TABLE 1
FROM:
An economic analysis of a timeshare ownership
Atupele Powanga and Luka Powanga
BACK TO ARTICLETable 1. Timeshare operation
| Period ending | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|
| $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
| Contract sales | 180.00* | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest receipts | 14.14** | 13.16 | 12.08 | 10.91 | 9.63 | 8.22 | 6.69 | 5.00 | 3.17 | 1.17 |
| Down payment | 18.00† | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Club membership fees | 4.20 | 4.20 | 4.20 | 4.20 | 4.20 | 4.20 | 4.20 | 4.20 | 4.20 | 4.20 |
| Management fees | 8.33‡ | 8.33 | 8.33 | 8.33 | 8.33 | 8.33 | 8.33 | 8.33 | 8.33 | 8.33 |
| Marketing costs | 77.40 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net cash flow | 162.75 | 25.69 | 20.41 | 19.24 | 17.96 | 16.55 | 15.02 | 13.33 | 11.50 | 9.50 |
| Benefits worth | 292.27 |
* Number of rooms (200) 
number of weeks (50 weeks with two weeks reserved for maintenance) the contract price ($18,000 obtained from the Marriott Vocational International Inc's Presentation, 13 May 2007)
** The interest rate charged to timeshare owners is 13.99 per cent and it is assumed that this money has an opportunity cost of 5 per cent (Marriott Annual reports) resulting in the net interest receipt of 8.99 per cent
† This amounts to 10 per cent of the contract price as required by the Marriott Vacation International Inc
‡ This is the prevailing amount being collected for the Grand Chateaux timeshare vacation ownership. From Marriott Vacations International Inc, 13 May 2007
