Now that the dust has settled after the EU referendum we thought that we would take a good look at the implications of Brexit on timeshare owners of non-UK resorts.
Will there be benefits to foreign travellers or will so-called “Project Fear” turn out to be a reality? Will there be companies or individuals ready to exploit the choice that Britain made to leave the EU?
A huge majority of timeshare owners own their memberships to resorts within the EU region, with Spain, Greece, Malta, The Canary Islands and Portugal being most popular. Concerns have been raised as to the consumer rights of foreign nationals once negotiations have been completed on the relationship between EU and British citizens.
How will the EU nations apply the recent EU Directives relating to Timeshare and timeshare related products such as holiday clubs and exchange companies?
The Plunge of the Pound
Buying €300 recently from an airport exchange cost, on average, £309! (Source BBC)
A fall in the pound of nearly 20% against foreign currencies such as the Euro and the Dollar simply means that maintenance bills calculated in the Eurozone will increase by 20% without including annual inflationary increases.
RCI Europe is based in Ireland and their annual membership fees, exchange fees and Bonus Weeks prices are all initially costed in euros and then converted into sterling. It would be fair to assume that with a prolonged dip in the pound associated costs to timeshare will increase.
Unfortunately, this is often a double or treble whammy. Should the timeshare traveller chose to visit their foreign resort, their spending money and flight will increase significantly too!
With the confusion over when Article 50 will be triggered, who will be negotiating and what the final outcome will be, it is fair to say that uncertainty is rife.
Unfortunately, that means that Eurozone timeshare ownerships are affected too. An influx of concerned inquiries both pre and post-Brexit have led to believe that many owners will take the opportunity to try to exit. Therefore, removing themselves from potentially increasingly costly contracts. This tends to have a snowball effect as more and more clients get the jitters.
More and more owners are leaving timeshare. As a result, there are fewer timeshare owners to pick up the cost of maintaining the resorts.
If you have concerns about the effect of Brexit on your timeshare, call us today and speak to one of our experts, alternatively fill out the form below and we will call you back.