Here and there (Editor's note)

Everyone knows the golf market here in the States is flat, even struggling a bit. Demand remains stagnant, and supply is contracting slowly. Check the National Golf Foundation’s numbers (www.golfcourseindustry.com/ngf) for the details. Despite a few active development spots in the South and the efforts of various industry organizations encouraging more people to play the game, don’t bet the farm on significant growth anytime soon.

But, as the industry treads water here, there are bigger opportunities abroad. There are now close to 7,000 golf courses and almost 4.5 million affiliated golfers in Europe, the Middle East and Africa, according to KPMG’s Golf Benchmark Survey 2007. Just 10 countries with the most golf courses account for 83 percent of total supply – Great Britain and Ireland total almost half. The data show there aren’t many countries in the EMA region that can claim a well-developed golf market with robust supply and demand.

According to the survey, there are a significant number of projects in the planning or construction phases in Eastern Europe, the Southeast Mediterranean and the Middle East. Factors contributing to growth are: local demand, international golf tourism, media interest in golf, disposable income in emerging economies, the ease of travel at cheaper costs and governments’ awareness and understanding of the benefits of golf development and tourism.

Of note, 18-hole golf courses in the Middle East recorded the highest average number of rounds played, almost 42,000. Dubai has the highest number of rounds per playable day and the highest greens fees in the EMA region. Golf courses in the Middle East charge almost twice as much for greens fees than those in Europe. Is it any wonder why Tiger Woods is attaching his name to a golf project there?

Furthermore, 51 percent of the owners and operators (representing 1,500 golf courses) surveyed said they plan for capital investments or refurbishments to their facilities. These include upgrading the clubhouse, expanding the golf course, purchasing new course maintenance equipment, and replacing or improving the irrigation system.

In China, golf is still in its infancy. Since the first golf course was built there in 1984, between 350 and 400 courses have opened. The China Golf Association projects 100 more golf courses will be built during the next three years. The consumer class in Asia is reportedly a $7-billion market. And there are between 2 million and 3 million golfers in China, according to the CGA. By 2020, the association predicts the number of golfers to increase to 10 million and the number of golf courses to increase by another 20 percent. However, there are limitations to golf course development in China. There’s limited farmland for golf, a limited supply of water and Chinese society doesn’t understand golf all that well. They’re worried about the cost and the perception the game is for rich people.

At the GCBAA’s summer meeting last month in Michigan, I met with Maris Gulans of Modo-Riga, a golf course builder from Latvia who’s working in Eastern Europe and Russia, and Kun Li, Ph.D., from Citic Forward Golf Management, a Chinese company that’s developing eight golf courses in its homeland. These guys, both members of the GCBAA, are coming to America to learn more about golf course development and management because there’s a big need overseas for the expertise of American golf course builders and architects. And if there’s a need for American knowledge to develop golf courses, think about the potential need for maintenance expertise.

The next golf boom isn’t going to happen here in the States. It will happen in Asia and the parts of the EMA region, if it hasn’t already. If you’ve ever wanted to take a risk and head overseas, now’s the time. Do your research, talk to people who’ve been there, and think about how you might take advantage of the opportunities and reap the rewards associated with them. GCI