| -- End Ad Box ---> | | | | population competing for prime property, a trend that |
| Why the fractional vacation industry is booming
| | | | is already under way. Boomers will need to get |
| 1.) Demographics - 78 million US Baby Boomers that | | | | creative by purchasing a combination of a primary |
| will retire in the next 15 years (the largest population | | | | residence, Condo Hotel and Fractional and PRC |
| turned 50 in 2004-05, with 50th birthdays occurring | | | | ownership options, to more!efficiently use their limited |
| every 7 seconds). The under told statistic is that | | | | nest eggs and to have active and dynamic golden |
| there will be 103 million Empty Nesters in Europe by | | | | years. |
| 2009 and Japan will have 32 million boomers by 2010, | | | | Fast Facts: |
| in a total population of only 127 million people. 213 | | | | Traditional timeshare grew 21% to $7.87 billion in |
| million Boomers will compete for a uniquely similar | | | | 2004, average price $15,784. |
| lifestyle in retirement. | | | | High-end timeshare grew 22%, to $1.075 billion, |
| 2.) Boomers Like Debt — Unlike the previous | | | | average price $40,270, 50% of owners say they |
| generation, Boomers have proven that they are | | | | would buy more fractional shares in the future. Only |
| willing to pay, and borrow for the lifestyle they want. | | | | 3% of US population currently owns fractional real |
| The boomer generation has innovated everything | | | | estate interests. |
| from disposable diapers to SUV’s, they will | | | | ARDA expects a 300% growth rate in |
| innovate the idea of retirement homes. | | | | Non-equity club memberships with average annual |
| 3.) The Wealth Transfer — Not everyone is | | | | dues of $9800, and 4-8 weeks of fractional |
| going to get rich. Boomers are estimated to get the | | | | ownership. |
| biggest slice of the inheritance pie: $17.8 trillion. | | | | The average American worker gets 2.4 weeks |
| Distributed evenly, each of the 78 million US boomers | | | | of vacation, and will retire at age 62. Many boomers |
| get $228,205. But these inheritance dollars will not be | | | | expect to continue to work, possibly in a different |
| distributed evenly. The 73.5% of the boomer cohort | | | | career after retirement. |
| will likely join the wealthier classes. Within the next 15 | | | | The $100,000+ income cohort is growing 8 times |
| years, 20.7 million boomers will become over | | | | faster than any other income group in the USA. |
| $658,000 wealthier, and 57.3 million people will get less | | | | Mortgage leverage has also grown in recent years. |
| than $72,900 to boost their meager net worth | | | | These people have money and are not afraid to |
| retirement. 20.7 million people may be able to afford | | | | borrow to own more real estate and lifestyle. |
| luxury retirement residences if they innovate to | | | | There are 142 fractional projects in the USA, |
| fractional ownership, condo hotel, and private | | | | 23% in Florida, 21% in Colorado. That’s |
| residence clubs. Whole ownership is going to be bid | | | | 549,295 boomers for each project in supply. |
| farther out of reach by the sheer mass of this | | | | |