If it sounds too good to be true...
Many timeshares and holiday clubs have become complete rubbish. The camping industry mustn’t make the same mistakes, says
At many sales events for timeshare units or clubs that hawk holiday points, a pretty picture is painted for you. It’s mostly exaggerated promises of all the choices of break-away spots for you and your family. All too often they fail to mention the hidden administration costs, excessive fee increases, and fine print making it almost impossible for you as buyer to back out if you want to. And very often this “amazing exclusive offer” that the sly salesman tells you about turns out to be anything but. Take for example the sales trick for accommodation in a sought-after seafront hotel in one of our popular Western Cape coastal towns. What the wily salesman doesn’t tell you is that the offer is limited to a single night per year during a quiet week.
For successful camping timeshare or camping points we’ll have to go about it differently and not make the same mistakes as the fixed-accommodation industry.
THE AUDITING FIRM
Grant Thornton estimates that almost 750 000 South Africans have some form of timeshare points. Widescale misleading sales practises in this industry have gone unpunished for years. The National Consumers Commission, however, is now launching a nationwide investigation after an opposition party submitted more than 4 000 written consumer complaints against 18 holiday clubs. A spokesperson for the party says most of the complaints have to do with the non-availability and poor quality of options. He reckons consumers’ rights are violated with contracts that bind them permanently. They also came to realise that two of the biggest holiday clubs sell more points than they have holiday options available. Points are also basically worthless in the so-called secondhand market. One of the biggest clubs apparently also fraudulently marketed points ownership as timeshare ownership. In terms of the law, there is a clear distinction between the ownership of holiday points and timeshare. The party became aware of the problems when it assisted over 60 000 members in the Transnet pension scheme drama. Many of the pensioners tried unsuccessfully to get rid of their club membership. A dubious salesman apparently sold a wealth of holiday points to pensioners. Some clubs have even started threatening people who can’t afford their timeshare with the seizing of assets. Hundreds of consumers offered that their points be taken away without compensation, but in the contract fine print they are not absolved of the yearly fee. Amongst the victims are those who regret selling their caravans to buy points. One retiree says if he looks at the prices of secondhand caravans, he realises it’s a much better investment with more options: “I should have had my head examined when I allowed a salesman to convince me to sell my caravan”. The National Consumer Tribunal recently used the Consumer Protection Act to classify the activities of one of the biggest holiday clubs as corrupt. It’s on the High Court roll.
MANY ATTEMPTS TO
exchange chalet or apartment accommodation holiday points for camping accommodation schemes at the sought-after campsites fell flatter faster than a pyramid scheme. Resorts also didn’t reap the full financial benefits of the points. A marketer earned a percentage of the stand money as income. Regular campers know that during December and over Easter weekend demand for stands is high, and in the Kruger you don’t easily find a spot between 16 June and 16 July. Now there’s a new scheme that wants to register 100 or so independent resorts for camping holidays, and wants to make dealers members in exchange for discount on camping goods and services. For successful camping timeshare or camping points we’ll have to go about it differently and not make the same mistakes as the fixed-accommodation industry. Let’s keep a watchful eye on things so as not to suffer the same headaches. And don’t hawk your caravan to buy holiday points or sign a contract for yearly fees!