ABOUT TONY RIDL In 1981 Tony Ridl became one of the pioneers of the vacation-ownership industry in South Africa. Since then, he has continued to be an innovator for the industry and also developed Cape Town’s Bantry Bay International Vacation Resort, one of the most successful vacation ownership resorts in the world. In 1994, together with Stuart Lamont, Tony Ridl formed Club Leisure Group, one of the world’s largest vacation clubs which services over 200,000 member families.
TONY RIDL Chairman of the Vacation Ownership Association of Southern Africa (VOASA)
77%, demonstrates that shared-ownership continues to be a popular vacation choice for many consumers, and the upward trend of club-timeshare company memberships is also forecast to continue, growing by approximately 17% over the next two years. Customers also benefit from a great deal of flexibility from their ownership products today as, on average, the percentage of resorts affiliated to one or more vacation exchange providers has increased from 94% to 99% from 2010/11 to 2015. The knock-on effect of its success has also made a hugely positive impact on the country’s economy, contributing an estimated 44.4 billion South African Rand to the Gross Domestic Product (GDP). Furthermore, the industry provides employment for approximately 94,374 people, ranging from highly skilled to informal positions within the hospitality and construction sectors.
An area of opportunity The vast and intriguing landscape of South Africa, with its eclectic resort towns, powdery beaches, and tantalising African culture, makes it a holiday destination popular with global visitors and South Africans alike. In particular, the emerging South African middle-class provides a significant opportunity for the shared-vacation ownership market.
Now is an excellent time for the industry to revitalise market demand and boost further awareness of the benefits of purchasing a shared-vacation ownership product. Approximately 16 resorts have been completed over the past five years, comprising mostly of studios and two-bedroom units, providing more choice of accommodation, amenities and prices for the consumer. Looking ahead, resort development will continue to play a key role in shaping the future of sharedvacation ownership in South Africa. There is still vast untapped potential for new developments, which is predominantly in the preferred coastal and bush destinations. The areas earmarked for future development are the KwaZulu-Natal north coast, the Western Cape and the inland surrounding regions of Gauteng. The KwaZulu-Natal south coast has also been identified as an area with prospective opportunities for the conversions of properties to resorts offering sharedvacation ownership products. With a notable property upgrade of more than 500 million South African Rand over the past five years; 60% of resorts under refurbishment and two-thirds of developers planning to develop new resorts in the next five years, with 450 new units in the pipeline, the future for the shared-vacation ownership industry in South Africa is very promising.
LEISURE REAL ESTATE - THE OPPORTUNITIES
Leisure Real Estate Trends & Opportunities, 2017