UKGCOA

BGIAPresentation

Woburn

April 2012

UK Golf Course Owners Association

I have been asked to give you an overview how the UKGCOA is trying to

combat the decline in golf club membership.

Colin Mayes, Chairman UKGCOA


» Objectives:» To promote, develop and represent the interests of golf course

owners in the UK

» To grow the game of golf

» To act as a forum for the exchange of ideas and experiences

» To professionalise the golf business

The UK Golf Course Owners Association

» Golfers in the UK

» Frequency of play by regular golfers has reduced

» From an average of 21 rounds a year in 2005

(84 million rounds)

» To an average of 18 rounds a year in 2010

(72 million rounds)

» 14% reduction in the numbers of rounds


» Golfers in the UK

» Trends are away from being a club member» 43,000 reduction in club members across UK in 2011

» To being a ‘Nomad’ or floating golfer» Numbers of rounds are up but ‘yield’ is down

» But this brings challenges for golf course owners and managers» Green fee revenue reliant on good weather and major sporting events often bring negative results


THE “OLYMPICS EFFECT”

ROUNDS PLAYED & RETAIL

“THE OLYMPICS EFFECT”

We all know the impact that weather can have on Rounds…

But what about sporting events…


Average number of Rounds Played per coursein each month ~ 2007 - 2008

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007

2008

• UK Rounds Played is heavily reliant on external factors

such as weather, economic situation and sporting events.

At an average loss of over 300 rounds per course, it is calculated that circa 900,000 rounds of golf were lost throughout Great Britain in August 2008.


Aug-07 Aug-08 Aug-09

Golf Ball SalesAugust – 2007, 2008 & 2009

• In a direct relationship with a loss of rounds played, golf ball sales throughout August

2008 were also affected witnessing a 13% drop year-on-year compared to 2007.• Interestingly, ball sales in August 2004 (the previous Olympic Games in Athens)

witnessed a even greater fall of 19% compared to August 2003.



Conclusion

The stats should have us worried about the business

We all know the time arguments

We all know the rules and stuffy club image factor

We all know that its not cheap

We all know that it’s a game of skill & therefore not learnt tomorrow

But many of us are doing well, even in these difficult times and all the above against us……………..

How and why is this the case?

As in most difficult business scenarios the answer is pretty simple…………


Why are the good clubs doing well?

Answer: Simplicity and focus

The following are at the top of every good Golf Clubs agenda

1. Understand your customers key needs.

2. Know your customers & how to keep in touch & what interests them.

3. Deliver consistent standards to meet their needs, communicate with them & monitor them as if your life depends on it.

4. Ensure your teams are clear on what the customers want & their part in delivering the standards they expect.

5. Ensure that a sensible commercial return is provided from your service & you control the sales input and cost output.

6. Keep investing in your product & people & just keep repeating the process.


Abbey Hill Golf CentreSchools Partnership


“When we advertised an after school Golf Club our children were very excited and the club was over subscribed.

All the children who attended thoroughly enjoyed the experience. Comments from the teaching staff highlighted improved motivation and, for some children, improvement in gross motor control and eye-hand coordination.

We would certainly welcome the opportunity to further develop the teaching of golf in school.”

Jan Kennington, Headteacher, Bradwell Village School


Mascot ‘Chip the Bear’ is the special guest at many family open days and children's golf birthday parties.


Making teaching fun at summer camps

National junior tournament aimed at all abilities



Tri-Golf target practice and Halloween Spooky Night Golf – fun for all the family!


» Overview of the Industry - 2011» Its tough out there» We must recognise that our core customer is in decline» A clear difference is developing between the professional

operators v others, this will continue » Look forward with confidence, UK and European golfers are

doing well and creating exposure for the industry » Strong interest in our junior programs, we must all build upon this» The industry must develop best practice throughout all of our

businesses to win and delight our customers» Investment in our facilities, people and promoting the game for all

is critical to our future success» Sharing our successes and failures is good for us all

Partnerships

» Home Unions:» Close partnership agreed with the English and Scottish Golf Unions and the Golfing Union of Wales

» OGRO» Collaboration on services to the commercial sector

» Grow the Game» PGA» The Golf Foundation» EGCOA Grow the Game Website

» Education:» Club Managers Association of Europe

Membership current status

» Current membership:

» 74 owners, who between them are responsible for» 136 golf facilities

» 4 x 9-hole courses» 104 x 18-hole courses» 12 x 27-hole courses» 10 x 36-hole courses» 4 x 45-hole courses» 2 x 54-hole courses» TOTAL 160 x 18-hole golf courses

Corporate Partners

Diamond:

Silver:

Purchasing Partner:


» Taxation in the UK Golf Industry

» UKGCOA stated objective is a level playing-field for taxation of all types of golf courses across the UK

» The UKGCOA are working with England Golf on this project, as they share our objective

» Two tribunal hearings in the next few months will hopefully give some clarity to the current situation:


» Bridport & West Dorset Golf Club» Over 600 member-owned clubs in this case»Claim that Green Fees are ‘core’ revenue and should be exempt

from VAT» HMRC disagree and UKGCOA agrees with HMRC

»Chipping Sodbury Golf Club»Over 300 golf clubs behind CSGC, both member-owned and

commercially-owned»Claim that membership of a golf club includes the ability to

‘participate in sport’ and thus should be partially exempt from VAT» HMRC disagree and UKGCOA agrees with Chipping Sodbury GC

Golf Business & Industry Convention - GolfBIC

» Forest of Arden – March 29/30» 250 attendees over 2 days» 180 stayed both days» Charity dinner raised £4,500 for The Golf Foundation

» 65.5% of delegates stated that they were ‘extremely satisfied’ with their participation in GolfBIC

»75% of exhibitors stated that GolfBIC turned out to be ‘better than they expected’

Sports Marketing Surveys Inc

UK CONTACT DETAILS

The Courtyard, Wisley,Surrey GU23 6QL, [email protected] Tel: + 44 (0) 1932 345 539

RICHARD PAYNE – SPORTS ACCOUNT [email protected]

TAN DANEE – SPORTS AUDIT [email protected]

© 2012 SPORTS MARKETING SURVEYS INC.No part of this report may be reproduced or transmitted in any form or by any means, including photocopying, without the written permission of Sports Marketing Surveys Inc., any application for which should be addressed to Sports Marketing Surveys Inc. Written permission must also be obtained before any part of the report is stored in a retrieval system of any nature. DisclaimerWhilst proper due care and diligence has been taken in the preparation of this document, Sports Marketing Surveys Inc. cannot guarantee the accuracy of the information contained and does not accept any liability for any loss or damage caused as a result of using information or recommendations contained within this document.

UKGCOA

Sports

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