Unnecessary bureaucracy
Dear Editor,
The more we learn about the Timeshare Authority proposal from the Dutch Side government, the more we think it’s imperative for timeshare owners to speak up in opposition to it.
We understand the motivation behind creating the Authority, which is a sister proposal to the timeshare consumer protection ordinance which is also nearing final passage. Although the timeshare ordinance itself isn’t as strong as we’d like it to be, it nonetheless is a very decent start and can be improved over time. But the Timeshare Authority is a bad idea on the face of it that should never be approved.
The Timeshare Authority proposal would create a “Timeshare Authority” — an altogether new bureaucracy which in our opinion would constitute a vast overreach and a huge expense that would be paid for directly by timeshare owners.
By now, the Dutch-side government ought to recognize the fact that timeshare owners represent the single biggest contributor to the success of the island’s economy. They have come regardless of hurricanes, crises, government upheavals, and numerous other issues. These stay-over tourists spend money on Front Street, go to many restaurants, buy groceries, buy jewelry, and overall contribute far more to the economy than hotel visitors and cruise ship passengers combined.
Yet in the face of those incontrovertible facts, the Dutch-side government proposes a bureaucracy which not only is unnecessary but which could also raise the bottom line cost of owning on St. Maarten timeshare by perhaps $200 per timeshare week owned simply to pay for this pointless bureaucracy. That could make vacations by many loyal St. Maarten visitors impossible, further damaging the Dutch side economy.
SXM Weekly News for years has editorially implored the Dutch-side government to enact timeshare owner consumer protection legislation to prevent the kind of disasters that have happened on the island in the past, in particular what we named the Caravanserai Debacle, the long-term disaster at Sapphire Resort which years later is just starting to be ameliorated, and the bankruptcy and temporary closure at Pelican Resort, all of which were unnecessary and all of which the government publicly ignored.
As a consequence of government inaction, many thousands of timeshare units were sold by their former owners for pennies on the dollar to people who bring their own food to the island, cook in their room, and don’t shop or eat out. In our humble opinion, that’s why Front Street today is howling about a severe lack of business and why so many restaurants have gone belly up lately — with many more certainly to follow.
Does St. Maarten really want more low-rent visitors instead of the people who now continue to support its economy so diligently and so dependably? That is exactly what it will get if the Timeshare Authority proposal is enacted which would slap an additional $200 or so of cost per week onto the backs of current timeshare owners. It would be devastating for the entire concept of SXM timesharing; it would be bad for timeshare owners; it would be a huge hit on all SXM timeshare resorts; and it would be an unmitigated but totally avoidable disaster for every tourist-oriented business on the island, most especially jewelry stores and restaurants. In our opinion, it would also absolutely damage the island’s reputation and it’s already very fragile tourist economy.
We’re not saying it’s a bad idea and then walking away without making a suggestion. Increasingly, we are seeing self-regulation among businesses work effectively in many industries. Indeed, reviews at Simpson Bay Resort, which had so much drama in the past, are now over the top in praise because of that resort’s now-completed $35 million renovation, a truly remarkable achievement. And Sapphire Resort seems to be improving daily, after getting batted over the head by its timeshare owners and by RCI without any action from the government to help beleaguered timeshare owners. The Caravanserai Debacle continues unabated, with that prime real estate hardly being used by anyone and once again, the government continues to sit on its hands.
We know there are self-regulation proposals in the works. With the glaring exception of Caravanserai/Alegria, today there are very few complaints about any St. Maarten timeshares. Consequently this is a situation where consumer-oriented, well-designed self-regulation could be remarkably effective. It could/would eliminate the need entirely for yet another expensive bureaucracy on SXM. We urge all parties involved in the consideration of this measure to table it and work diligently to create and implement a strong self-regulation program that is totally transparent to timeshare owners and easy to use. This could and would be far better, more effective, and remarkably less costly than the proposed bureaucracy — but most important, it would help improve the economy of St. Maarten, not damage it.
Jeff Berger,
CEO JMB Communications
