Ministers have approved the introduction of legislation to govern timeshare and fractional ownership, Minister of Tourism Ian Gooding-Edghill said Thursday.
Timeshare and fractional ownership both involve shared ownership or access to holiday properties, but they differ significantly in structure and ownership rights. Timeshares primarily involve purchasing the right to use a property for a specific period each year, without owning a share of the property itself. Fractional ownership, on the other hand, involves purchasing an actual share in the property’s title, granting more ownership rights and potential for appreciation.
“We are well aware that timeshare agreements are long-term visitor agreements. We are also well aware that a well-regulated timeshare and fractional ownership industry will redound not only to investor confidence, but it will also help Barbados in driving even more visitors, particularly at the higher end, to Barbados,” Gooding-Edghill the weekly post-Cabinet briefing at Ilaro Court.
“We firmly believe that this initiative will further stimulate not only visitor arrivals to the destination, but will certainly increase investor confidence and, of course, bring more investment to Barbados in this regard.”
Timeshare owners visit destinations multiple times a year. The tourism minister suggested the new regulations would also help the country to build out its tourism arrivals.
The legislation will also involve strengthening consumer protection of fractional shared timeshare and long-term holiday products; providing clarity in advertising; safeguarding pre-contractual and contractual arrangements; and establishing rights and processes for withdrawal.
Other aims are to define specific contract provisions for long-term holiday products and to ensure effective judicial and non-judicial redress mechanisms.
Gooding-Edghill added: “The legislation will also take into account the regulatory aspect, as well as licensing. I must also indicate to you that the ministry, in preparation for the Cabinet paper, sought a number of comments from stakeholders within the industry—the Barbados Hotel and Tourism Association, the Intimate Hotels of Barbados, the Barbados Tourism Investment Inc., the Fair Trading Commission, and the Ministry of Energy and Business with respect to the Division of Commerce and Consumer Affairs—in shaping this legislation.”
He emphasised that this move would further secure the island’s tourism at another level regarding timeshare and fractional ownership.
The tourism minister noted that Barbados is not the only country in the region going in this direction, pointing to the Bahamas and Jamaica as examples.
“So, we are hopeful and remain very confident that this additional policy position taken this afternoon would further build out our tourism sector,” Gooding-Edghill said.
(EJ)
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