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Paradise...Not Lost!
by The Trades Editorial Staff
Editor
The Trades Publishing Company
Every resort manager has experienced it - the gut-wrenching feeling of hearing those two dreaded words - water damage.
However, we’re not talking about a leaking water heater, or a broken hose pipe to a washing machine - how about having your entire first floor completely submerged in salt water?
During the months of August and September, Florida and the Gulf Coast experienced one of the worst hurricane seasons in recent years, when four separate hurricanes - one category 3, two category 4, and one category 5 - took turns swiping through the Gulf Coast and up the Atlantic coastline leaving catastrophic destruction in their wake.
Almost no part of Florida - the state with the highest percentage of our nation’s timeshare resorts - was untouched by the damaging winds and rain from these storms, and some areas, including the hub of Florida’s resort industry - Orlando - were hit up to three separate times by the initial brunt of these storms.
According to ratings agency Fitch, the combined damage from these four storms amounts to well over $20 billion in actual damages, and may well surpass the current record damages from 1992 Hurricanes Andrew and Iniki ($22 billion).
However, with all of the negative news stories, graphic images of homes and condominiums torn apart, and reports of casualties and property damages, the idea that paradise is lost is far from the truth.
For the most part, the Florida and Gulf Coast resort industry is back up and running, most resorts with little or no damage whatsoever. Most of the damage in the central Florida and southern coastal areas are limited to signage (easily the largest category of damages), roofing and landscaping problems. Some resorts experienced more extensive damage to soft goods and flooring and are in the process of repairing them as we read this. Only a small handful of resorts suffered more severe structural damage, mostly in the Fort Myers, Vero Beach, and Pensacola areas. Those resorts are well underway on their restorations, due to disaster preparedness plans that were in place, and few have anticipated reopening dates later than
Spring 2005. Only one timeshare property, the 70-year-old Driftwood Resort in Vero Beach, has reported that it will close its doors indefinitely due to the damages from the hurricane season.
Although the physical damages to some properties are very real, the greatest damage comes from an unlikely source - the media. Due to the media’s reports of widespread devastation, the long-lasting effects on tourism may be a bigger disaster than the actual hurricanes. In fact, recent polls show that nearly one-quarter (25%) of tourist polled say that they are less likely to visit Florida or the Bahamas this year or during next year’s hurricane season.
"Clearly, travelers have been affected by both the jarring television images they have seen ... and the duration of the media coverage," said Peter Yesawich, chairman, YPB&R, who commissioned the poll. "But as the story of the region's recovery unfolds and winter approaches, we're likely to see these negative opinions dissipate quickly, particularly if travel suppliers roll out attractive promotional offers to lure visitors back."
In fact, some Florida county tourism councils have already begun the reciprocal media blitz to bring tourists back to Florida. You may have seen the ads that ran during the recent baseball playoffs that read, “Did you hear about what happened to greater Fort Lauderdale during the hurricane? Absolutely nothing." The ads were placed by the Broward County visitors’ bureau.
Please read over the two success stories that describe how two resort companies weathered the 2004 hurricane season. The details that accompany these stories showcase how, while the damages to the properties are very real, the “return to normalcy” will be very soon. Thank goodness for the very nature of the industry, in which events such as this can be handled simply by exchanging guests’ vacations to alternate locations, and for associations with reserves to handle quick repairs and to cover insurance deductibles.
It is that very nature of the timeshare industry which will ensure a quick recovery of the industry to a “better-than-new” status well before the Spring Breakers arrive in March.
Success Story # 1
Liberté Management Group
Treasure Island, FL
Managing seven resort facilities on the Florida coast is no easy task, with or without a hurricane in the forecast. So, it is no surprise that Dennis DiTinno’s Liberté Management Group already had a hurricane plan in place when 2004’s damaging hurricane season came.
“Prior planning and communication are the keys to any successful plan,” explains DiTinno. “Any disaster can be managed if you are ready for it.”
While other property managers and residents were scrambling to arrange for construction crews and equipment, DiTinno had already made arrangements - before the storms even hit - for crews to be on the scene in the aftermath to clean up after the storm.
In fact, it seems as if DiTinno is more concerned with the morale of his employees than the cleanup of his resort properties. “The cleanup is minimal at most of our properties,” says DiTinno. “However, some of our employees experienced more damage at home, and had to undergo the experience of evacuating not only our properties, but their own families as well. The mental strain on our employees is a key factor in our renovations.”
Due to the prior planning and proper lines of communication throughout the organization, all of DiTinno’s resort properties were back in service within 48-72 hours of the initial storm, with the exception of one property, The Voyager Beach Club, which was without power for 4 days.
“Owners and guests who were displaced were promptly handled by Interval International’s exchange department,” says DiTinno. “We didn’t have a single upset guest, except for a few who wanted to see what it was like to ride out the hurricane in their condominium.
We had to have them evacuated by the local police department.”
Ditinno’s disaster planning saved his resorts thousands of dollars in potential lost income. “Planning and proper communication can make all the difference,” says DiTinno.
Success Story # 2
Escapes! to the Gult at Orange Beach
near Gulf Shores, Alabama
On first glimpse, the pictures of the Escapes! to the Gulf at Orange Beach property don’t appear to reflect a “success story.” Upon closer examination, however, the story of this resort is a tremendous success.
Wind and water from Hurricane Ivan left the Gulf Shores area without utility services, communications, and transportation services for up to three weeks.
Within two weeks of the storm, resort management had met with building inspectors, claims adjusters, architects, clean-up crews and construction personnel and had developed a comprehensive analysis of the property and a calendar for reconstruction and reopening.
Sand was washed out from under a portion of the building at those points nearest the beach, yet the structural integrity of the building was not compromised. The foundation of the building is supported by piers that extend 70 feet below the surface. Since this sand was basically part of the landscaping, it will be replaced during the rebuilding process.
Both pools and the surrounding walkways were completely destroyed. The storm surge removed the sand around the pools and under the walkways causing them to collapse. The destruction of the pools has given resort management the opportunity to review any potential changes in design that might be desirable and incorporate them in the new pools.
All first floor units sustained extensive damage due primarily to wave action. Some second floor units sustained floor damage as well. Some other units sustained glass breakage and carpet damage and some areas of the roof will also need repair.
City officials expressed that the Escapes! resort reconstruction was one of the most well-organized plans that they had seen in the area and commended resort management on their quick response.
Escapes! owners who were displaced were quickly and efficiently handled by Escapes! with help from Interval International’s
member exchange services.
With the reconstruction process underway, Escapes! management anticipates that the resort will be back open for business in late Spring 2005 in time for next summer.