The Way Forward for the Regulation of Timeshares in the Cayman Islands

Description

The Law Reform Commission (“the Commission”) conducted independent research to examine the regulatory framework governing the timeshare industry in the Cayman Islands. The Commission noted that, although timeshares constituted a significant component of the Islands’ tourism sector, they were subject to statutory regulation solely for accommodation tax purposes under the Tourist Accommodation (Taxation) Act (2013 Revision).

Terms of Reference

The Commission’s research revealed that no deeded timeshares existed in the Cayman Islands. Furthermore, several resort owners expressed concerns regarding the sale of timeshare resorts, inadequate property maintenance, poor record-keeping, and failures to keep owners informed of ongoing developments. As a result, the Commission examined options to regulate the contractual relationship between timeshare suppliers and consumer and potential licensing and management requirements for timeshare properties.

Outcomes

On 11^th September, 2014, the Commission published a Discussion Paper titled “The Way Forward for Regulation of Timeshares in The Cayman Islands”, accompanied by the Timeshare Bill, 2014, to solicit public feedback.

The Timeshare Bill, 2014 provides for:

Licensing of timeshare proprietors;
Insurance requirements for timeshare properties;
Minimum terms and conditions of timeshare contracts, including cancellation rights;
The registration of timeshare contracts; and
The management of timeshares.

The project has not progressed beyond the discussion paper stage.