Friday, the Canadian Dollar posted its first weekly gain against the US Dollar for the first time in five weeks. Despite gaining 5.7 percent for the week, the Canadian Dollar ended 11.6 percent down compared to the greenback. Typically very similar in value, the strength that the US Dollar currently holds over the Canadian Dollar allows both destination club prospects and destination clubs themselves an opportunity to enjoy savings in the Canadian marketplace.
The Discovery Club, a destination club based in British Columbia, procures partnerships with world class resorts all over the world. Members have access to over 100 five star resorts in locations like New York City, Scottsdale, and Maui and international destinations including Hong Kong, Cancun, and Rome and boasts "every Marriot hotel on the planet."
The Discovery Club offers three different membership levels: Silver, Gold, and Platinum costing C$98,000, C$175,000, and C$270,000 respectively. Due to the strength the US Dollar currently holds over the Canadian Dollar, US consumers can enjoy membership in The Discovery Club at a reduced cost, saving over $50,000.
Much like a traditional destination club, members pay a one time deposit and annual dues. After five years, members can sell their membership back to the club for 70% of market value.
The comparative value of the Canadian dollar to the US Dollar also allows US based destination clubs to save significantly on luxury real estate in Canada. In the past week, Ultimate Escapes CEO Jim Tousignant and Abercrombie & Kent Residence Club President Jarvis Slade, Jr., have both stated that current real estate prices are most favorable to destination clubs.
As evidenced by a recent Harris/Decima travel survey, Canada holds a significant potential market for destination clubs members. By acquiring real estate in the Canadian market while the US Dollar remains strong, destination clubs can begin to court a large audience of Canadian buyers with an extensive portfolio of Canadian properties.
