Club La Costa loses a large chunk of inventory, blaming changes to Turkish tourism laws
Email sent to all members
CLC World emailed its full membership database on 10 January 2024 with a direct message: two resorts in Turkey have been removed from its portfolio with immediate effect.
The email states that Kusadasi International Golf Resort (KIGR) and Apollonium Spa and Beach Resort (ASBR) are no longer available for CLC members to book or exchange into.
CLC World attributes the decision to new Turkish legislation, citing: “the closure of all our hospitality operations in Kusadasi along with significant redundancies.”
Impact on CLC members
KIGR has around 400 rooms and ASBR a further 120, totalling approximately 520 units that CLC members can no longer access when trying to book their annual holiday.
That equates to roughly 26,000 holiday weeks being removed from the yearly inventory available to CLC members. This comes amid ongoing complaints, including a commonly raised issue on review sites and social media: lack of availability at resorts members say they have paid substantial sums to use.
“Both Kusadasi and Apollonium had dedicated guests who returned year after year,” says Greg Wilson, a CLC expert working for European Consumer Claims (ECC). “Many of these people will now be looking to book into other CLC resorts, further increasing pressure on an already buckling system.”
“Guaranteed” rental returns disappear
“Hundreds of people also bought freehold in these resorts,” continues Wilson. “They were sold on the promise of guaranteed holiday rental income from those properties. This is income that they will now no longer earn.”
“The CLC freehold owners in question paid up to €250,000 each for their apartments. Without the rental returns they were guaranteed, and taking into consideration the catastrophic crash in the value of the Lira, those apartments are probably worth 75% less today than the amount the owners paid for them.”
The Turkish ‘Airbnb law’
CLC World says the reason for ending operations at Kusadasi Golf and Apollonium is Turkish legislation often referred to as the ‘Airbnb law’. The law states that 100% of owners within the floor of a building must agree to short-term holiday rentals in a complex. Without that agreement, owners may not rent their units to tourists.
However, the CLC World email does not mention that the agreement relates to owners on any given floor (which, in a resort largely controlled by CLC World, could be manageable).
Instead, the email tells members: “100% of a (whole) complex must vote in favour of it being used for short term touristic purposes.”
Questions over motives
CLC’s interpretation would make it close to impossible for owners to rent out their properties as holiday lets.
“This obvious discrepancy between the actual law, and the CLC email explanation seems telling,” says Andrew Cooper, CEO of ECC. “If you only need residents on any particular floor to be in agreement, then that seems like an achievable goal for at least parts of both complexes.”
“There are over 70 timeshare resorts in Turkey who logically must be facing this same issue. Yet we are only hearing about resort closures from one company.”
“CLC seem to have given up on their two Turkish resorts suspiciously easily.”
The email offers vague reassurances, saying CLC is “doing everything we can” and remains “committed to delivering holidays” to members.
It also adds that CLC will “be in touch again as soon as we have further definitive options.”
A company that appears to be disappearing
CLC World’s legal difficulties are widely reported. The company has been found liable in court for tens of millions of pounds in compensation, linked to decades of illegal sales practices.
Since late 2020, CLC has used various tactics to avoid paying this legally mandated compensation, including placing associated companies into administration and liquidation.
CLC has also removed much of its branding in favour of partner Wyndham, including renaming resorts and swapping out long-standing signage.
The apparent ease with which CLC has relinquished this inventory has led some observers to ask whether the beleaguered company is using the situation as another way to scale down and reduce its financial responsibilities.
“CLC can’t be blamed for a change in Turkish law,” notes Suzanne Stojanovic, spokesperson for Timeshare Advice Centre (the marketing arm of ECC). “But if one were cynical, the speed with which they seem to have accepted the situation, and the apathetic tone of the email on solutions for members, could be read as the company being quietly grateful for the opportunity this has presented.”
“This is a company intent on shedding its identity while placing a succession of its ‘sub-companies’ into administration, and suddenly, through no fault of their own, even more responsibilities have been divested. It may be convenient for CLC’s plans, but it certainly isn’t good for owners.”
What next for CLC members?
Club La Costa chairman Roy Peires’s well-publicised email to members last year highlighted multiple costly new projects the business says it is investing in – a clear signal of corporate financial liquidity.
If you are a CLC member who feels you received a poor deal, were mis-sold, or that the company is not meeting the promises made at the point of sale, contact our team to explore your options regarding financial compensation and/or relinquishment.
