Golf Inc. - October 2008 - (Page 6)

opNews Top News The € 53 billion boost New study reveals that Europe-Middle East-Africa region enjoys major economic gain from golf industry growth By Rebecca Larsen he golf industry has been expanding rapidly in Europe, Africa and the Middle East in recent years. Now a new groundbreaking survey illustrates how that growth of the game has produced huge economic gains for those regions The report prepared by Hungary-based KPMG Golf Advisory Practice found that golf generated a €53-billion-a-year impact on the Europe-Middle East-Africa (EMA) regional economy, provided jobs for a half million workers and paid nearly €10 billion in wages. Entitled “The Value of Golf to Europe, Middle East and Africa,” the survey concluded that in gross domestic product — once costs are subtracted — the game contributes €14.5 billion a year to the region – as much as the last six Olympics combined (prior to Beijing 2008) brought to cities that hosted them. Direct revenues produced by the game – actual on-site spending at courses, retailers and hotels – totaled €21.17 T billion, the study found. “This is the first time this kind of research has been done on this side of the Atlantic,” said Andrea Sartori, head of KPMG Golf Advisory Practice EMA, who did the groundbreaking study with Oxford Economics. A few caveats to keep in mind: The most recent full-year statistics in the report are from 2006, so the study doesn’t take into account the recent worldwide financial slowdown. KPMG also faced serious challenges in gathering data due to differences in currencies, fluctuating exchange rates and some limited and contradictory statistics. But the report is eye-opening when it comes to showing the impact of golf on the economies of the countries surveyed. In Europe alone from 1985-2007, the number of courses and players more than doubled, while in the United States, growth has been much slower. In the U.S., the number of courses and players has been relatively stable since 2000. But the U.S. golf industry still is much larger, with more than 19,000 facilities compared with 8,500 in Europe, the Middle East and Africa combined. The U.S. also has an estimated five to six times more players. “There has been a leveling off in the United States, after many years of rapid growth,” said Ken Costanzo, president of Gary Player Real Estate. His company is seeing rapid growth in the Middle East and South Africa, as well as growing activity in South America and India. “All that is partly because professional golf has more of an international flavor today than it has ever had before,” he said. “When people from these countries see their players winning in tournaments, it gives golf an uptick.” “Clearly the United States is the most mature market, so growth there will tend to be steady and in single figures,” said Matt McNulty, managing director of Ireland’s Tourism Management Services. Some countries in Western Europe are Golf economy impacts $28.0 Direct revenue generated by the golf industry n the Europe-Middle East-Africa region Direct revenue generated by the golf industr y iin the Europe Middle East Africa region rect ev re e en ate ted h golf nd s r olf d he urope Midd iddle as A ca g o an the U.S. i bil ion ) and th U.S (in billions) and the U.S. (in billions) illions) EMA TOTAL: €21.1 U.S. $75.9 $18.0 $18.0 18 18 0 $15.0 $1 $15 0 $15.0 €7.3 €7.3 73 €1.9 €1.9 1 Operations $3.6 $3 $3.6 €1.9 €1.9 1.9 9 $6.1 $6 $6 $6.1 €0.4 €0.4 4 $1.7 $1.7 $1 $1.7 €2.7 €2.7 2.7 Tourism €6.9 €6.9 6 $3.5 $3. $3 $3 5 --Real estate Charities Capital investments Supplies Tournaments/ endorsements Sources: KMPG Golf Advisory Practice “The Value of Golf to Europe, Middle East and Africa,” Golf 20/20 “2005 Golf Economy Report” 6 Golf Inc. October 2008

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Golf Inc. - October 2008 Contents From the Editors: Smaller is Less Costly Survey Reveal Golf's Economic Impact in EMA Private Club Managers Earn Bigger Salaries Dyes Mourn Loss of Family Member Changing Demographics Impact European Golf Scene RDC Golf Group Finds Affordable Golf Niche Links at Summerly Offers Unique Twist Cost Crunch Most Powerful People in Golf Contractors Focus on Renovations, International�Projects Troon, IMG Reach Into Booming Middle East Market Americas Recap: New Player Design in Mexico Europe-Africa Recap: Moroccan Lakeside Development Asia-Australia Recap: 3 Billion Dollar Resort in Vietnam The Last Word: There's No Substitute for Good Friends on a Golf Course

Golf Inc. - October 2008

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