In the last couple of years, China has seen its demographic shift from a “young” country to an ageing society where affluent families are going to spend more money for their elderly family members to enjoy a decent quality of life in retirement living communities.
Travel and Tourism Habits Quickly Changing
Chinese travelers are becoming more sophisticated by doing their own research on Western websites and making their own fully independent travel decisions.
The rise of the Chinese Free Independent Traveler (FIT) has been swift and is illustrative of wealth, desire for luxury, and willingness to invest in unique vacation experiences worldwide. In 2012, outbound Chinese travelers surpassed both Germany and the United States—previously the number-one and number-two markets by expenditure. They spent over $118 billion, up over 19% year over year.
China has been one of the most confounding markets for shared ownership resort developers since the People’s Republic of China (PRC) began opening its doors to Western businesses 25 years ago. The barriers to entry have always been high—but not impossible—for an operator who wants to provide adequate safeguards for both its own business and its clients. But is it worth it? Is there now a large enough spending class to justify the exercise?
Fractional Ownership real estate developments have been promoted as an alternative to outright second home ownership. For the consumer, this was a form of second home ownership, without any of the hassles or responsibilities traditionally associated with owning a second home, because all management responsibilities were assumed by a professional management company on the Owners’ behalf.
A Short History of Fractional Ownership – Part One
Fractional Ownership first appeared in southern Europe in the late 1970’s where it was then known as Co-Ownership [also known by the French term: “Co-Propriete” or by the Spanish term: “Co-Propiedad” or sometimes referred to as “Pro-indiviso”] and was pioneered in southern France, Spain, Portugal and the Canary Islands.