Baldwin Bridge Capital LLC 1055 East Tropicana Avenue Suite 700 Las Vegas, Nevada 89119 Re: Timeshare Industry Economic Impact Summary Dear Mr. Baldwin: KPMG LLP (KPMG) is pleased to submit the attached final report entitled "Timeshare Industry Economic Impact Summary." Our report summarizes the findings and conclusions of our assistance to you. BACKGROUND ' Bridge Puako LLC is the owner of a 3,000-acre vacant resort development site (the a Puako Property), located in the South Kohala District of the Island of Hawaii. The Puako Property is located on Mamalahoa Highway, across from the existing Mauna Lani Resort, and is currently entitled for development of 2,500 residential units. Bridge Puako LLC is proposing to develop 500 to 900 timeshare units on the Puako Property. Because the current entitlements do not allow for resort development, a Hawaii County resolution is needed in order for timeshare use to be allowed for future development purposes. In this regard, you have asked KPMG to provide a description and summary of the economic impact of the timeshare industry on the Island of Hawaii to assist in providing information in your petition to allow for timeshare use on the Puako property. REPORT ORGANIZATION The accompanying report is presented in a brief summary report format with accompanying exhibits and is divided into three sections as follows: ~~~~KFIemM`rF (hM _~~n, i.. Mr. John K. Baldwin Bridge Capital LLC March 3, 2000 Page 2 1. Timeshare Industry Overview 2. Hawaii Timeshare Demand Indicators 3. Impact of the Timeshare Industry for the Island of Hawaii TIMESHARE INDUSTRY OVERVIEW Vacation ownership has existed in the United States since the 1970s. The industry is also known as "timeshare," "interval ownership" and/or "vacation clubs." - Timesharing is a form of real property ownership that is divided into "interests" or "intervals." Typically, the ownership of a timeshare unit is divided into 51 weeks, with one week reserved for maintenance of the unit. In Hawaii, ownership of a timeshare interval is defined as any interest in a timeshare unit or plan that entitles the owner or holder to the use, occupancy or possession of a timeshare unit on a periodically recurring basis (Hawaii Revised Statutes Section 514E-1). Timeshare plans include both "timeshare ownership plans" and "timeshare use plans," as explained below: ¦ Timeshare ownership plan - A plan whereby the purchaser receives an actual ' ownership interest and the right to use the property for a specific or discernible i period and is established through tenancy in common, sale, deed or by other means. ¦ Timeshare use plan - A plan whereby the purchaser receives the right to use an ` accommodation or facility, or both, for a specific discernible period and is established through membership agreement, lease, rental agreement, license, use agreement, security or other means. The purchaser of a timeshare use plan does not receive ownership interest, but instead receives the right to use the property. Timeshare ownership provides owners vv~ith many options, such as: ¦ Provides the opportunity to own a part of a vacation destination, while only paying for the time that they will realistically utilize. For example, a resort condominium may be purchased at a cost of $200.000 to $1,200.000. The cost of a timeshare interval may range from $10.000 to $24.000. Thus, the affordability of vacation ownership allows a significantly greater number of people the opportunity to own a vacation home in a resort destination. ¦ Providing for a prepaid lifetime vacation. Through the ownership of a timeshare interval, owners are able to frequent favorite vacation destinations on an annual or biannual basis. The groNKh of exchange company networks has made exchanges ;tea Mr. John K. Baldwin Bridge Capital LLC March 3, 2000 Page 3 easier for owners and has provided a plethora of vacation destinations to choose from. ¦ Provides for a more financially feasible alternative to owning a vacation home or condominium. Growth of the Worldwide Timeshare Industry The worldwide timeshare industry is the fastest growing segment of the travel and tourism industry, growing at a compounded growth rate of 15% since 1993. Currently there are over 5,000 timeshare resorts worldwide with a global sales volume in excess of 56.0 billion. The industry's grov<nh has been fueled by a number of factors, the most ' important of which include: ' ¦ Entrance of well-known hotel companies into the business, making vacation ownership a more viable mainstream hospitality product. These hotel companies bring an international reputation; system-wide benefits, linkages and marketing synergies; professional sales staffs operating under strict standards; quality resorts; and most importantly, access to capita] to finance their projects. Companies such as Marriott, Disney, Hyatt, Hilton, Four Seasons and Westin have established ' thriving timeshare development and management operations and it remains a high priority for many other branded hospitality enterprises. For example, Promus Hotels and Resorts has entered into the business through certain relationships with i both Vistana and Sunterra, and The Carlson Companies continues to invest - significant time and energy into establishing a niche for its timeshare operations. ' ¦ Increased flexibility in usage and improvement in the vacation ownership product including floating versus fixed weeks, opportunities to trade for other forms of accommodations such as hotels or cruises (especially with the major hotel companies), and an increase in travel benefits and services. ¦ Increasing awareness of the "hospitality" aspect of timeshare, with projects increasingly operated by companies and professional resort managers experienced in the service accommodation sector. Vacation ownership is becoming more closely associated with leisure travel than with real estate. ¦ "Exchange" opportunities provided by timeshare exchange companies that allow owners to trade their intervals at other member resorts internationally. The exchange opportunity has been cited as a major motivation in the purchase of timeshares. ,era Mr. John K. Baldwin Bridge Capital LLC March 3, 2000 Page 4 ¦ ]mproved a~~ailability of financing for purchasers, due to the stronger financing capabilities of larger companies, and ]ow default experience of recent projects. ¦ Greater consumer acceptance and confidence arising from self-regulation and reform of the industry, enforcement of a code of ethics, growth of exchange networks. entrance of brand-name hotel corporations and an increase in caliber and quality of resorts. ¦ Comprehensive industry regulation passed at both state and federal levels designed to curb past objectionable practices in the industry. One of the most important purchasing decision factors is the purchaser's familiarity with the resort area prior to purchase. This explains the success of timeshare projects located within an established destination vacation area or destination resort. Being a proven area for the vacation public. the developer does not need to worry about creating demand for the project. The top five purchasing motivations listed in The United States Timeshare hzdustry Study, Overriex~ and Economic Impact Analysis published by ARDA for the U.S. market are: ¦ Exchange opportunity ¦ Quality accommodations ¦ Good value ¦ Resort, amenities and unit specifics ¦ Credibility of the timeshare company HAWAII TIMESHARE DEMAND INDICATORS The State of Hawaii currently has an inventory of almost 4,000 timeshare units, as shown - on following Exhibit A. The Big Island holds about 14% of the State's total timeshare units and ranks fourth in timeshare inventory, behind Kauai, Maui and Oahu (i.e. all other major islands). The Big Island has experienced minimal growth in the supply of timeshare units as compared to sizable increases on Kauai and Maui. However, several factors indicate a strong and pent-up demand for timesharing on the Big Island. ¦ Under-representation of timeshare units compared to visitor arrivals -The Big - Island attracted 18% of the states visitors in ] 999, yet possesses only l4% of the Mr. John K. Baldwin Bridge Capital LLC March 3, 2000 Page 5 state`s timeshare unit inventory, as also shown in Exhibit 2-B. Hence, the Big Island appears to be under-served with regard to supply of timeshare unit inventory. ¦ High average sales prices and sales volume - ]t should also be noted that with only l4% of the States timeshare unit inventory, the Big ]stand boasts 26.4% of the State's timeshare sales volume. This high level of sales volume in relation to inventory is indicative of a high level demand. This results from higher quality units on the Big Island as well as strong timeshare demand due to the longer average lengths of stay and older and more affluent visitor base of Big Island visitors which increases propensity to seek timeshare accommodations. Hawaii Timeshare Owner Demographic Characteristics The most recent Hawaii timeshare demographic data available is from a 1996 KPMG study entitled "Hawaii's Timeshare Industry - An Industry Overview and Economic Impact Analysis". This latest available data indicates that Hawaii timeshare owners are the cream of the visitor industry and are generally more affluent, well-educated, older and stay longer at their destination than other visitors as shown in Exhibit C. ¦ Average household income -Hawaii's timeshare owners are relatively wealthy and have house hold incomes which are typically higher than U.S. timeshare y owners. L ¦ Education -Generally, timeshare owners tend to be well educated, with nearly i 63% having some type of college degree. Additionally, newer owners aze increasingly more educated due to the higher socio-economic markets attracted by the branded-timeshare companies and higher quality independent projects. The proportion of new owners purchasing with graduate degrees is over one-third. ¦ Average age of household head -Overall, the average age of the head of a household that owns timeshare intervals in Hawaii is about 53. ¦ Average party size -The average party size of timeshare vacationers in Hawaii is 3.4. This is double the size of the average party for typical Hawaii visitors. This emphasizes their need for larger condominium-style accommodations than are available in hotels ¦ Average length of stay -Timeshare owners stay longer in Hawaii than the typical visitor, averaging about 11.6 days versus 9.0 days for the average visitor as shown in Exhibit D. Interestingly, an average of about 1.7 days are spent in other forms of paid accommodation in addition to time spent in their timeshare unit resulting in additional business for other visitor lodging facilities. Mr. John K. Baldwin Bridge Capital LLC March 3. 2000 Page 6 ¦ Big Island timeshare owners - In comparison to the rest of the state, Big Island ' timeshare owners have the most prior visits to Hawaii (3.4 visits vs. 2.8), relatively high incomes ($82,000 vs. $76,000), high owner satisfaction levels (90% vs. 85%), and are generally from the Pacific Northwest (Washington and Oregon) or kamaaina purchases. IMPACT OF THE TIMESHARE INDUSTRY . _ Timesharing generates significant economic benefits and other impacts to the area in which they are located. These benefits are summarized in the following section: ¦ Increased Loyalty to Destination -One of the most important economic aspects of timesharing is that it generates more loyal visitors to the islands and creates a greater incentive to "lock-in" future visits to Hawaii. The propensity of timeshare owners to return to Hawaii on vacation is reported to almost double after a timeshare purchase. Timeshare owners reported that intended visits increased from only 1.7 visits during the five years prior to timeshare ownership, to 3.0 intended visits over the next five-year period, according to the survey of owners conducted by KPMG. Coupled with a longer 1 average length of stay and larger average party size, future visitor expenditures in ~ Hawaii are estimated to increase by about ] 00%, as compared to regular visitors in Hawaii. ¦ Timeshare Consumer Expenditures -Hawaii timeshare visitors were estimated to generate about $122 per person per day (including an allowance for equvalent pre-paid lodging costs) on timeshare stays in 1997, as shown in Exhibit E. In comparison, all visitors to Hawaii are reported to have spent an average of $148 per day during the same year. While on a per person basis this may appear lower, due to the nearly double average party size, average expenditures per developed unit is actually significantly for timeshare units versus other types of accommodation. ¦ Satisfaction with Timeshare -The satisfaction level of Hawaii's timeshare owners is extremely high and increasing. as reported by the survey of Hawaii timeshare owners. Over 85% of the survey respondents indicated that they were satisfied with their purchase, an increase of nearly eight percentage points between 1992 and 1996. In general, owners are satisfied with the "hospitality" aspects of timeshare ownership including the following aspects associated with being timeshare owners versus hotel visitors: Mr. John K. Baldwin Bridge Capital LLC March 3.2000 Page 7 - Services and activities in the area near the resort - Cleanliness and upkeep of the units - Construction quality - Hospitality shown by the staff - Amenities and facilities at the resort Management responsiveness ¦ Higher Timeshare Occupancy Rates -Timeshare resorts typically experience very high occupancy rates compared to other visitor accommodations. Timeshare owners will rarely allow their intervals to go unused as they are used personally, given to friends or relatives, or traded in exchange for other locations. Thus, the timeshare industry as a whole and especially in Hawaii, is seldom affected by seasonality, unlike the Hawaii visitor industry. - Statewide, the latest available information for surveyed Hawaii timeshare plans reported an average occupancy rate of 87%, as shown below: Comparison of Occupancy Rates 1995 ~ : Timeshare accommodations 87% All visitor accommodations 77% Difference 10% - Compared to other visitor accommodations, timeshaze occupancies exceeded the statewide average of 77% in 1995 by a sizable 10 percentage points. ¦ Timeshare Owner Travel and Traffic Patterns -Timeshare owners stay longer and take better care of their accommodations than hotel guests. According to the Urban Land Institute book entitled "Developing Timeshare and Vacation- Ownership Properties", 1999, timeshare travelers travel more in family groups, and typically have numerous amenities and activities on-site including owner's receptions, guest and children's programs, and other shared activities. As a result, timeshare owners spend more time in their units than hotel guests or whole-owned condominium owners. Mr..lohn K. Baldwin Bridge Capital LLC March 3, 2000 Page 8 Because they travel in larger groups and spend more time in their units, timeshaze owners generally travel in fewer cars less often than others. While there are no specific traffic studies of timeshare projects, these factors would tend to suggest that traffic from timeshare projects would be no higher than, and could be significantly lower than that created by hotel guests or whole-unit second home owners. It should also be noted that timeshare owners do not commute to and from work during peak traffic hours, as do many whole-unit condominium owners. The only occurrence of any type of convergence of timeshare owners is for checking-in. Typically, check-in may beheld once or twice a week. However, r- these times occur gradually throughout the day and typically do not coincide with peak traffic hours. Most timeshare properties are not located in an urban center, j and are usually located in areas of low vehicular traffic. i ¦ Effects on Local Beach Access -There is no data available that would indicate that timeshaze visitors would have any greater affect on beach access than regulaz visitors or owners of whole-unit residences condominiums. Because timeshare owners spend more time in their units than hotel guests spend in their rooms, it is possible that they could spend less time at the beach than hotel guests. ¦ Public School Usage -Because timeshare units are typically only occupied for weekly intervals each year, timeshare owners typically require no use of public schools. ¦ Increased State Government Revenues -The fiscal impacts of timesharing to the State of Hawaii government comes from many sources, including general excise taxes on goods and services; personal income taxes paid by those employed by the timeshare industry; transient accommodations taxes on hotel use (TAT); and tax collections for special taxes such as fuel, vehicle, public safety, and the like. A detailed fiscal impact analysis was not included as it is beyond the scope of this stud}'. ¦ Employment Impacts -The timeshare industry employs many people within the State of Hawaii in various positions to support the guest and owner operations and sales and marketing of timeshare projects. - Operational and maintenance employment -Based on the survey of timeshare resorts, operational and maintenance employment is supported - by the maintenance fees paid by unit owners and employs an average of 0.55 full-time equivalent (FTE) positions for every timeshare unit. Put in Mr. John K. Baldwin Bridge Capital LLC March 3, 2000 Page 9 perspective, this is equivalent to about 55 full-time employees being employed at a 100-unit timeshare resort. - Sales and marketing employment -Sales and marketing staffing generates an additional 0.69 FTE employees per unsold timeshare unit. - In total, timeshare units generate an average 1.24 FTE positions per unit, as shown in the following table: Jobs per timeshare unit Operational employment per Unit 0.55 Sales and marketing employment per unsold unit 0.69 Total jobs per unit 1.24 STANDARD REPORT CONDITIONS Our report and the accompanying exhibits have been prepared for the purpose of assisting { in the petition to allow for timeshare use on the Puako property. Our report is for internal L planning use by Bridge Capital LLC and is restricted from distribution to any third party. if third party uses are contemplated, we will be required to conduct additional procedures ~ and our proposal will have to be modified to address the additional scope of these services, additional fees and the applicable additional conditions that would govern our assignment. Neither our report. nor its contents, nor any of our work product is to be referred to or quoted, in whole or in part, in any registration statement, prospectus, public filing, sales and marketing brochure, loan documents, or any other agreements or documents, without ' our prior review of the form and context in which it will appear and our prior written consent. The findings and recommendations of our research reflect analyses of primary and secondary sources of information. Estimates and analyses presented in our report are based on economic trends and market assumptions, which are subject to variation. We have used sources that we deem reliable, but we will not guarantee their accuracy. Mr..lohn K. Baldwin Bridge Capital LLC March 3, 2000 Page ] 0 Neither our fees, nor payment thereof, were contingent upon the findings of this study. We have no responsibility to update our report for events and circumstances occurring after the date of our report. + : * . + We appreciate the opportunity to assist Bridge Puako LLC on this interesting assignment. F 1„ xE hibit A The Big Island has experienced minimal growth in number of timeshare units, as compared to sizable increases on Kauai and Maui HAWAII TIMESHARE DATA BY ISLAND SINCE 1980 (1) Oahu Kauai Maui (3) Hawaii Year (2) Units % of State Units % of State Units % of State Units % of State State 1980 17 7.9% 0 0.0% 129 60.0% 69 32.1% 215 1981 470 49.3% 166 17.4% 248 26.0% 69 7.2% 953 1982 470 38.4% 438 35.8% 248 20.2% 69 5.6% 1,225 1983 470 35.1% 544 40.7% 255 19.1% 69 5.2% 1,338 1984 470 35.1% 544 40.7% 255 19.1% 69 5.2% 1,338 1985 510 37.0% 544 39.4% 257 18.6% 69 5.0% 1,380 1986 510 35.4% 601 41.7% 261 18.1% 69 4.8% 1,441 1987 580 37.8°/ 623 40.6°/ 261 17.0% 69 4.5% 1,533 1988 580 36.9% 623 39.6% 300 19.1% 69 4.4% 1,572 ' 1989 580 35.6% 623 38.2% 358 22.0% 69 4.2% 1,630 1990 580 35.3% 632 38.4% 358 21.8% 75 4.6% 1,645 1991 560 30.4°/ 632 33.1% 358 18.8% 338 17.7°/ 1,908 1992 580 29.1% 632 31.8% 440 22.1% 338 17.0% 1,990 1993 580 29.1% 632 31.8% 440 22.1% 338 17.0% 1,990 1994 580 28.1% 663 32.2% 481 23.3% 338 16.4% 2,062 1995 580 21.6% 1,158 43.0% 481 17.9% 47l 17.5% 2,690 1996 664 20.4% 1,381 42.3% 644 19.7% 572 17.5% 3,261 1997 664 18.1% 1,381 37.6% 1,057 28.8% 572 15.6% 3,674 1998 664 17.9% 1,381 37.3°/ 1,089 29.4°/ 572 15.4% 3,706 1999 (4) 909 22.8% 1,381 34.7% 1,121 28.1% 572 14.4% 3,983 Compound annual - percentage increase: 1982 - 1999 4.0% 7.0% 9.3% 13.2% 7.2% 1994-1999 9.4% 15.8% 18.4% ll.l% 14.1% asoo i a o00 i 3,500 - 3.000 i ~ zsao i/ z o00 #lawalt!..~ 1,500 _ - ~~MBUI tooo - / - uai 500 ~ Oahu ~ ~ 0 1980 1961 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 ¦Oahu mKauai OMaui/Molokai OHawaii ~i _ (1) Excludes all units involved with club plans (2) Data for 1980 to 1996 as reported by KPMG Peat Marwick LLP in "HawaiPs Timeshare Industry", December 1996. 1997 and 1998 data estimated by KPMG LLP, based on HVCB Visitor Plant Inventory and information from timeshare industry representatives. (3) Includes the Island of Molokai. (4) Includes the Oahu timeshare project, Grand Vacation Club at Hilton Hawaiian Village, which began sales in January 2000. Source: KPMG LLP ~ ~ ~ ~ ~ ~ ~ m rn ~ N fA ~ C ~ ~ ~ ~ ~ ~ ~ ~ ~I O N O ~ I ~ ~ ~ ~ ~ ~ ~ ~ o o ~ ~ o o c~ z N t ~ g ~ ~ o ~ ~ .-r ~ ~ Q ~ N O c c O N (O m v O N - " y N m w O F~~V-I ~ ~ ~ a FLI m t m (n o ~ ~ ~ ~ ~ ~o ~ o ~ o oo ~ ~ y Q rn N rn o = y'~ M M O ~ y r~ Z r ~ a w ~ T1 Q V n O LiJ 8 E x ~ C Q ~mg o ~ v ~ y o 0 10 ~ti W y o a m > c U ~ A' I~(~ ~ R ~ C S O 4/ r ~ C b r a o ~ U O - J~`~ ^ Q v y m o E> r o - 0 0 C N. m ~ E ~ ~ ~ ~ v O ~ N rN Q7 N " QI ~ ~ N ~ N O ~ ~ LL c v rn E m .o°ms a m o ~ Z m ~ ~ m ~ m m b o a v ~ Q ~ N E y ~ ~ N~ N 9 w o N E (n N ~ E O C O ~ N O ~ OM m t a ~ C O C = C ~ T C ~ ~ c q ~/.".Ln.~ O N N o O ~ rl Q N O ~p U N O (0 d O o~_ O ~I ' j N QI L N L y Ul `o m y o m d Q~ ~ d YO d N d ~ d o~ m n a `t - ~ O p w E E~ w m~ u u U ~~~,e`o Exhi i Hawaii's timeshare owners represent the cream of the visitor industry and are generally more affluent, well-educated, older and stay longer at their destination than other visitors COMPARISON OF CHARACTERISTICS OF TIMESHARE OWNERS ' AND ALL VISITORS TO HAWAII ' Hawaii U.S. timeshare timeshare All Hawaii owners(1)(1996) owners(2) visitors(3)(1997) Average household income $76,000 $63,400 NAV Percentage with advanced degrees: Bachelors degrees 29.9% 28.9% NAV Graduate degrees 32.8% 26.B% NAB/ Total 6 .7° 55.7% NAV t Average age of household head (years) 53 51 40 Average party size (people) 3.4 3.6 1.8 Average length of stay in area 11.6 8.1 8.7 t (1) Survey of Hawaii timeshare owners conducted in July and August 1996. (2) Ragatz Associates, Inc. "Timeshare Purchasers, Who They Are, Why They Buy," 1995. (3) Hawaii Visitors and Conventions Bureau, "Annual Research Report," 1996. Source: Survey of Hawaii timeshare owners conducted by Steven Miner Research and Appraisal in July and August 1996. Exhi i Hawaii's timeshare owners stay an average of 1.7 nights in other forms of accommodations COMPARISON OF LENGTH OF STAY BY TYPE OF ACCOMMODATIONS UTILIZED WHILE ON A HAWAII TIMESHARE VACATION: 1992 AND 1996 Number of visitors 1992(1) 1996 Timeshare resort 11.2 9.4 Other visitor accommodations 1.0 1.7 With friends or relatives 0.1 0.4 Other non-paid accommodations 0.1 0.1 Total length of stay 12.4 11.6 (1) Ragatz & Associates, "The Resort Timeshare Industry in Hawaii," October 1992. Source: Source: Survey of Hawaii timeshare owners conducted by Steven Miner Research and Appraisal in July and August 1996. Exhi i Hawaii's timeshare owners generate $2,471 in expenditures per visit, or $122 per person per day inclusive of lodging HAWAII TIMESHARE VISITOR EXPENDITURES Amount (1996) Per party Per person Percent Per party per day per day of Total Food and beverage: Restaurant meals, take out food, dinner shows, $615.94 $53.10 $15.62 25.1% drinks in bars Groceries, sundries, liquor bought in stores $246.17 $21.22 $6.24 10.0% ' Subtotal $862.11 $74.32 $21.86 35.2% Entertainment: Admissions to attractions, museums, movies, rides, etc. $51.50 $4.44 $1.31 2.1% Entertainment, sports activities $166.86 $14.38 $4.23 6.8% Other $0.00 0.0% Subtotal $218.36 $18.82 $5.54 8.9% _ Transportation: Rental automobiles, gasoline, parking $324.45 $27.97 $8.23 13.2% r Sightseeing tours by bus, helicopter, or boat, cruises $200.85 $17.31 $5.09 8.2% Inter-island airfares while in Hawaii $152.44 $13.14 $3.87 6.2% " Other $9.27 $0.80 $0.24 0.4% Subtotal $687.01 $59.23 $17.42 28.0°h r- Other: Shopping for items other than food, sundries, or liquor $378.01 $32.59 $9.58 15.4% - Lodging (1) $219.39 $18.91 $5.56 9.0% Other expenses $56.65 $4.88 $1.44 2.3% Adjustment factor(2) $29 $2.43 $0.74 1.2°k Subtotal $704 $58.82 $17.32 27.9°k Total $2,471 $211.18 $62.13 100.0% Plus pre-paid lodging related expense (2) $60.00 Equals total daily timeshare owner expenditures $122.13 (1) An estimate for expenditures that may have been neglected to be included in the listed categories as defined by the Hawaii Visitors and Conventions Bureau in the "1994 Visitor Expenditure Report" _ (2) Prepaid lodging costs estimated at $60 per night added back to other lodging costs. Source: Survey of Hawaii timeshare owners conducted by Steven Miner Research and Appraisal in July and August 1996; Hawaii Visitors Bureau.