Government’s Role in Timeshare
Although the government should not be in the business of running a business it’s their job to facilitate an environment which is conducive to business. This creates an atmosphere in which confidence of the investor is high and they can focus only on running their business instead of focusing on other issues.
Some of the areas where government plays a pivotal role in Timeshare industry are listed as below:
- Security: Safety and security is an important concern for any industry and specifically so for the tourism industry. No tourist wants to visit a destination where he perceives a threat to his life or belongings. It is government’s duty to ascertain that law enforcement agencies such as Police and Para-military work properly to maintain security at the destination. At some places, the government has also started a concept of tourist police who are specifically responsible for policing in tourist areas.
- Infrastructure: Timeshare industry is dependent upon infrastructure provided by the government to run its operation and to facilitate the convenience of its customers. The infrastructure to be provided by the government includes proper roads, continuous supply of electricity, clean drinking water, sewage pipelines, garbage disposal facility, street lighting, etc.
- Loans and Subsidies: Timeshare industry is capital-sensitive. It requires huge initial investment to start a time-share business. Government can play an important role in this regard by providing financial assistance on a loan basis through nationalized banks and through other financial institutions. The government also provides subsidy on the interest of these loans and other things like import duty, excise duty, etc. to promote an industry which is in a nascent stage.
- Regulatory Body: Timeshare industry has received a setback due to unscrupulous activities of the fly-by-night operators which resulted in the loss of credibility for the industry. The government in this case helps the industry by playing the role of a regulatory body which curbs the dishonest players and controls the financial transactions between the properties and their members.
- Taxation: Government’s role also includes collecting taxes and dues from the Timeshare operators and the money collected from the taxation is then used for infrastructure and developmental activities in the region.