CLUB SERVICE FEES FOR 2018
The 2017 Advisory Council meetings were held in Cancun during week 43 and the representatives of The Royal Caribbean, The Royal Islander, The Royal Sands and The Royal Haciendas met with Management to review the 2017 financial reports and the proposed resort budgets and Club Service Fees for 2018.
Due to supplier price rises and higher utility rates in 2017, a jump in the inflation rate in Mexico and other adverse economic factors, Resort Operations costs have risen at each club, The Royal Haciendas (5.3 percent), The Royal Cancun (5 percent), The Royal Sands (4.1 percent), The Royal Caribbean (3.56 percent) and The Royal Islander (2.19 percent). Management proposed a 2.5 percent increase in the 2018 Club Service Fee to partially offset the impact on resort operations. Royal Resorts budgets conservatively and works hard to keep Club Service Fee increases to a minimum and this is the first time that the annual dues have gone up in four years.
The Royal Sands and The Royal Haciendas Advisory Boards unanimously approved the dues increase.
There is no change in the Club Service Fee for The Royal Caribbean as the membership program ends on November 4, 2018.
The Royal Islander Club Service Fee also remains unchanged for 2018.
At the Royal Islander Advisory Council meeting, Management presented the budget and recommended a 2.5 percent increase for the 2018 Club Service Fee (CSF). The Advisory Council accepted all of Management’s proposed budget items except for the increase of the Club Service Fee. The initial budget showed a profit for the year but the Council representatives felt it was unnecessary at this time to add additional funds to the Club Cash Reserve account (as it is currently more than sufficient to meet an unanticipated catastrophic/emergency event which might require up to a 3 month resort shutdown). When the budget was revised to keep the CSF at US $1,037 –the budget still shows a small cash surplus. So, at the request of The Royal Islander Advisory Council representatives, Management agreed to hold the CSF increase over. Nevertheless, Management would like to state for the record – that depending on next year’s economic indicators, a larger CSF increase might be necessary for 2019.
In the case of The Royal Cancun, which does not have its own Advisory Council yet, a 2.5% increase in the Club Service Fee for C Villas is also shown. When the resort is 80 percent sold the Advisory Council will be duly constituted.
CLUB SERVICE FEES FOR 2018
The Royal Sands
2.5% increase
Villa | Occupancy | 1-44 days before | 44-90 days before | |||||
CSF | 918.49 | 905.88 | 893.28 | |||||
VAT 16% | 146.96 | 144.94 | 142.92 | |||||
Occupancy tax 3% | 27.55 | 27.18 | 26.80 | |||||
CSF + Taxes | 1,093.00 | 1,078.00 | 1,063.00 | |||||
Suite | Occupancy | 1-44 days before | 44-90 days before | |||||
CSF | 605.88 | 593.27 | 580.67 | |||||
VAT 16% | 96.94 | 94.92 | 92.91 | |||||
Occupancy tax 3% | 18.18 | 17.81 | 17.42 | |||||
CSF + Taxes | 721.00 | 706.00 | 691.00 | |||||
Room | Occupancy | 1-44 days before | 44-90 days before | |||||
CSF | 337.81 | 325.21 | 312.60 | |||||
VAT 16% | 54.05 | 52.03 | 50.02 | |||||
Occupancy tax 3% | 10.14 | 9.76 | 9.38 | |||||
CSF + Taxes | 402.00 | 387.00 | 372.00 |
The Royal Islander
No change
Villa | ||||
CSF | 871.43 | |||
VAT 16% | 139.43 | |||
Occupancy tax 3% | 26.14 | |||
CSF + Taxes | 1,037.00 |
The Royal Caribbean
No change
Villa | ||||
CSF | 831.93 | |||
VAT 16% | 133.11 | |||
Occupancy tax 3% | 24.96 | |||
CSF + Taxes | 990.00 |
The Royal Cancun
2.5% increase for C Villas
Villa | B Villa | C Villa | ||||
CSF | 811.77 | 893.28 | ||||
VAT 16% | 129.88 | 142.92 | ||||
Occupancy tax | 24.35 | 26.80 | ||||
CSF + Taxes | 966.00 | 1,063.00 |
The Royal Haciendas
2.5% increase
Villa | Flexivilla | Deluxe | ||||
CSF | 960.50 | 1,021.01 | ||||
VAT 16% | 153.68 | 163.36 | ||||
Occupancy tax 3% | 28.82 | 30.63 | ||||
CSF + Taxes | 1,143.00 | 1,215.00 | ||||
Suite | ||||||
CSF | 624.37 | 663.86 | ||||
VAT 16% | 99.90 | 106.22 | ||||
Occupancy tax 3% | 18.73 | 19.92 | ||||
CSF + Taxes | 743.00 | 790.00 | ||||
Room | ||||||
CSF | 336.14 | 357.15 | ||||
VAT 16% | 53.78 | 57.14 | ||||
Occupancy tax 3% | 10.08 | 10.71 | ||||
CSF + Taxes | 400.00 | 425.00 |
What does my annual Club Service Fee cover?
Your annual Club Service Fee covers upkeep of your resort home and the following:
• Maintenance and replacement of furniture and appliances in the villas due to wear and tear
• Landscaping and gardening
• Utilities
• 24-hour Front Desk
• 24-hour security
• Maid service (except Sundays and official Mexican holidays)
• Floodlit tennis courts and use of tennis rackets
• Sports desk and snorkeling gear, bicycles, sailboats and/or kayaks
• Activities organized by the Social Activities Team
• Supervised Kids Club
• High-speed Wi-Fi
• Professional resort management
Resort services not covered by the Club Service Fee
There are some services that many Members believe are covered by their Club Service Fee when in fact they are not. For clarification purposes we would like to point out that the following services are in fact part of resort businesses or sales and marketing programs with independent budgets and are not included in your annual Club Service Fee. They include:
• Restaurants and bars
• Spa and gym
• Tour desk
• The Royal Market
• La Paloma Gift Shop
• Concierge Desk and Service
• Events such as the Welcome Party, weekly Cocktail and Taco Party, which are activities organized and sponsored by the Sales and Marketing department
• REFINE All-Inclusive package
The Club Service Fee does not pay for expenses relating to the REFINE All-Inclusive Package
Some members at The Royal Sands, The Royal Cancun and The Royal Haciendas think that their Club Service Fee pays for services used by All-Inclusive guests in some way. This is not the case. The REFINE All-Inclusive program has a separate operating budget and pays a resort fee of US$2.50 per All-Inclusive guest per day to Resort Operations to cover extra expenses generated by the program such as the evening turndown service and housekeeping service on Sundays, laundry (bathrobes, linens and towels) and use of the Kids Club. In addition, the resort also receives a Club Service Fee for the rental of each villa to cover the services included in the annual dues.
Member Club Service Fees do not subsidize the REFINE All-Inclusive program in any way.
The Advisory Council meeting reports and financial statements will be published in Royal Resorts Life magazine in January and online here in the Members Area in the weeks to come.
We hope that this information is helpful, if you have any questions please do not hesitate to contact us.
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