Survey Suggests Strong Canadian Interest In Destination Clubs

By: Destination Club News
Date: October 1, 2008

A recent Canadian study in the recreational real estate sector has shown a significant interest in the purchase of recreational real estate properties.

The survey, conducted by Harris/Decima, a leading Canadian public opinion and market research firm, showed that 14 percent of the sample of over 1,000 respondents currently owns some type of recreational real estate. Of this group, 57 percent are sole property owners and 43 percent have invested in some form of shared ownership, including fractional ownership properties and timeshares. Recreational real estate owners predominately earned in excess of $100,000 per year and were over the age of 40.

The survey found that 36 percent of sole owners had purchased their recreational real estate prior to 1990. Of the timeshare owners, 43 percent had purchased since 1990, and fractional owners had typically purchased since 2000.

This evolution from second home to fractional ownership speaks well of the future of destination clubs. 30 percent of the respondents indicated that they are interested in purchasing a recreational property, 71 percent of those interested in sole ownership. As destination clubs compare well against second home ownership, many destination club industry representatives believe the Canadian market holds a strong future for prospective members.

M Private Residences is Canada's largest destination club with over 15 homes and is owned and operated by shareholders. Exclusive Resorts has a Canadian Office based in Calgary and Ultimate Escapes has hosted multiple events in Canada to court potential members.

The results of the survey also stated that 28 percent of those interested in sole ownership of a second home travel locally five to nine times per year. Nearly half of the shared real estate owners travel to the United States at least once per year.

The chief concern for most Canadian travelers is beach and local amenities access. The survey reports that 48 percent of respondents preferred to be by the beach and 46 percent wanted retail facilities nearby.

Canadian based Moncasa Caribbean Experience will soon be launching with this mentality in mind when they introduce their new destination club focused on beach properties later this year.