A FRAMEWORK FOR UNDERSTANDING GOLFING VISITORS TO A DESTINATION. (2008). Journal of Sport and Tourism 13 (1), 5-35.

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1 A FRAMEWORK FOR UNDERSTANDING GOLFING VISITORS TO A DESTINATION (2008). Journal of Sport and Tourism 13 (1), Sean M. Hennessey, Ph.D. School of Business Administration University of Prince Edward Island Charlottetown, PE, Canada hennessey@upei.ca Roberta MacDonald, Ph.D. School of Business Administration University of Prince Edward Island Charlottetown, PE, Canada romacdonald@upei.ca and Melissa MacEachern, Ph.D. (candidate) School of Business Administration University of Prince Edward Island Charlottetown, PE, Canada mamaceachern@gov.pe.ca

2 A Framework for Understanding Golfing Visitors to a Destination ABSTRACT The purpose of this study is to determine whether there are differences among visitors to a destination based on their golfing frequency in the previous year. In this study, profiles of golfers to a destination, based on their golfing frequency, are created. By constructing a framework for understanding the golf traveller, golf and tourism industry representatives can better understand the contribution that golfers make to a destination based on factors such as satisfaction, perceived value received from the golfing experience, trip length, expenditures, travel decisions, and motivations. Findings from this research may provide golf and tourism marketers information that will lead to branding strategies, allow for the development of market segmentation models that help in target market selection, and provide the foundation for the development of a customer relationship management (CRM) system.. Key Words: golf market, golfer profiles, golfing framework, demographic and environmental influences, golfographic variables, value and satisfaction, destination branding 1

3 INTRODUCTION Golfing is a dynamic and growing activity for tourists globally and, if developed and marketed appropriately, can become a very successful and profitable niche tourism product (Hinch and Higham, 2001). While sports tourism, in general, would be considered a niche market, as of 2001, the economics of sport was growing four times faster than the rest of the rest of the US economy (Blundell, 2003). In addition, participation is sport while on vacation is a growing phenomenon. Glyptis (1991) and Glyptis and Jackson (1993) report that 56 percent of British tourists participate in at least one sport while traveling in the UK. For 26 percent of these visitors, sport is the primary vacation activity. As for golf, the international golf market consists of over 57 million people with 27.4 million golfers in the US, 5.5 million in Europe, 14 million in Japan, and 5.95 million in Canada (Northern Ireland Tourist Board (NITB), 2005, RCGA Canadian Golf Survey, 2006). In the US in 2002, golfers spent $24.3 billion on equipment and fees. They spent $19.7 billion on public and private green fees and dues, and a further $4.7 billion on equipment. Avid golfers, those playing 25+ rounds annually, are the smallest player segment (23 percent of golfers), but account for 63 percent of all golf-related spending in Furthermore, US golfers spend about $26.1 billion a year on golf travel, 75 percent of which goes to the accommodation, transportation, and food and beverage sectors. The sunshine states of Florida, South Carolina, North Carolina, California and Arizona are the most popular travel destinations for golfers (National Golf Foundation, 2006). In terms of its overall economic impact, SRI International (2002) found that the golf is a major industry in the U.S. accounting for $62 billion of economic activity in This is higher than the economic impact of the motion picture and sound recording industries and of the amusement, gambling, and recreation business. 2

4 As mentioned earlier, in Canada 5.95 million people play golf (Royal Canadian Golf Association, RCGA, 2006). While much lower than in the US, when the traditional 10:1 ratio is used to compare the two countries, surprisingly, Canada has a much higher golf participation rate. At 21.5 percent, Canada s golf participation rate is more than double that in the US and is among the highest rates in the world. The same applies to spending with Canadian golfers spending $12.9 billion per year on direct golf-expenditures. There are more golfers per capita in Canada than elsewhere in the world. Driving the increase in number of golfers is the core golfers, those who play at least eight rounds of golf per year. This group has grown by almost 50 percent since 2001 to 2.73 million people. The number of occasional golfers, those who play one to seven rounds of golf per year, has only increased by 8 percent to 2.83 million. On average, Canadian golfers played an average of 15.5 rounds per year (RCGA, 2006). Based on these statistics, it is clear that golfers are a sizeable niche market that presents a significant opportunity to grow and maintain visitation to a destination, and generate substantial revenues for the tourism industry and government. With the very high fixed development costs associated with golf courses, golf marketers need to understand the visitor in order to improve profitability and competitiveness. As a niche product, golf s ability to attract certain types of visitors may lead to higher returns for tourism destinations. Tourists visit a destination for a variety of reasons, often personal in nature, and driven by a number of internal and external forces. Standeven and DeKnop (1999) define sport tourism as all forms of active and passive involvement in sport activity that necessitate travel away from 3

5 home. Weed and Bull (2004) view sports tourism as a unique interaction between activity, people and place, whereas sport tourism is the all-encompassing field of sport as a social institution. Nogawa et al. (1996) suggest that destination marketers should be aware that sport tourists have the potential to become sightseers. This is consistent with tourism demand models where the available attractions are a key factor in repeat visitation decisions (Costa and Manente, 1995). Therefore, sports visitors should be made aware of the notable features of the destination. This implies that the relationship between the numerous variables influencing behaviour must be researched in order to fully understand current and potential visitors to a destination. To be able to construct appropriate models and profiles of visitors, it is important to recognize the influences on the decisions made. This study provides a framework for developing profiles that can be used to gain a greater understanding of golfing visitors and their behaviour. LITERATURE ON SEGMENTING THE TOURISM MARKET Market segmentation is a well-established marketing strategy (Kotler and Armstrong, 2006) that, when used constructively can lead to a high return on investment. There are various segmentation approaches including geographic, demographic, psychographic, and behavioural dimensions (Crane and Berkowitz, 2006). The behavioural segmentation approach includes a number of variables such as usage, benefits sought, intention to purchase, and repeat purchase. Utilizing behavioural dimensions to segment travel markets can be a powerful tool in managing tourism. Weed and Bull (2004) segment sports tourists based on the importance and type of sport participation included in their tourism experience. This categorization is also based on tourists 4

6 motives, personal characteristics, and the primary reason for travel. A sports tourism participation model is developed that accounts for the varying levels of actual and even intended participation by sports tourists. Weed and Bull (2004) recommend that sports tourism providers and policy makers use this model to develop effective business strategies. The level of usage of a product or service has been extensively used in marketing research. While usage based segmentation has been most often employed in consumer packaged goods research, the extent to which visitors use travel and travel related products and services (heavy, medium and light) have been explored and documented in the tourism literature. For example, the level of usage of a product or service has been employed to segment travel markets (Kotler et al., 1999, Woodside et al., 1987, Morgan, 1996, Litvin, 2000). By using this behavioural variable, the importance of consumption patterns in travel usage can be studied. Litvin (2000) reported that usage-based segmentation is a valid approach to use for various niche offerings and their usage-based visitors. As such, niche markets like golf, present an opportunity for exploring usage based segmentation. Another important influence on travel and travel management is word-of-mouth recommendations. Intentions to visit and to revisit destinations can be drawn from tourists recommendations (Opperman, 2000). These recommendations are based on a number of factors including satisfaction and product performance. A product s performance can be a powerful determinant of future purchase intentions (Baker & Crompton, 2000; Cronin & Taylor, 1994; Levitt, 1981, Whipple & Thatch, 1988). It is important to understand travelers behaviour and 5

7 the impact that the product (destination and supply-side elements) have on the visitor experience. Tourism marketers recognize the importance of word-of-mouth and that it is one of the most powerful forces in motivating travel. A destination must assess the impact its various products and services have on satisfaction and the perception of performance as an indicator of the intention to recommend the destination to others and to visit again. As indicated above, word of mouth recommendations can be based on level of satisfaction. Satisfaction has been extensively researched in the tourism literature both at a macro and micro level. Satisfaction is a basic parameter used to evaluate the performance of a destination products and services (Noe & Uysal, 1997). In the literature there is no consensus regarding the relationship between satisfaction, value, and the product/service performance relationship. However, satisfaction is defined as being an affective response to the cognitive evaluations of products and services (Otto & Ritchie, 1995). Satisfaction with products and services is based on perceived and real experiences including expectations. Within this context, it is important to understand how current visitors experience particular products and services and their perceptions regarding satisfaction. The complexity of satisfaction make it all the more important to understand, particularly for niche tourism products. In a study of visitors to Singapore, Kau and Lim (2004) developed segments based on motivation to visit and found these segments differed significantly in their levels of satisfaction and likelihood to recommend to others, but this variation did not relate to the likelihood to revisit the destination. For golfers, it seems that satisfaction with the experience is highly correlated with intentions to revisit (Petrick and Backman, 2002b). 6

8 Furthermore, Yoon and Uysal (2003) report that other factors such as motivation to visit and expectations of the destination impact the relationship between satisfaction and repeat visitation. Clearly, the factors influencing the decision to revisit or recommend a travel destination to others require further study. Tourism researchers and marketers need to understand tourist s experiences at a destination, and the factors resulting in increased levels of visitor satisfaction. Is the level of satisfaction related to intentions to revisit and recommendations? Can knowledge of the factors influencing the psychology of loyal and repeat visitation be used to improve a destination s competitiveness (Petrick, 2002)? In the literature, visitors motivations to travel and the use of psychology to develop marketing strategies to attract visitors has been well-documented (McGuinnan et al, 1995). Motivations to visit and benefits sought is one of the most commonly used market segmentation approaches in the tourism industry (Kau and Lim, 2004). Motivations for travel are based on push and pull forces (Dann, 1981). Motivations have been used to describe and to segment markets and are useful to understand the desire for travel (push) and to explain the choice of destinations (pull) (Crompton, 1979). Push forces are internally driven and based on a tourists desire while pull forces are based on the destination s positioning and the marketing of its features and attractions (Cha, McCleary, & Uysal, 1995). Kau and Lim found distinct differences among visitors to Singapore, based on motivation to visit and utilized these motivations successfully to segment the tourism market for Singapore. Understanding needs and wants is basic to the marketing philosophy, and is pivotal 7

9 to attracting consumers and visitors. By understanding motivations, and gauging satisfaction and value, destination marketers can better manage the demand and supply side of tourism. Research on the golf market is an emerging segment of the tourism field. Golf, like many niche tourism products, can play a significant role in positioning a destination. Niche tourism products and services are becoming an increasingly important research and marketing activity for tourism planners, however golf related research is minimal. The majority of literature that considers golfers as tourists is focused on satisfaction and value (Petrick et al. 2001, 2002). Petrick and Backman (2002a) found that current measures of perceived value may be inappropriate to measure golfer satisfaction and intentions to repurchase. Petrick (2002b), in a related study, examined golfographic variables (rounds of golf played per year, golf vacations taken, number of years played, handicap, etc.) as a means to predict factors of novelty for golfers and its impact on their future leisure travel. Petrick reported that golfographics were not good predictors of the four dimensions of novelty (thrill, change from routine, boredom-alleviation and surprise) and that novelty factors were not good predicators of satisfaction or intentions to revisit a destination. However, this did not imply that golfographic factors were not associated with satisfaction or intentions. Petrick and Backman (2002b) found that golfographic variables are poor predictors of golf travellers perceived value, but still may be useful in identifying markets of golfers. The utilization of golfographics as primary variables to segment golf markets has been mostly unexplored. This study attempts the fill that void by considering whether a golfographic variable, frequency 8

10 of play, can be used to segment the market for golfers. Are there differences between golfers based on this golfographic variable, and can it be used to increase visitation to an area? Is this variable related to satisfaction and intentions to return to golf?. In response to the concern raised by Glyptis (1991) and Higham and Hinch (2006) that sport and tourism have been treated as separate spheres of activity and that there are unique research questions and directions that should be studied in sport and tourism, this paper recognizes that sport is a major part of the tourism product for many destinations and studies visitors participating in one such sport, golf. A FRAMEWORK FOR UNDERSTANDING THE GOLF TRAVELLER In the literature, little seems to be known about golfers personal variables compared to perceived value and satisfaction (Petrick and Backman, 2002a, 2002b). The purpose of this study is to gain a better understanding of golf visitors demographics and golfographics compared to their perceived values, motivations, and levels of satisfaction. The paper attempts to provide insights into the interaction of variables that may trigger knowledge of golfers prior to their visits to a destination and their potential experiences and outcomes during the visit to golf courses and golfing destinations. This is of interest to tourism planners and policymakers since golf is an important niche market for sports tourism. Based on the literature, an exploratory framework was developed to profile golfers. It is a structural behavioural model that is examined in an empirical study using quantitative data. The framework helps to develop the multi-variable profiles of golfers, and provides a process for evaluating the inter-dynamics of golfers and their choices. The concept of using frameworks to profile tourists is not new. Woodside et al. (1989) and MacDonald and Woodside (1995) link service, quality of the offering, satisfaction, and behavioural intentions, and provide mapping for 9

11 in-depth traveller profiles. Figure 1 illustrates the framework used in this paper. Description of the Model There are three sets of variables that might be considered when trying to understand the golf traveller: influence sets, decision sets, and outcomes. Box 1 is the influence sets - the demographic, behavioural, and environmental variables that already exist for the golf traveller before they plan or take their trip. These are factors that will influence the decision to travel, where to travel, and what to do when at the selected destination. Box 2 are decision sets - the motivations and golfographic variables that require actions or decisions either prior to or during a trip. Petrick and Backman (2002a, 2002b) highlight many of the variables for understanding golfographics (Box 2) in relation to satisfaction and value. Box 3 are the outcomes - the value and satisfaction variables that can predict future travel plans. The resulting framework can be used to profile golf travellers, to gain an understanding of this segment of tourists to a destination. In addition, the framework provides a means for conceptualizing the complexity and dynamics of golfers behaviours and outcomes to impact tourism planning. The framework s variables are not exclusive, but do offer a dynamic model for the development of an effective golf tourism strategy for an area. The proposed framework is a three-stage process, shown by the boxes, that indicate the influences, decisions, and outcomes for a golf traveller. The arrows in the Figure indicate the direct and indirect triggers or predictors of golfers outcomes. These are the interactive relationships among the variables that will impact strategy development. Within the boxes the variables are interactive and likely impact on each other. The three stages in the process are pre-trip, during trip, and post trip. 10

12 Box 1 contains the influences that relate to the decisions/motivations and outcome set variables in Boxes 2 and 3 respectively. Boxes 1 and 2 indicate the variables to consider for a golf tourism strategy and their impact on the satisfaction levels and perceived value outcomes in Box 3. Box 3 outcomes loop as feedback to Box 1 to allow monitoring and to provide insights for ongoing changes. Not all of the variables will be discussed directly in this paper. Rather the paper focuses on variables where survey data was available. DATA AND METHODOLOGY Prince Edward Island (PEI) is Canada s smallest province, with a population of just 140,000 and 5,684 square kilometres of land. PEI is separated from its sister provinces of Nova Scotia and New Brunswick by the Northumberland Strait. In 1997, the Confederation Bridge was opened providing a permanent link to the mainland. PEI has been called "the million acre farm," and agriculture is the biggest industry. PEI is known for its potatoes, and fields with rows of green potato plants set in the red soil of the Island are a common sight. The combination of the red and green of the fields and the blue of the water makes for striking scenery, and is one of the reasons why tourism is the Islands second largest industry. In the mid-1990s, in an attempt to diversify the tourism product offered, the PEI Department of Tourism made golf a core part of its tourism product development strategy. In addition, the Province of PEI acquired four championship level courses in an attempt to ensure high quality courses were available for visitors. Perhaps motivating this investment were indications that enhanced tourism development was associated with rising levels of income, immigration, 11

13 literacy, and life expectancy and falling unemployment, fertility, and infant mortality. Successful tourism-driven small islands represent a special insular development case and an alternative to migration, remittances, aid, and bureaucracy (McElroy, 2006). Golf Prince Edward Island (Golf PEI) is an industry association devoted to the promotion and development of golf on PEI. In 2005, Golf PEI consisted of 25 members representing golf courses across the province. In addition, the provincial government provided financial support to the organization. The combination has resulted in Prince Edward Island (PEI) becoming a golfing destination for visitors from across the country and continent. To determine visitors impressions of golfing on PEI, Golf PEI undertakes periodic surveys of golfers on their member courses. From June through October 2005, Golf PEI implemented a golf experience survey. The survey was developed by Golf PEI and was distributed to golfers who played 24 of the 25 member golf courses. The survey was distributed by course employees to golfers after they finished their round. The distribution of the surveys was at the discretion of the course and, likely, the people working in the clubhouse. Participation in the survey was voluntary, but a small gift was provided to respondents who returned the completed surveys. The survey contained 69 questions and is available from the authors on request. The population for the survey consisted of all golfers who played a round of golf at one of Golf PEI s courses. In 2005, there were 407,327 rounds of golf played at the Golf PEI member courses. Over the course of the 2005 golfing season, 3,397 surveys were completed at one of the 12

14 24 participating courses. This data was made available to the authors and is the basis for this paper. Given the method used to implement the survey, there may be sampling bias issues that may impact the reliability of the data collected. First, there may be bias in terms of those who were asked to complete the survey. This likely occurred, to some extent, as certain demographic groups are more deposed to answer surveys, and course employees would come to recognize this as the golf season advanced. The implication is that certain types of golfers may not have been asked if they wished to complete the survey. In addition, the gender of the course employee distributing the survey may have influenced the number of males and females who were asked to complete the survey. Second, since respondents had to volunteer to answer the survey, this may mean certain demographic groups are over-represented in the sample. This would include those groups who are more likely to complete surveys, in general. Third, the offer of a gift may have influenced completion rates, but offering incentives, or the chance of winning an incentive, is now quite common in research. Finally, only those playing a round of golf would have the opportunity to complete a survey, and this may have resulted in over-sampling from dedicated golfers. While each of these concerns creates the potential for sampling bias, many of the above sampling issues are associated with any survey. In addition, with very large sample sizes, as in this study, the probability of bias is significantly reduced. The subset of data from the survey that is used in this paper is based on the response to question 48 concerning the number of rounds of golf that the respondent played anywhere in the last 12 13

15 months. In total, 2,302, or about 68 percent, of the respondents answered this survey question. There were seven options provided for the question: 1, 2-3, 4-5, 6-10, 11-20, 21-25, and over 25. For the purpose of this paper, the seven options were reduced to three: 5 or less, 6-25, and over 25. The first group is considered occasional golfers and are termed infrequent for the paper. The second group is termed moderate golfers for the paper. The final group is heavy golfers and are termed dedicated for the paper. These three groups were selected for two reasons. First, the question itself allowed for the data to be logically separated into three groups. The first group includes the first three options, the second group the next three, and the third group the last option. Second, using three groups allows for a finer analysis of the results to see if significant differences exist between golfers. In some work (RCGA, 2006), only two golf segments are used with those playing eight or more rounds classified as core. This is a very low threshold and it may not allow for a clean distinction between the real segments of golfers. For this paper, 25 rounds is used as a threshold. This much higher number may be a better indication of the level of devotion to the game. Question 55 asked respondents for their residency status with three options provided: visitor, permanent resident, and seasonal resident. In total, 3,235 responses were provided, with 1,262 of these being permanent residents of PEI. Since the focus of this paper is on visitors to PEI, the permanent residents of PEI were excluded from the study. The other two categories were grouped and are termed visitors for the purposes of this study. As shown in Table 1, he final sample consists of 1,651 completed surveys and includes those respondents who answered both 14

16 the residency and golfing frequency questions. Table 1, also provides data on repeat visitation and the point of origin of the respondent. The very high incidence of repeat visitation and the very high numbers of golfers from two geographic markets should be noted. These issues are discussed in more detail below. Finally, in the results that follow, the responses to many of the survey questions do not total 1,651 as some respondents did not answer all of the survey questions. Following Huff (1990), a mapping procedure was applied to the proposed framework. This process shows the dimensions of categories and hierarchies among the variables allowing detailed profiles to be developed. A map shell of four sets of variables from Figure 1, for three golfer categories based on golfing frequency, are the basis for the mapping. The four sets of variables are demographics/environmental, golfographics, motivations, and the outcomes of satisfaction and perceived values. In addition, the final survey question requested contact information. Almost 94 percent of the respondents provided mailing addresses. This data was used to further sub-divide the sample by the origin of the visitors to evaluate whether there are differences in profiles for visitors from various locations. Four geographic origins were considered: the other two Maritime Provinces of Nova Scotia and New Brunswick, Ontario, the United States, and Quebec. As shown in Table 1, these four visitor markets accounted for over 88 percent of the sample where all required data was available. APPLYING THE FRAMEWORK: UNDERSTANDING THE GOLF VISITOR 15

17 Table 2 provides the golf survey framework based on golfing frequency. A listing of the 24 questions from the Golf PEI survey that are used in the paper, and summary results of the responses is provided. Note that questions 36 to 39 asked for a rating on a four-point scale and in Table 2, the mean response is provided. The final column is an F-statistic or Chi-square statistic measuring the differences in the responses across the three categories of golf visitors. Figure 2 provides golfer profiles and outcomes. This is the completed map shell of summary profiles for the three categories of golfers and the four sets of variables. The literature review revealed limited findings on the golf traveller and linkages of profiles to satisfaction and value perceptions. This study helps to fill this gap with detailed descriptions of golf profiles and decisions made at a destination that impact future behavioural intentions. Table 2 and the profile maps in Figure 2 provide empirical evidence for the dynamic and complex multi-variable triggers that form golfers profiles and influence their choices and outcomes. Demographic and Environmental Influences In terms of demographic and environmental influences, the differences across the three golfer categories are significant for all of the variables considered, except gender. Most of the people who completed the survey were males. But in terms of age, income, residence location, golfographics, source of information about golfing, and repeat visitor status, major and significant differences based on golf frequency is evident. 1 1 Across the three categories of golfers, almost 71 percent are repeat visitors. This is a very high rate of repeat visitors and suggests that this large sample of golfers is satisfied with their visitor experience on PEI. This is further reinforced when this result is compared to the rate reported in the 2004 PEI Tourism Impact Study, where 37 percent of visitors reported that they 16

18 This is particularly the case for dedicated golfers who are significantly more likely to be members of golf courses, have low golf handicaps, and who are older, wealthier, more interested in golf packages, and are more likely to be first time visitors to PEI. The household income level across the three categories of golfers is surprisingly high, much higher than the income level reported in the 2004 Tourism Impact Study. For the sample, 55.8 percent of respondents reported incomes greater than $100,000. Only 11.4 percent reported incomes less than $50,000. This implies that the median income of this sample was about $110, For the dedicated golfers, almost 36 percent reported income greater than $150,000. This is the group of visitors that PEI wishes to attract. They have much higher disposable incomes, and golf, stay, and eat at the more expensive locations. The average amount they spend would be much higher than the amount spent by the average tourist. Golfographic Influences Again, the differences across the three golfer categories are significant for most of the golfographic variables. While fewer dedicated golfers reserved their tee times directly with the course, many more used travel agents and the Internet. This may imply that these bookings were made before travelling to PEI. It seems clear that these visitors are committed to golfing prior to coming to PEI given that they played or planned on playing 4,275 courses while on PEI, an visited PEI in the previous year; 25 percent said they had visited PEI at some point in the previous five years. 2 Again, this data is much different than the result reported in the 2004 PEI Tourism Impact Study. There only 68 percent of visitors reported income greater than $50,000, while 23 17

19 average of 2.6 courses per visitor. The dedicated golfers accounted for almost half of these courses at 1,919, or 3 courses per visitor. Not surprisingly, dedicated golfers are much more likely to be a member of a golf club and to have a lower handicap than the other two categories of golfers. Once they play, however, the majority of the golfers in each category had trouble playing to their handicap. This may attest to the high quality of the golfing product available in PEI. These results, particularly for dedicated golfers, are consistent with other golf studies. It has been reported (NITB, 2005) that while vacationing, golfers tour around and play an average of three courses per trip. In addition, first time visitors want to play the better known courses and will likely buy a golf package. Repeat visitors tend to make their own arrangements and play less well-known courses. Finally, this study also suggests that booking habits are changing and that the Internet will become the most important marketing and booking tool for golf holidays. As is clear from Table 2 each of these results apply, to some degree, for this sample. Returning to the results, dedicated golfers stay on PEI for a slightly longer period of time, and a much higher portion stay in hotels and resorts. This implies higher revenues from this segment. The biggest difference across the three golfer groups appears to be for expenditures. Dedicated golfers spend much more in total, across more golfers, so their total golf expenditure, at $892, is 177 percent more than infrequent golfers and 71 percent more than moderates. Furthermore, based on the response to Question 66 in Table 2, dedicated golfers are much more likely to golf as couples, less so with children. This suggests they are more likely to play the more challenging percent reported income of between $35,000 and $50,000. Visitors who come to golf have much 18

20 (and costlier) courses. Clearly, this is a segment the tourism industry wishes to target. These are the golfers who want a golfing holiday with the luxury trimmings, (Priestley, 1995). Motivation Influences Based on the general exit survey of tourists to PEI, visiting friends and relatives and to vacation is the key motivation for travelling to PEI. For example, in the 2004 Exit Survey, well over half of all respondents indicated that these were the reasons for visiting PEI. This seems to apply to this sample of tourists as well, with 37.1 percent of the golfers indicating this was the main reason for the visit. However, overall for this sample, golf, at 38.2 percent, was the primary reason for this trip to PEI. The difference in responses between the infrequent and dedicated golfers for this question is striking. At over a ratio of 2.3 to 1, infrequent golfer s main reason to visit was to vacation and visit friends and relatives. The reverse holds for dedicated golfers. About half of the dedicated golfers come to PEI specifically for the golfing experience, and less so to visit friends and relatives, or for a family vacation. Again, this is the group that seems to fit much better with the marketing strategy developed by Golf PEI and the Province of PEI. One very interesting result is the importance word-of-mouth has in the process of gathering information about golf on PEI or on particular golf courses. Almost half of the respondents relied on friends, relatives, or co-workers for this type of information. Less than 7 percent of respondents relied on TV ads and the visitor information package to gather information higher incomes than the average visitor to PEI. 19

21 regarding golfing on PEI. This relatively low number is consistent across the three golfer types. This result may be surprising to the golf industry, and those marketing the province and golfing on PEI. However, it has been well documented that word-of-mouth dominates other forms of advertising (see Gilly et al., 1998; Fodness & Murray, 1999). Word-of-mouth is more important as an information source than marketer-dominated sources of mass media advertising, contrary to what conventional wisdom might hold (Money & Crotts, 2003). Buyers search for information from external sources as they make purchase decisions. For tourism, risk has been identified as a major concern (Yavas, 1990). Word-of-mouth search is used by consumers to decrease risk (Rosen & Olshavsky, 1987). Based on the results for this large sample of visitors and the high incidence of repeat visitors to PEI, a cost/benefit analysis is likely warranted on the use of TV ads and the visitor information package in marketing PEI, in general, and golf, in particular. This is particularly the case given that these two media outlets are the highest cost methods of informing potential customers. For example, for the tourist season, the PEI Department of Tourism spent about $11.7 million on marketing, including mass advertising and direct mail. This did not include funds received from other funding partners, or employee salaries and other administrative costs. The literature and the results of this study suggest that the stakeholders in the PEI tourism industry should begin to investigate the potential benefits of spending these substantial marketing funds on other forms of external information that may be more fully utilized by consumers when making travel decisions. 20

22 Finally, these findings suggest there are various ways to reach the dedicated golfer through information sources that will trigger a visit to the destination. Golf packages are valued for visitors who come to PEI primarily to golf. It is important to ensure that information concerning PEI is available when needed either pre-trip or during the trip. This is particularly the case for those living further from the destination (see Table 3). Planners should package accommodation with golfing to provide convenience and desired knowledge. Matching the quality of the accommodation with the golf course would likely be a sensible strategy to pursue. This will help to provide consistent quality and value to the segment. Getting information into visitor s hands is important. Destination visitors who are high information users tend to participate more in activities, spend more money daily, are positive about their experiences, and are more intent to return compared to low and nonusers of information (Woodside et al., 1997). However, some information sources just contribute to the process of making travel decisions, others are decisive (Fodness & Murray, 1998). For example, external information, such as information packages, is useful, but insufficient to invoke the final purchase decision. Repeat visitors have access to both internal (decisionrelevant information in long-term memory) and external information that is decisive in convincing a person to travel to a destination. In addition, independent external sources such as word-of-mouth advice and published travel guides help cement the travel decision (Fodness & Murray, 1999). Outcomes: Value and Satisfaction 21

23 Overall, the golfers responding to this survey enjoyed their golfing experience on PEI. For the key measure of value received for the green fees paid, about 90 percent of the respondents felt the course met or exceeded expectations. In terms of the likelihood of either playing the course again, or recommending the course to others, about 62 percent of respondents said they were very likely while a further 30 percent were likely. The intention of a visitor to return to an area is based on the reputation of the destination and the attitudes formed during the previous visit (Shapiro, 1983, Alegre and Juaneda, 2006; and Keane, 1996, 1997). These attributes will be based, in part, on the feeling of satisfaction with the travel experience (Baker and Crompton, 2000; Um, Chon and Ro, 2006). Regarding the overall level of satisfaction with the golf experience, 95 percent of respondents said it met or exceeded expectations. These high levels are reflected in the mean ratings provided in Table 2 where the scale used was 1 to 4. It is interesting to note that while the dedicated golfers rated the value of the golf experience for the fees paid significantly lower than other golfers, they also indicated they were more likely to play the course again. The three golfer categories were equally likely to recommend the golf facility and were equally satisfied with their golf experience. In addition, the overall rating of these questions for the three golfer categories was quite high at the 3.5 out of 4 level. Finally, at a very high 80 percent, the three categories of golfers were equally likely to return to PEI to golf in the future. Overall, the choices these golfers made pre-trip and during the trip seemed to result in positive outcomes in terms of their golf experience. In a related study, Hennessey et al. (2007) report that golf tourists overall satisfaction and their perception of price- 22

24 value have a positive effect on behavioural intentions. In addition, the results reveal that no direct and significant relationship exists between golf tourists perceived quality of performance and behavioural intentions. While the quality of the golf course influences behavioural intentions, the effect is indirect. It is course quality and level of overall satisfaction, course quality and feelings of having received value for the green fees paid, and price-value resulting in feeling of satisfaction that, combined, positively impact on behavioural intentions. This is consistent with Correia et al. (2007) who report that intentions to return to play golf have more to do with destination attributes rather than golf course attributes. THE IMPACT OF ORIGIN OF VISITORS Visitors to PEI are primarily from four points of origin: the other two Maritime Provinces of Nova Scotia and New Brunswick, Ontario, the U.S., and from Quebec. As was shown in Table 1, these four visitor markets accounted for over 88 percent of the sample where all required data was available. In addition, the Maritimes and Ontario are the dominant geographic markets accounting for almost two-thirds of this sample of golfing visitors. Table 3 provides summary data for the four markets. As can be seen these four markets are very different. A much larger (smaller) percentage of U.S. (Quebec) visitors are summer residents while, at about 10 percent, the percentages of summer residents from the Maritimes and Ontario are very similar. In addition, the reason for the high incidence of repeat visitors to PEI is very clear: the Maritimes and, to a lesser extent, Ontario account for this. Only about 44 percent of golfers from the U.S. and Quebec are repeat visitors. A result that may be of great interest to the industry is the high number of first-time dedicated golfers from the U.S. Given the large number of high 23

25 income golfers in the U.S., this could be a very lucrative market for PEI. Tables 4 to 7 provide the results for the each point of origin. There are a number of interesting differences between the four markets and the overall results. First, for the three markets other than the U.S., only about 25 percent of the golfers were 55 or older. For the U.S., however, 69 percent of the golfers were 55 or over, while 83 percent of the dedicated golfers were in this age range. These are travellers with more leisure time and money. Furthermore, the household income of the U.S. golfers is much higher with almost 44 percent of all golfers reporting income of more than $150,000, and 52 percent of the dedicated having total income in this range. In contrast only 20 percent of Maritime and 14 percent of Quebec golfers reported income in this range. The results for Ontario were in-line with the overall results with 41 percent of the dedicated golfers having income in this range. Clearly, older golfers from Ontario and the U.S. may be a lucrative market for the PEI golf industry. Turning to the golfographic influences, not surprisingly, more Maritime golfers book directly with the golf course (56 percent), while many more U.S. golfers used a travel agent and the Internet (33 percent). This was particularly the case for dedicated golfers (43 percent). These finding are entirely consistent with the earlier cited NITB (2005) study. In terms of the number of courses they played or planned on playing, Ontario led with 1,108 courses, or 2.1 per visitor. Ontario s dedicated golfers also accounted for 525 courses or 2.5 per visitor, but at 2.7 courses, Quebec s dedicated golfers golfed the most per visitor. 24

26 For the dedicated golfers in the sample, many more of the Maritime dedicated golfers in the sample were members of golf clubs (80 percent) versus those from Ontario (61 percent) and from the U.S. (48 percent). While only 25 percent of the total sample of golfers stayed in a hotel or resort, 49 percent of all U.S. golfers stayed in one, while 63 percent of the dedicated golfers stayed in this more expensive accommodation option. The Maritime golfers only stayed an average of 1.4 nights on PEI which was significantly different from the average of about 7 for the other three markets. This meant that average expenditure per Maritime golfer was also much lower ($224) than the average, and the very high values of about $700 for the dedicated golfers from both the U.S. and Quebec. The Quebec result is surprising given the much lower levels of income as was discussed earlier. Turning to motivational issues, the results for the four travel markets are generally consistent with the overall results. The differences are likely not surprising with more of the U.S. (47 percent) and Quebec (52 percent) markets visiting primarily to golf and fewer to visit friends and relatives and to vacation. In addition, golf packages are a key information source for the U.S. (23 percent) and Quebec (13 percent) markets, especially for dedicated golfers. For U.S. golfers, golf packages (30 percent) are almost as important as family and friends (34 percent) as an information source. But, for Ontario, the use of golf packages is almost non-existent with only 2.8 percent of all golfers and only 4 percent of dedicated golfers indicating this was an information source. TV ads and the PEI information package were important information sources for dedicated golfers from Ontario (11.7 percent) and Quebec (13.6 percent), but it may be a very high cost way to 25

27 reach a relatively small number of golfers. Finally, value and satisfaction ratings were very consistent across the four markets. As with the overall results, golfers from all markets enjoyed their golfing experience on PEI. All markets felt there was value received for the green fees paid, would recommend the course to others, and were very satisfied with the golf experience. Finally, golfers, independent of market, were equally likely to return to PEI to golf in the future. As with the earlier results, the overall conclusion that can be drawn from the analysis of the results by golfer origin is that while the golfers from these four markets are different in many respects, their overall impression of the golfing product available on PEI is very positive. This implies that if the golf story on PEI is marketed and managed correctly, PEI s share of the golf market should increase. DISCUSSION AND CONCLUSION The objective of this study was to determine whether there are differences among visitors to Prince Edward Island, based on frequency of golf played. Golfers were divided into three categories based on golfing frequency, infrequent, moderate, and dedicated, and corresponding profiles were developed. Golfers were profiled based on the following variables: 1. Demographic, behavioural, and environmental (variables that are already existing for the golf traveller before they plan or take their trip). 2. Golfographics (variables that relate directly to golfing such as: handicap, years of play, 26

28 golf trips taken, golf membership, length of stay, party size). 3. Motivation to visit (issues such as family vacation, golf, visiting family/friends). 4. Value and satisfaction with the golf experience (variables such as will return, will recommend, will play again, value of golf visit). The results indicate that there are significant differences in these variables based on golfing frequency. Dedicated golfers are very different from infrequent and moderate golfers on three of the four variables. In particular, dedicated golfers are much more likely to be older, wealthier, from outside the Maritime Provinces, first time visitors to PEI, be visiting to golf, golf in couples, and to have made golf bookings prior to coming to PEI. In addition, since they golf more, their expenditures on golf-related items is $483 per golfer, significantly more than the other two categories of golfers. Although not directly covered in this study, it is almost certain that dedicated golfers would also spend much more in total on their trip to PEI. Martins and Correia (2004) report that for golf related travel, only about 25% of spending is actually on golf. The other 75% is spent on items such as accommodation, food and beverage, and transport. Since the dedicated golfers in this study spend more on golf, it is reasonable to conclude that these visitors would stay in more expensive hotels and resorts and would more likely frequent restaurants and other tourist establishments. Based on the spending levels reported in this study, it is clear that dedicated golfers can provide a tremendous boost to a region s whole tourism industry. While the infrequent and moderate golfers in the sample may be the ones seeking the economic 27

29 golfing holiday where selection is motivated by the best price, the dedicated golfers seem to want a golfing holiday where cost is not the major issue (Priestley, 1995). This may be surprising since in economic models of tourism, it is suggested that price is the most important variable (Nicolau and Más, 2005). For dedicated golfers, this does not seem to be the case. Finally, golfers, in general, do not find out about golfing on PEI through TV ads or the visitor information package. This result is much different from an earlier study on the usefulness of the visitor information package for travellers to PEI (Woodside et al., 1997). Woodside et al. (1997) report that visitors who use this information tend to participate in more activities, spend more, and have higher intentions to return to PEI. This does not seem to be the case for this sample of golfers; word of mouth seems to be a much more important information source. Given the high cost of TV ads and the visitor information package, further study on the importance of these information sources for travellers, in general, and golfers, in particular, is likely warranted. The overall results are consistent with those reported in earlier studies. For example, Correia et al. (2007) report that golfers in their study were predominantly male, with an average age of 47, an upper income level, and an addictive relationship to golf resulting in loyalty to a course. The findings in this study are very consistent with those reported in previous studies. On the last page of the survey, respondents were given the option of providing contact information in order to receive additional information regarding golf on PEI. Amazingly, 1,618 of the 1,651 respondents (98 percent) included in the sampleprovided contact details. This is a 28