Andalusia leads the ranking of income from golf tourism, and much of this leadership does not correspond to spending on the golf courses themselves but to the ability to import foreign capital that this industry represents.
These are the main conclusions of the independent study on the economic impact of golf tourism, conducted by IE with the collaboration of the Spanish Association of Golf Courses (AECG) and the Royal Spanish Golf Federation (RFEG), which was presented at an event at the Real Club de Golf de Guadalmina. The Vice President and Minister of Tourism of the Junta de Andalucía, Juan Marín, and the President of the Confederación de Empresarios de Andalucía (CEA), Javier González de Lara, took part in the event by telematic means.
Andalusia is the community in Spain with the largest number of golf courses, which, according to the study data, have a turnover of 27.9% of the national total (216.79 million euros). The report also reveals that the overall economic impact of Andalusian golf and golf tourism in Andalusia is much greater than the wealth generated directly by the courses themselves: a total of 5,426 million euros, which corresponds to 42.5% of what the country as a whole generates. You can find more information on the economic impact of golf in Andalusia in this report.
Beyond its role as an economic catalyst, Andalusian golf is also an important generator of employment: more than 52,000 jobs per year after adding those produced directly by the golf courses (4,452) and those corresponding to golf tourism, which account for a total of 47,646 jobs, direct, indirect and induced. An industry that can be fundamental to help the economy recover after the Covid-19 pandemic.
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Lever for economic recovery
The capacity of golf as an importer of capital from abroad, both for tourism activity and for investment in second homes, together with the large distribution of income from tourism among numerous companies, SMEs and the self-employed, makes golf tourism a key factor in the economic recovery from the crisis resulting from Covid-19. To this end, it is necessary to have the appropriate tools common to the rest of the tourism sector. In this sense it is more necessary than ever the application to golf of the reduced VAT rate common to the rest of the sector, and this to maintain the competitiveness and leadership position of the Andalusian golf destination in Europe.
“The IE study highlights and quantifies the importance of golf for the Andalusian economy as a generator of wealth not only in its facilities, but also in other subsectors, deseasonalizing the tourist season and generating permanent and quality employment,” said the president of the Spanish Association of Golf Courses, Claudia Hernandez, during the presentation. “It is important to highlight the enormous difference between the income of golf courses and the total expenditure of golf tourists at their destination, which is 2,068 million euros per year. This data confirms, in short, that golf belongs to everyone”.
The IE professor who led the research, Juan Santaló, who spoke at the telematic event, explained that in order to understand the total income from golf tourism, it is necessary to take into account the domino effect that golf course activity triggers for the overall economy and employment in Andalusia.
“The activity of golf courses generates an economic effect that goes beyond the direct turnover of the golf courses themselves and tourist spending. In this sense, the indirect effect is defined as that generated by companies that supply golf courses and companies that provide services to golf tourists who, in order to meet the demand of golf companies and companies that provide services to golf tourists, generate additional demand for other companies that in turn generate more demand for others, in a process that multiplies economic activity,” explained Juan Santaló during his presentation.
The study also provides other key data on the economic impact of golf for the Andalusian economy:
– Golf tourists spend 2,068 million euros a year in Andalusia, excluding spending at the golf courses themselves.
– 9 out of 10 euros spent by golf tourists benefit other service providers and tourism sub-sectors, demonstrating its potential as a catalyst for economic activity in Andalusia.
– Golf increases the quality of employment since 95% of contracts at golf courses are permanent and 94% are full time
– Golf attracts international investment in second homes, reaching a total value of 15 billion euros
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Gonzaga Escauriaza, president of the RFEG, pointed out: “Golf has a long tradition in Spain and is an asset that is vital to defend, not only for sporting reasons -which is also true- but also for the economic impact, the employment it generates, the health it brings to those who practice it and because it is an ideal activity in times when social distance is a priority. The last months have been hard for the practice of golf in Andalusia, however, the results of this study emphasize the importance of the Public Administrations to continue betting on a sport that creates an economic ecosystem that brings so many benefits for the economy and the Andalusian society”.
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