Regulatory framework for industry proposed at Timeshare awareness conference

More than 57 delegates from various timeshare companies including representatives from leading global organizations like Interval, Marriott and others attended the seminar held yesterday at the DED. Mr. Mohammed Hilal Al Muroshedi Director, Compliance Division, DED welcomed the participants at the seminar, which targeted timeshare operators, real estate developers and hospitality representatives, in a drive aimed at streamlining industry practices and regulating sales processes in accordance with local customs and standards. Discussions also centred around regularising practices dealing with the establishment of timeshare resorts in Dubai and the UAE.

"The recent growth of the shared ownership real estate and hospitality sectors in Dubai necessitates the need for a regulatory framework to be in place, to ensure the continued growth of the industry while safeguarding the interests of the consumers," said Mr. Ali Ibrahim, Deputy Director General Executive Affairs, DED. "This seminar is in keeping with the DED's policy to work closely with the private sector, taking into consideration the specific needs of the sector while formulating the necessary regulations. In this way, we will ensure that timeshare vendors operate within an appropriate legal and commercial framework and that the investment of all parties, consumers, marketers and developers alike, is protected," he added.

"We would like to guarantee that contracts offered by different timeshare operators are sufficiently unified in accordance with international terms and conditions. In addition, the operations of timeshare companies should be sufficiently transparent by including all the relevant details of the resort in the contract," said Mr. Ibrahim.

Specific recommendations put forward at the conference include the provision of a "cooling-off" period during which the buyer has the right to change his mind about the purchase; a highlighted clause in contracts that the client signs to confirm that the contract terms are fully understood; strict rules on how prospective customers may be approached or contacted, including the licensing of promotional booths in public areas and mandatory inclusion in the contract of a full description of the timeshare interval and unit (apartment or villa) being sold.

The seminar also sought to prohibit timeshare brokers from carrying out any promotional activities or concluding any contacts via visits to private homes.

The seminar included presentations by several experts in the presence of timeshare industry leaders from around the globe, who endorsed the need for the substantial projected growth in Dubai and the UAE to be channelled and regulated.

"Implementation of the recommendations will lead to greater transparency in the way vendors conduct their business. In addition, sales material and contracts will need to be presented in a form and language that the consumer can reasonably be expected to understand. The DED plans to work closely with timeshare vendors and operators to discuss all recommendations before implementing them," said Mr. Ali Ibrahim. "We would also like to thank RCI for its support and assistance in organising this seminar," he added.

"RCI supports fair and balanced regulation for the timeshare industry around the world and works with the authorities to promote consumer protection and good practice. The potential for growth in this industry in Dubai is significant and RCI will continue to work with the DED to create and implement the right framework to allow the sector to flourish and make a
positive contribution to the tourism mix in Dubai," said Vivienne Noyes-Thomas, Managing Director, RCI Middle East.

In his closing speech, Lt. Col. Mohammed Rashid bin Seray, Director Tourist Security Department, Dubai Police thanked the participants for their contribution and for their commitment to support Dubai as a leading tourist destination.