CFO Liam Crawley on Annual Levies

Your 2023 annual Club Wyndham South Pacific levy statement can now be accessed through your owner dashboard.

The Owner Information team recently put together an excellent explanation about how annual levies are used to ensure quality resort staff, upkeep and maintenance at your club properties and the ongoing operation of the club. Your club is operated on a not-for-profit basis and annual levies are the key method for the club to meet its annual costs.

The Responsible Entity has approved a levy increase of 4.97 per cent for 2023. For New Zealand owners, the AUD levy is converted using the average exchange rate for the past 12 months. This is consistent with conversion methodology rates applied to prior year levies and ensures that a fixed NZD levy is in place rather than being subject to foreign exchange fluctuation each payment.

A levy increase of this size is necessary due to significant cost pressures anticipated this coming year. The recent rise in inflation across the globe has been well documented and economic forecasts project high inflation rates to continue in 2023. Unfortunately, the hospitality industry has been significantly impacted. Materials and labour required to maintain club assets have increased in price and fixed costs such as utilities – particularly electricity – and external body corporate fees have also risen steeply. Supply chain problems persist and an industry-wide shortage of hospitality staff is ongoing, which translates to higher labour costs for the club as it tries to attract or retain suitable staff. That said, we leverage efficiencies where possible and the levy increase is lower than inflation rates this year.

Housekeeping charges will rise 5 per cent across all room types. This increase reflects both the increase in pricing from linen suppliers and an ongoing worker shortage in housekeeping, and the consequent higher labour costs.

While an increase in levies is unavoidable in the current market, our operational and finance teams continue to analyse club spending to put as much downward pressure as possible on your annual levies. 

The 2023 budget including a breakdown of how your 2023 annual levies is spent is available on the Club Wyndham South Pacific owner dashboard at https://clubwyndhamsp.com/cwsp-financial-information/. Please note that your levy statement also includes your Lifestyle by Wyndham membership fee where you are a member of that program and the reference to “Lifestyle” fee on your statement refers to the tiered benefits program (formerly known as Privileges by Wyndham).  

We thank you for your support during the economic headwinds we are all experiencing at present, and we remain hopeful the recovery will take place sooner than predicted. Our team is looking forward to helping you plan your next unforgettable holiday through Club Wyndham South Pacific.

Liam Crawley
Chief Financial Officer