Among the new avenues of investments, holidays are fast emerging as an option worth exploring. By availing of time-share package deals, you not only get to go on vacation once a year, but once a year for three decades.

And at the costs prevailing at the time you opt for the deal. ``This way, people benefit by availing of inflation trips and resort developers ensure occupancy even in the lean season. This is important, as in the hotel industry, you cannot ensure 100 per cent occupancy throughout the year. The time-share concept makes the units more economical and viable,'' says Ranjit Goel, chairman-cum-managing director, The Resort Country Club. The potential of time-share in India is aptly attested to by the fact that nearly 2.5 lakh people have already enrolled for the nascent concept.

But despite the interest in time-share, the industry is by and large unorganised and the lack of guidelines makes it a perfect avenue for fly-by-night operators to make a fast buck. Also, some time-share holidays, like those offered by Sterling Holiday Resorts, are overbooked (70,000 members) and holidaymakers are being squeezed into existing properties. It is interesting to note that many of the new players in the field barely have one property ready and are going to town offering a lifetime of holidays to gullible clients.

Says Arun Kaul, vice president, Orphic Resorts Ltd, ``At present, we have three resorts -- at Bhimtal, Kosi (mid-way to Agra) and Mussoorie. We started time-share in March 1997, and in the next 10 years, we plan to have 10 more resorts. Our time-share is for 31 years and costs a minimum of Rs 96,350 and a maximum of Rs 2,17,000. It covers the cost of accommodation for a couple and two children.''

Another resort developer, Mahesh Belwar, says, ``I have one resort, Corbett Heritage, which is still incomplete. I have a lot of land and plan to make three more resorts at Auli in the Garhwal region and Shyamkhet near Nainital.''

The Resort Country Club time-share promoted by Goel costs between Rs 75,000 and Rs 1.75 lakh and is valid for 33 years. Toshali Resorts International, which is promoted by T Banambar Patra, has one resort on the Puri-Konark Marine Drive in Orissa. Says Patra, ``Our time-share costs Rs 80,000 to Rs 3 lakh and at present, we have 7,000 members. By March 1998, we plan to increase the membership to 8,500. We have been in time-share since 1992 and our new ventures are coming up at Shilongbagh, close to Shimla and in Ooty.''

The concept of time-share is convenient for budget travellers as for a one-time investment, they can avail of holidays throughout their life. But most time-share companies use the money they get to build their resorts before they offer holidays to customers. Clients feel that they are more interested in increasing the membership rather than in providing facilities for a good vacation.

Counters Belwar, ``If people are not interested, we refund their money. Most developers have a tie up with Resort Condominiums International (RCI) and the time-shares are valid for RCI resorts also. Holidaymakers have to pay an additional amount to avail of RCI facilities. They can use these if they want a wider choice of destinations.''

But without any well-defined guidelines, holidaymakers may end up investing their money in a concept that they do not know much about. Explains Belwar, ``In order to eliminate the shortcomings at the developer's end, marketing agents and other concerned agencies in the trade and to regulate fair practices, the developers of northern India have formed an association named Resort Developers Association of Northern India (RDANI). It will undertake to regulate a strict code of conduct in the time-share industry.''

But RDANI lacks much credibility as it has only six members while there are nearly 20 resort developers offering time-share vacations in north India. Also, it restricts itself to north India operators, while offering holidays throughout the country and even outside via RCI.

So, before you get carried away by colourful brochures with offers of vacations in sun-kissed beaches, the snow-bound Himalayas or heritage destinations, plenty of wine and nights in castles, make sure that your investment is worth much more than the brochure and fulfills the promises being made to you.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.