More timeshare visitors came to Hawaii during the fourth quarter of 2014; however, their footprint among the visitor mix remained the same.

In the fourth quarter of 2014, the state welcomed 182,284 timeshare visitors, or 4.4 percent more than the same period in 2013, according to timeshare data slated to be released today by the Hawaii Tourism Authority and Hospitality Advisors LLC. However, the timeshare visitor market continued to represent 9 percent of all visitors to Hawaii, unchanged from the fourth quarter of last year.

"The reason that the timeshare industry’s footprint hasn’t really grown in Hawaii even though timeshare visitors are growing is the growth in alternate vacation accommodations such as vacation rentals, bed-and-breakfasts and condominium hotels," said Joseph Toy, president and CEO of Hospitality Advisors, the hotel consultancy that prepared the latest timeshare study for HTA. "In fact, we think some timeshare owners may be booking hotel stays as well as stays at alternate accommodations since the average timeshare interval is about seven days and the average timeshare stay is nine or 10 days. As many as 22 percent of timeshare visitors said they also booked another accommodation during their stay." 

Still, demand for Hawaii’s 93 timeshare properties has remained strong. According to the latest data from the American Resort Development Association, or ARDA, Hawaii boasts the nation’s highest timeshare occupancies and average sales prices. For all of 2013, ARDA said, Hawaii’s timeshare occupancy rate averaged 85.2 percent, and the average sales price of an interval ran $27,712.

Toy reported that Hawaii’s timeshare industry averaged an occupancy rate of 89.9 percent during the last quarter of 2014, an increase of 1.1 percentage point over the same period in 2013. The timeshare industry’s occupancy also was 15 percentage points higher than the 74.9 percent occupancy averaged by traditional hotels and condominium hotels during the same time period. According to the report, which surveyed 74.5 percent of all timeshares in the state, fourth-quarter timeshare visitors on Kauai remained flat but increased by 8.1 percent on Oahu, 6.9 percent on Maui and 5.3 percent on Hawaii island.

Timeshare owners weren’t the only contributors to high timeshare occupancy rates. According to Toy, timeshare interval owners and exchangers, those who participate in exchange programs, accounted for 79 percent of all occupied nights in the fourth quarter. However, transient rentals represented 15.6 percent of the total occupied timeshare nights.

"The prepaid nature of timeshares contributes to high occupancy rates regardless of the season, the state of the economy or other black swans," Toy said. "The flexibility of the product also opens the door to other distribution channels. For instance, even if the rooms are not used as timeshare, oftentimes they are sold as hotel rooms or used by exchangers — timeshare owners who own property elsewhere and may be first-time visitors to Hawaii." 

While overall Hawaii timeshare numbers were good in the fourth quarter, the timeshare resorts that were surveyed reported a 1.5 percent decline in operations employees and a 2.4 percent decline in marketing employees. Total timeshare payroll expenses in the fourth quarter totaled $33.8 million for resort operations and $33.1 million for sales and marketing. 

Altogether with the fourth-quarter results, Hawaii timeshares achieved a 90.5 percent average occupancy in 2014. They also generated $58.6 million in taxes.

Timeshare employment averaged 3,015 resort operations employees in 2014 with a payroll of $111.9 million. There were also 1,675 sales and marketing employees, who were paid $120.3 million.

"Timeshare makes a huge impact on local economies throughout the country," said Howard Nusbaum, ARDA president and CEO, who was in town earlier this month to participate in a timeshare panel. "This industry fuels the economy through jobs, spending by vacationers and taxes — and we are proud of this significant contribution." 

Nusbaum said the industry will continue to grow in Hawaii and elsewhere in part due to the influx of younger, financially stronger buyers, who represent a more culturally diverse cross section of U.S. households.

"Overall, timeshare ownership in the U.S. increased from 7.2 percent of all households in 2012 to 7.9 percent today. We’re excited not only about the fact that sales are up in our industry, but also about why they are up," Nusbaum said. "While existing owners continue to enjoy the lifestyle and purchase more timeshares, it’s the new owners that are responsible for the majority of qualified sales."

Nusbaum said new owners are highly educated and about 10 years younger than their predecessors. The median household income is $94,800 for new owners, of which 42 percent are Afri­can-American or Hispanic.