Dollar keeps going up, so why don't mexican maintenance fees adjust for that.

[scobrn]

We love our Hacienda del Mar in Cabo timeshare, however our maintenance fees go up each year based on the Mexican inflation rate. Fees have nearly doubled in 10 years. At the same time, the value of the dollar has nearly doubled. When taking the increased value of the dollar into account, there shouldn't be any increase in maintenance fees. Is anyone else experiencing the same thing at other resorts in Mexico? There must be something we can do. This is just a windfall for Mexican timeshares.

 

[davidvel]

Isn't it the opposite? While the dollar's value "increases" for you, they get less value.

 

[easyrider]

I pay my mf for my Mexican timeshares , UVCI, with USD. UVCI then pays their employees and operating expenses in Mexico with pesos. This means that UVCI does benefit from the USD conversion to pesos. UVCI has been very good at keeping the mf in check and their resorts maintained.

Bill

 

[T-Dot-Traveller]

We love our Hacienda del Mar in Cabo timeshare, however our maintenance fees go up each year based on the Mexican inflation rate. Fees have nearly doubled in 10 years. At the same time, the value of the dollar has nearly doubled. When taking the increased value of the dollar into account, there shouldn't be any increase in maintenance fees. Is anyone else experiencing the same thing at other resorts in Mexico? There must be something we can do. This is just a windfall for Mexican timeshares.

You can look at it 2 ways .

1) It is a windfall / adds to their bottom line
2) It allows them to continue to offer daily cleaning and towel service etc. / amenities that have disappeared in many US Timeshares .

What has the MF doubled to in $ xxx ? / If you feel the resort level and services is comparable to Marriott / Hyatt / Hilton / Westin - Sheraton
is the MF higher - lower - the same .

Very few TS have resale value so does what you pay get you good vacation value ?

 

[bobpark56]

Your headlines has it wrong. The US dollar has recently decreased in value by about 5%, compared to currencies like the Euro and the Mexican Peso...and perhaps others.

 

[Cnatman]

Your headlines has it wrong. The US dollar has recently decreased in value by about 5%, compared to currencies like the Euro and the Mexican Peso...and perhaps others.

Alternative Facts! The original post was based on a ten year history, not simply the volatility within a single year.

I have experienced the exact same MF increase at The Royal Sands over the past ten years. It has absolutely nothing to do with whether or not it is still a great resort, just a simple economic calculation (Peso conversion rate calculated based on Jan 1 value).

MF for 2007 - $750
Peso Conv - 10.79
Peso Value - 8,092 Pesos

MF for 2017 - $1,037
Peso Conv - 20.73
Peso Value - 21,497

Increase in Peso value over past ten years from 8,092 to 21,497 = 166%. This almost exactly 10% compounded annually from 2007 to 2017.

The nice thing with the Sands is you can actually see the full budget and where MF are going, Hurricane reserves, property improvements, etc. No increase for 2016 or 2017.

 

[bizaro86]

Some (many) expenses will eventually end up denominated in USD. Anything imported, of course, but a weakening currency often goes hand in hand with wage inflation, so the workers have a comparable purchasing power.

 

[Phydeaux]

Alternative Facts! The original post was based on a ten year history, not simply the volatility within a single year.

I have experienced the exact same MF increase at The Royal Sands over the past ten years. It has absolutely nothing to do with whether or not it is still a great resort, just a simple economic calculation (Peso conversion rate calculated based on Jan 1 value).

MF for 2007 - $750
Peso Conv - 10.79
Peso Value - 8,092 Pesos

MF for 2017 - $1,037
Peso Conv - 20.73
Peso Value - 21,497

Increase in Peso value over past ten years from 8,092 to 21,497 = 166%. This almost exactly 10% compounded annually from 2007 to 2017.

The nice thing with the Sands is you can actually see the full budget and where MF are going, Hurricane reserves, property improvements, etc. No increase for 2016 or 2017.

Now all you need to be shown is mgmt's. respective salaries. I know, they're not required to disclose them. Curious minds want to know.

 

[scobrn]

Isn't it the opposite? While the dollar's value "increases" for you, they get less value.

You are correct. I meant that they don't make any adjustment for the increased value of the dollar. When we paid our fee in January, 2017, the dollar bought nearly 21 pesos, compared to about 10 pesos to the dollar 10 years ago, yet the maintenance fee goes up nearly 8-10% per year.

 

[scobrn]

Alternative Facts! The original post was based on a ten year history, not simply the volatility within a single year.

I have experienced the exact same MF increase at The Royal Sands over the past ten years. It has absolutely nothing to do with whether or not it is still a great resort, just a simple economic calculation (Peso conversion rate calculated based on Jan 1 value).

MF for 2007 - $750
Peso Conv - 10.79
Peso Value - 8,092 Pesos

MF for 2017 - $1,037
Peso Conv - 20.73
Peso Value - 21,497

Increase in Peso value over past ten years from 8,092 to 21,497 = 166%. This almost exactly 10% compounded annually from 2007 to 2017.

The nice thing with the Sands is you can actually see the full budget and where MF are going, Hurricane reserves, property improvements, etc. No increase for 2016 or 2017.

Great explanation. That's exactly my issue, but my MF increased from $1200 to $1900 during that time.

 

[scobrn]

Your headlines has it wrong. The US dollar has recently decreased in value by about 5%, compared to currencies like the Euro and the Mexican Peso...and perhaps others.

You are correct if you are just looking at the last few months, but I'm referring to the 10 year change. It was around 10 pesos to the dollar then. In Jan. when I paid my MF, it was just under 21 pesos to the dollar.

 

[ilene13]

I must say kudos to the Royal Resorts. Our maintenance fees have stayed the same for 3 years.

 

[WalnutBaron]

Isn't it the opposite? While the dollar's value "increases" for you, they get less value.

If the OP's MF's are being invoiced--and paid--in dollars instead of pesos, then he is correct in his original position. The Mexican timeshare company is getting a double benefit: increasing revenue from the inflation of its MF's over the past ten years, plus the ability to convert those MF's paid in dollars into much cheaper pesos on their side. I should add that this benefit to the Mexican timeshare company is to the great detriment of its U.S.-based owners (assuming the invoice is denominated and paid in dollars).