NATIONAL REPORT— Vacation ownership is increasingly viewed as an affordable and flexible means of achieving the “second American dream,” owning a recreational property. Currently, about 8.9 million U.S. households (8.6% of the total) own a recreational property, according to the American Resort Development Association’s (ARDA’s) 1999 American Recreational Property Survey, and this number is growing by about 2.4% annually. Resort timeshares represent more than half of the increase during recent years. Nearly tripling since 1990, resort timesharing and related products have demonstrated the greatest proportional increase as a preferred type of recreational property, the survey indicates. And when viewed in terms of evolving consumer preferences, vacation ownership appears to be the right vacation product at the right time. According to The 2000 National Leisure Travel Monitor, co-authored by Yesawich, Pepperdine & Brown and Yankelovich Partners, and sponsored in part by Interval International, fully 17% of adult vacationers now state they have interest in purchasing some form of vacation ownership during the next two years. This figure is slightly more than the percentage that will rent a car from a car rental firm during the same period of time. Indeed, trends indicate that timeshare intervals will increasingly play the role traditionally reserved for the ownership of a second home. Timeshare is a cost-effective alternative when compared with the financial and time commitment required for home maintenance, according to The 2000 National Leisure Travel Monitor. With vacation ownership, the expense associated with the product consists of the cost of the interval purchased and the annual maintenance fee for that portion of time. The average price for a timeshare week is estimated to be approximately $12,500, with yearly maintenance fees usually falling into the $300 to $500 range. The most recent research conducted by ARDA’s International Foundation reveals strong growth in timeshare sales, and reflects a high level of satisfaction among current timeshare owners. In 1999, gross timeshare sales figures exceeded prior industry estimates, with an estimated $3.70 billion in U.S. sales volume. The number of new purchasers of timeshare in the first quarter of 2000 was up 12% from the first quarter of 1999. Net timeshare sales in the first quarter of 2000 were 18% higher than the same period in 1999. Current timeshare owners account for one in six new timeshare purchases in 1999. “The findings of this study confirm the growing popularity of owning a timeshare,” said Howard Nusbaum, ARDA president. “Vacation ownership is swiftly becoming the preferred choice for vacations because it is affordable, convenient and flexible.” This growth trend is expected to continue. The advent of constructive consumer protection legislation and the entrance of the major hospitality companies have enhanced the visibility and credibility of the timeshare industry. “We have seen escalating interest in vacation ownership among both baby boomers and those under 35 years of age, “ said Craig Nash, chairman/CEO, Interval International. “This bodes very well for our industry. It demonstrates the attractiveness of the product to a broadening spectrum of potential purchasers.”