Timeshares are very popular in many countries, especially in the UK, Sweden, Germany, Italy and Spain. A domestic timeshare industry is developed in Spain, Portugal, Germany, Italy and France. Rapid growth in demand for timeshares is observed in countries that recently joined the EU, especially in the Czech Republic, Hungary and Poland.
Until now, the work of tour operators in this area was regulated by the European Timeshare Directive, adopted back in 1994. This document guaranteed EU citizens the right to receive full information when purchasing a timeshare. They could also cancel the purchase within at least 10 days after signing the contract – and during this "cooling-off period", the tour operator simply had no right to accept a deposit from the client. All this was done to prevent "high-pressure sales" of vouchers.
However, 13 years ago, a timeshare was considered only as the acquisition of ownership of real estate for a certain period of time - for example, one or two weeks - over three or more years. Meanwhile, over the years, new products and contracts have emerged that fall outside the scope of the directive: for example, clients are often offered to buy a timeshare for use not of a 'seaside cottage' but of a yacht, boat or even a 'motor home', and contracts are often concluded for a period of less than three years.
"The 1994 directive was good - within its limits. But the sale of these travel services is still often conducted under pressure, and many of the new timeshare products, meanwhile, simply fall outside existing laws," notes EU Commissioner for Consumer Protection Meglena Kuneva. "Consumers cannot exercise their rights, and dishonest operators undermine the reputation of honest companies. We want to create clear and simple rules for those who provide services legally, and also take care of the peace of mind of buyers who purchase a holiday voucher," she said. She also noted that the current rules do not cover the resale and exchange of timeshares.
According to her, the European Commission's proposals, the draft of which was published in Brussels at the beginning of June, are intended to fill the gaps that have emerged in legislation. The new European rules, which will replace the 1994 directive, will cover both timeshares in its classic sense of a long-term contract and relatively new products. These include short-term contracts – that is, contracts lasting less than 3 years – and contracts for the use of movable property (yachts, boats, caravans, etc.), and contracts with 'cheap holiday clubs', which are not actually cheap. Clients of such clubs pay a high price – sometimes up to €3,000 – for access to a website where they are promised – often embellishing reality – huge discounts on accommodation, airfare and car rental.
The directive will also regulate the resale of timeshares (many timeshare owners are offered by commercial agents to pay an additional fee for the opportunity to sell the right to use) and the exchange of timeshares, which owners of vouchers often resort to. Usually, for this purpose, they pay a certain fee to join a club, where they can, for example, swap a week in the Canaries for a week in the Alps. Strict requirements for information about timeshares that become objects of exchange will help them avoid disappointment, the European Commission hopes.