Those green shoots…

Eduardo García Palacios

We all know that the golf business as a tourist industry has been given thirteen blows with the increase of the VAT in that percentage is something that the sector is beginning to digest (what a remedy!), that this Government says it is beginning to see green shoots in the economy in the short term reminds us of a sounding that the previous Executive repeated periodically?

In short, in bad weather we must put on a good face and not be swept away by the current of the surrounding pessimism, and we must cling to the positive news, which, incredibly, still exists.

And one such feel-good news has been released by the International Association of Golf Tour Operators, IAGTO for friends, which has revealed in its annual report that worldwide golf vacation sales grew by an average of 9.3% in 2012 over the previous year.

This is the largest and most comprehensive international golf survey ever conducted. The report’s findings come from data provided by 48% of IAGTO member tour operators worldwide, who completed a detailed survey earlier this year.

And what IAGTO says matters, and matters a lot, because this association is the global trade organization for the golf tourism industry and currently has 2,061 member companies in 90 countries, including 492 golf tour operators from 62 countries that control more than 85% of all golf vacation packages sold worldwide.

The Golf Tourism Report shows that tour operators handled travel for more than 1.6 million golfers in 2012, with golf vacation sales exceeding €1.5 billion ($2 billion).

Average sales growth in 2012 over 2011 reported by IAGTO golf tour operators based in Europe was 9.4%, a tenth higher than the global average of 9.3% (European tour operators account for 57% of all IAGTO tour operators). Sales growth was recorded on all continents: Europe 9.4%, North America 13.5% and Asia Pacific 5.1%.

Tour operators in Latin America, the Middle East and Africa recorded average sales growth of over 20% for the same period.

The report also shows that 38% of IAGTO tour operators sell exclusively golf vacations, while the remaining 62% also sell other types of vacations, including general leisure, along with meetings, incentives and business travel services.

IAGTO President and CEO Peter Walton, whom we incidentally published an interview with in this issue, says of the Report, “This is by far the largest and most comprehensive survey conducted within the golf tourism industry since IAGTO was founded 16 years ago. More than 650 of the member companies have completed a detailed online questionnaire tailored to their individual business, and the report will serve as a reference document for future annual studies.”

“For the first time,” Walton continues, “we have been able to assess the relative growth of 75 golf destinations and get an indication of their importance in terms of sales volume for IAGTO tour operators. This is important marketing material that will be of great benefit to our partners: golf resorts, golf courses, hotels, tour operators and tourist boards.”

Yes, it is a very valuable material that must be taken advantage of so that the golf tourism sector in Spain can squeeze all its juice and know how to successfully market its courses in a world with an increasingly growing and voracious competition.

Fortunately, and according to the ‘Golf Travel Insights 2013’ report by KPMG’s Golf Advisory, Spain is still the number one destination for golf holidays, but our competitors are hitting hard, especially Turkey, which has grown a lot and is currently in fourth position, behind Portugal (second) and Scotland. It is followed by Ireland, Dubai/Abu Dhabi, South Africa, the United States, England, France, Mexico/Caribbean, North Africa and Eastern Europe as favorite destinations.

The results of this report indicate that 57 percent of the golf tour operators surveyed (112 in 38 countries) recorded an increase in bookings during 2012 and only 5 percent experienced a decrease in bookings. These figures are very similar to 2011, pointing to a steady recovery in the golf business in line with the recovery of the overall economy since the financial crisis.

The report notes that the British, Americans and Canadians continue to be the most numerous golf travelers, although many of their getaways are to their home country. Scandinavians (mainly Swedes), Germans and Austrians are also at the top of this list, with a strong interest in traveling abroad to play golf.

In terms of golfers’ motivations for choosing a vacation destination, the survey reflects that golf tourists have become more price-sensitive in recent years, and the cost of a trip has become a key factor in choosing a trip. However, players still care about the quality of courses and accommodations, and demand more value for their money. Accessibility also remains a key factor, and the availability of direct flights to the golf destination plays an important role.

There are data, and many more, that help to make an x-ray of what the traveling golfer wants nowadays. Now it is a matter of getting the messages right, offering maximum quality at a price in line with the product, taking the utmost care of the course, all the facilities and customer service… and, of course, always offering our best face to our dear guests. As a slogan of the Costa del Sol Tourist Board used to say years ago: “To the tourist, a smile”. And something more, of course.

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