Almost 10 years after the Real Estate Board (REB) recommended amendments to the Timeshare Vacations Act the changes have not been made, limiting Jamaica’s ability to capitalise on the potentially lucrative market.

“Since the Act came into being in December 2014, we would have done significant work to operationalise the legislation through the regulations. However, when we looked at it, there were some difficulties with aspects of the legislation that would not allow us to operationalise that. Subsequent to 2015 we have made recommendations for amendments to sections of the legislation so that we are able to function with it,” the REB’s director of timeshares Ainsworth Norton told the Jamaica Observer.

The REB is responsible for keeping a registry of properties and operators of timeshares must be licensed by the Jamaica Tourist Board (JTB), an agency within the tourism ministry which was the driving force behind the legislation.

“What we have done is to make recommendations; [the JTB] will decide whether or not it is within the scope of their policies and within the scope of what they want to do before they can make any amendment to the existing legislation,” Norton added.

Under a timeshare agreement, a purchaser owns the right to use a specific vacation property for a fixed period of time each year. The purchaser pays fees in an arrangement that is similar to how strata operate and if his unit is not made available to him for the vacation time slot he purchased, he must be compensated based on the terms of the timeshare contract. These contracts can last for years.

According to Norton, there are no registered timeshares in Jamaica at this time; however, there are vacation club schemes — a type of timeshare — being operated. They are typically offered by Mexican hotel chains such as Bahia Principe. Vacation club schemes are exempt from the rules of the Timeshare Vacations Act as the definition given to timeshare contracts excludes them.

There is no ownership of property in vacation club schemes and buyers may access more than one property within a resort chain. However, in traditional timeshares a deed is provided for the duration of the contract, and ownership can be passed to an heir or successor.

Norton was unable to say how many timeshares — traditional or vacation club schemes — are operating in Jamaica but he wants to see more of the traditional type.

“It’s a part of the market that we need to capture. It’s a part of the market that at present, to me, seems un-serviced,” he told the Sunday Observer.

Industry estimates are that the global timeshare market could be worth at least US$30 billion by 2031 with an almost eight per cent compound annual growth rate between 2022 and 2031.

In April 2015, in a document called “Opportunities for development of the timeshare market in Jamaica”, Jampro told potential investors it was an “exciting tourism product which is expected to churn new investments into that sector”.

“This new product offering will enable us to capitalise on the demand of our guests to own a second home in Jamaica or the Caribbean,” the pitch promised.

A year later Tourism Minister Edmund Bartlett announced at a trade show that there were plans to market the programme locally and abroad. He said Jampro, REB and other partners were part of the push.

Last week, the REB’s Norton was unable to indicate when there would be movement on the proposed amendments needed to make the legislation useful. He did say, however, that compared to when the Act was first passed, he has seen renewed interest in timeshares.

“We are now seeing persons asking about the traditional forms, and so there is space for us to even begin to examine that a little bit more. Between last year and this year, we have had about three individuals asking us about facilitating timeshare, the development of a timeshare plan. They want to know how it is done, what it is that they need to do, actively looking for sites that they can do so on,” Norton said.

“They would have contacted us, we would have made presentations to them in terms of what the law requires, and give them the guidance that we are able to give them within the limits of what we have,” the director of timeshares added.

He said one of the individuals appeared to be representing either a hotel chain or group of investors from overseas. As Norton explained, a timeshare plan can be registered even before the physical structure that will be used in the venture is built.

While the market is viewed as very lucrative, the timeshare industry has had a bad rap in some countries over the years. Complaints have ranged from hidden fees and restrictions to fraud and unethical sales practices. Vacation club schemes were initially offered as a more palatable alternative but they have also had their fair share of critics.

Last week, Norton urged prudence for anyone thinking about buying into a traditional timeshare.

“Persons need to be careful if they’re going to buy it, because it is a long-term commitment. It’s a depreciating asset because as the years go by it becomes less valuable [as the number of years available for use decrease], and it’s not something that is easily traded on the market from what I’ve heard,” he cautioned.

He also pointed to its advantages.

“Many persons are purchasing into these things, it will add to Jamaica’s already increasing tourism product. It’s just one facet of a larger pie that the country is adding so that it will benefit our overall vacation experience,” he said.

“[For the buyer] it’s a form of investment; not in terms of getting a return on your property but in terms of you being able to give that to your successors and heirs apparent,” he added.

Ideally, purchasers would be guided by professionals. The legislation stipulates that REB has responsibility for training real estate agents who sell timeshares; but with no movement on the suggested amendments those courses have not been rolled out.

“We’re waiting until there is some solid footing in terms of the legislation, the amendments — if they are going to amend it. Or if they’re not going to amend it, what is it that they’re going to do? Right now we are not operating the timeshare registry because those small matters have not yet been sorted through and so we would not have been looking forcefully at offering the courses until we know for certain what is happening,” said Norton.