Below the equator (Consumer research)

Although the game of golf appeared in South America about the turn of the 19th century, its popularity has grown significantly only during the past 10 to 15 years. Recent growth can be attributed partly to growing economies and the success of players such as Angel Cabrera, Eduardo Romero and Camillo Villegas.

As the elite image of the sport decreases slowly, the game is becoming more accessible to a larger share of the population, facilitated by the opening of new driving ranges and public and semipublic golf courses. The promotion of several South American areas as golf tourism destinations also has helped the game’s popularity and golf resort development.

There are about 120,000 golfers in South America out of a population of about 380 million. The 0.03 percent golf-participation rate is very low, but the number of registered golfers is increasing – at more than 10 percent annually in recent years.

The average membership base of an 18-hole golf course in South America is about 550. It’s less than half at nine-hole facilities. The average membership size at 18-hole courses is almost 50 percent higher than in the Caribbean but lower than most European regions.

Golf courses in Argentina reported a lower average membership base than the South American average – 363 versus 423, considering facilities of all sizes. This number may be because of the country’s larger golf course supply. On the other hand, some 18-hole courses reported more than 1,000 members.

The average number of rounds played on the continent’s 18-hole golf courses was about 13,500, which is very low compared to other surveyed regions, especially with such favorable climate conditions. Golf can be played almost year-round in South America. The region’s top-performing facilities recorded 26,600 rounds on average, with some courses reaching 30,000 to 35,000 rounds.

The majority (74 percent) of recorded rounds was played by club members, while green-fee rounds represented a quarter of the total rounds played. As expected, the share of member rounds and green-fee rounds were correlated to course location. Eighteen-hole courses located in country clubs and residential communities reported a high percentage of member rounds (between 70 percent and 80 percent), while facilities located in tourist resorts and in parks, which mainly operate on a pay-and-play basis, recorded a higher percentage of green-fee rounds – 58 percent and 78 percent, respectively.

Source for text and charts: KPMG’s Golf Benchmark Survey 2008