Golf in the Gulf is keeping its head above water better than most in the Europe, Middle East and Africa (EMA) region enjoying the best levels of business performance during 2010, according to the latest KPMG Golf Benchmark Survey.
The survey, published ahead of the KPMG Golf Business Forum at Dubai Creek Golf and Yacht Club, April 17-19, 2011, reveals some three-quarters (73%) of golf courses in the combined Middle East and North Africa (MENA) region enjoyed 'good' performance during the past 12 months - almost twice as many as in Central Europe (41%), the next best ranked region for this measure.
Facilities in the prosperous Middle East have retained the high levels of performance highlighted in previous surveys, and the development of courses in the Gulf, aligned to high-end resorts and residential communities, continues apace.
Indeed, eight out of 10 course owners (82%) - almost 20% more than the next highest area, Benelux - intend to invest capital in improving their facility during the coming year. This ties in closely with the fact that not one owner in MENA would consider selling up, despite the current global economic downturn.
With these plans in the pipeline, it is of little surprise that courses in MENA, compared to others across EMA, are the most optimistic with regards to future business performance - 81% expect to perform better during 2011 than last year with a fifth having already reached pre-downturn levels of performance.
Hesham Al Qassim, CEO of wasl, the owner of Dubai Golf and one of the leading operators in the region, said, "2010 was a very successful year for Dubai Golf. The results that we have achieved so far in 2011 have also been very encouraging and we have seen positive growth in all areas of the business at both Emirates Golf Club and Dubai Creek Golf & Yacht Club, in particular we have seen a significant increase in the number of overseas players at both clubs which is encouraging for the remainder of the year."
Despite this continued encouraging performance and perceived continued upsurge in the demand for golf in the Middle East, the region has not been totally immune from the continued fallout from the recession.
While all Middle East golf facilities encouragingly reported at least 'good' or 'average' performances in 2010, this contrasts with the largely 'excellent' reports of previous years. And while more than half (55%) returned a gross operating profit - a growing demand for golf allied to expensive green and annual fees, helping boost revenues - others have been less successful with 45% of facilities keeping costs in check by making staff cuts.
Andrea Sartori, head of KPMG's Golf Advisory Practice, said, "The survey's findings confirm the continued strong performance of the Middle East's golf courses, thanks to its small but growing number of high-quality facilities, and its increasingly prominent place on the global golf stage. However, the future optimism of course owners will undoubtedly be tempered by the region's current social and political turbulence - and this may, in the short term, see a fall in the number of tourists upon whom many courses rely for their business."
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