The weak yen in Japan has made it more expensive for Japanese citizens to travel abroad. This is affecting popular tourist destinations like Hawaii, a long-time favorite of Japanese travelers. But it’s also affecting Japanese people who bought expensive timeshare plans and now can’t use their purchases.
You bought a dream and you are ready to sell it.
A 72-year-old Osaka man purchased ownership rights to a hotel room in Waikiki, Hawaii, for a one-week-a-year timeshare for about 5 million yen (currently $31,800) in 2011.
He was shopping at a mall when he was invited to a hotel presentation for its timeshare offerings, which “inspired a dream,” he says. His long love for Hawaii took into account, of course. However, the strong yen exchange rate was also a big motivator. At that time, one US dollar was equivalent to 75 yen.
The timeshare allowed him to travel with his family to Hawaii about 10 times and use membership points on trips to Japan.
Their travel days came to a halt in 2020 when the pandemic shut down the world. Japan was one of the last to reopen its borders to foreign visitors and ease restrictions. Despite this, its tourism industry has made a notable comeback today.
Still, now that travel has returned to normal, he is unable to travel due to a serious illness that has affected his physical health.
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Although circumstances prevented him from enjoying his timeshare in Waikiki, he continued to pay the maintenance fee. That burden has increased due to the weak yen economy and inflation. He now pays more than 300,000 yen (USD) a year for a room that he no longer uses.
That’s why, he says, “I finally decided to sell it.”
Anxious seller, no buyers.
You’re ready to part with the timeshare. However, there is a problem. No buyer is willing to take the room off your hands.
The Japanese are not interested in buying timeshares in Hawaii because the yen is too weak to allow them to do so. Americans aren’t interested in Waikiki because the place is packed with high-rise hotels, which is not the nature they came to see.
The man and his wife, 67, consulted their hotel, which said it “does not have a counter in charge” of selling timeshares. So instead, the couple turned to a real estate agency in Hawaii, which was equally useless.
Your timeshare conundrum was just one of hundreds of similar complaints the agency has heard. “There are months in which only one property is sold for every 100 for sale,” the agency said.
The man’s wife tells reporters: “I would sell it for only $100. Although we had fun memories with the timeshare, we are getting tired of constantly paying the maintenance fee since we live on a pension. “I can’t believe how hard it is to sell.”
Hawaii timeshares no longer sold in Japan
Timeshares are available worldwide at major hotel chains such as Hilton, Marriott and Disney.
In Hawaii, the cost of a timeshare property ranges from 2 to 20 million yen ($12,700 to $127,186). That’s cheaper than buying a vacation condo, according to Kujira Club, a real estate agency specializing in timeshares and resales. Timeshare offers are mainly made up of 1LDK or 2LDK rooms and are suitable for longer stays.
Buying a timeshare means that users are exempt from paying hosting fees, meaning they get more for their money the longer they stay. Approximately 100,000 Japanese use timeshares in Hawaii. Many companies purchase as a corporate entity and use it as an employee benefit.
However, the Kujira Club says it has seen an explosion of inquiries from timeshare owners looking to sell since the yen began to fall to unprecedented levels. The agency had to suspend some of its mediation cases for months as it struggled to handle around 100 sales.
“I’ve been in this industry for 24 years, but I’ve never experienced anything like this,” says CEO Nakayama Takashi, 57.
Maintenance fees are the killer
According to Nakayama, the main reasons driving his clients to sell are aging and the burden of maintenance fees.
Although it depends on the grade and location of the timeshare, in the case of Hilton, the maintenance fee ranges between 300,000 and 400,000 yen ($1,907 to $2,543 USD). Inflation, which has caused land prices to rise 15% against the yen compared to pre-pandemic years, has created panic selling and aversion to buying.
That’s why timeshares are selling at desperately low prices, up to a third of asking prices.
Still, the Kujira Club only sells dozens of properties among the thousands of cases it handles. Some of his clients have been waiting for buyers to arrive for three years.
“Although Hawaii hotel accommodation rates are increasing, high-value timeshares are not selling at lower prices. Ideally, these properties would sell at higher prices, but if buyers can’t keep up, they will close. As the yen remains weak, the future is unpredictable,” says Nakayama.
Sources
ハワイのリゾート「タイムシェア」が売れない 頭を抱える日本人続出. 朝日新聞
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