Scottish Golf Tourism Market Analysis

Transcription

1 Scottish Golf Tourism Market Analysis June 2009

2 Contents 1: Introduction...1 2: Economic impact of golf tourism...5 3: Golf tourism product : Profile of visitors and key markets : Golf tourism development : Conclusions and recommendations Annex A: Consultees... A-1 Annex B: Scotland s golf courses... B-1 Annex C: Golf Tourism Scotland research... C-1 Contact: John Nolan Tel: [email protected] Approved by: Bruce Macdonald Date: 26/06/09 Associate Director

3 1: Introduction 1.1 In January 2009 SQW Consulting was commissioned by Scottish Enterprise (SE) to undertake an analysis of the golf tourism market in Scotland. Tourism is one of Scottish Enterprise s priority industries generating 4.2 billion annually in revenue for Scotland s economy 1 and golf is an important product within the industry. 1.2 As the home of golf Scotland attracts many high spending overseas visitors and golf tourism has the potential to generate significant spill-over benefits in local economies. It can also act as a catalyst for significant private sector investment, much of which tends to comes from abroad. As part of the tourism industry golf tourism is expected to contribute to the national target of a 50% real growth in revenue between 2005 and Purpose of the study 1.3 The aims of this research were to estimate the economic impact of golf tourism, to review the market and identify the opportunities for growing the market over the coming years. In the past a range of estimates have been used as a value of golf tourism in Scotland. In commissioning this research, SE wanted to establish an accurate and agreed estimated value that will act as a baseline in the run up to the Ryder Cup taking place in Scotland in In addition to quantifying the value of golf tourism, the focus of the work is specifically on what SE s role in supporting golf tourism should be. We stress that this must be based on sound economic principles. As with any SE intervention, there should be a clear economic rationale for their role based on the presence of market failures and evidence that any proposed interventions will deliver a strong return on their investment. The recommendations are based on extensive discussions with stakeholders from across the industry and focus primarily on what SE can do to support the industry. 1.5 It was agreed at the outset that this research should link into other research undertaken by Golf Tourism Scotland (GTS) on behalf of VisitScotland and Scottish Enterprise, which provided the main source of estimates of economic impact based on visitor green fee revenue from Scotland s golf courses (attached to this report as Annex C). Methodology 1.6 This research was carried out in February to April 2009 and involved the following stages: Desk review of all relevant documentation including surveys of golf visitors, previous economic impact studies and market trend data. The two main sources of data for the economic impact calculations are: 1 VisitScotland (2007), Tourism in Scotland Scottish Government (2006), Scottish Tourism: The Next Decade A Tourism Framework for Change 1

4 GTS analysis of visitor green fee revenues 3 SMS golf visitor surveys 2006 and 2007 commissioned by VisitScotland A series of consultations (face to face and telephone) with stakeholders, representative bodies and individual golf tourism businesses (a list of consultees is attached as Annex A) Testing and refining research findings and recommendations this involved circulating a summary paper for comments amongst key stakeholders before writing up the final report. Overview Value of golf tourism 1.7 Valuing golf tourism in Scotland is the most important element of the study but presents the biggest challenge. Calculating the economic impact of the industry is dependent on reliable data on the number and characteristics of visiting golf visitors that generate the majority of the economic impact. 1.8 Carrying out this study has highlighted the limitations of the existing research in particular regarding the breakdown of visitors by origin and their average expenditure per trip. We have been able to provide estimates of visitor expenditure using new information gathered and analysed by Golf Tourism Scotland (GTS) combined with data from the Golf Tourism Monitor and visitor survey data commissioned by VisitScotland. Although we believe that this calculation provides as accurate a picture as is currently possible, we set out some of the caveats in using this visitor survey data throughout the report. 1.9 The results consider the economic impact generated by visitors who come to Scotland to play golf and stay overnight. We do not include day visitors, the large majority of which will be Scottish residents and whose expenditure does not contribute to the national revenue targets. GTS estimates that in 2008 just less than 30 million was spent on visitor green fees. Based on analysis of the ratio of green fee expenditure to total visitor spend (1:4), this indicates that around 119 million is spent by staying visiting golfers. Including multiplier effects this figure increases to 191 million in additional economic output Hosting major golf events such as the Open Championships, Senior British Open and the Scottish Open also attracts visitors to Scotland. The expenditure of these visitors varies each year depending on the events that are hosted in Scotland, but the average over the past four years is estimated to be 36 million in additional output including the multiplier effects After allowing for those that both attend events and play golf, the combined economic impact is therefore estimated to be 220 million. This represents around 120 million of Gross Value Added (GVA) for the Scottish economy, as set out in Table 1-1. GVA quantifies the 3 Golf Tourism Scotland (2009), Visiting Golfer Spend in Scotland 2

5 value added to materials and other inputs in the production of goods and services (mainly wages, salaries and profit) and is the most commonly used measure of economic impact. 4 Table 1-1: Economic impact of golf tourism Total output (incl. multiplier) Visiting golfers 191 million 113 million Golf event spectators 36 million 12 million (Overlap in visitor spend) ( 3 million) ( 2 million) Total economic impact 223 million 123 million Source: SQW Consulting (figures do not add due to rounding to nearest million) 1.12 An associated impact of golf tourism on the Scottish economy is the significant investment by private sector developers in commercial golf facilities in recent years. Recent investments have included the Castle Course at St Andrews, Carrick Golf and Spa at Loch Lomond, Machrihanish Dunes, Castle Stuart, Fairmont s re-design of their two golf courses, redevelopment of Turnberry Resort, the opening of the Renaissance Club at Archerfield an the imminent opening of the Rowallan Castle development. Together this represents nearly 250 million of investment committed over the last couple of years alone Other major developments are planned such as the Trump development at the Menie estate and the Paul Lawrie designed course at Blairs Estate in Aberdeenshire. The significant value of these types of investment has and will continue to generate employment and GVA in Scotland. As importantly, it helps to raise the quality of Scotland s golf product and enhances the country s reputation for fine courses While ultimately this will be expected to increase the number of golf visitors (and therefore expenditure and economic activity), it also raises the importance of capturing the expenditure of overseas members of golf clubs that are not captured through the current approach. As part of improving our knowledge of the size and profile of the market, we suggest that future surveys of golf tourists and courses should capture data on these numbers. GVA Future development of golf tourism 1.15 This report provides an overview of Scotland s high quality product (including some areas for improvement), the characteristics of golf visitors and the challenging economic context for future development. But importantly from SE s perspective it highlights that there are around 70 golf courses that generate the majority (75%) of the economic benefits for Scotland. SE s role should be to focus on the golf clubs that generate the large majority of tourist activity and specifically those that have the potential to increase that activity Through the process of consultation and review of previous reports and other materials we have drawn a number of conclusions, summarised as: A need for much more reliable data on the scale and profile of the golf market 4 For example, in very simple terms if a golf tourism business has an annual turnover of 100,000 but spends 50,000 on bought in goods and services, then it generates 50,000 in GVA. 3

6 A sense of fragmentation and need for leadership (which the new Framework is expected to address) A willingness to develop golf tourism A need for greater transparency on the marketing activities being led by VisitScotland Consensus on the types of activities that need to be taken forward, namely: Better capture of information on visiting golfers by courses More joined up working between different types of service providers e.g. hotels Greater and better use of ICT Increasing innovation (relating to new products/ use of IT/ marketing/ customer service) Improving customer service. Structure of the report 1.17 The remainder of the report is structured as follows: Section 2 economic impact of golf tourism Section 3 golf tourism product Section 4 profile of visitors and key markets Section 5 golf tourism development Section 6 conclusions and recommendations Annex A consultees Annex B list of Scotland s golf courses Annex C Golf Tourism Scotland research. 4

7 2: Economic impact of golf tourism Scottish Golf Tourism Market Analysis 2.1 This first section examines the economic impact of golf tourism in Scotland. This is based on estimates of expenditure by visiting golfers, the output that is generated in the Scottish economy to meet this demand and the GVA that this contributes to the Scottish economy. The two main aspects of economic impact that we will be considering are: Expenditure of visiting golfers this is the largest element of the golf tourism impact and is generated by the spending by golf tourists staying overnight in Scotland. These visitors are assumed to bring additional expenditure into Scotland as a result of the presence of Scotland s golf facilities. In contrast, day visitors are predominantly residents and their expenditure is not assumed to be additional (in other words it does not bring new expenditure into Scotland). 5 Visitor expenditure generated by major golf events staging events such as the Open Championship and the Scottish Open attracts golf visitors from other parts of the UK and further afield. It is also likely to have an important effect on raising the profile of golf in Scotland, which in turn will ultimately contribute to the number of visiting golfers. 2.2 We also highlight private sector investment in new golf facilities and resorts. This is an indirect impact of golf tourism but is becoming increasingly important to the Scottish economy. Expenditure of visiting golfers 2.3 The research is focussed primarily on the spending by golf tourists staying overnight in Scotland. There are two approaches to establishing the expenditure of golf tourists. The first would be to estimate how many tourists come to Scotland to play golf, making use of general travel surveys (UK Tourism Survey and International Passenger Survey) together with golf specific surveys to establish average expenditure levels. This was the approach adopted in SQW s 2002 analysis of golf tourism in Scotland 6, and was the most appropriate approach based on the data available at that time. An alternative bottom-up approach developed by GTS has been to use estimates of visitor green fees from the clubs themselves and extrapolate to estimate the full golf trip expenditure. GTS has gathered together green fee expenditure data for 2008 from nearly 200 golf courses across Scotland (which represents 36% of the total number). This sample includes all those courses involved in the Golf Tourism Monitor, therefore covering the majority of visitor spend. 5 Whilst it is possible that some day-visitors playing golf in the South of Scotland may originate from the North of England, there is currently no way of quantifying this figure 6 SQW Consulting (2002), Evolving the New Strategy for Scottish Golf Tourism Establishing the Business Case 5

8 2.4 We have used the data gathered and analysed by GTS as the basis for the estimates presented in this report. Using visitor green fees to calculate total visitor expenditure 2.5 The first stage in the GTS analysis was to categorise Scotland s courses by type (links/coastal and inland) and by the amount of visitor green fee revenue. Using the data from their sample they then calculated an average green fee for each category and extrapolated from this to the full population of courses. The final stage of the analysis was to estimate the split between day visitors and staying visitors, by type of course. 2.6 GTS analysis estimates that there was just under 30 million spent on green fees by staying golfers in Scotland in 2008 (Table 2-1). It also estimated that golf day visitors spent 37 million in Table 2-1: Split between day trip and staying visitor green fee expenditure by type of golf course (2008) Course category Links/coastal, annual visitor green fee revenue < 75,000 Links/coastal, annual visitor green fee revenue 75, ,000 Links/coastal, annual visitor green fee revenue 150, ,000 Links/coastal, annual visitor green fee revenue > 300,000 Inland, annual visitor green fee revenue < 75,000 Inland, annual visitor green fee revenue 75, ,000 Inland, annual visitor green fee revenue 150, ,000 Inland, annual visitor green fee revenue > 300,000 Total annual visitor green fee revenue ( millions) Day trip:staying visitor split Day trip visitor green fee revenue ( millions) Staying visitor green fee revenue ( millions) : : : : : : : : hole courses : Total Source: GTS Visitor expenditure data is available from a number of sources. These include VisitScotland s 2006 and 2007 golfing visitor surveys, MW Associates 2005 survey of visiting golfers in St Andrews, MW Associates annual surveys of spend by golfpass visitors and the 2002 SQW report. The GTS analysis found that for the main markets of golf visitors green fees consistently represented around 25% of the total trip expenditure of staying visitors, as shown in Table

9 Table 2-2: GTS analysis of green fee and total trip expenditure based on VisitScotland golf visitor survey 2007 (carried out by Sports Marketing Surveys) Spend Scotland residents Rest of UK USA Sweden Other Europe Green fees as % of total 25% 26% 24% 23% 16% Source: GTS analysis based on SMS data Using the average ratio of green fees to overall trip expenditure gives a consistent ratio of 25% for almost all types of staying visitor. Applying this to the estimated value of green fees gives total expenditure of staying golfers is around 119 million. Multiplier effects 2.9 This increase in demand for tourism services creates further economic activity through multiplier effects. These businesses will need to purchase more inputs (i.e. goods and services) and this generates additional demand for suppliers, many of which are likely to be based locally (known as the supplier multiplier effect). A second effect is known as the income multiplier and captures the additional household income and profits that are recycled in the economy as a result of this initial increase in demand To estimate the total output, employment and GVA effects, the expenditure has been divided into two categories: Green fees Other expenditure (assumed to be mostly tourism-related) Multiplier values have been drawn from the Scottish Government Input Output data 7 for two categories. For the expenditure on green fees we have applied the ratios derived for, recreation services (industry group 121). For the other expenditure we have used multiplier values for hotels, catering and pubs etc. (industry group 92). The input output tables provide output multipliers (Type 2) as well as ratios for employment and GVA effects (Table 2-3). Table 2-3: Estimates of Output, employment and GVA using national multiplier ratios Direct expenditure Output multiplier Output Employment effect Jobs GVA effect Gross Value Added Green Fees 29.6m m m Other expenditure 88.9m m , m Total 118.6m 190.6m 3, m Source: SQW estimates combining GTS 2008 estimates of expenditure and Scottish Government Input Output table ratios 2.12 Together these effects add a further 72 million, giving a total output of 191 million. This would support around 3,800 jobs and contribute GVA of 113 million to the Scottish economy. 7 See 7

10 Overseas members 2.13 It should be noted that these figures exclude the expenditure of a growing number of overseas members of Scottish golf clubs who will not pay green fees. Although the number may be relatively small, their expenditure is likely to be disproportionately high. We recommend that future golf market research should investigate the scale of overseas membership and the frequency of their visits. Visitor expenditure generated by major golf events 2.14 In addition to those that come to Scotland to play golf, many also come to attend major golf events. This type of visitor makes an important contribution to golf tourism in Scotland. Scotland regularly hosts the Open Championships and welcomes the Ryder Cup to Gleneagles in Both of these events generate significant economic impact. In addition, we also need to take into account events such as the Johnnie Walker Championship at Gleneagles, the Scottish Open at Loch Lomond, the Senior British Open and the British Women s Open. Table 2-4 shows the major golf events that have been held in Scotland over the last four years for which attendance numbers for at least one year are available. Table 2-4: Major golf events held in Scotland over last four years Event The Open Championship Scottish Open Senior British Open British Women s Open Johnnie Walker Championship Alfred Dunhill Links Championship Ladies Scottish Open Source: Event websites Existing economic impact assessments 2.15 In order to estimate the economic impact of these events, we have reviewed three economic impact assessments which have been recently undertaken for the 2005 Open Championship 8, the 2005 Senior Open Championship 9 and the De Vere Ladies Scottish Open in These reports estimate the benefits in terms of net additional expenditure generated by the event, jobs created by this additional spend and the advertising equivalent value of the media exposure 11. The impact of these events is shown in Table Comperio Research (2005), The Open Championship Economic Impact Assessment 9 Comperio Research (2005), The Senior British Open Economic Impact Assessment 10 EKOS (2007), The Economic Impact of the De Vere Ladies Scottish Open 11 Although included in the original economic impact assessments, we have not incorporated the value of media exposure in our own analysis as this calculation can be very problematic 8

11 Table 2-5: Economic impact of recent golf events on Scotland (2009 prices) Event Economic impact local ( m) Economic impact Scotland ( m) Employment local (FTE) Employment Scotland (FTE) 2005 Open Championship Senior Open Championship Ladies Scottish Open Source: Comperio and EKOS research 2.16 The Open Championship clearly generates the highest economic impact due to: higher visitor numbers attending the Open Championship compared to the Senior Open Championship or Ladies Scottish Open a higher proportion of visitors to the Open travelling from outwith Scotland - they tend to have a higher spend per day and stay for a longer period of time spending by local residents at events is not included as it is expected that they would have spent the money in the local economy anyway (substitution effect). This means that the Ladies Scottish Open and Senior British Open generate less economic impact as there is a higher proportion of local residents attending these events spending by corporate guests, the media, players and their entourages, workers and contractors and organisational spending is also much higher at the Open because of the scale of this event, and in some cases the higher spend per head of these groups significantly greater media exposure for the Open Championship compared to the other two events. Estimating the impact of other events 2.17 Based on these economic impact assessments, we have estimated the economic impact of other regular golf events in Scotland, including: The Scottish Open The Johnnie Walker Championship The Alfred Dunhill Links Championship The Women s British Open 2.18 In order to start to estimate the economic impact of these events, we have identified the estimated visitor numbers from a number of sources listed below (Table 2-6). 9

12 Table 2-6: Attendances and estimated visitor numbers at selected Scottish golf events Event Year Attendance Source Average no of days per visitor Source Estimated no of visitors The Senior Open ,225 m/the2007open/glorious -month-of-golfattracts jp 1.33 Comperio figure used for previous Senior Open 20,470 The Open Championship ,000 m/the2007open/glorious -month-of-golfattracts jp 2.4 Comperio figure used for the previous Open championship 64,167 Scottish Open ,429 m/the2007open/glorious -month-of-golfattracts jp 1.33 Ekos figure used for the Ladies Scottish Open 63,480 Women s British Open ,050 m/the2007open/glorious -month-of-golfattracts jp 1.33 Ekos figure used for the Ladies Scottish Open 45,902 Johnnie Walker Championship ,000 rchampionship.com/ 1.33 Ekos figure used for the Ladies Scottish Open 24,812 Alfred Dunhill Links Championship ,000 Event Scotland consultation 1.33 Ekos figure used for the Ladies Scottish Open 22, For the events without economic impact assessments, we have assumed that the profile of visitors (split between day and overnight visitors, days spent at the event) would be more in line with the 2007 De Vere Ladies Scottish Open than the 2005 Open Championship. As a result we have applied the figure of 1.33 days per visitor to the number of overall attendees to give us an estimate of event visitors. Only a small proportion of the people attending these events will be from outwith Scotland, unlike the Open Championship which attracts a high percentage of spectators from the rest of the UK and overseas and therefore has a much higher average number of days in attendance per visitor The number of event visitors has then been multiplied by relevant spend per head figures. For example, the 2007 Open Championship visitor spend was calculated as follows: Figure 2-1: Calculating the 2007 Open Championship net visitor spend average net spend per head 12 (before multipliers) multiplied by the number of visitors at 2007 Open equals aggregate net visitor spend at 2007 Open 12 As identified by the economic impact assessment of the 2005 Open Championship 10

13 2.21 For the smaller events it was not appropriate to use Open Championship expenditure figures due to the larger number of overnight visitors. Instead we have used average spend per head figures from the Seniors Open and the Ladies Scottish Open. Multipliers were then applied to give the estimated net visitor spend for each of the events Economic impact will also have been generated by corporate guests and media representatives. However since these figures are unavailable for the non evaluated events, we have estimated the number by calculating the number of corporate guests and media representatives present at the 2005 Open, the 2005 Senior Open and the 2007 Ladies Scottish Open as a percentage of overall visitor numbers (Table 2-7). Table 2-7: Other types of attendees as a percentage of visitors Event Corporate Media 2005 British Open 6.0% 2.8% 2005 Senior British Open 4.5% 1.1% 2007 Ladies Scottish Open 4.0% 2.2% Average 4.8% 2.0% Source: Comperio and EKOS research 2.23 The average of these percentages has been applied to the non-evaluated events. This gives the estimated number of attendees in each of these groups which can then be multiplied by the average spend per head of each group identified by the economic impact assessment reports using the same logic as for the visitor impacts Contractor and organisational spend and worker spend were calculated using the same logic; dividing the total spend by the number of visitors to give, for example, a contractor and organisational spend per visitor for each of the evaluated events. An average was multiplied by the number of visitors to give the estimated net corporate and media economic impact for each event. Again the regional and national rural multipliers from the Scottish Tourism Multiplier Study (1992) were applied to give the estimated net impact for each of the events. The total net economic impact for each of these categories is given in Table

14 Table 2-8: Estimated combined economic impact of 2007 Scottish Open, 2007 Johnny Walker Championship, 2007 British Women s Open & 2008 Alfred Dunhill Links Championship Regional ( m 2009 prices) National ( m 2009 prices) Visitors Corporate guests Media Players Organisational and contractor Workers Total Direct impact Total direct, indirect and induced impact Source: SQW Consulting Total economic impact of golf events 2.25 Table 2-9 shows the estimated national impacts of golf events in Scotland for each year between 2005 and We would stress that these are estimates based on existing work and no additional survey or consultation work has been undertaken to derive these estimates. Nevertheless, the figures do give some indication of the likely economic impact generated by golf event tourism in a given year. The figures do not include any estimates that may have been made of the value of the media coverage The average impact between 2005 and 2008 is around 36 million for the Scottish economy. Based on the ratio of turnover to GVA (32%) 13 for tourism activities this would generate around 12 million of GVA for Scotland and 612 jobs. Clearly the impact of hosting the Open Championship is the most significant, with the economic impact more than doubling in Open years compared with years when the Open Championship is hosted elsewhere in the UK. Table 2-9: Total national impact of major golf events in Scotland, 2005 to 2008 ( million, 2009 prices) Event The Open Championship 35.8 n/a 28.2 n/a The Senior Open Championship The Ladies Scottish Open n/a n/a Others Total est. economic impact Source: SQW Consulting 2.27 Looking forward, the total economic impact each year will be affected by the ability of Scotland to retain current events and attract additional events. The Women s British Open is to be held in Scotland five times between 2011 and 2020, the Walker Cup and Curtis Cup are

15 to be played in Scotland in 2011 and 2012 respectively with the Ryder Cup following in The last of these is likely to generate significant economic impact, as evidenced by economic impact studies of previous Ryder Cups. For example, the 2006 Ryder Cup held in Ireland was estimated to generate more than 140 million 14 and the 2010 event in Wales is expected to generate more than 70 million for the South Wales economy 15. Event visitors who combine watching with playing 2.28 In order to avoid double-counting the impact of event visitors and other golf visitors, we need to take account of those who combine watching events with playing golf on the same trip. From existing research we know that 83,000 people attended the 2005 Open Championship and Open visitors spent 490,000 on green fee expenditure in Scotland. Assuming that this is captured within GTS analysis of green fees, it would result in 3.2 million of total output being double counted (after including the associated expenditure and the multiplier effects). This has been subtracted from the tourist visitor expenditure when the figures are aggregated In order to calculate the estimated number of people attending events and playing golf, we have carried out the following steps: Firstly it is assumed that no Open Championship day trippers would be able to combine playing with watching. This left only the 40,800 overnight visitors (49% of the total number of visitors) By dividing the total green fees spent by visitors to the Open by an estimated average green fee per round of 50 16, we were able to calculate an estimated 9,800 rounds played by overnight visitors to the Open Championship According to the SMS Golf Visitor Survey 2007, the average number of rounds per trip for overnight visitors was 5.6. However, for those attending the Open Championship, the number of rounds played is likely to be much lower given the time spent watching the Open. It is therefore assumed that visitors to the Open who are also playing are only able to play half the average number of rounds (2.8 rounds) per trip Dividing the total 9,800 rounds by the number of rounds played per Open visitor (2.8) gives the estimated number of Open spectators who also played golf: 2,300 or 8.6% of the total number of overnight visitors to the Open Using these assumptions, we have been able to estimate the number of overnight event visitors who also play golf during their trip and the green fees they generate for each of the events we have looked at. Consequently it is estimated that in 2007 there were around 3,400 visitors to golf events in Scotland who also played golf. This is equivalent to around 2.5% of the total number of overnight golf visitors 17. These visitors generate almost half a million 14 Pre SQW estimate 17 Depending on the total number of overnight golf visitors 13

16 pounds in green fee revenue. This is between 1.1% and 1.7% of the total green fees that are generated by overnight visitors to Scotland. Table 2-10: 2007 overnight event visitors who also play golf as part of their trip Event No. of visitors % of visitors staying overnight No. of overnight visitors % of overnight visitors who also play golf No. of overnight event visitors who also play golf during trip Green fees generated by these visitors ( ) 18 Open Championship 64,167 49% 31,442 9% 2, ,239 Senior Open 20,470 2% 342 9% 29 4,101 Women s Open 45,902 5% 2,295 9% ,537 Scottish Open 63,480 5% 3,174 9% ,082 Ladies Scottish Open Johnny Walker Championship Alfred Dunhill Links Championship 1,128 20% 226 9% 19 2,706 24,812 5% 1,241 9% ,885 22,556 5% 1,128 9% 97 13,532 Total 242,516 39,847 3, ,082 Source: SQW Consulting Private sector investment 2.31 The development of commercial golf facilities or resort-style developments is a relatively new phenomenon in Scotland. However, the investment, often by overseas companies, is making a significant contribution to the Scottish economy, generating temporary employment during the construction phase and longer term jobs based in the resort The profile and promotion of these new courses will be important in continuing to attract high spending golfers to Scotland. They will also help to create golf destinations in different regions across the country. The significant new investments over the past year, include the Castle Course at St Andrews, Carrick Golf and Spa at Loch Lomond, Machrihanish Dunes, Castle Stuart, Fairmont s re-design of their two golf courses, re-development of Turnberry Resort, the opening of the Renaissance Club at Archerfield an the imminent opening of the Rowallan Castle development. Together this represents nearly 250 million of investment committed over the last couple of years Planning permission has also been approved for the Trump development at the Menie estate (estimated to 1 billion of investment 19 ), a course at Blairs Estate in Aberdeenshire (investment of 115 million), the De Vere West Linton resort development ( 50 million) and a hotel complex at Whitekirk in East Lothian ( 15 million). All of these projects, described in more detail in Table 2-11, are expected to support thousands of jobs in construction and subsequently in the operation of the facilities, supported through the expenditure of visitors. 18 Calculated by multiplying the number of overnight event visitors who also play golf during trip by the average green fee per round ( 40) by the average number of rounds played by overnight event visitors (2.8) 19 Although it was reported in December 2008 that the house building programme part of the Trump development will be delayed because of the recession 14

17 Table 2-11: Recent major golf-related investment in Scotland Recent investment projects Castle Course, St Andrews Construction of 7 th St Andrews Links Trust golf course and clubhouse. Opened in summer Carrick Golf and Spa - Loch Lomond Opened in 2007 by De Vere Group and located to the north of Cameron House on the banks of Loch Lomond Machrihanish Dunes development - Campbeltown, Argyll US resort developer Southworth has recently stepped in to ensure that this new links golf course opens this summer (2009). Development will also include three boutique hotels and a collection of luxury cottages Castle Stuart Golf Link development - Inverness Scheduled to open in July 2009, this will include 18-hole Championship Links Course, a 57 bedroom small luxury hotel and spa, 148 resortownership lodges and apartments, and a second 18-hole seaside course. Fairmont St Andrews upgrading In 2008, Fairmont St Andrews re-designed their two golf courses (Torrance and Kittocks) refurbished hotel rooms and built a new hotel spa Turnberry Resort - Ayrshire Upgrade of Turnberry Hotel due to be completed in time for the 2009 Open Renaissance course - East Lothian Located next to Muirfield, the Renaissance Club will consist of one eighteen hole championship golf course designed by the renowned American architect Tom Doak, a state of the art clubhouse and 100 luxury lodge rooms Rowallan Castle - Kilmarnock Development of a five star hotel and golf course designed by Colin Montgomerie. Due to open spring Projects with planning approval Trump Development - Menie Estate, Aberdeenshire Development approved by Scottish Government in November 2008 for two 18-hole golf courses, a 450-room hotel, 950 holiday homes and 500 private houses at Balmedie Blairs Estate Golf Course - Banchory-Devenick, Aberdeenshire Planning permission approved in April 2008 for hotel, conference centre, the first golf course designed by Paul Lawrie, and up to 280 houses, including 60 affordable homes De Vere West Linton resort development - Scottish Borders In December 2008, planning approval was provided for a five star 150- room hotel, leisure club, restaurant and conference centre to be built next to the existing Rutherford Castle Golf Club Whitekirk Hotel complex - East Lothian Plans for a 100-bedroom hotel, 21 holiday lodges, 42 homes and new 18 hole golf course alongside the existing Whitekirk Golf and Country Club course, near North Berwick. Planning approval was granted in late Source: Various online sources Value of investment (estimates) 10 million investment 60 million investment 30 million investment 20 million investment Aims to create 200 jobs 13 million investment 30 million investment 20 million investment 60 million investment Value of investment (estimates) 1,000 m investment Also, hopes for around 6,000 jobs 115 million investment Aims to create 1000 jobs 50 million investment Up to 300 jobs anticipated 15 million investment Aims to create 150 jobs 15

18 2.34 However, there are other projects which have been withdrawn as a result of the economic conditions, or are in doubt. For example, the 40 million Ury Castle Estate development near Stonehaven, plans to redevelop Hazlehead Golf Course in Aberdeen as a 24 million leisure complex and the redevelopment of Taymouth Castle, near Kenmore in Perthshire have all recently been significantly delayed or even scrapped The significant value of these types of investment has and will continue to generate employment and GVA in Scotland. As importantly it helps raise the quality of Scotland s golf product and enhances our reputation for fine courses. Summary of economic impact Golf tourism generates around 220 million of output in the Scottish economy. This includes the value of the output generated by visiting golfers staying overnight ( 187 million) and a further 36 million through expenditure by visitors to the major golf events (on average). This generates GVA of around 120 million and supports 4,400 jobs. These figures include the multiplier or knock-on effects that are created for suppliers and through the re-spending of the income it generates. They have also been adjusted for double counting of visitors to golf events who also play during their trip (and would therefore be included in both sets of figures). 16

19 3: Golf tourism product 3.1 In this section we review the golf tourism product in Scotland. This includes not only the golf courses but also accommodation, customer service and the other associated facilities available to golf tourists coming to Scotland. Golf courses 3.2 Scotland is known around the world as the home of golf and this reputation is reinforced by the presence of the nine Open Championship venues St Andrews, Muirfield, Carnoustie, Royal Troon and Turnberry. Scotland will also be staging the Ryder Cup at Gleneagles in St Andrews is also home to the Royal and Ancient Club, the governing body for golf. 3.3 There are currently 550 golf courses spread across Scotland. Figure 3-1 shows the number of golf courses in each of Scotland s golf regions and also highlights the proportions of inland and links courses across the country (just under a fifth of all courses). A full list of Scotland s golf courses is attached as Annex B. Figure 3-1: Scotland s golf courses Highlands & Islands 59 golf courses 23 links courses e.g. Nairn, Royal Dornoch North East 72 golf courses 22 links courses e.g. Cruden Bay, Royal Aberdeen Central 120 golf courses no links courses e.g. Glasgow Gailes, Loch Lomond Historic Heartland 107 golf courses 26 links courses e.g. Carnoustie, St Andrews Old South West 104 golf courses 32 links courses e.g. Prestwick, Turnberry South East 88 golf courses 14 links courses e.g Muirfield, Gullane Source: Course details taken from VisitScotland s Official Guide to Golf 3.4 According to KPMG s Golf Benchmark Survey, Scotland has one of the highest levels of supply of golf courses per head of population one course for every 9,300 people 20, but 20 KPMG (2007), Golf Benchmark Survey 2007 Great Britain and Ireland 17

20 also a great range of different types of course from the links courses that Scotland is most famous for and world class inland courses at Loch Lomond and Gleneagles through to the small and unusual courses such as the 12 hole Shiskine course on Arran and the Askernish course on South Uist. 3.5 Scotland s main asset is not just the overall number of courses and range but also the number of high quality courses, often set in spectacular landscape. Based on discussions with industry stakeholders, the unique nature and challenge of playing the country s links courses are major factors in attracting so many golf tourists to Scotland. 3.6 These courses differ are not only in physical terms but also in the way that they are managed, their dependency on visiting golfers and the markets which they target. Table 3-1 shows the changing profile of Scotland s golf courses over the last twenty years and significantly the increase in the proportion of commercially run courses. In 2003, around 72% of courses were managed by members clubs, 11% were municipal and 17% were commercially run 21. Table 3-1: Management of Scotland s golf courses Members clubs Municipal Commercial % 15% 2% % 11% 17% Source: Price (2003), Scotland s Golf Facilities, Provision, Management and Usage 3.7 However it is clear that a large proportion is still managed by small privately-owned committee run clubs. In many cases, these clubs are only concerned with their members and in the past have not needed to promote to visitors. This attitude may now be changing with the impact of the recession and falling club memberships. 3.8 Complacency was one of the main weaknesses identified by consultees and there was a suggestion that golf clubs (and other golf tourism businesses) cannot simply rely on Scotland s reputation, but need to be more proactive in promoting the product to potential visitors. 3.9 This rise in the number of commercial courses is important as visitors tend to be a far more important market than for courses with club membership. The Golf Tourism Monitor (2007) found that commercial courses attract around 50% more visitor rounds than members club courses, many of which limit the times available to visitors. Municipal courses, many of which are heavily used by local golfers, record the lowest numbers of visitors Recent research undertaken by Golf Tourism Scotland has classified all of Scotland s courses by type of course (links/coastal and inland) and the scale of visitor green fee revenue (Table 3-2). It shows that there are 68 courses generating over 150,000 in visitor green fees Based on this analysis, these courses generate around 22.3 million in visitor green fees from overnight visitors, representing 75% of all green fees generated by overnight visitors. 21 Price (2003), Scotland s Golf Facilities, Provision, Management and Usage 18

21 3.12 These courses are the ones bringing the additional tourism benefits to Scotland and therefore should be the focus of public sector support. Table 3-2: Split between day trip and staying visitor green fee expenditure by type of golf course (2008) Course category Links/coastal, annual visitor green fee revenue < 75,000 Links/coastal, annual visitor green fee revenue 75, ,000 Links/coastal, annual visitor green fee revenue 150, ,000 Links/coastal, annual visitor green fee revenue > 300,000 Inland, annual visitor green fee revenue < 75,000 Inland, annual visitor green fee revenue 75, ,000 Inland, annual visitor green fee revenue 150, ,000 Inland, annual visitor green fee revenue > 300,000 No of courses Total annual visitor green fee revenue ( million) Day trip:staying visitor split Day trip visitor green fee revenue ( million Staying visitor green fee revenue ( million : : : : : : : : hole courses : Total Source: GTS Price (2003) also estimates a similar number of courses that target visitors if it is assumed that the golf tourists require a good quality golfing experience plus good quality accommodation at or near the golf course, then Scotland has about 70 good quality golf tourism facilities Many of these 70 courses are likely to already be involved in golf tourism through membership of GTS there are currently 35 courses who are members and these are listed below (Table 3-3). 22 Price (2003), Scotland s Golf Facilities, Provision, Management and Usage 19

22 Table 3-3: Golf courses which are members of GTS Golf course Alford Golf Club Boat of Garten Golf Club Brora Golf Club Brunston Castle Golf Club Carnoustie Golf Links Carrick on Loch Lomond Castle Stuart Golf Craigielaw Golf Club Crail Golfing Society Downfield Golf Club, Dundee Dunbar Golf Club Dundonald Links Elie Golf Club Fraserburgh Golf Club Glasgow Golf Club Glen Golf Club, North Berwick Gullane Golf Club Kilmarnock (Barassie) Golf Club Kingsbarns Links Largs Golf Club Longniddry Golf Club Machrihanish Golf Club Murcar Links Golf Club Nairn Golf Club Newburgh On Ythan Golf Club North Berwick Golf Club Panmure Golf Club, Carnoustie Prestwick Golf Club Prestwick St Nicholas Royal Dornoch Golf Club Scotscraig Golf Club Spey Valley Golf Course The Dukes, St Andrews Turnberry Ailsa Course Western Gailes Golf Club Source: Golf Tourism Scotland website Region North East Highlands and Islands Highlands and Islands South West Historic Heartlands Central Highlands and Islands South East Historic Heartlands Historic Heartlands South East South West Historic Heartlands North East Central South East South East South West Historic Heartlands South West South East South West North East Highlands and Islands North East South East Historic Heartlands South West South West Highlands and Islands Historic Heartlands Highlands and Islands Historic Heartlands South West South West 20

23 Other golf tourism businesses 3.15 There is a range of other businesses that rely on golf tourists these include hotels, B&Bs, restaurants and other service-sector businesses. In terms of golfing accommodation, the numbers are very difficult to quantify as these establishments are likely to cater for all types of tourist. However it is possible to identify the 170 accommodation providers that participate in VisitScotland s Visiting Golfers Welcome quality assurance scheme. These businesses can be broken down as follows (Table 3-4). Table 3-4: Golf accommodation Accommodation type Number of providers Hotels 56 B&Bs and guest houses 57 Inns and restaurants with rooms 8 Serviced apartments 1 Hostels, lodges and campus 1 Self catering, caravans and camping 47 Total accommodation providers 170 Source: VisitScotland s Official Guide to Golf 3.16 Our consultations highlighted that customer service can be quite patchy and stated that golf tourism businesses need to be more welcoming in terms of facilities for golf visitors (e.g. drying areas) and adopting a more flexible approach (e.g. opening times for hotel bar and restaurant). Some of these things can be quite basic but actually make a big difference to the quality of visitor experience. The type of accommodation used varies by market. For example, overseas golfers are more likely to stay in five star hotels or resorts and UK visitors tend to stay more in B&Bs or guest houses (Figure 3-2). Figure 3-2: Type of accommodation used by golf visitors 40% % of respondents 35% 30% 25% 20% 15% 10% 5% 1 & 2* Hotel 3* Hotel 4* Hotel 5* Hotel Golf resort B&B/Guesthouse Self Catering Caravan/Camping Staying with family/friends Second home 0% Total UK incl. Scotland & Eire Overseas Other Source: SMS Visitor Survey

24 3.17 Although Scotland generally has a good range of accommodation available to visiting golfers, there are some more isolated areas where availability of accommodation can be an issue. For example, some consultees stated that it would be good to have more budget hotels near golf courses however, the reality is that these tend to be located in more urban areas. Transport infrastructure and accessibility 3.18 Cheaper air travel and the opening of new routes have facilitated overseas access to Scotland s golf courses over the last decade and it is hoped by consultees that this trend will continue in the future. It should be highlighted though that these new flights may also help to take Scottish golfers abroad to the growing number of competitor countries. On one hand Scotland is still considered to be quite peripheral. Feedback from those consultees who attend international events and shows reinforced the view that golfers, in London and Europe consider Scotland to be difficult to reach. However, consultees also emphasised that also once visitors arrive in Scotland, the size of the country makes it quite easy to travel around and visit many of the famous courses Most golfers arrive in Scotland by plane (Figure 3-3). Once they are here they tend to travel by car or mini-bus usually public transport is not suitable for carrying golf bags as well as luggage. Several consultees considered that visitor information and signage to the main golf courses could be improved. Almost a quarter of all the visitors in the SMS survey (2007) travelled by coach or minibus. Figure 3-3: Mode of transport to Scotland Bus 4.9% Train 5.3% Ferry 5.4% Other 6.8% Coach/mini-bus 21.4% Own car 26.6% Hire car 26.6% Plane 67.7% Source: SMS Visitor Survey % 10% 20% 30% 40% 50% 60% 70% 80% % of respondents Booking systems 3.20 One of the product weaknesses identified by consultees was the restricted availability of teetimes. Since the majority of courses in Scotland are run by members clubs, it is sometimes difficult for visitors to book a tee-time especially at the weekend. The lack of online booking 22

25 systems at most clubs makes it even more difficult for visitors to quickly find out when he or she will be able to play Like most tourism products, visitors are increasingly using and the internet to find information and to make bookings independently. A comparison of the 2006 and 2007 SMS visitor surveys suggests that the use of to book tee times is on the increase for both UK and overseas visitors. It is believed that this growth will continue over the next year or so with fewer large groups/corporate events and more independent bookings. For prospective visitors from the US, it is not always practical for them to contact the club by telephone because of the time differences. Providing more online information, including online tee times, is crucial to be able to compete internationally In the past, with strong membership bases this was less important for golf clubs and courses, but now with greater competition and weakening local demand, responding to customers will be a higher priority for some courses In 2007, nearly a third of visitors booked either by or online (Figure 3-4). Figure 3-4: Method of booking 80% % of respondents 70% 60% 50% 40% 30% 61% 69% 30% 22% 49% 23% Total UK incl. Scotland & Eire Overseas 20% 14% 15% 13% 10% 6% 6% 4% 4% 4% 3% 0% Telephone In Person Online Fax Source: SMS Visitor Survey 2007 Overview of Scotland s golf tourism product 3.24 The overwhelming influence on visitor s decision to come to Scotland to play golf is Scotland s reputation as a golfing destination. Previous experience is also a strong influence. These two factors were also the most commonly stated reasons for visiting Scotland in the 2007 SMS Visitor Survey. Consultees reported that Scotland s reputation as the home of golf was the single most important factor that attracts visitors to play here However, the international research carried out by KPMG indicates that for the market as whole golf tradition is a relatively weak factor and climate, quality of courses, prices and accessibility are the main influences (Figure 3-5). While Scotland has the quality of courses, 23

26 its tradition as the home of golf will not necessarily be a strong an influence in some markets. Arguably Scotland is much weaker in terms of perceptions of climate, accessibility and price. Figure 3-5: KPMG international research on the main influences on choosing a golf destination Sightseeing Golf tradition Entertainment/nightlife Relaxing surroundings Gastronomy No. of courses Quality of accommodation Accessibility Price Quality of golf courses Climate Not Important Very Source: KPMG Golf Travel Insight It is interesting to compare this international work with the views of those that have come to Scotland (as reflected in the SMS 2007 visitor survey). The strength of Scotland s reputation as a destination is backed up by the quality of courses. Almost half (46%) of all respondents stated that the golf courses themselves were the most positive aspect of their trip and a further 21% stated that the experience of golf in Scotland was the most positive aspect. This is shown in Figure 3-6 below Together these statistics suggest that the reputation of Scotland is strong among those that make the trip, but there are many others for whom tradition and reputation is less important and price, climate and accessibility are. Potentially a much larger market could be attracted if perceptions of these factors could be improved. 24

27 Figure 3-6: Most positive aspects of the trip 1% Golf Courses 5% 4% 1% 4% 3% 5% Experience of golf in Scotland The Scottish Welcome Weather Accommodation 46% Food & Drink Scenery 21% Peaceful Others Source: SMS Visitor Survey 2007 Areas for improvement 3.28 The weather is by far the biggest barrier to attracting more visitors to Scotland, as is shown in Figure 3-7. Although Scotland has traditionally had a reputation as an expensive golf destination, price was only highlighted by 3% of respondents in the survey. Our consultations suggested that price was perhaps not such an issue for actually playing golf in Scotland - the problem was more the price of accommodation and eating out in restaurants. Others suggested that recent changes to exchange rates have made price less of an issue for visitors. Interestingly, several consultees highlighted that the higher cost reflected the high quality of Scotland as a golf destination. 25

28 Figure 3-7: Most negative aspects of the trip Weather 30% 33% Nothing Directions/Traffic Costs 1% Food & Drink 2% 3% 3% 25% Accommodation 3% Busy Courses Others Source: SMS Visitor Survey 2007 Product summary 3.29 The SWOT analysis in Table 3-5 summarises the feedback from the consultations on Scotland s golf product. Table 3-5: Golf tourism product SWOT analysis Strengths Quality of golf courses, especially links courses Spectacular scenery at all golf courses Accessibility relatively short distances to travel within Scotland and opportunity to play major courses Reputation and history as the home of golf reinforced by R&A Club being based at St Andrews Profile from hosting major events, especially the Open Industry knowledge and experience, e.g. caddies Opportunities Increasing numbers of resort developments bringing in higher spending visitors More online booking systems More effective use of ICT to facilitate product development and enable a better understanding of key markets and opportunities More pro-active approach amongst club members Improved transport infrastructure reopening of the Rosyth ferry link and new direct flights into Scotland Source: SQW Consulting Weaknesses Scottish weather Patchy customer service in golf tourism businesses Transport infrastructure insufficient signage and unsuitability of public transport Price in particular costs of food and drink and accommodation Accommodation lack of choice and limited availability in more isolated areas. Also inadequate facilities for golfers Complacency - reluctance of some clubs to modernise and accommodate visitors Lack of online booking systems Threats Old-fashioned approach Reductions in direct air links (although these flights also enable Scottish golfers to play elsewhere) 26

29 3.30 While these address both aspects of demand (through marketing) and supply, SE s focus is specifically on the supply side and on the operation of golf tourism businesses. Of the issues raised the most relevant for SE are: The need to improve customer service Overcoming complacency and encouraging innovation Facilitating joint products and services Greater and better use of ICT to provide information and online booking systems, and also to build up customer relationship databases. 27

30 4: Profile of visitors and key markets 4.1 This section provides an analysis of the types of visitors playing golf in Scotland, their characteristics and motivations. We also look at international trends and discuss the markets that are likely to be important to Scotland over the coming years. Domestic demand 4.2 Scotland has one of the highest golf participation rates in the world with 254,435 registered golfers in 2007, representing 5% of the population 23. This is higher than the GB average of 2.1% but not quite as high as the estimated participation rate of 6% in Ireland (Table 4-1). According to SportScotland, the participation rate for golf amongst adults in Scotland is 8% (15% for men and 2% for women). 24 This definition includes adults playing golf at least once a month. Table 4-1: Supply and demand figures of Great Britain and Ireland (2007) Countries/regions Courses* Pop per course Players Golfers per course Participation rate England 1,961 25, , % Scotland 548 9, , % Wales ,374 70, % Total GB 2,667 22,634 1,274, % Ireland 417 9, ,000** 688 ** Source: EGA, national golf federations and KPMG * Regular golf courses as provided by national golf federations ** Includes affiliated golfers in both Northern Ireland and the Republic of Ireland. Based on the size of the average membership of golf courses in Northern Ireland and the Republic of Ireland, KPMG estimate that the participation rate for the Republic of Ireland by itself is ion excess of 6.0% Visitor numbers UKTS and IPS 4.3 There are basically two possible ways of estimating the number of golf visitors that come to Scotland. The first approach would be to use the estimates produced by UK Tourism Survey (UKTS) and published by VisitScotland. The latest figures for 2007 show that there was an estimated 13 million overnight trips to Scotland. Those trips involving golf as an activity totalled nearly 380,000 and trips with golf as the main activity were estimated at 180, Table 4-2 shows results from the UKTS on the number of trips made by UK visitors with golf as the main purpose of the trip. Since 2000, the number of golf trips has fluctuated from 140,000 to 300,000. These figures are only for UK tourists not international visitors and the 23 KPMG (2007), Golf Benchmark Survey 2007 Great Britain and Ireland 24 SportScotland (2008), Sports Participation: Golf Fact Sheet 28

31 change in methodology and the relatively small sample mean that the figures are not considered to be very robust. Table 4-2: UK visitors to Scotland golf as the main purpose of trip Year No of trips (m) Bednights (m) Expenditure ( m) Source: UKTS and VisitScotland ( figures unavailable due to change in survey methodology) 4.5 Based on the latest figures from 2007, the average spend per trip works out at 313, nearly 50% higher than the equivalent figure for all UK visitors to Scotland ( 216). However it should be pointed out that this golf spend figure is based on a very small sample of 87 visitors and is much lower than specific golf surveys, such as the MW Associates work in St Andrews or the SMS visitor surveys which show UK tourist expenditure of around 700 per trip. 4.6 From the UKTS data the breakdown of their expenditure is shown in Table 4-3. Excluding the amount spent on travel (which could include flights to Scotland), the amount spent on entertainment (in this case presumably playing golf) is around 23% of the total spend. This is close to the 1:4 spend ratio between golf and total spend highlighted in the economic impact section of the report. Table 4-3: Breakdown of UK golfers expenditure Expenditure category Amount ( m) % Price of package holiday/inclusive trip % Accommodation % Travel costs to and from destination, and during the trip % Buying clothes % Eating and drinking out % Other shopping % Entertainment % Total expenditure (based on sample of 87 visitors) % Source: UKTS and VisitScotland 4.7 The International Passenger Survey (IPS) is the other main survey but this does not identify golf trips. It does however illustrate the main overseas markets for Scottish tourism more generally. IPS data for Scotland shows that the US is the biggest overseas market with 417,000 trips generating over a quarter of a million pounds annually (Table 4-4). 29

32 Table 4-4: All overseas visitors to Scotland (IPS 2007) Country Trips (000) Bednights (m) Expenditure ( m) USA Germany Irish Republic Italy Canada Spain France Netherlands Australia Poland Sweden Rest of World Total 2, ,367 Source: VisitScotland website Estimating the profile of golf visitors 4.8 The alternative approach to estimating the number of visitors is to build the figures up using information on visitor rounds collected through the GTS Golf Tourism Monitor. The results have included an allowance for winter rounds (assumed to be 10% of the April to October season) and have used the proportion of staying visitors for each type of course estimated by GTS and shown in section two of the report. 30

33 Table 4-5: Estimate of staying visitor rounds (2008) Type of course Links/coastal, annual visitor green fee revenue < 75,000 Links/coastal, annual visitor green fee revenue 75, ,000 Links/coastal, annual visitor green fee revenue 150, ,000 Links/coastal, annual visitor green fee revenue > 300,000 Inland, annual visitor green fee revenue < 75,000 Inland, annual visitor green fee revenue 75, ,000 Inland, annual visitor green fee revenue 150, ,000 Inland, annual visitor green fee revenue > 300,000 No of courses Average staying visitor rounds per year from Golf Tourism Monitor 2008 Total rounds , ,501 85, ,446 62, , , , , , ,679 33, ,483 51,865 Total 692,610 Source: SQW estimates based on GTS data 4.9 The SMS visitor survey provides estimates of the numbers of rounds played by golfers from different origins. This information can be used alongside their estimates of the profile of visitors to derive numbers of visitors for each geography The VisitScotland survey carried out by SMS in 2006 and 2007 has been used to assess the number of rounds played visitors from each country. Based on the interviews 20% are from the USA, but because they play more rounds, the proportion of the total trips made is lower (14%) while the opposite is true for UK visitors. In total, there are just over 135,000 trips in total of which 70% (95,000) are made by UK residents. The biggest non-uk market is the US with an estimated 19,000 trips made each year to Scotland. 31

34 Table 4-6: Number of overnight visitors by origin and spend levels % of interviews/ rounds (1) Number of rounds Average number of rounds per trip (2) No of trips % of trips Scotland 24% 164, ,178 28% Rest of UK 38% 266, ,600 42% Eire 3% 17, ,280 3% USA 20% 139, ,041 14% Rest of Europe 8% 52, ,586 7% Other 8% 52, ,532 6% Total 692, ,219 Source: GTS estimates combined with SMS Visitor Surveys (1) 2006 (2) 2007 Note: Number of rounds does not match total in previous Table due to rounding 4.11 The breakdown of visitors by geography is shown in Figure 4-1. Figure 4-1: Number of golf visitors by origin 60,000 50,000 Number of visitors 40,000 30,000 20,000 10,000 0 Scotland Rest of UK Eire USA Other Europe Other Source: SQW estimates from GTS data 2008 Visitor profile 4.12 Although there are considerable problems estimating the numbers of golfers from geographic markets, their behaviour and profile is generally well-understood from research that has been commissioned by VisitScotland. The visitor survey carried out by SMS in 2007 contains a lot of data on demographics, length of stay, how much they spend and accommodation and transport used by visitors. We have selected some of the key data to provide an overview of visitor characteristics. 32

35 Average length of stay 4.13 Visitors travelling greater distances to Scotland tend to stay for longer periods of time, as is shown in Figure 4-2. On average, US visitors stay for 10 nights with visitors from outside Europe or the USA staying for almost two weeks (12 nights). Overnight visitors from Scotland spend between four and five nights on an average golf trip. Figure 4-2: Average length of stay Nights Mean No. of nights Mean : Other (76) USA (216) Rest of Europe (143) Sweden (80) Rest of UK (304) Eire (34) Scotland (286) Source: SMS Visitor Survey As would be expected, visitors from the US and outside Europe also tend to play more courses and rounds during their golf trip. Survey results show that these golfers visit around five different courses and play seven rounds of golf during their trip, compared to Scottish golfers who visit two courses playing just over four rounds. Average spend by origin of visitor 4.15 Visitor expenditure is a key characteristic especially when trying to calculate economic impact. It is also notoriously difficult to establish and in their visitor surveys SMS acknowledges that some of the spend figures are based on very small sample sizes and reflect the courses where the interviews have been carried out. The 2007 figures are set out below in Table 4-7, however the values do appear to be high, especially in the other category 25. The difficulties of collecting this data are demonstrated by the quite different values captured in the 2006 survey. This showed Scottish staying visitor expenditure as half the 2007 value ( 449), UK visitors spending 747 and overseas visitors spending 2,556 on average. 25 For this reason, the SMS spend figures have not been used to calculate a breakdown of visitors by origin 33

36 Table 4-7: Breakdown of visitor expenditure (2007) per trip Scotland Rest of UK Eire USA Sweden Other Europe Green fees Food and drink Travel in Scotland Accommodation Other Total ,071 3,309 1,841 1,541 Source: SMS Visitor Survey KPMG Golf Travel Insight in EMA 2008 reports that golf tourists spend on average per day on a short trip and around 250 per day on a long haul golf trip. This would give estimates of around 600 per trip for UK residents and 2,000 per trip from long haul origins. These figures would be more compatible with the overall estimate of economic impact built up from the GTS data The KPMG research also estimated that 26% of expenditure is made on golf, 21% on travel, 20% on accommodation, 18% on food and drink and 15% on other spending. This supports the assumptions made in the economic impact estimate that 25% of golf tourism spending relates to the costs of playing. Monthly trends 4.18 According to the Golf Tourism Monitor 2008, the peak months for visitor rounds are May, June, August and September. The data in Figure 4-3 is based on 90 courses. Figure 4-3 Average visitor rounds per course Number of rounds Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Golf Tourism Monitor

37 Other golfer characteristics 4.19 There are a range of characteristics of golf visitors which are important from a marketing perspective. These are around the behaviour of the golf visitor including the motivation for booking a golf holiday and the expectations and the requirements once they actually come to Scotland. Research commissioned by VisitScotland has broken golfing holidaymakers into four main categories: Golf buddies these are usually groups of men from the UK (sometimes stag parties) looking for a medium priced break that combines good golf with good socialising Luxury golfers serious golfers who want to play a number of signature courses, and who also require luxury accommodation and restaurants Golfing tourists for these holidaymakers golf is only part of a more leisurely break that will include sight-seeing, touring. This category of golfer is much more likely to include couples and families Golf purists these are highly competitive golfers who are solely concerned with the quality of the golf 4.20 Given the discussion around the product in Scotland, the main markets would most obviously be among the purists and UK golf buddies, with some luxury golfers (subject to perceptions of weather). It could be argued that while the reputation of Scotland will ensure that purists and UK buddies continue to come, competition for luxury golfers is intensifying. Further analysis of these types of golf visitors carried out by Scott Porter is reproduced in Table

38 Table 4-8: Profiling of golf visitors Category Motivation Requirements Profile Location for a break (1-4 nights) Golf buddies Unrestrained socialising Leaving responsibilities behind A holiday feeling beer and banter Great atmosphere and good golf 3 star hotel/villa Location close to/in town Weather a key consideration Male Large groups Mid handicap Casually competitive Scotland Ireland England Location for a holiday (5-14 nights) Spain Portugal USA Luxury golfers VIP golf Unique experience Status/image Signature courses Challenging, links Top quality clubhouse 4/5 star hotel/golf resort Good weather important Male Low/mid handicap Competitive Golf club members Scotland Ireland England Portugal USA Golfing tourists Relaxing break Golf as part of a rounded holiday experience 9/18 hole courses Good value Scenic, enjoyable courses Lots of other attractions Male and female Couples/close friends Mid/high/no handicap England Scotland Ireland Wales France Spain Portugal Good value Golf purists New and challenging golf experiences Improving game Experiencing top courses Quality, challenging courses - qualifying and Open courses, links courses etc Clusters of courses key factor for accommodation is proximity to courses Male Low handicap Small groups Serious, competitive golfers Scotland Ireland Wales England Scotland Spain Portugal USA Source: Scott Porter Research & Marketing 2006 Main markets United States 4.21 More golfers from the United States visit Scotland than from any other country outside of the UK and Ireland. US visitors tend to stay for longer and spend more per night. There are two main drivers of the higher spend per US visitor; a preference for better quality accommodation and playing at the highest profile links and Championship courses. The analysis in the previous section that there are up to 20,000 golf tourists from the USA, this is around 5% of all American visitors to Scotland. 36

39 4.22 According to Visit Scotland research 26, 99% of American visitors stated that their experience in Scotland was either good or very good. The negatives that were mentioned included a lack of suitable golf course practice areas and criticism of locker room facilities and restaurants. Sweden 4.23 Sweden is another key market for Scotland. Many Swedish visitors come to Scotland in the shoulder months (April, May and September) when fading light reduces the time to play at home. The VisitScotland research 27 suggests that most Swedish visitors arrive in Scotland by plane in 2006 it was estimated that 68% of Swedish visitors arrived in Scotland at Prestwick airport (using the Ryanair link). Customer satisfaction was once again very high (98%). Most popular accommodation was 3 and 4 star hotels and B&Bs and length of stay was between 4 and 7 nights. Given the choice to play anywhere in the world, 57% said that they would choose Scotland. Germany The VisitScotland research on German golfers found that almost half fly into Edinburgh airport and May to August were most popular months. Like the Swedes most staying 4-7 days and prefer 3 and 4 star hotels and B&Bs. Most visitors booked golf directly with the club. 92% said their experience was good or very good but there was some criticism of golf course practice areas and restaurants. Given the choice to play anywhere in the world, 44% said that they would choose Scotland. Emerging markets 4.24 In the course of our consultations we asked about where stakeholders viewed as emerging markets. Although consultees thought that in the long term, there are likely to be more visitors from the Middle East, India, China and Russia coming to Scotland to play golf, this will take years to happen. Consequently, most consultees believed that especially in the current economic climate, most efforts should be targeted at existing, albeit mature, markets in Europe and North America. These countries are where the most experienced and knowledgeable golfers are based who will always want to play at the traditional home of golf. Golf tourism trends growth prospects 4.25 We now consider some of the trends in golf tourism that will have an impact on Scotland s ability to maintain or increase current levels of golf tourism. Domestic performance 4.26 The recession has had a significant impact on golf tourism in Scotland with a reduction not only in the number of visitors from particular markets. Results from GTS barometer survey (Table 4-9) show that over 75% of respondents have reported a drop in enquiries and 26 VisitScotland (2006), US Golfers Questionnaire Results and Analysis Summary 27 VisitScotland (2006), Swedish Golfers Questionnaire Results and Analysis Summary 37

40 bookings for More than a half of members have experienced a decrease of 25% in business levels compared to this time last year. Nearly 90% of respondents stated that bookings from the North American market are either down a little or a lot. However, enquiries and bookings from Scandinavia, Continental Europe, Ireland, Asia and the Middle East appear to be relatively unchanged from Table 4-9: What change are you noticing in your key markets? Down a lot Down a little No change Up a little Up a lot Scandinavian 0% 26% 48% 26% 0% German 4% 17% 58% 17% 4% French 0% 13% 71% 17% 0% Irish 8% 15% 58% 19% 0% Benelux 4% 13% 78% 4% 0% North American 69% 19% 9% 3% 0% Scottish 4% 26% 41% 19% 11% Rest of UK 4% 30% 30% 30% 7% Asia and Far East 4% 21% 75% 0% 0% Middle East 4% 17% 78% 0% 0% Source: GTS Golf Tourism Barometer (March 2009) 4.27 There was similar feedback from our consultations with stakeholders including Scottish golf tour operators. According to consultees, there has been a significant drop in the number of US golfers over the last year. It is thought that some of this drop may be partially offset by a slight increase in the number of UK visitors (choosing to play golf at home rather than travelling overseas) The reported drop in US visitors has major implications for the overall economic impact of golf tourism. If there is a 20% reduction in the number of US visitors in 2009, which is not offset by other markets, this would reduce total economic output by nearly 13 million based on SMS spend figures highlighted in Table 4-7. If we were to use an adjusted US spend per trip figure (without the other spend), the loss in output would be around 8 million The other major effect of the recession for golf clubs has been a drop in membership. With less disposable income many golfers are stopping their club membership and looking to make use of the increase in golf promotions. Whilst this has the effect of generating less income for the clubs, it will free up more tee-times for visitors and perhaps encourage more clubs to be more proactive and business-minded in their approach. Some consultees stated how the current recession will act as a wake-up call for many clubs. 28 This survey of GTS membership of 120 businesses was based on a response rate of over 50%. 40% of responses were from tour operators, 17.5% from hotels, 17.5% from golf courses and the remainder from other sectors 38

41 International trends 4.30 Notwithstanding the current global recession, golf is continuing to grow in popularity. Over the last 20 years the number of registered golfers in Europe has increased from 1.5 million players in 1987 to 4.3 million in Due to the continuing increase in demand, new countries have emerged as major golf holiday destinations and the value of golf tourism internationally has grown significantly. It is estimated by KPMG s Golf Benchmark that in 2006 golf tourism in the EMA region (Europe, Middle East and Africa) generated around 6.5 billion in revenue, including multipliers, which equates to almost 2 billion in GDP, supporting around 60,000 people 30. Around 82% of this revenue was spent in Europe with half of this being spent in Western Europe, primarily Spain and Portugal (as shown in Table 4-10 below). This analysis also calculates that golf tourism in GB and Ireland is worth just under 800 million. This figure provides useful context for estimates of economic impact of Scottish golf tourism provided earlier in the report. Table 4-10: Golf tourism revenues in EMA region Region % of total Value ( m) GB & Ireland 12.1% Western Europe 51.3% 3,351.4 Benelux 0.9% 58.8 Central Europe 7.2% Eastern Europe 0.1% 6.5 Northern Europe 6.9% South-East Mediterranean 2.8% Middle East 1.3% 84.9 South Africa 3.0% Other Africa 14.4% Total 100% 6,533 Source: KPMG Golf Travel Insight The recent success of countries like Spain and Portugal as golf holiday destinations is reflected in Figure 4-4 below which shows the results of a survey of 80 international operators, asked for their views on where there is likely to be most demand over the coming years This shows where traditional golfing destinations such as Scotland and Ireland are positioned in comparison to new destinations such as Turkey, Dubai and even Thailand which have all become very popular options for golf holidays. The warmer countries dominate the list, but Scotland remains above England and level with the USA. It would be difficult to challenge the four that head the list (Portugal, Spain, Turkey and Dubai). 29 European Golf Association website KPMG (2008), Golf Travel Insight in EMA

42 4.34 The KPMG research states that: In traditional destinations such as Scotland and Ireland, tour operators mainly expect stagnation in inbound tourism. From our research it appears that well established destinations do not seem to be losing market thanks to their deep golfing traditions and the quality of their supply, however the increasing competition does not leave much room for their further growth It appears that there is likely to continue to be strong market from purists or those that like the challenge and reputation of Scotland s courses, but this may also limits the scope for growth. However, as interest in golf grows and incomes rise in markets such as China and India, there may also be more interest in visiting the home of golf. Figure 4-4: Hot spots for golf tourism in the upcoming years Portugal Spain Turkey Dubai USA South Africa Scotland Ireland Nothern Africa Thailand, Malaysia & Indonesia France Mexico & Caribbean England Eastern Europe India Modest Demand Strong Demand Source: KPMG Golf Travel Insight Based on our discussions with consultees and recent GTS research, it is clear that the recession is likely to have a significant impact on the golf tourism market, specifically on the number of higher spending visitors from the US and on the corporate market. Consultees highlighted that even with the weaker pound, there are likely to be fewer visitors from North America coming to Scotland to play golf in It was suggested however, that some of this loss in revenue may be offset by an increase in UK golfers staying in Scotland Most consultees believed that the market would level out over the next couple of years before then picking up again in the mid to longer term. The effects of the recession will make it extremely difficult for golf tourism to match the growth target of 50% by 2015 set for the Scottish tourism industry as a whole. However it should be said that many stakeholders believed that this target was not achievable even before the recession. 31 KPMG (2008), Golf Travel Insight in EMA 2008 p.9 40

43 Visitor market summary 4.38 Although there is a good deal known about different types of golfers visiting Scotland, the numbers are difficult to estimate. Based on the Golf Tourism Monitor data on rounds we estimate that there are: 700,000 rounds played by overnight golf visitors These rounds are played by 135,000 visitors 4.39 Using the VisitScotland 2006 Visitor Survey we estimate that: 70% of these visitors are from within the UK and 30% from overseas Of those from overseas, half would be from the USA (20,000) Overseas golfers spend more than UK golf visitors and more than average tourists. However, the average expenditure data produced by the 2007 SMS visitor survey appears to be high relative to other sources. Although smaller in number overseas visitors are likely to generate the majority of the economic impact The main influences on taking golf trips are weather, price, quality of courses and accessibility. From overseas Scotland attracts those that are most influenced by the quality of courses, its tradition and reputation, described as the purists, while the development of new facilities is attracting luxury golfers (although even within this group the quality of the courses must be the main driver). On this basis the KPMG research suggests that there is not much room for growth. However, with a growing interest in the game and higher incomes in a number of potentially large markets, specifically China and India, there may be new opportunities to attract visitors interested in the traditions of the game. So whilst the recession is likely to restrict growth in the short term, there remains the potential to grow the market further once the economy recovers. 41

44 5: Golf tourism development 5.1 This section considers how golf tourism is currently being developed and promoted and what can be done differently in the future based on the feedback of industry stakeholders. We start by highlighting the main organisations involved in golf tourism development. Golf tourism organisations 5.2 There is a wide range of organisations, at the local and national level, currently involved in developing golf tourism in Scotland. Those organisations with a national remit are: Golf Tourism Scotland GTS was set up in 2005 and aims to represent the diverse interests of the industry and influence public and private sector activities relating to the development and marketing of golf tourism. Its membership is made up of golf courses, accommodation providers, resorts and tour operators and currently has around 130 member organisations. GTS collates industry information through the annual Golf Tourism Monitor and the monthly Golf Tourism Barometer. GTS works in partnership with VisitScotland and Scottish Enterprise in promoting and developing the industry. VisitScotland as the national tourism organisation, VisitScotland is responsible for promoting Scotland as a tourism destination to other parts of the UK and internationally. In terms of golf tourism promotion, the organisation has a golf product manager responsible for the domestic UK market. International marketing is segmented by geography and behaviour and so golf is promoted alongside other products (albeit golf plays an important part in their international marketing campaigns). VisitScotland is currently leading the Drive it Home promotion as part of the Homecoming 2009 programme encouraging more international golfers to visit Scotland. EventScotland set up in 2002 as the national events agency, EventScotland is involved in promoting a number of major golf events taking place in Scotland. These include the Open Championships, held this year at Turnberry, and the 2014 Ryder Cup at Gleneagles. The organisation also promotes some of the smaller events which in 2009 will include the Scottish Challenge at the Macdonald Spey Valley Highland Resort and the Cleveland Golf / Srixon Scottish Seniors Open at the Fairmont St Andrews. Scottish Enterprise SE supports business development in key tourism markets that include golf. The focus of this support is on improving visitor facilities and levels of customer service at golf tourism businesses, thereby increasing the volume and value of visitors to Scotland. In recent years, SE has been involved in the following: Supporting the development of GTS, funding Regional Golf Development Officers and participating in the Golf Development Framework 42

45 Training and skills development including facilitating the creation of the Scottish Region of the Club Managers Association of Europe (CMAE) and supporting the 100k Welcomes customer service training programme Tourism e-business workshops, innovation workshops and general SE leadership programmes for tourism businesses Sponsorships for events including the Open Championships, Scottish Seniors Contributing to market intelligence: Golf Tourism Monitor, Tourism Intelligence Scotland. Scottish Golf Union the SGU is the governing body for amateur golf in Scotland and has responsibility for four main areas: growing the game, developing talent, supporting the clubs and building partnerships. Although the SGU is not so involved in promoting golf tourism, they do promote access to Scotland s golf courses through a marketing portal, Golf Central, and the Scottish Golf Card which encourages registered golfers to visit and play other courses. Coordination National level 5.3 The golf tourism industry has traditionally been quite fragmented at the national level and this was reflected in consultations with stakeholders. The main concern was a perceived lack of leadership amongst the various organisations highlighted above. Others stated that up until the relationship between the industry and the public sector agencies has not been close enough. 5.4 However, there were also some consultees that believed the various organisations were working well together and doing as much as possible within their budgets. According to them, the challenge was more in terms of encouraging golf tourism businesses to become more engaged in joint marketing and development activities (many thought this would be more likely because of the current economic conditions). 5.5 The issues of coordination and collaboration within the golf industry more generally are now being addressed through the development of the Golf Framework Group, led by the SGU. A strategy document is expected to be published in summer The emerging Framework aims to: develop a coordinated approach to maximise the potential of golf in Scotland as a major and sustainable contributor to the Scottish economy align existing initiatives and identify new innovative approaches which further develop the potential of golf in Scotland coordinate investment in golf development, demonstrate value for money, and a tangible return on public investment 43

46 ensure that Scotland s golf events remain world-class, and that Scotland delivers the best ever Ryder Cup in Within this Framework, the Golf Planning Group will bring together the organisations with responsibility for promoting golf tourism. Although consultees were hopeful that this initiative will improve coordination between the various organisations some were perhaps slightly more sceptical and stated that it would be a significant step forward but only if partners do what they have agreed to do. Regional / local level 5.7 At the regional level there are many good examples of collaboration in Angus, Ayrshire, East Lothian and Fife. These are listed below in Table 5-1. Table 5-1: Golf Development Groups Region Angus Ayrshire East Lothian Fife Golf Development Group Carnoustie Country Golf Tourism Ayrshire West Coast Links Association Golf East Lothian First in Fife Links with History St Andrews Golf Development Group 5.8 Many of these golf development groups were set up around five or six years ago in most parts of Scotland with public sector support (from SE and ERDF). There are also more informal networks of golf tourism businesses in the Highlands and the Scottish Borders. 5.9 The groups that have been successful are those that are being driven by the private sector (golf courses, local hotels etc) and perhaps not surprisingly in those areas that have at least one of the signature courses to act as a focal point for their promotion of golf tourism. These groups undertake joint marketing and work alongside VisitScotland (and also sometimes independently) in key markets such as North America, Scandinavia and Germany. They also offer visitor passes for local courses and some have websites that offer visitors a one-stopshop for organising their golf and accommodation, including golf packages (e.g. First in Fife) The most noticeable absence from Table 5-1 is a North East group, although attempts have been made over recent years to organise such a group. Many consultees highlighted the potential of the North East as a golf tourism destination in its own right because of the quality of the product with courses such as Royal Aberdeen, Murcar Links and Cruden Bay. At least two other higher profile golf facilities are being planned (the Trump development and the Blairs Estate development) and these will only add to the profile of the area. 32 Scottish Golf Union (2009), The Future of Scottish Golf A Vision and Framework for Success (Draft Report) 44

47 5.11 Some also mentioned the possibility of creating a similar golf tourism destination in the Highlands with the new Castle Stuart development near Inverness adding to the existing top quality courses at Nairn and Royal Dornoch. The challenge for both the North East and Highland areas in attracting overseas golfers is their peripheral geographic location and limited availability of direct air links In addition to golf businesses working together in terms of promotion, it was also suggested that golf courses could be more innovative in how they operate for example perhaps sharing equipment costs or greenkeepers. Marketing National level 5.13 Marketing of Scotland as a golf tourism destination is led by VisitScotland. Marketing activity is split between the domestic UK and Ireland market and international markets. There is one dedicated UK and Ireland golf product manager who is responsible for targeting campaigns and newsletters to the database of golf contacts (i.e. those who have registered on the website and/or requested the Official Guide to Golf publication). There are various staff involved in international golf marketing (for these markets, activity is based on geography rather than product) and others also tasked with promoting the 2014 Ryder Cup. Overall there are around five staff with responsibility for golf promotion within the organisation and around 1 million is spent on golf marketing each year. International marketing 5.14 VisitScotland delivers regular consumer campaigns with golf often featured as a key product for example recent campaigns in the US and Sweden. The international team also work with tour operators in emerging markets e.g. Kuwait (for Middle East marketing) and China VisitScotland has started to work with the European PGA Tour to target certain events in the run up to the 2014 Ryder Cup. They are currently promoting Scotland at various events/tournaments, based in the following target markets: Volvo China Open Beijing, China BMW International Open - Munich, Germany SAS Masters - Malmo, Sweden Mercedes Benz Championship - Cologne, Germany Dessert Classic Dubai 5.16 VisitScotland also undertakes a lot of international marketing that is less visible yet potentially very important. For example, the Ambassadors Programme involves PGA Magazine identifying US golf professionals who are more likely to travel overseas and who are based close to direct access routes to Scotland. The idea is that these professionals then spread the message amongst travel operators and work as ambassadors for Scotland. Another 45

48 example of this type of approach was VisitScotland s work with the Georgian Golf Association following the launch of the Delta Airlines link between Atlanta and Glasgow in This involved targeting members of the association s database with e-communication. Consultation feedback on national marketing 5.17 Most of the consultees agreed that the national marketing of golf tourism in Scotland could be better. It was stated that the industry has had too little influence on the golf marketing activities undertaken by VisitScotland. As stated earlier, it is hoped that this issue can be addressed through the Golf Planning Group meetings which provides an opportunity for the industry to contribute to VisitScotland s marketing strategy. Much of VisitScotland s promotional activity is informed by market research which presents a good overview of how Scotland is perceived as a golf destination (a summary of this was included in the previous section) There were differing views on how VisitScotland s support for golf tourism should be structured. Several consultees believed that a specific golf team would provide a clearer focus to their activities. Others stated that the golf tourism promotion should be led by golf specialists rather than marketing specialists one consultee believed that this was actually the reason for setting up GTS. Another felt that the change in VisitScotland s structure (becoming more centralised) has had a detrimental impact on regional support for golf The consultations seemed to suggest that some of the criticism from the industry about the marketing at a national level is based on a lack of understanding about what is being done and how effective it has been. This would appear consistent with descriptions of more subtle approaches to international marketing. With these types of marketing campaigns, it is possible that the industry either is not made aware of the benefits of these campaigns or is not aware of the activity in the first place. Some stakeholders questioned why Scotland has not had the same profile as other golf destinations at trade shows, on television or in golf magazines. It would be helpful to know how effective the golf marketing that is being done is working in order to demonstrate to the industry whether and how well the strategy is working It was also agreed amongst most consultees that there could be more done to promote the second tier of Scotland s golf courses, many of which would probably be championship courses if they were in other countries. This would benefit not only the courses and their surrounding areas but would also offer the visiting golfer a cheaper alternative to St Andrews or Gleneagles but similar quality of course. Regional level 5.21 Many of the regional Golf Development Groups work alongside VisitScotland in promoting Scotland at golf events or trade shows. They also often do their own marketing, targeting specific markets that are particularly important to their area. For example, Carnoustie Country has recently done marketing in Canada (attending the Toronto golf show) and Ireland following Padraig Harrington s Open victory in Similarly Golf East Lothian has been developing links in Sweden to exploit the new Ryanair flights into Edinburgh. 46

49 5.22 There are also examples of the Golf Development Groups working closely with other local visitor attractions in order to promote golf alongside other activities. The aim here is to encourage more visitors to bring partners and families with them on their golf trip. The consultations highlighted examples of this collaboration between Golf Development Groups and Key Attractions Groups already taking place in East Lothian and Angus (Carnoustie Country) There were mixed views on the balance that is required between national and regional marketing. Some consultees suggested that international marketing should continue to focus on the Scottish home of golf brand and should avoid potentially confusing international golfers or duplicating effort by trying to also promote specific regions such as Ayrshire or East Lothian. On the other hand some stated that since the golf visitor is now more likely to stay in one particular part of the country, promoting regional destinations would be a way to encourage repeat visits. A consistent and complementary approach to national and regional marketing should be ensured by the partnership work of the Golf Planning Group. Product development Use of ICT and online booking systems 5.24 As has been highlighted in earlier sections the reluctance by many clubs and golf facilities to use ICT for managing bookings has limited the amount of market intelligence In recent years, online booking has become an important tool for organising all types of holidays, not only golf trips. However, the consultations confirmed that there is still significant reluctance amongst golf clubs to introduce this system of booking. For many of the smaller private clubs across Scotland, their priority has always been their local members. It was suggested that their reluctance to introduce online booking is due to concerns over managing who is playing their course and the impact that this will have on members The SGU s website has a searchable database, Golf Central, of all golf courses in Scotland however only 25 of the golf courses featured currently have an online booking system. A similar number of courses are available through an online booking company, Teedeal The issue here is not simply about providing easier booking, but the internet is now at the heart of the collection and analysis of data that can be used for promotion. This was highlighted in a recent golf tourism seminar organised by Scottish Enterprise 33 where Bob Morris, from the US golf club operator Billy Casper Golf, demonstrated the benefits of being able to understand and segment the market through developing detailed customer databases. The event specifically highlighted the opportunities for Scotland in promoting to and developing packages for different types of US golfers (targeting not just the older committed golfer which has traditionally been the case but also those more social golfers or those looking for good deals) ICT is a crucial tool in understanding the market and therefore refining products, services and keeping in touch with customers. In the past, with strong membership bases this was less 33 Scottish Enterprise Golf Tourism Business Insight Event held in St Andrews, April Other golfer categories and their characteristics are highlighted in Table

50 important for golf clubs, but now with greater competition and weakening local demand responding to customers will be a higher priority for some courses. Skills development and customer service 5.29 There are a range of initiatives that have been introduced to improve the quality of experience for visiting golfers. SE provides a package of support to tourism businesses in terms of e- business, innovation and skills and training In order to address the issue of customer service in the golf tourism industry, VisitScotland introduced a quality assurance scheme, Visiting Golfers Welcome, to try to ensure that accommodation providers provide the necessary facilities and customer service for visiting golfers. In order to meet the criteria, accommodation providers need to ensure that they can provide, amongst other things, lockable storage for golf clubs, facilities for drying clothes and footwear, information on weather forecasts, local transport, golf shops and tee-off times. Accommodation employees also need to display a positive attitude towards golfers and a genuine desire to meet and anticipate their needs What has been described as patchy customer service is an issue across Scotland s hospitality industry and not just in relation to golf tourism businesses. Some suggested that the increasing number of chain hotels and resorts involved in golf tourism are more likely to invest in staff training. However, many consultees highlighted that more could be done to demonstrate to golf tourism businesses the importance of good customer service. Adding value to the product 5.32 Even in the current climate, most consultees were not in favour of discounting the product to attract more visitors. There was a feeling that this would de-value golf in Scotland. However, there was agreement that there could be more packages or cross-selling of golf and other activities, thereby maximising the value of tourists once they have come to Scotland Although the nature of the sector in Scotland makes it harder to offer joined up packages that characterise the product in the US, Spain and elsewhere, a variety of ways to add value to the product were suggested. This could be as simple as offering visitors a complementary lunch in the clubhouse after their round, or tying in golf with another tourist attraction nearby. We are aware from our consultations that some of the Golf Development Groups are already working closely with key attractions groups to develop these links It was also suggested that there could be more innovative events packages where visitors are either encouraged to stay for more than one event (for example, encouraging visitors to stay for the Scottish Open and then the Open when staged in Scotland) or when purchasing the event ticket they are provided with an opportunity to play a local course. With both of these examples the aim would be to encourage visitors to stay longer. Implications for future development 5.35 The main challenges for developing golf tourism identified through the consultations are: 35 Golfers Welcome brochure 48

51 The importance of information in understanding the market. In an increasingly competitive market, information about customers is critical and the ICT and the internet are crucial in gathering, analysing and using information on customers. Online booking is not simply about organising tee-times more effectively, it is a powerful business and marketing tool that gives courses the information they need to stay in touch with customers. It can be the basis for refining and develop products and services. Improving use of ICT is becoming critical in attracting visitors beyond the traditional championship courses. Strengthening the monitoring of the golf market. There are conflicting sources of information about the golf market. The approach adopted by GTS based on collecting data on green fees is sound, but could be developed further: There is a need for a new golf visitor survey which focuses on capturing a representative sample of golf visitors to Scotland and can act as a robust source of data for visitor expenditure. Courses should be assisted to capture more data on where visitors come from. This relates to developing stronger ICT systems for the reasons given above. Without this, distinguishing between visitors who are staying and those on day trips is very difficult for the clubs Finally, the growth in the number of top end courses which rely on overseas membership, means that simply relying on green fee payments will not capture all golf tourists. Research into the number of overseas members and the frequency with which they visit would helpfully supplement our understanding of the size of the market. Closer collaboration continues to be needed between industry and VisitScotland in terms of developing marketing strategies and better informing of golf businesses about the marketing that is being delivered (e.g. VisitScotland s PGA ambassador programme which is perhaps less visible). Although this is happening more could be done to demonstrate the effectiveness of investment More promotion of Scotland s second tier of golf courses which are still of high quality but slightly cheaper to play and often more accessible for visitors. Many of these courses are part of VisitScotland s current Drive it Home campaign. Getting visitors to these courses may require stronger financial incentives for independent visitors and operators, better information and marketing. Identifying and working with a subset of those that have the potential to attract visitors in their own right would be more effective than spreading support more thinly. Additional public sector support for regional golf groups in the North East and Highlands. New resort developments will be opening soon in both regions and this will enhance the existing high quality product. This could be done by SE directly or though additional resources to Golf Tourism Scotland. The success of other groups reported in the consultations indicates that this is worthwhile 49

52 Encouraging accommodation providers to become more engaged in local golf groups and more actively promote golf in any marketing material (along with the other main activities or attractions). Role for Scottish Enterprise 5.36 The rationale for SE intervention is based on the economic concept of market failure. This means that support should be made only where markets will not deliver an efficient outcome. In this case, the provision of golf courses generates economic benefits for other tourism service businesses for which the courses themselves are not compensated. As a result, they will under-invest in attracting visitors. To address this, the beneficiaries (hotels, restaurants, bars, retailers and many others) should work together to support the attraction of visitors. In the absence of public sector intervention this tends not to happen SE support should therefore address this failure by focusing on the courses and activities that generate additional visitors to Scotland, or encourage residents to make trips in Scotland rather than travel overseas. This means focusing on supporting the staying tourism market rather than the day visitor market (the likelihood is that many courses would market to local golfing visitors anyway) Based on the available research, golf tourism generates significant economic benefits for the Scottish economy and this is the rationale for SE s involvement in supporting the industry. However, this study highlights that there are in fact only around 70 golf courses that are generating the majority (75%) of the economic benefits for Scotland. It is these courses that should be targeted for future SE support both in terms of individual assistance and ensuring that businesses located nearby are fully engaged in promoting golf tourism. A number of specific recommendations for SE are highlighted in the concluding section of the report. 50

53 6: Conclusions and recommendations Scottish Golf Tourism Market Analysis 6.1 Over the past ten years the golf industry has been relatively stable, with clubs and courses supported by a steady demand for membership and growing tourism. New course development has been seen as a profitable investment for developers and as a result the number of courses has grown. The recession is likely to have a significant effect on clubs and courses as income from membership and from tourists becomes harder to attract. Indeed, there has been speculation that a number of courses and clubs in Scotland may not survive This makes 2009 and 2010 extremely important years for golf tourism, but it is also a major opportunity for the industry to focus on developing products and services that will help position Scotland as the economy recovers. While supply of golf facilities has grown faster than domestic participation, for tourists the range and quality of courses is better than ever. The history and traditions of the game in Scotland will continue to be a draw for golfers from all over the world. Looking further ahead, beyond the recession, the growing popularity of the game in emerging countries represents an opportunity to expand the market not in competition with the exciting new courses that are being built in areas with a warmer climate, but as an alternative. 6.3 Our brief has been to focus specifically on the role that SE can play and this relates to activities that will best generate economic benefit through the support of golf-related businesses. This supply-side activity can impact on the number of visitors to Scotland and their expenditure by improving services and products, but strong marketing will remain the key driver. 6.4 The logic of this report is that golf tourism generates a significant income for Scotland. This income is important not just for the golf courses themselves but for a range of other tourism services. These externalities and the fragmented nature of the sector provide a rationale for SE s intervention. We argue that improving information (specifically more use of ICT), a stronger focus on working with the courses that generate spillover benefits, closer collaboration and encouragement for greater innovation will all help to maximise the income that can be generated through golf tourism. However, the success of these activities will also depend on the scale and effectiveness of marketing and in this respect communication between VisitScotland and the golf industry is critical. The new Framework Group should provide a forum for the golf industry to input into the development of marketing activities and for VisitScotland to outline what is being done, how effective it is and the opportunities for golf-related businesses. Value of golf tourism to Scotland 6.5 It is estimated that golf tourism currently generates around 220 million for the Scottish economy (Table 6-1). This output represents GVA of 120 million and supports 4,400 jobs % of Scots golf clubs 'in financial difficulty' - Sunday Herald article, culty.php 51

54 6.6 The economic impact of golf tourism consists of the expenditure made by staying visitors playing golf in Scotland, and includes Scots staying overnight. This amounts to around 191 million in economic impact. In addition, an annual average figure of around 36 million is generated through the expenditure of event spectators, with the Open Championships bringing in the most visitor expenditure. In our calculations we have made adjustments to avoid double-counting expenditure of event spectators who also come to Scotland to play golf. Table 6-1: Economic impact of golf tourism Total output (incl. multiplier) GVA Visiting golfers 191 million 113 million Golf event spectators 36 million 12 million (Overlap in visitor spend) ( 3 million) ( 2 million) Total economic impact 223 million 123 million Source: SQW Consulting (figures do not add due to rounding to nearest million) 6.7 Aside from the visitor expenditure, there has also been significant private sector investment in creating new golf facilities and accommodation but also upgrading existing facilities across Scotland. Over the last two years nearly 250 million of investment has been committed to new projects, which in time will contribute to attracting golf visitors. Product 6.8 Scotland is the home of golf and is renowned for the quality of its golf courses. It has five of the nine Open Championship venues St Andrews, Muirfield, Carnoustie, Royal Troon and Turnberry and will also be staging the Ryder Cup at Gleneagles in Hosting major golf events reinforces the country profile and encourages UK and overseas golfers to visit. 6.9 The supply of high quality courses is Scotland s main asset and overall there are around 550 golf courses across the country. However, many of these courses are run by members clubs and up until now have had limited interest in attracting visitors. It is estimated that here are around 70 courses generating over 150,000 in visitor green fees and these courses are delivering the majority of golf tourism impact for Scotland. These courses are 12% of the total supply but are currently generating 75% of all overnight visitor green fees These courses are the ones bringing the additional tourism benefits to Scotland and therefore should be the focus of public sector support. Following on from this study we would recommend SE to access this list of courses from GTS in order to target future support for golf tourism The main areas for improvement identified by stakeholders in terms of the golf tourism product were the customer service in some golf tourism businesses and a general feeling of complacency that because Scotland is the home of golf then visitors will always want to come. Linked to this idea is another perceived weakness in terms of how golf clubs and facilities are promoting golf tourism and managing information on their markets. It is feared that a lack of effective ICT infrastructure will hinder Scotland s ability to maintain and grow the market. 52

55 6.12 The industry has traditionally been very fragmented. It is hoped that the new Golf Framework Group will encourage a closer relationship between the industry and the various agencies involved in golf development. In terms of golf tourism this needs to clearly set out how future marketing strategies will be developed and which organisations will be responsible for implementation Many consultees stated that the current economic climate is likely to encourage a more proactive attitude from golf tourism businesses (because they have to) and there is the potential for Golf Development Groups to do more at the local level. This is particularly the case in the North East and Highland areas. Demand 6.14 Although Scotland remains one of the world s premier golf destinations, the recession has had a significant impact on the industry, with a notable decline in the number of US visitors. This coupled with the increased competition from other countries means that Scotland is likely to find it difficult to grow the golf tourism market over the coming years. As visitors look for good deals, the economic impact is likely to be driven by volume of visitors rather than increasing expenditure In terms of marketing, most consultees believed that Scotland should be concentrating on its core markets in the UK, Ireland, Scandinavia, Germany and most importantly North America. These are the markets with experienced golfers who really value the Scottish product and who will be getting ready to travel again once the economy recovers. Areas for development and recommendations for SE 6.16 The challenges for Scottish golf tourism are well known. The issues are not around what needs to be done, but how it should be done, having the leadership and the confidence that the structure in place can deliver. SE s role in supporting golf tourism relates mainly to the supply side, encouraging businesses to work together, offering strong products that will attract visitors and generate income and employment. Focussing on SE s future role we set out five key areas for development. Leadership and marketing 6.17 Leadership and the structure of the agencies and golf representative groups was one of the most discussed challenges for the sector. There was a common view that a lack of leadership in the past has hindered the development of golf tourism. One view was that the public agencies, VisitScotland and SE had both shifted away from providing direct support for individual businesses and that this had left a gap We have made no specific recommendations on leadership and structure as a new Golf Framework is being launched. This sets out the roles and responsibilities of each of the agencies. It would be a counterproductive to make suggestions on alternative models before this has launched, other than to say that it was needed. 53

56 6.19 Marketing was also frequently raised by consultees. In this report our focus has been on SE s role rather than VisitScotland s and we have not made suggestions on the type and scale of marketing that should be done. It is worth highlighting that increasing the scale of marketing in key markets is likely to have the greatest influence on Scotland s ability to attract more golf visitors thereby generating more economic impact. This would require significant additional public sector investment from VisitScotland which in the current economic climate is very unlikely to be forthcoming However based on the current marketing activity, it was clear from the consultations that there could be more communication between VisitScotland and the golf tourism industry. Greater transparency and more awareness of what is being done to market golf would be welcomed by our consultees along with estimates of the returns that it is generating. Support the industry and focusing on market failure 6.21 SE s role is based on addressing market failure. This means that any intervention or activities that it supports should help the market operate more effectively. We have argued that the value of golf tourism is substantial and that, following the recession, there will be opportunities to increase the income and employment supported in Scotland. However the sector will do better if it works together, encourages innovation, improves customer service and gathers better information on its markets However, the clubs, courses and other tourism businesses that provide services for the sector will not achieve this independently. There will be too little investment because the full benefits of attracting golf tourists tend to spillover across many businesses and as a result are not fully captured by those making the investment A lack of information may also hinder investment in the most effective areas. The emphasis must be on the golf tourism that generates the greatest spillover benefits. This means focussing on the clubs and courses that attract visitors from outside Scotland rather than helping attract Scottish residents who would have played somewhere else anyway. This would not add much additional economic benefit. Recommendation 1 The focus must be on working with a smaller number of the courses that have the greatest potential, and willingness, to attract visitors. SE should select a relatively small number that have the potential and the willingness to develop their tourism role. It is estimated that just 70 courses generate 75% of the tourism benefits. Increase information gathering 6.24 Information is crucial for marketing, monitoring and developing the golf tourism product, yet few clubs and courses know who their markets are, where they come from, how often etc.. In the past membership income has been stable and so visitors have been less important to many clubs, but this is changing. There are several aspects to this and they meet different needs: 54

57 Collecting data on volume and value this is needed to demonstrate trends in the number of visitors and the contribution that golf makes to the economy. The method developed by GTS and used in this report is the basis for robust approach but needs to strengthen the estimates of the proportion of rounds played by those staying overnight versus day visitors. Getting more accurate information from the courses and clubs requires that they capture this themselves. This might be helped by developing simple tools and promoting them among GTS members and through SGU To date there has been no estimate of the volume and value of overseas members. This should be included in future work. There are probably relatively few clubs with significant numbers. These could be identified and contacted to assess the number of visits they generate and to estimate additional expenditure Collecting profile data we recommend that a golf visitor survey is carried out over the next 12 months. This should ensure that a robust method is adopted to identify visitor origins in particular. Profile information is important in developing marketing and product development approaches. Although we know about what golfers like and reasons for their visit, we do not know how many come from each market, which are growing and which are contracting. Recommendation 2 SE should promote the use of customer databases to golf clubs and facilities either individually or within Golf Development Groups. These could be the basis of valuable tools for marketing and for developing and testing demand for products. ICT development 6.25 Although most people assume that this relates to booking on-line tee-times, in fact ICT systems can also manage customer databases, used to develop offers and marketing and provide information to potential visitors around the world. Visitors increasingly expect to be able to research, book and manage trips on-line The reasons for not making these investments will vary. In some cases, despite the benefits, courses or clubs do not feel that they attract sufficient visitors to make it worthwhile. In other cases they may feel that it is unnecessary, too complicated or they may not accurately estimate the benefit that it could bring The starting point would be to use some example case studies to assess the value of the benefits among those courses/clubs that have made the investment. There is also likely to be some learning in which packages work best and how they can be used. There are no doubt a range of options and prices which could usefully be investigated. Recommendation 3 SE should support the demonstration of the value of ICT to the clubs/courses that attract, or have the potential to attract, most visitors. Case studies could be developed and disseminated through GTS and SGU. 55

58 Innovation and collaboration 6.28 In a competitive environment (both domestically and in attract visitors) innovation is important for the Scottish market. While membership fees were stable there was less need for innovation, but there are now more and more examples of new ideas and packages being developed. For example, golf with whisky, genealogy, island hopping, different types of membership, themed itineraries etc The fragmented nature of Scotland s golf product means that collaboration between operators in the golf sector is critical. The existing golf groups provide a basis for developing joint activities. We suggest that developing a group in the North East would be helpful given the cluster of strong courses. SE should help set up and facilitate the group. Recommendation 4 SE should focus on encouraging ideas which target new visitors from outside Scotland rather than boosting club memberships. This can be done by promoting SE s range of Tourism Innovation activities rather than developing new schemes. SE should make sure these are promoted and that golf businesses are well represented in workshops and the awarding of any funding. Customer service 6.30 This was identified almost unanimously by consultees and is a common theme across tourism in general. VisitScotland and SE deliver a number of activities to support customer service through training quality assurance including the Visiting Golfers Welcome initiative. Spreading good practice and taking businesses on learning journeys can make a difference. Recommendation 5 SE should focus on the services used by golf visitors around the key courses and encouraging participation by these businesses in these schemes. Conclusion 6.31 Golf makes a major contribution to the Scottish economy through attracting tourists to play and to attend events. Golf tourists spend significantly more than other leisure tourists (using UKTS figures, golf visitors spend 50% more per night). This means that not only is there an opportunity to make significant improvements, increases in the number of visitors can generate proportionately greater impacts Despite anecdotal evidence that visitor numbers have fallen in recent years, there are opportunities to generate greater economic benefit in the future as the economy comes out of recession. There are challenges, the fragmented supply chain means that collaboration is of particular importance, investment in improving information and ICT is needed to refine our understanding of the market, to refine products and target marketing. Like other parts of the tourism industry, customer service could be improved and new ideas encouraged. 56

59 6.33 These challenges for golf tourism have been recognised for some time and a number of interventions are in place to provide the support to golf courses, clubs, facilities and service providers. What is important for SE is that the support should focus on the courses that have the potential to generate the greatest tourism expenditure benefits, rather than all courses, and that more is done to demonstrate the potential benefits of making these investments. With falling membership numbers and income, more clubs will have to consider generating revenue from visitors. Increasingly clubs and courses are being run by more commercially minded managers with greater interest in using new methods to generate business. Both these effects should help to address the challenges that have been set out. 57

60 Annex A: Consultees A.1 We are grateful to the following stakeholders who contributed to our research. Table A-1 : Consultee list Consultee Malcolm Roughead Mark McCardie Jacqui Soutar Melanie Angus Robbie Clyde Nick Hunter Allan Minto Mike Woodcock Mike Williamson Ewen Watt David Roy Andy Salmon Ian Bunch Ian McCaig Derek Mortimer Stewart Spence Sheila Faichney Colin McLeod John Duncan Craig Innes Gary Slatter Roger McStravick Ronnie Pook Peter Craigan Dawn Tinker Eric Grandison Organisation VisitScotland VisitScotland VisitScotland VisitScotland EventScotland Golf Tourism Scotland Golf East Lothian St Andrews Golf Development Group First in Fife Golf Group / MW Associates First in Fife Golf Group Links with History Golf Group Scottish Golf Union Prestwick Golf Club / Golf Tourism Ayrshire Golf Tourism Scotland Murcar Golf Club Marcliffe Hotel, Aberdeen Angus Council / Carnoustie Country Carnoustie Golf Links Royal Dornoch Golf Club Ratho Golf Club Fairmont St Andrews Fairmont St Andrews Scotland Golf Tours / Scottish Incoming Golf Tour Operators Morton Golf Holidays Golf Desk Scotland Scottish-GolfTours.com / Craigielaw Golf School A-1

61 Annex B: Scotland s golf courses Table B-1 : Full listing of Scotland s golf courses Name of course Type of course No. of holes Name of course Type of course No. of holes Highlands and Islands Abernethy Inland 9 Lybster Inland 18 Aigas Inland 18 Muir of Ord Links 18 Alness Links 9 Nairn Links 18 Askernish Inland 9 Nairn Dunbar Inland 18 Asta Parkland 9 Newtonmore Links 18 Ballachulish House Links 9 Reay Links 18 Barra Links 9 Royal Dornoch, Championship Links 18 Benbecula Inland 18 Royal Dornoch, Struie Links 9 Boat of Garten Heathland 9 Sanday Parkland 18 Bonar Bridge,Ardgay Links 18 Shetland Woodland 9 Brora Private 18 Skeabost Parkland 9 Carnegie Inland 9 South Ronaldsay Parkland 9 Carrbridge Inland 9 Spean Bridge Inland 18 Cawdor Castle Inland 18 Spey Valley Parkland 18 Craggan Links 9 Stornoway Inland 18 Durness Inland 9 Strathpeffer Spa Links 18 Fort Augustus Inland 18 Stromness Links 18 Fort William Links 18 Tain Links 9 Fortrose & Rosemarkie Links 9 Tarbat Parkland 18 Gairloch Links 18 Thurso Inland 18 Golspie Inland 18 Torvean Links 9 Grantown-on-Spey Links 9 Traigh Coastal 18 Harris Inland 9 Ullapool Links 9 Helmsdale Inland 18 Westray Links 18 Invergordon Inland 18 Whalsay Links 18 Inverness Links 9 Wick Inland 9 Isle of Skye Inland 18 North East Kingussie Parkland 18 Aboyne Parkland 18 Kirkwall Inland 18 Aboyne Loch Parkland 9 Loch Ness New Inland 18 Alford Parkland 18 Loch Ness Old Inland 9 Aspire Parkland 9 Loch Ness Wee Monster Parkland 9 Auchenblae Parkland 9 Lochcarron Inland 9 Auchmill Heathland 18 Ballater Heathland 18 Kintore Parkland 18 B-1

62 Name of course Type of course No. of holes Name of course Type of course Ballindalloch Castle Parkland 18 Longside Parkland 18 Balnagask Links 18 Lumphanan Heathland 9 Banchory Parkland 18 McDonald Parkland 18 Braemar Heathland 18 Meldrum House Private 18 Buckpool Links 18 Moray New Links 18 Cove Sea Links 12 Moray Old Links 18 Craibstone Parkland 18 Murcar (9 hole) Links 9 Cruden Bay Links 18 Murcar Links Links 18 Cruden Bay, St Olafs Links 9 Newburgh on Ythan Links 18 Cullen Links 18 Newmachar, Hawkshill Heathland 18 Deeside Parkland 18 Newmachar, Swailend Parkland 18 Deeside, Blairs Parkland 9 Oldmeldrum Parkland 18 Duff House Royal Parkland 18 Peterculter Parkland 18 Dufftown Moorland 18 Peterhead New Links 9 Dunecht House Parkland 9 Peterhead Old Links 18 East Aberdeenshire Parkland 18 Portlethen Parkland 18 Elgin Parkland 18 Rosehearty Links 9 Forres Parkland 18 Rothes Parkland 9 Fraserburgh, Corbie Links 18 Royal Aberdeen Links 18 Fraserburgh, Rosehill Parkland 9 Royal Tarlair Parkland 18 Fyvie Parkland 9 Spey Bay Links 18 Garmouth & Kingston Links 18 Stonehaven Parkland 18 Hazlehead 9 Hole Parkland 9 Strathlene Buckie Links 18 Hazlehead No.1 Parkland 18 Tarland Parkland 9 Hazlehead No.2 Parkland 18 Torphins Heathland 9 Hopeman Links 18 Turriff Parkland 18 Huntly Parkland 18 Westhill Parkland 18 Inchmarlo Parkland 9 Historic Heartlands Inchmarlo Lairds Parkland 18 Aberdour Parkland 18 Insch Parkland 18 Aberfeldy Parkland 18 Inverallochy Links 18 Alyth Heathland 18 Inverurie Parkland 18 Anstruther Links 9 Keith Parkland 18 Arbroath Links 18 Kemnay Parkland 18 Auchterarder Parkland 18 King's Links Links 18 Auchterderran Inland 9 Kinloss Country Parkland 18 Balbirnie Park Inland 18 Kinloss Country 1 Parkland 9 Ballumbie Castle Inland 18 Bishopshire Heathland 10 Fairmont Torrance Links 18 No. of holes B-2

63 Name of course Type of course No. of holes Name of course Type of course Blair Atholl Parkland 9 Falkland Inland 9 Blairgowrie, Lansdowne Heathland 18 Forfar Inland 18 Blairgowrie, Rosemount Heathland 18 Forrester Park Parkland 18 Blairgowrie, Wee Heathland 9 Foulford Inn Heathland 9 Brechin Inland 18 Gleneagles, King's Heathland 18 Burntisland Inland 18 Gleneagles, Queen's Woodland 18 No. of holes Caird Park Inland 18 Gleneagles, The PGA Centenary Heathland 18 Camperdown Inland 18 Gleneagles, Wee Heathland 9 Carnoustie, Buddon Links Links 18 Glenisla Parkland 18 Carnoustie, Burnside Links 18 Glenrothes Inland 18 Carnoustie, Championship Links 18 Guthrie Heathland 9 Charleton Inland 18 Kenmore Parkland 9 Cluny Clays Inland 9 Killin Parkland 9 Comrie Heathland 9 King James VI Parkland 18 Cowdenbeath, Dora Parkland 18 Kinghorn Links 18 Craigie Hill Inland 18 Kingsbarns Links 18 Crail, Balcomie Links 18 Kinross Bruce Parkland 18 Crail, Craighead Links 18 Kinross Montgomery Parkland 18 Crieff, Dornock Parkland 9 Kirkcaldy Inland 18 Crieff, Ferntower Parkland 18 Kirriemuir Parkland 18 Culcrieff Parkland 18 Ladybank Heathland 18 Cupar Inland 9 Leslie Parkland 9 Dalmunzie Parkland 9 Letham Grange, Glens Inland 18 Downfield Inland 18 Letham Grange, Old Inland 18 Drumoig Inland 18 Leven Links Links 18 Dunfermline, Canmore Inland 18 Lochgelly Parkland 18 Dunfermline, Pitfirrane Inland 18 Lochore Meadows Inland 9 Dunfermline, Pitreavie Inland 18 Lundin Links 18 Dunkeld & Birnam Heathland 18 Lundin Ladies Inland 9 Dunnikier Park Inland 18 Milnathort Parkland 9 Dunning Parkland 9 Monifieth, Ashludie Links 18 Edzell Inland 18 Monifieth, Medal Links 18 Edzell West Water Inland 9 Montrose, Broomfield Links 18 Elie Links 18 Montrose, Medal Links 18 Elie Sports Club Links 9 Murrayshall Parkland 18 Elmwood Parkland 18 Murrayshall, Lynedoch Woodland 18 Fairmont Devlin Coastal 18 Muthill Parkland 9 B-3

64 Name of course Type of course No. of holes Name of course Type of course Panmure Links 18 Bonnyton Inland 18 Piperdam Inland 18 Bothwell Castle Inland 18 Pitlochry Heathland 18 Braehead Inland 18 Saline Inland 9 Bridge of Allan Inland 9 Scoonie Parkland 18 Brucefields Parkland 9 Scotscraig Links 18 Buchanan Castle Parkland 18 St Andrews Links, Balgove Links 9 Calderbraes Inland 9 St Andrews Links, Eden Links 18 Caldwell Inland 18 St Andrews Links, Jubliee Links 18 Callander Inland 18 St Andrews Links, New Links 18 Cambuslang Inland 9 St Andrews Links, Old Links 18 Campsie Inland 18 St Andrews Links, Strathtyrum Links 18 Cardross Inland 18 St Andrews, Duke's Heathland 18 Carluke Parkland 18 St Fillans Parkland 9 Carnwath Inland 18 St Michaels Inland 18 Carrick (The) Heathland 18 Strathmore, Leitfie Links Parkland 9 Cathcart Castle Inland 18 Strathmore, Rannaleroch Inland 18 Cathkin Braes Inland 18 Strathtay Parkland 9 Cawder, Cawder Parkland 18 Taymouth Castle Parkland 18 Cawder, Keir Parkland 18 Thornton Inland 18 Clober Inland 18 Whitemoss Parkland 18 Clydebank and District Inland 18 Central Clydebank Municipal Parkland 18 Aberfoyle Inland 18 Coatbridge Inland 18 Airdrie Inland 18 Cochrane Castle Parkland 18 Airthrey Parkland 9 Colville Park Inland 18 Alexandra Park Inland 9 Cowglen Inland 18 Alloa Parkland 18 Crow Wood Inland 18 Alva Inland 9 Dalziel Park Parkland 18 Balfron Inland 18 Dollar Inland 18 Balmore Inland 18 Douglas Park Inland 18 Barshaw Inland 18 Douglas Water Inland 9 Bearsden Parkland 9 Drumpellier Parkland 18 Bellshill Parkland 18 Dullatur, Antonine Inland 18 Biggar Parkland 18 Dullatur, Carrickstone Inland 18 Bishopbriggs Inland 18 Dumbarton Parkland 18 Blairbeth Inland 18 Dunblane new Inland 18 Bonnybridge Inland 9 East Kilbride Parkland 18 No. of holes B-4

65 Name of course Type of course No. of holes Name of course Type of course East Renfrewshire Inland 18 Milngavie Parkland 18 Easter Moffat Inland 18 Mount Ellen Inland 18 Eastwood Moorland 18 Mouse Valley Inland 18 Elderslie Parkland 18 Mouse Valley Kames Inland 9 Erskine Inland 18 Muckhart Inland 27 Esporta Dougalston Parkland 18 Old Ranfurly Inland 18 Falkirk Inland 18 Paisley Inland 18 Falkirk Tryst Inland 18 Palacerigg Inland 18 Fereneze Parkland 18 Pollok Inland 18 Glasgow, Killermont Parkland 18 Polmont Inland 9 Gleddoch Parkland 18 Port Glasgow Moorland 18 Glenbervie Inland 18 Ralston Inland 18 Gourock Inland 18 Ranfurly Castle Inland 18 Grangemouth Inland 18 Renfrew Parkland 18 Greenock Inland 18 Ross Priory Parkland 9 Greenock, Whinhill Moorland 18 Rouken Glen Parkland 18 Haggs Castle Inland 18 Sandyhills Inland 18 Hamilton Inland 18 Shotts Inland 18 Hayston Inland 18 Stirling Parkland 18 Helensburgh Moorland 18 Strathaven Inland 18 Hilton Park, Allander Inland 18 Strathclyde Park Inland 9 Hilton Park, Hilton Inland 18 Strathendrick Inland 9 Hollandbush Inland 18 Tillicoultry Parkland 9 Kilmacolm Inland 18 Torrance House Inland 18 Kilsyth Lennox Inland 18 Vale of Leven Inland 18 Kirkhill Inland 18 Westerwood Inland 18 Kirkintilloch Private 18 Whitecraigs Inland 18 Knightswood Inland 9 Williamwood Parkland 18 Lanark Moorland 18 Windyhill Inland 18 Langlands Inland 18 Wishaw Inland 18 Larkhall Inland 9 South East Leadhills Inland 9 Archerfield Private - Lenzie Inland 18 Baberton Inland 18 Lethamhill Inland 18 Bathgate Parkland 18 Linn Park Inland 18 Braid Hills No 1 Heathland 18 Littlehill Inland 18 Braid Hills, The Princes Heathland 9 Loch Lomond Inland 18 Broomieknowe Parkland 18 Lochwinnoch Inland 18 Bruntsfield Links Parkland 18 No. of holes B-5

66 Name of course Type of course No. of holes Name of course Type of course Cardrona Hotel (MacDonald) Woodland 18 Longniddry Links 18 Carricknowe Inland 18 Lothianburn Inland 18 Castle Park Parkland 18 Luffness New Links 18 Craigentinny Inland 18 Melrose Parkland 9 Craigielaw Links 18 Melville Inland 9 Craigmillar Park Inland 18 Merchants of Edinburgh Inland 18 Dalmahoy East Parkland 18 Minto Parkland 18 Dalmahoy West Parkland 18 Mortonhall Parkland 18 Deer Park Inland 18 Muirfield Links 18 Duddingston Inland 18 Murrayfield Parkland 18 Dunbar Links 18 Musselburgh Parkland 18 Dundas Park Parkland 9 Musselburgh, Old Links 9 Duns Inland 18 Newbattle Inland 18 Eyemouth Links 18 Newcastleton Inland 9 Galashiels Parkland 18 Niddry Castle Parkland 9 Gifford Inland 9 North Berwick Links 18 Glencorse Inland 18 North Berwick, Glen Links 18 Gogarburn Parkland 12 Oatridge Parkland 9 Greenburn Parkland 18 Peebles Parkland 18 Gullane No 1 Links 18 Polkemmet Inland 9 Gullane No 2 Links 18 Portobello Parkland 9 Gullane No 3 Links 18 Prestonfield Inland 18 Haddington Parkland 18 Pumpherston Inland 18 Harburn Inland 18 Ratho Park Parkland 18 Haughburn Parkland 9 Ravelston Parkland 9 Hawick Parkland 18 Roxburghe Parkland 18 Hirsel Parkland 18 Royal Burgess Inland 18 Innerleithen Inland 9 Royal Musselburgh Inland 18 Jedburgh Parkland 18 Rutherford Castle Parkland 18 Kelso Parkland 9 Selkirk Moorland 9 Kilspindie Links 18 Silverknowes Parkland 18 Kings Acre Inland 18 St Boswells Inland 9 Kingsknowe Inland 18 Swanston Inland 18 Lauder Moorland 9 Torphin Hill Inland 18 Liberton Inland 18 Torwoodlee Parkland 18 Lilliardsedge Parkland 9 Turnhouse Inland 18 Lilliesleaf Parkland 9 Uphall Inland 18 Linlithgow Inland 18 Vogrie Parkland 9 No. of holes B-6

67 Name of course Type of course No. of holes Name of course Type of course West Linton Moorland 18 Fullarton Links 18 West Lothian Parkland 18 Gatehouse-of-Fleet Parkland 9 Whitekirk Heathland 18 Gigha Inland 9 Winterfield Links 18 Girvan Links 18 Woll Parkland 18 Glasgow Gailes Links 18 South West Gretna Parkland 9 Annanhill Parkland 18 Hoddom Castle Parkland 9 Ardeer Inland 18 Innellan Inland 9 Auchenharvie Parkland 9 Inveraray Parkland 9 Ayr Golf Centre Parkland 18 Irvine, Bogside Links 18 Ballochmyle Inland 18 Irvine, Ravenspark Links 18 Beith Inland 18 Isle of Eriska Parkland 9 Belleisle Parkland 18 Isle of Seil Coastal 9 Blairmore & Strone Inland 9 Kilbirnie Place Inland 18 Brighouse Bay Links 18 Kilmarnock, Barassie Links 27 Brodick Links 18 Kirkcudbright Parkland 18 Brunston Castle Inland 18 Kyles of Bute Inland 9 Bute Links 9 Lagganmore Heathland 18 Cally Palace Hotel Inland 18 Lamlash Heathland 18 Caprington Inland 18 Langholm Parkland 9 Carradale Inland 9 Largs Parkland 18 Castle Douglas Parkland 9 Lochgilphead Parkland 9 Colonsay Links 18 Lochgoilhead Inland 9 Colvend Parkland 18 Lochgreen Links 18 Corrie Inland 9 Lochmaben Parkland 18 Cowal Inland 18 Lochranza Parkland 18 Craigieknowes Parkland 9 Lockerbie Parkland 18 Craignure Links 9 Loudoun Parkland 18 Crichton Parkland 9 Machrie Links 18 Dalbeattie Parkland 9 Machrie Bay Parkland 9 Dalmally Inland 9 Machrihanish Links 18 Dalmilling Parkland 18 Maybole Parkland 9 Darley Links 18 Millport Heathland 18 Doon Valley, Patna Inland 9 Moffat Moorland 18 Dumfries & County Inland 18 Muirkirk Heathland 9 Dumfries & Galloway Parkland 18 New Cumnock Inland 9 Dunaverty Links 18 New Galloway Inland 9 Dundonald Links 18 Newton Stewart Parkland 18 No. of holes B-7

68 Name of course Type of course No. of holes Name of course Type of course No. of holes North Gailes Parkland 9 Oban (Glencruitten) Inland 18 Park of Tongland Parkland 9 Pines Woodland 18 Port Bannatyne Inland 13 Portpatrick Dunskey Heathland 18 Powfoot Links 18 Prestwick Links 18 Prestwick, St Cuthbert Inland 18 Prestwick, St Nicholas Links 18 Rothesay Parkland 18 Routenburn Parkland 18 Royal Troon, Old Links 18 Royal Troon, Portland Links 18 Sanquhar Parkland 9 Seafield Links 18 Shiskine Links 12 Skelmorlie Inland 18 Solway Links 18 Southerness Links 18 St. Medan Coastal 9 Stranraer Coastal 18 Tarbert Inland 9 Taynuilt Inland 9 Thornhill Heathland 18 Tobermory Inland 9 Turnberry, Ailsa Links 18 Turnberry, Kintyre Links 18 Vaul Links 9 West Kilbride Links 18 Western Gailes Links 18 Whiting Bay Inland 18 Wigtown and Bladnoch Parkland 9 Wigtownshire County Links 18 Source: VisitScotland website the Official Guide to Golf in Scotland (2009) B-8

69 Annex C: Golf Tourism Scotland research C-1

70 Visiting Golfer Spend in Scotland Project Managed by M W Associates on behalf of Golf Tourism Scotland

71 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Introduction As part of the 2008 National Golf Tourism Monitor, Golf Tourism Scotland (GTS) was asked to estimate the value of golfing visitor spend in Scotland in Scotland. The national figure for total golfing visitor spend in Scotland can only be an estimate, for two reasons: Visitor spend figures, whether collected by primary research among visitors or by extrapolation from courses green fee income figures, can only be best estimates. Grossing up from figures from samples of visitors and/or courses to arrive at overall national figures is not an exact science, since no two courses are the same in terms of their visitor numbers or profile. The information-gathering and analysis for this report was carried out by Mike Williamson of MW Associates, who acts as GTS s project manager for the National Golf Tourism Monitor. The methodology is described in detail on the subsequent pages. 1

72 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Approach Step 1: Spreadsheet of all courses in Scotland A spreadsheet incorporating every golf course in Scotland was compiled, using the Official Guide to Golf in Scotland as our source, as it provides a very comprehensive and accurate listing. (Short par 3 courses were excluded because there are only a few in the Official Guide). Every course in Scotland was then categorised by golf tourism type, based on: data gathered from courses participating in the 2008 Monitor; figures gathered from GTS s survey of all other courses in Scotland, and subsequently of clubs attending the Scottish Golf Union s February 2009 seminars; our own knowledge of the characteristics of the courses for which data was not available. The golf tourism categories are: Links/coastal - annual visitor green fee revenue less than 75,000 - annual visitor green fee revenue 75,000 to 150,000 - annual visitor green fee revenue 150,000 to 300,000 - annual visitor green fee revenue more than 300,000 Inland - annual visitor green fee revenue less than 75,000 - annual visitor green fee revenue 75,000 to 150,000 - annual visitor green fee revenue 150,000 to 300,000 - annual visitor green fee revenue more than 300,000 A separate category was also created for 9 hole courses (which did not participate in the 2008 Monitor, but which make up about a quarter of all courses in Scotland). The green fee revenue figures cover members guests as well as full-paying visitors, and also include VAT, since the calculation is of visitor spend rather than the revenue that remains with the golf course. 2

73 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Approach cont d Where there were doubts about which of two categories particular courses should be placed in, averaging was used, i.e. one course was placed in the lower of the two categories and the next similar course was placed in the higher category. The categorisation produced the following breakdown of all courses in Scotland by golf tourism type. The table also shows the number of courses in each category for which actual annual visitor green fee revenue figures were obtained from: - the sources listed earlier - personal contact with remaining major courses - updating information held by MW Associates from previous surveys. All the figures were provided on a confidential basis, and on the understanding that they would only be used as inputs to our calculations. 3

74 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Approach cont d Course category Links/coastal, annual visitor green fee revenue < 75,000 Links/coastal, annual visitor green fee revenue 75, ,000 Links/coastal, annual visitor green fee revenue 150, ,000 Links/coastal, annual visitor green fee revenue > 300,000 Inland, annual visitor green fee revenue < 75,000 Inland, annual visitor green fee revenue 75, ,000 Inland, annual visitor green fee revenue 150, ,000 Inland, annual visitor green fee revenue > 300,000 Number of courses in Scotland Number for which actual figures available % for which actual figures available hole courses Total Actual figures were obtained for high percentages of the major courses which make the most significant contribution to golf tourism in Scotland in terms of visitor spend, while the absolute numbers of courses providing figures in the largest groups of courses (inland courses with annual visitor green fee revenue of less than 75,000, and 9 hole courses) were sufficient to allow reasonable estimates to be made of the likely level of green fee revenue for those for which figures were not available. (These categories are also less significant in terms of estimating the overall value of golf tourism in Scotland since their visitor revenue is low and, as noted later, much of it comes from day trip visitors including members guests - whose overall trip spend is also low). 4

75 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Approach cont d Step 2 The spreadsheet was then populated with figures or best estimates of annual visitor green fee revenue and visitor types from the various sources listed above. This gave the following results. Course category Links/coastal, annual visitor green fee revenue < 75,000 Links/coastal, annual visitor green fee revenue 75, ,000 Links/coastal, annual visitor green fee revenue 150, ,000 Links/coastal, annual visitor green fee revenue > 300,000 Inland, annual visitor green fee revenue < 75,000 Inland, annual visitor green fee revenue 75, ,000 Inland, annual visitor green fee revenue 150, ,000 Inland, annual visitor green fee revenue > 300,000 Number of courses in Scotland Average annual visitor green fee revenue Total annual visitor green fee revenue 30 36,892 1,106, ,327 3,785, ,188 3,693, ,666 20,078, ,565 6,913, ,351 7,027, ,596 3,911, ,985 4,839,880 9 hole courses ,476 3,156,972 Total ,513,554 This gives average annual visitor green fee revenue of almost 100,000 per course in Scotland, but with a small number of courses the 5% in the groups with over 300,000 of visitor revenue accounting for almost 50% of the total. 5

76 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Approach cont d Step 3 Since day trip visitors and staying visitors obviously have very different levels of total trip spend, the next step was to divide courses total green fee revenue into spend by day trip visitors and staying visitors respectively. This was done using the estimates ( guesstimates in some cases) provided by a sample of courses in each category, supplemented by similar information gathered in previous MW Associates surveys. This gave the following results. Course category Links/coastal, annual visitor green fee revenue < 75,000 Links/coastal, annual visitor green fee revenue 75, ,000 Links/coastal, annual visitor green fee revenue 150, ,000 Links/coastal, annual visitor green fee revenue > 300,000 Inland, annual visitor green fee revenue < 75,000 Inland, annual visitor green fee revenue 75, ,000 Inland, annual visitor green fee revenue 150, ,000 Inland, annual visitor green fee revenue > 300,000 Total annual visitor green fee revenue Day trip: Staying Visitor split Day trip, visitor green fee revenue Staying visitor green fee revenue 1,106,760 53:47 586, ,177 3,785,118 52:48 1,968,262 1,816,856 3,693,384 50:50 1,846,692 1,846,692 20,078,652 20:80 4,015,730 16,062,922 6,913,000 85:15 5,876,050 1,036,950 7,027,868 66:34 4,638,393 2,389,475 3,911,920 62:38 2,425,390 1,486,530 4,839,880 40:60* 1,935,952 2,903,928 9 hole courses 3,156,972 50:50 1,578,486 1,578,486 Total 54,513,554 24,871,538 29,642,016 *Note: This ratio is an MW Associates estimate, as few returns were received in this category. 6

77 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Approach cont d Over Scottish courses as a whole, it appears that day trip visitors and staying visitors account for roughly equal proportions of overall visitor green fee revenue. Step 4 The final step was to gross up these visitor green fee revenue figures to arrive at total visitor spend, i.e. including spend on travel, accommodation, etc. This has been done using a range of sources, i.e. surveys which have identified the ratio between visitors spend on green fees and their total trip spend. These surveys include VisitScotland s 2006 and 2007 golfing visitor surveys carried out as part of the Monitor in those years, MW Associates 2005 survey of visiting golfers in St Andrews, MW Associates annual surveys of spend by golfpass visitors, and the SQW 2002 report. Staying visitors SQW s 2002 report gives the following round figures for total golf tourism expenditure: Sector Amount ( million) Golf clubs and courses, green fees 29.5 Golf clubs and courses, other 6.5 Accommodation 46 Transport 9.5 Bars and restaurants 15.8 Retail 6 Total On this basis, visitors spend on green fees accounts for 26% of their total spend, i.e. for every 1 spent on green fees, visitors spend a further 3 on other things (The statement often quoted from the SQW 2002 report that for every pound that is spent on green fees in Scotland a further five pounds is spent elsewhere in the Scottish economy takes account of the multiplier value of the original visitor spend). 7

78 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Approach cont d A range of more recent sources confirm that staying visitors spend on green fees is about 25% of their total spend and that this applies at all levels in the market. The main source is the 2007 survey of golfing visitors carried out by Sports Marketing Surveys (SMS) for VisitScotland. The breakdown of visitor spend in Scotland (i.e. excluding travel to and from Scotland) by origin of staying visitors is shown below. Sector Scots Rest of UK USA Sweden Other Europe Green fees Food and drink Travel in Scotland Accommodation Other Total However, it is difficult to get accurate figures on visitor spend from surveys of this kind, and there are very high figures in the Other category in the above table. Figures given for total spend by respondents who could not give breakdowns were: Scots Rest of UK USA Sweden Other Europe Total ,

79 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Approach cont d Splitting the difference between these overall totals and the totals arrived at by summing the specific elements (including the very high Other figures), and calculating the proportion of the totals accounted for by green fee spend gives the following results. Spend Scots Rest of UK USA Sweden Other Europe Green fees Assumed total Green fees as % of total With the exception of the figure for Other European visitors, it is significant that green fees account for close to 25% of total spend for the different sectors of the market, irrespective of their origin and despite wide variations in overall levels of spend. For staying visitors interviewed in MW Associates survey of visiting golfers in St Andrews in 2005, very similar ratios were found, i.e.: Green fees as % of total UK USA Europe Overall Finally, MW Associates 2008 survey of users of the First in Fife Golfpass found that staying visitors spent, on average, 491 in total of which 113 (23%) was spent on green fees. It therefore seems safe to assume that green fees account for about 25% of total spend by golfing visitors staying at least one night in Scotland, and that this ratio applies equally to all sectors of the market. 9

80 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Approach cont d Day trip visitors Green fees account for a much higher proportion of total spend in the case of day trip visitors. SMS s 2007 survey for VisitScotland found the following breakdown of spend by day trip visitors. Sector Spend Green fees 64 Food and drink 29 Travel in Scotland 15 Total 108 As with staying visitors, some respondents could only give an overall total, the average for which was 93. Again, splitting the difference and assuming an overall total of 100, green fees account for 64% of the total. The ratio of green fees to total spend among day trip visitors covered by MW Associates 2005 St Andrews survey was 72%, while MW Associates survey of golfpass users found a ratio of 64%. We therefore use a ratio of 67% for the purpose of our calculations in this report. 10

81 Golf Tourism Scotland Visiting Golfer Spend in Scotland - Report Approach cont d Conclusions The final step is to apply these ratios to the earlier estimates of green fee spend. This gives the following results. Sector Total green fee spend million Green fee spend as % of total spend Total visitor spend million Staying visitors Day trip visitors Total As a round figure, the calculations therefore suggest that the total spend by golfing visitors to Scotland is currently around 155 million, before taking account of any multiplier effects. Of the total, almost 25% is spend by day trip visitors, the vast majority of whom will be Scots (other than in the case of some courses in the south of Scotland and Ayrshire who get some day trip visitors from the north of England and Northern Ireland respectively). This day trip spend is money re-circulating within the Scottish economy, rather than an injection of spend into the Scottish economy or money which might otherwise have been spent outwith Scotland as is the case with staying visitors. 11