Saturday, Jan 26, 2008
Gulf News
Dubai: The UAE is the most expensive golf destination in all of Europe, Middle East and Africa, and the country is setting new standards in the business, accounting firm KPMG said in a report.
Average revenues for golf courses in the Middle East are three to four times higher than similar golf course businesses in Europe.
The Golf Benchmark Survey Summary Report published yesterday showed that revenues of 18-hole golf courses in the Middle East average 5.3 million euros (Dh28.8 million).
Courses in Dubai, which accounts for more than half of the Arab region's golf facilities, are especially successful, with revenues averaging about seven million euros (Dh38 million).
Among top European golf locations, courses raked in the average 1.8 million euros in Portugal and the Netherlands, 1.5 million euros in Spain and 1.3 million euros in Ireland.
"Golf in the Middle East continues to drive forward, setting new and extraordinarily high standards for the international golf business," said Andrea Sartori, head of KPMG's specialist Golf Advisory Services Team.
"The influx of expatriates from traditional golfing countries such as the UK, Ireland and Australia, and the interest of international golf tourists, continues to fuel the golf boom. Dubai, in particular, has led the way in positioning itself as a global destination for golf," Sartori said.
Recent phenomenon
Demand for golf in the Middle East, where water and natural greenery are scarce, is a recent phenomenon as the sport is not traditionally enjoyed by the local population. In places like the UAE, tourism and real estate boom is driving golf developments. Dubai's Jumeirah Golf Estates has engaged top golfers such as Greg Norman and Vijay Singh to develop a number of courses.
KPMG estimates the number of golfers in the region to be around 17,000, a .026 per cent golf participation rate, much lower than in European countries. In the UAE, the number of golfers is estimated to be 7,000.
Golf in the Gulf, is also the most expensive anywhere in Europe and the Middle East and Africa, KPMG said.
On average, 18-hole weekend green fees in the Middle East cost 107 euros, more than double the average 50 euros paid in Britain and Ireland.
The UAE, which has about 20 new golf courses under development or in planning, is also the most expensive country, where an 18-hole weekend green fee is 121 euros, followed by Portugal at 78 euros and Cyprus and Turkey at 76 euros.
The least expensive courses to play golf are located in South Africa and Eastern Europe, where people can enjoy the game for less than 40 euros.
KPMG said the report was based on 2006 data submitted by about 1,500 golf courses in 48 countries. Ten Middle Eastern courses participated in the survey.
Like the Middle East, golf courses in South Africa have year-round availability and high volumes of play, but their revenues and profits are significantly lower due to their low green fees and membership fees.
Despite having 10 times more staff than courses in Europe, Middle Eastern courses enjoy average profit margins 32 per cent higher than anywhere in Europe. On average there are 188 staff at 18-hole golf courses in the Middle East, with Dubai courses employing about 230 people KPMG said.
Gulf News 2008. All rights reserved.
