Golf travel insigths

GOLF ADVISORY PRACTICE

Golf Travel Insights 2010
ADVISORY

Participating golf tour operators by country
United Kingdom 12% Other 45% United States 10% Germany 8% Spain 6% Thailand 4% Sweden 4% Malaysia 4% Argentina 4% Ireland 4%

Introduction
This report is based on a global survey among golf tour operators, performed by KPMG’s Golf Advisory practice during summer 2010. Over 120 golftour operators from 41 countries have participated in the survey. About half of the responses were received from European golf tour operators, 18% from Asia and 22% from those located in the Americas, with the remainder being Africa-based or from Australia and New Zealand. For the purposes of this study a golf trip is defined as a leisure trip taken within a country or cross-border, which includesat least one overnight stay and when the traveler’s main motivation is to play golf.

Recent trends in golf tourism
Mainly due to the economic recession of the past 18 months, 38% of the surveyed golf tour operators have experienced a fall in demand (up from 10% in the summer of 2008). While 8% of them found demand to be stable, 54% still noticed an increase in the number of golf tourists(albeit down from 73% in 2008). Although the average length of stay remained more or less the same, several operators noted that golfers travel less frequently, i.e. those who used to go on 2-3 golf trips a year now only go on one. More than 40% of the survey participants also noted a decrease in the average expenditure during a golf holiday. While golfers have become more cost conscious, this findingcan also be explained by the discounted rates and packages available on the market.

Source: KPMG Golf Travel Insights 2010

How has demand for golf tourism changed in the last 18 months?
Number of golf tourists… ...decreased ...remained the same ...increased 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2010 2008
Source: KPMG Golf Travel Insights 2008 and 2010 Note: Responses for 2008 weregiven prior to the full scale unfolding of the economic crisis

10% 38% 18%

In certain key markets, currency exchange rates have significantly influenced demand patterns. For example, the devaluation of British pound to the euro has resulted in a drop of outbound tourism while local operators experienced a pickup in demand for domestic golf travel packages. Changes in golf tourism demand (last18 months)

8%

73% 54%
Number of golf tourists 54% 8% 38%

Increased Remained the same Decreased 12% 69% 18%

Average length of stay

Average budget spent 0%

21%

37%

42%

20%

40%

60%

80%

100%

Source: KPMG Golf Travel Insights 2010

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Golf Travel Insights 2010 2

According to IAGTO, a significant proportionof regular golfers, usually somewhere between 25-30%, frequently take vacations where they play golf. This is fairly constant from one country to another and has changed little over the past decade or so. Therefore the strength of an outbound market at any given moment is heavily dependent on the participation levels, the country’s economy and currency exchange rates. The major European marketsof the UK, Sweden and Germany remain very strong, but the fastest growing markets include Switzerland, Austria, Denmark and the Czech Republic, where golf populations are relatively small, but growth rates are high. Maximising market mix is an essential task for all destinations and resorts in order to provide buffers against variations in the performances of individual markets. Approximately 70%of golfers like to find new places to play golf on vacation. This is great news for emerging destinations but a challenge for those more established. New courses in established destinations solve this problem as golfers can return to their favourite locations but also enjoy new golf experiences. After a very wet, cold and prolonged winter, golfers are going to be looking for guaranteed sunshine...