Timeshare and Vacation Ownership in Japan: What to Know Before Buying

Poste date: Friday, April 25, 2025

As travel styles evolve, "vacation ownership" (commonly referred to as timeshare) has gained attention as a way to own a "special place." This system allows access to resort facilities nationwide at member prices with a single contract, making it more convenient and accessible compared to owning a second home, and has become popular for its practicality.

However, there are various types of vacation ownership, each with its own advantages and disadvantages. Some of the typical contract types include "Ownership-Based," "Usage Rights-Based," "Points System," and "Timeshare," but in reality, each company may have its own unique system, and not all cases fall strictly under these categories.

Here, we will detail the basic features of each type.

Basic Structure of Vacation Ownership

Vacation ownership refers to the "right" to use resort facilities at member prices with priority access. Contract holders can use hotels, condominiums, and vacation homes under certain conditions throughout the year. The cost, usage methods, and asset value vary greatly depending on the contract type.

If You Value Asset Ownership, Consider "Ownership-Based" Vacation Ownership

＊Ownership-based contracts can be further divided into shared ownership and owners' club types, with differences in land ownership, real estate registration, resale and inheritance possibilities, and allocation of usage dates.

Features

Shares ownership of a portion of the resort's land or building

Real estate registration is performed, allowing it to be held as an asset

Benefits

Can be held as a long-term real estate asset

Future resale or inheritance is possible

Drawbacks

High initial costs (purchase cost, registration fees, property taxes, etc.)

Usage dates are predetermined, offering limited flexibility

Availability may be restricted during weekends or peak seasons

Best for People Who:

Want to own the property as an asset

Can take regular planned vacations

"Usage Rights-Based" for Those Who Want Flexibility (Deposit or Membership Fee Systems)

These types are sometimes referred to as "membership club" systems and vary in details.

Features

- No property ownership; acquires the right to use the facility for a certain period

- Commonly structured as a "deposit system" or "membership fee system"

- Often involves a fixed contract period

Benefits

- Lower initial costs (deposit or membership fee)

- No need for property acquisition tax or property taxes

- Flexible booking system, offering more freedom with scheduling

Drawbacks

- No asset value as real estate

- Difficulty booking during peak times

- Deposits are often returned without interest after the holding period

Best for People Who:

Want to enjoy resort life casually
Want to save costs while enjoying flexible travel

"Points System" for Those Who Want Complete Freedom in Travel Plans

Features

- Uses points granted annually to make booking reservations

- Required points vary depending on the time of year and facilities

- Points can also be used for services such as restaurants and spas

Benefits

- Can plan throughout the year, especially when avoiding peak seasons

- High flexibility in selecting accommodation dates

- While it doesn't hold asset value, it’s ideal for those who prioritize convenience

Drawbacks

- Points may have expiration dates or restrictions on carryovers

- Popular facilities and dates require more points

Best for People Who:

Want to enjoy resorts with a flexible schedule

Prioritize efficient use rather than asset value

Ownership-Based Vacation Ownership

Features

Unlike traditional membership systems, this system involves purchasing real estate ownership to use the resort facility. For example, buyers can select a set number of annual usage days and even rent out unused periods for profit.

Benefits

Because it is treated as real estate, it holds asset value and can be resold in the future. Resort-side management means minimal effort for the owner. Additionally, reciprocal use at other resorts provides flexibility, and unused periods may be rented out for potential income.

Drawbacks

The initial cost is high, making it difficult to start easily. Also, ongoing maintenance and management fees are required, which can add up over time.

Best for People Who:

Want to own resort property as an asset
Want to use resort facilities regularly

Consider "Timeshare" If You Want to Use a Set Period

Features

- Owns the right to use the facility during a specific week or set days each year

- This system is commonly referred to as "Vacation Ownership" abroad

Benefits

- Easy to plan with a fixed schedule each year

- Some systems allow exchanging weeks with other members

Drawbacks

- Difficult to make last-minute changes
- Some systems require additional costs or a lottery for peak seasons

Individual Membership and Corporate Membership

Individual memberships are designed to cater to the lifestyles of families and individuals, offering flexibility for personal use. These memberships are perfect for family vacations or personal getaways, allowing everyone to unwind and enjoy quality time together. Whether it's a weekend family trip or an extended holiday, an individual membership provides a great opportunity to refresh and recharge, making it an ideal choice for those who value private and leisurely time.

On the other hand, corporate memberships are often offered as part of employee benefits, allowing employees to take advantage of the membership for their own vacations and relaxation. The key benefit of a corporate membership lies in its ability to enhance employee motivation and foster a strong company culture. By offering this as a part of the company's welfare program, corporations can provide a valuable space for employees to recharge, strengthen bonds among colleagues, and improve work efficiency.

5 Key Points to Check Before Signing a Contract

1. Type of Contract: Ownership-Based vs. Usage Rights-Based, Which Fits Your Style?

Ownership-based allows long-term use and asset value but comes with higher initial costs. Usage rights-based contracts have lower initial costs and more flexibility but don’t provide asset ownership.

2. Total Costs: Initial Fees, Annual Fees, Maintenance Fees, and Taxes

Initial fees are one-time costs, while annual fees and maintenance costs are ongoing. Be sure to consider taxes as well.

3. Freedom in Usage: Reservation, Lottery, or Points Systems

Reservation systems allow more flexibility, but availability may be limited during peak times. Lottery systems offer less predictability. Points systems offer great value but have certain restrictions.

4. Facility Location and Quality: Does It Match Your Desired Area and Standards?

It’s important to consider whether the facilities are in your desired location and whether the quality (e.g., amenities and services) meets your expectations.

5. Long-Term Value: Resale, Inheritance, Refunds Upon Cancellation

Ownership-based systems allow for resale or inheritance, while usage rights-based systems require careful review of cancellation and refund policies.

Choose a Vacation Ownership That Fits Your Lifestyle

When choosing vacation ownership, it’s important to consider factors such as asset value, costs, flexibility, and convenience. Consider how often you want to use it, where you want to go, and whether you value asset ownership. By selecting the right type that matches your lifestyle and values, you can enjoy a more fulfilling resort experience.

Comparison of Vacation Ownership Types (＊Various types are offered, so these terms and details may not apply in all cases)

Feature / Item	Ownership-Based	Usage Rights-Based (Deposit & Membership Fee)	Points System
Asset Value	✔ Real estate registration, asset ownership	✖ Does not become an asset	✖ Does not become an asset
Initial Cost	High	Low	Medium
Property Taxes, etc.	✔ Applicable	✖ Not applicable	✖ Not applicable
Flexibility of Usage Dates	✖ Pre-assigned dates	✔ Flexible booking	✔ Choose freely
Resale & Inheritance	✔ Possible	✖ Not possible	✖ Not possible
Booking During Peak Seasons	✖ Hard to book	✖ Hard to book during busy periods	✖ High points required during peak times
Best For	Those who are interested in owning a resort property as a valuable asset	Those who prefer flexible usage	Those who value freedom in usage

Conclusion: Choosing the right vacation ownership option is about finding a balance between cost, flexibility, and asset value. Consider your preferences and lifestyle to find the best fit.

Recommended Resort Membership for Expats

For expatriates living in Japan, it is particularly important to find a resort membership company that provides support in English when choosing a resort membership. For those who may feel uneasy about Japanese, selecting a resort membership company with English-speaking staff ensures a smooth experience. From facility reservations and contract reviews to handling any issues, you can proceed with confidence. Be sure to check whether English support is available.