LIHUE — The timeshare industry generated about a billion dollars in economic output just on Kauai and an estimated $5.3 billion in consumer and business spending in 2016. That’s according to a recent study out of ARDA International Foundation and
LIHUE — The timeshare industry generated about a billion dollars in economic output just on Kauai and an estimated $5.3 billion in consumer and business spending in 2016.
That’s according to a recent study out of ARDA International Foundation and ARDA-Hawaii, a 501(c) 3 that was founded in 1982 and is the industry’s prime researching arm.
On Kauai, timeshare units made up 31.1 percent of the total 8,444 visitor units on the island in 2016, according to the Kauai Visitors Bureau.
In fact, timeshares were second only to hotels in number of visitor units, with hotels making up 31.4 percent of Kauai visitor units at 2,654 in 2016.
Vacation rental units were third runner up, with 1,546 units, or 18 percent. Also taking 18 percent of vacation units in 2016 were condo units at 1,536.
Timeshares are an important part of the visitor industry, according to Realtors, resort operators and others in the industry, because they complement the typically shorter-term stays in hotel rooms.
“In general, timeshare travelers are considered stabilizing to our economy because even during a recession, their vacation lodging is already paid for and visitors still come,” said Julie Black, Realtor with Kauai Dreams Realty.
Peter Sit, general manager at Pono Kai in Kapaa, said of the resort’s 241 units, 167 of them are currently timeshare units. That’s 69 percent of the units for which the resort’s owners association collects fees on an annual and quarterly basis.
“Compare (that) to a traditional vacation hotel, which has to make sure the room is full,” Sit said.
With timeshare bookings working in weeks instead of days, the average length of stay is stretched to seven days with timeshare units and that’s an advantage, according to Sue Kanoho, executive director of KVB.
The probability of a return visit is also increased with timeshares over traditional hotel rooms.
“I just had lunch today with a lovely couple from Washington state who are repeat visitors and staying here for five weeks. (They) are using two timeshare properties for their stay,” she said on Friday.
She continued: “We know some people will give their weeks away to a family member or to friends, so it’s not always the same people coming to the same unit.”
Whether it’s repeat visitors or Garden Isle newbies, those staying at timeshares in 2016 sank an estimated $296 million in off-site consumer spending on Kauai, according to the ARDA-Hawaii study.
That year, timeshares on Kauai generated $48 million in state and local taxes, $1 billion in economic output, and $269 million in labor income. In 2016, timeshares contributed 5,938 jobs to Kauai.
Statewide, the Hawaii timeshare industry contributed 31,727 jobs, $1.8 billion in labor income and $263 million in state and local tax revenue.
