GOLF TOURISM in SOUTH AFRICA. Prof Kamilla Swart

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1 GOLF TOURISM in SOUTH AFRICA Prof Kamilla Swart

2 INTRODUCTION Travel away from home to participate in or observe sport of golf, or to visit attractions associated with golf (Hudson, 2009:3) One of most significant sport tourist activities which can contribute positively to economic welfare of destinations (Hudson & Hudson, 2010) Fastest growing and most popular participation and spectator sport in world China, India, emerging countries Slow growth in developed countries, USA & Europe Largest sport-related travel market (Tassiopoulos & Haydam, 2008) 60 million golfers worldwide (44% in USA) (Readman, 2003)

3 GOLF TOURIST Golf tourist Participant Associate Experienced Learner Avid Non-fan Nonparticipating Avid (25+rounds p.a.) Core (8-24 rounds p.a.) Ocassional (1-7 rounds p.a.) Typology of golf tourists (adapted from Weed & Bull, 2004, Golf 20/20, 2005, Tassiopoulos & Haydam, 2008:872)

4 The business of golf tourism (Hudson & Hudson, 2010:2) BUSINESS OF GOLF TOURISM

5 Golf economy clusters (Hudson & Hudson, 2010:12) BUSINESS OF GOLF TOURISM (cont.)

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7 GOLF TOURISM WORLDWIDE

8 INCREASING TREND OF GOLF Worldwide trend and gaining popularity among destinations Worldwide supply still remains highly concentrated among the top 20 golfing nations with majority of supply located in Western hemisphere As of year end of 2014, golf facilities have been identified in 206 countries Even as golf development has gained momentum in ermerging regions, ie. Asia and Africa Bulk of supply still remains largely centralised

9 GOLF FACILITIES WORLDWIDE 8 countries with 500+ golf facilities 30 countries with 100+ golf facilities 50 countries with only one golf facility 10 countries account for 79% of golf facilities While worldwide supply of golf facilities continues to be highly concentrated among traditional golfing nations, golf spreading around the globe with new courses opening in more places

10 GOLF FACILITIES WORLDWIDE (cont.)

11 EUROPE Where golf s roots run deep, Europe is now home to 22% of world s total golf supply Several countries in Europe have highest golf participation in the world, despite few golf courses and short playing seasons England s golf facilities comprise of 28% of the Europe Europe is home to many of the world s top golf destination countries incl. Scotland, Ireland, Spain and Portugal Trend in new golf development seeks to focus on more compact courses that more public and family friendly Of 40 golfing countries, 30 have new courses under development As a mature golfing region, Europe still seeks to invest in their golfing sector

12 NORTH AMERICA North American region comprises of around 16% of world s land mass, but is home to 53% of world s golf course supply; majority in USA (15 372) Country has been experiencing a gradual but steady market due to an oversupply of golf courses Canada has third largest golf supply in world Although new golf course are minimal in the US, 153 projects in various stages of development Golf development has also slowed down in Canada, currently 37 projects in various stages of development Golf development projects in Caribbean are all of larger resorts intended for destination golfers and vacationers Mexico has 18 developments under development of which 17 are resort-related, which emphasises growing trend of resort golfing facilities

13 SOUTH AMERICA With 2016 Olympic Games fast approaching, construction on Olympic golf course is well underway in Brazil As golf will receive much attention in lead-up and during Olympics, many anxious to see how this event affects golf s growth in region and world Brazil and Argentina, two largest countries in the region account for 67% of total golf supply 30 golf courses in development in Brazil and Argentina

14 ASIA Asia covers 31% of the total land on earth and is home to about 14% of world s golf supply 53 of 55 have countries in this region have golf facilities, yet 8 countries account for 90% of the supply. China is one of fastest growing golf destinations in world With 207 courses under development, Asia is home to the most new golf projects in world Majority of this growth is experienced in China, which emphasises that Asia has room for golf to grow

15 OCEANIA Region is unique for the variety of golf course styles In addition to lush golf courses in the more tropical regions, Oceania is home to a number of sand scrape courses mainly found in Australia consisting of 77% of Oceania s facilities 35 courses are under development in Oceania region and most of these are new projects More than 70% of new golf projects are tied to a resort and/or real estate development, again emphasising trend of resort golfing destinations Australia, being the largest country in this region has 25 courses in development

16 AFRICA As a whole, countries that make up Africa are amongst the poorest and most politically unstable in world Despite this, 50 of the 59 countries have at least one golf course, of which more than half are found in South Africa Development of large resort communities is visible in Africa in recent years Number of courses under development in Africa, majority of them being resort-related. Morocco has 36 open golf courses and 9 resort courses under development. Morocco s northern coastal location, easily accessible to the European and Western makes in an ideal place for such a project. However, these large developments tend to progress slowly as regions often lack infrastructure to support them

17 AFRICA cont. South Africa most dominant golf market golf courses Along with strong local demand ( registered golfers), golf courses benefit from South Africa s reputation as high profile tourist destination While number of courses in South Africa has dropped slightly in recent years, golf still an increasingly popular component of residential community developments Zimbabwe, Egypt, Mauritius and Morocco contribute notably to Africa s golf supply, although these countries have less than 50 golf courses each Golf Course Development Cost Survey 2014 EMA

18 GOLF FACILITIES DEVELOPMENT WORLDWIDE Worldwide, 696 new golf courses under construction or in advanced planning While 80% of these projects are located in Asia, Europe and North America, sport is reaching parts of the world where golf has not been present before Though golf is growing in many parts of the world, it is steadily decreasing in some places where golf is highly developed

19 GOLF FACILITIES DEVELOPMENT WORLDWIDE Golf Course Development Cost Survey 2014 EMA

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21 CASE STUDIES Morocco Thailand Scotland

22 DEVELOPMENT AND EXPOSURE MOROCCO 36 open golf facilities Appointment of IAGTO by Ministry of Tourism for development of and implementation of an integrated golf tourism strategy Appointment of Golf Environment Organisation to implement a sustainability initiative Coordinated approach to various golf initiatives Moroccan golf website Familiarisation trips for tour operators Press trips for golf media Certification programme to recognise service delivery in sector

23 DEVELOPMENT AND EXPOSURE THAILAND Hosting 5 th Asia Golf Tourism Convention (AGTC) in April 2016 Premier golf travel event in Asia Pacific region Attracts over 600 delegates from 32 countries, about 180 golf tour operators from around world along with golff travel suppliers from golf destinations in Asia Pacific Chiang Mai positioning as golf destination via travel trade event

24 INTEGRATED STRATEGIES AND RESEARCH SCOTLAND As home of golf Scotland invested and given recognition to its golf sector Golf Tourism Development Strategy ( ) emphasises support sector receives from government and impact it has on economy Event Scotland and the 2014 Ryder Cup Golf events key feature of annual event calendar 2014 Ryder Cup and Junior Ryder Cup used to raise profile of Scotland as golf destination to a wider non-golfing audience Scottish Golf Intelligence - partnership between Scottish Golf Union, VisitScotland and Scottish Enterprise to help golf clubs make more informed decisions

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26 CASE STUDY Republic of South Africa

27 BUSINESS OF GOLF TOURISM IN SA

28 BUSINESS OF GOLF TOURISM IN SA (cont.)

29 BUSINESS OF GOLF TOURISM IN SA (cont.)

30 BUSINESS OF GOLF TOURISM IN SA (cont.) Size of the Golf Economy in South Africa 2008 Existing facilities 27% Golf Estate Property Component 55% Golf Equipment 6% Advertising and Media 0% Golf Events 5% Golf Tourism 1% New Golf Course Development 6%

31 BUSINESS OF GOLF TOURISM IN SA (cont.) Golf in South Africa substantial contributor to economy Major revenue driver from an expenditure perspective: existing facilities, golf equipment, new course development and with golf tourism and advertising and media being the least Total economic impact of golf on South African economy in 2008 was R58.4 billion (incl. indirect and induced impacts) Over jobs created as a result of golf Huge potential for golf tourism to become sustainable revenue stream for future growth to South African golf economy

32 ASSOCIATIONS South African Golf Tourism Association launched in 2011 Main goal of marketing South Africa as one of world s great golfing destinations South Africa receiving Golf Destination of the year 2011 for African, Indian Ocean and Gulf States main force behind inception Endorsed by IAGTO

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34 CURRENT ISSUES Lack of acknowledgement of importance of sector to tourism industry and economic development sectors No research or funding contribution towards a study to assess the economic impact of golf tourism in South Africa Also demand-side No coordinated golf tourism strategy and cohesive marketing strategy

35 CURRENT ISSUES (cont.) Need to create awareness of South Africa as a golf tourism destination Not maximising resources and assets Favourable weather conditions World class golf and tourism facilities General passion for sport (events) World renowned golf ambassadors Improve product offering as a whole

36 CURRENT ISSUES (cont.) OPPORTUNITY FOR DOMESTIC TOURISM Golf Course Development Cost Survey 2014 EMA

37 THANK YOU Prof. Kamilla Swart