Ayrshire & Arran Golf Tourism Development & Promotion Final Report September 2013

Transcription

1 Ayrshire & Arran Golf Tourism Development & Promotion Final Report September 2013

2 Contents 1 Executive Summary Introduction Purpose of the Commission and BTS Brief Methodology Review of Golf in Ayrshire & Arran Golf Courses Market Analysis Golf in Ayrshire & Arran Golf Club and Tourism Operators Survey Summary Roles and Activities of Golf Organisations in Ayrshire & Arran Ayrshire & Arran Golf Product SWOT Trends in Golf Tourism Ayrshire and Arran's Competitor Analysis Ayrshire & Arran Golf Development Group Business Case Key Objectives Ayrshire and Arran Golf the Future Ayrshire and Arran Regional Golf Development Group Role and Function of the Regional Golf Development Group Marketing Strategy for Ayrshire & Arran Golf Partnership Next Steps The Brief for Phase Appendices Appendix 1 - References and Source Material Appendix 2 - Consultations Appendix 3 Ayrshire & Arran Golf Clubs and Courses Appendix 5- Summary of Survey of Golf Clubs and Tourism Businesses Ayrshire & Arran Golf Development Group Final Report September 2013 Page 2

3 1 Executive Summary Scotland is already ranked as one of the world s premier golf tourism destinations but with increased world competition the ambition is to make Scotland the world s leading golfing destination by Ayrshire and Arran offers the visiting golfer an exceptionally strong golf tourism product. However the region s competitive position and market share is at risk because of new high profile courses such as the Trump development in Aberdeenshire, the Wyndham Grand five star resort in Angus and the success of Fife, Angus, and East Lothian in attracting visiting golfers. The need then is to reinvigorate Ayrshire and Arran s golf proposition to maximise the benefits for local clubs, businesses and the economy and to meet the Ayrshire and Arran Tourism Strategy objectives of building on golf as one of the core strengths and attractors for the destination. The Ayrshire and Arran Tourism Team (comprising representatives of East, North and South Ayrshire Councils) and Scottish Enterprise commissioned BTS to review Ayrshire and Arran s golf tourism product and assess the appetite of the golf clubs and courses and tourism and hospitality operators to create a regional golf development group or partnership for the area, to help drive development and marketing. Ayrshire and Arran s Golf Product The core golf product in Ayrshire and Arran extends to 51 courses and across 44 sites and 5 golf centres with practice facilities. This portfolio offers some of the finest collections of golf courses in the world, including three internationally renowned Open Championship courses at Prestwick, Turnberry & Royal Troon. There have also been developments at Rowallan, Brunston Castle and Dundonald Links and plans for The Ayrshire at Irvine Bay and a Golf resort at Loudon Castle. The value of golf in the South West (which includes Argyll & Bute and Dumfries & Galloway as well as Ayrshire and Arran) has been estimated at 29.5m, with opportunities to grow to 32.6m in 2015 and 33.3m in In recent years Ayrshire and Arran has lost its prominence and visibility in a crowded international, UK and Scottish market. The Golf Monitor in 2012 catalogued the largest annual decline in the number of visitors rounds played in the South West, at nearly 23% the largest anywhere in Scotland. The South West also trails other regions in the proportion of North American, other overseas and golfers from the rest of the UK. In contrast, a positive story is South Ayrshire Golf s 8 public courses with an overall increase of 4% of all rounds played and visitor rounds up 14.7%. The Appetite for Collaboration We reviewed the responses of golf clubs and courses and tourism operators to the proposition of a regional golf development group, or partnership, and what its priorities should be. Almost half the courses and clubs in the destination were involved. 100% of our survey of golf clubs/courses said that visiting golfers and their revenue (green fees, food and drink, the pro shop) are very important to them. 79% of golf club/course respondents to the survey agree that the concept of the Ayrshire and Arran golf group or partnership is good idea and should be developed. A number are unsure or need convincing. Most clubs are unsure about the structure and chairing, but 57% thought it should be a voluntary association and open to all businesses dependent on golf tourism. We asked the same questions of tourism and hospitality operators in Ayrshire and Arran. 44 operators participated in the survey. (22 respondents answered the question about their annual turnover, which totalled over 23.5m p.a.) 81% of the businesses said that visiting golfers are very important or quite important to their business. 97% agreed the importance of visiting golfers to supporting Ayrshire and Arran s tourism. 88% of respondents to the survey agreed that the concept of the Ayrshire and Arran golf group or partnership is a good idea and should be developed. Only 1 respondent said that it wasn t, while a minority are unsure or need convincing. Our survey respondents are quite clear what the priorities should be for the planned Ayrshire and Arran regional golf development group: Ayrshire & Arran Golf Development Group Final Report September 2013 Page 3

4 Collaboration Priorities for Ayrshire and Arran Golf Clubs and courses Tourism operators 1. Develop a stronger "golf in Ayrshire & Arran" identity against the competition 2. Market Ayrshire and Arran as the destination for golf 3. Develop strong PR 4. Be a strong "voice" for golf in Ayrshire & Arran 5. Help market all courses 6. Work with tour and specialist golf operators 7. Develop more golf promotions (i.e. web, exhibitions, print) Conclusions 1. Develop a stronger "golf in Ayrshire& Arran" identity against the competition 2. Market Ayrshire and Arran as the destination for golf 3. Be a strong "voice" for golf in Ayrshire & Arran 4. Develop more "stay and play" packages 5. Develop strong PR 6. Bring golf courses and e.g. hotels, B&Bs, together 7. Work with tour and specialist golf operators 8. Develop more golf promotions (i.e. web, exhibitions, print) 9. Develop easy online tee time booking 10. Bring public and private sectors together There s already a lot of collaboration in Ayrshire with golf packages and experiences available e.g. the Ayrshire Golf Pass, South Ayrshire Golf Pass, Arran Golf Pass, Open Links of Ayrshire, West Coast Invitational, Ayrshire Open Qualifier Card, Gailes Golf Experience and Scotland's West Coast Golf Links. These packages have been developed by various courses working collaboratively to develop the experiences and are all marketed either through dedicated web sites or by the individual clubs. While the golf product in Ayrshire and Arran is extremely strong - with a good range of championship, links and parkland courses, compelling heritage and accommodation at all levels to choose from this golf destination is under serious threat, to the extent that it is losing competitive positioning, has lower proportions of North American and rest of UK players and some golf clubs with serious financial challenges. Despite the infrastructure of marketing mechanisms and groups (referred to above) there are serious organisational, marketing and leadership gaps in the destination. The networks don t integrate, suggesting that priorities in golf sports development, infrastructure, business development, marketing and sales aren t agreed and acted upon. The failure of a destination to develop consensus and a common and shared focus for development results in loss of competitive position, demonstrated by the success of the existing regional golf development groups elsewhere in Scotland and what they are managing to achieve. Our conclusion, and the motivation for this assessment, is that it is appropriate for Ayrshire and Arran to develop a regional group. The Ayrshire and Arran Golf Tourism Development Group In terms of the favoured structure of the group, a voluntary association was thought best amongst golf clubs but in terms of structure and chairing they are unsure about what would work best; the tourism operators are more certain that it should be chaired by the private sector (60%) and veered towards it being a voluntary association (but without convincing majorities). In our view, the group has to engage with public and private sectors: the public sector contributes leadership and resources and is in any event a golf course operator. The private sector offers peer leadership and is fundamental to the bundling of product and promotion of facilities. The destination sell is the substantive task and this needs public and private commitment. BTS recommends following the well tried and tested model of the public private partnership. We recommend a private sector chair of the partnership and membership open to all businesses. We see the need for collaboration and as importantly we see a strong appetite for this. Ayrshire & Arran Golf Development Group Final Report September 2013 Page 4

5 On balance we consider that establishing the regional golf development group as a legal entity is the best way forward, with the focus being on marketing and promotion of golf tourism. The main report also looks at the strengths, weakness, opportunities and threats facing Ayrshire and Arran; the roles of the many organisations involved in golf and golf tourism; the way other golf destinations organise themselves; and an options appraisal of the best way or establishing a regional golf development group and a marketing plan for the group to recruit members. Next Steps The next stage to progress this project is to take the recommendation to establish the regional golf development group and set it up and recruit its members. The actions include: 1. BTS present the results of the report to Ayrshire & Arran Tourism representatives 2. Review the Ayrshire & Arran Tourism s approach to its Service Level Agreement with VisitScotland in relation to golf and negotiate alignment to VisitScotland s golf marketing activity for Ayrshire & Arran. 3. Agree the model for the Ayrshire and Arran regional golf development group including relationship with LAs 4. The principles outlined in this report of an industry-led membership organisation are accepted; it should be set up as a company limited by guarantee to minimise personal liabilities and risk and facilitate the attraction of public funds 5. The name of the organisation - the Ayrshire & Arran Golf Development Group is accepted and agreed as a working title for the basis for moving forward; 6. The brief for the second phase of work is agreed and commissioned. Ayrshire & Arran Golf Development Group Final Report September 2013 Page 5

6 2 Introduction Scotland is one of the world s premier golf tourism destinations, and was ranked among the top 3 golf tourism hot spots for the coming years by international golf tour operators in a recent survey by KPMG 1. Scotland s offering of links and inland courses, including some of the most famous venues in the world make it unique. Golfers from all over the world travel to the Home of Golf specifically to play the legendary courses here. In addition to its reputation and history, comparatively easy access, clusters of quality golf facilities, tournaments hosted in Scotland are also set to be a catalyst for inbound tourism growth. Scotland is hosting The Open at Muirfield in 2013, The Ryder Cup in 2014, and The Open at St Andrews in 2015 and Troon in The 2013 Aberdeen Asset Scottish Open is for the first time being broadcast live on the NBC channel in the USA. The Scottish Golf Development Strategy is an industry led strategy that sets out a clear vision for the long-term future of golf tourism in Scotland. The strategy was developed by the Golf Tourism Development Group and was developed by, and with, the golf industry. The strategy highlights both the challenges and the opportunities for all businesses in the sector if the industry ambition for Scotland is... to be the world s leading golfing destination by is to be realised Ayrshire & Arran will have a significant role to play within this strategic context. Ayrshire & Arran offers the visiting golfer an exceptionally strong golf tourism product with some of the finest collections of golf courses in the world, from three internationally renowned Open Championship courses 2, each with a unique heritage, through to relaxed, accessible holiday golf experiences set in fabulous landscapes. This is complemented by easy access, quality accommodation, fine dining and a history and heritage to match. The competition to Ayrshire and Arran sustaining its golf success is international, from the rest of the UK and the rest of Scotland, especially the East of Scotland. Ayrshire and Arran s competitive position and market share is at risk because of new high profile courses such as the Trump development in Aberdeenshire, the Wyndham Grand five star resort in Angus adding to existing product strengths in Fife, Angus, and East Lothian. Thus, reinvigorating the Ayrshire and Arran golf proposition is a priority in order to maximise the benefits from golf tourism for local clubs, businesses and the economy. The Ayrshire & Arran 2012/17 Tourism Strategy identifies the importance of golf as one of the core strengths and attractors in the mix of tourism products. The challenge is to identify and implement the game changing actions that will increase the number of golfers to the region, the length of their stay and their expenditure, in order to sustain employment and their economic value to the Ayrshire & Arran economy. 2.1 Purpose of the Commission and BTS Brief BTS was commissioned in April 2013 by Scottish Enterprise and the Ayrshire & Arran Tourism Team, comprising representatives of East, North and South Ayrshire Councils, to undertake an independent review and analysis of the Ayrshire & Arran golf tourism product and assess the appetite of the golf clubs and courses and tourism and hospitality sector to create a regional golf development group or partnership for Ayrshire and Arran, to help drive development and marketing. The aims and objectives of this assignment were articulated in the brief from Ayrshire & Arran Tourism. The purpose of the project is to undertake research into the full Ayrshire & Arran golf product and then present a robust business case for the requirement and need for an Ayrshire & Arran Golf Partnership or regional golf development group. This report summarises the findings and provides: A review of the strengths and characteristics of the Ayrshire and Arran golf product; 1 KPMG Golf Travel Insight Prestwick, Turnberry & Royal Troon Ayrshire & Arran Golf Development Group Final Report September 2013 Page 6

7 Benchmarking the Ayrshire and Arran golf product against other destinations, to identify its respective strengths and competitive positioning; Report on the business case for the establishment of a regional golf development group, or partnership, and what its role and objectives might be. 2.2 Methodology This study was undertaken through the following methodology: 1. Two online electronic business surveys to assess the importance of visiting golfers and the desire to establish a regional golf development group. The surveys were of: o Ayrshire & Arran golf clubs and courses o Ayrshire & Arran tourism businesses; 2. A consultative programme comprised of a series of face-to-face and telephone interviews with industry stakeholders, golf courses and tourism business operators in Ayrshire & Arran; 3. Benchmarking of Ayrshire & Arran in relation to other Regional Golf Partnerships in Scotland; 4. Desk research of relevant golf related surveys and reports, previous economic impact studies and market data (full list of reports and sources are found in the Appendix 1). The first phase of the project took place from April to June 2013 and involved extensive desk and web research for Ayrshire and Arran s golf inventory and benchmarking against other destinations; original industry research comprising the online surveys (mentioned above), and face to face and telephone interviews. 5. A workshop was held in September with 41 representatives from Ayrshire & Arran Golf Clubs and Tourism Businesses, the results of which feed into our analysis and conclusions. Ayrshire & Arran Golf Development Group Final Report September 2013 Page 7

8 3 Review of Golf in Ayrshire & Arran Golf courses and facilities are at the heart of the golf product as they are the motivator for golf trips. Golf visitors purchase many different goods and services while on their trip, supporting a wide range of businesses such as hotels, restaurants, retailers and, of course, golf facilities themselves through the purchase of green fees, golf equipment, food and drink and cart rental. The global trade organisation for the golf tourism industry, the International Association of Golf Tour Operators (IAGTO), estimates golfers spend to be 120% more than that of other travellers. In terms of quantifying the economic value of golf tourism to Scotland, SQW produced research in 2009 for Scottish Enterprise which estimated the value to be around 220 million in business output each year, supporting over 4,400 jobs. A subsequent study by SQW projected that by 2020, this figure could increase by nearly 30%, generating a potential 300m for the Scottish economy. Source: SQW SQW calculated the value of golf by region and its projected growth: in the South West (which includes Argyll & Bute and Dumfries and Galloway as well as Ayrshire and Arran) the value of golf in 2010 was estimated at 29.5m, with opportunities to grow to 32.6m in 2015 and 33.3m in Growth is predicated on the ability to generate efficiencies in the market as well as effective marketing to attract visiting golfers. The 2014 Ryder Cup and subsequent international golf events will also contribute markedly to the achievement of the predictedd growth in Scotland 3.1 Golf Courses In this section we review the golf tourism product in Ayrshire & Arran, specifically the golf clubs and courses; we also extract relevant information from industry research that should be considered when thinking about the strengths and challenges facing golf, golf development and golf visitation in Ayrshire & Arran. The most recent golf facilities survey undertaken by the SGU 3 identified 597 golf courses spread across Scotland. Figure 1 below identifies the number of golf courses in each of Scotland s golf regions 4. Ayrshire & Arran are included in the South West region (which includes Argyll & Bute and Dumfries & Galloway) and has the second highest number of courses in Scotland. Figure 1 The core golf product in Ayrshire & Arran extends to 51 courses and across 44 sitess and 5 golf centres with practice facilities and 9 hole courses. Table 1 below summarises the mix of ownership and management of the Ayrshire courses. Table 1 Local authority/ municipal Private members Proprietary/ commercial Trust Total No Courses No of 18 Hole 9 Hole Links Courses Parkland Golf Centres Courses Source: SGU 3 Scottish Golf Audit The 6 SGU regions are: Heartlands, Highlands, North East, Central, South East and South West Ayrshire & Arran Golf Development Group Final Report September 2013 Page 8

9 There have only been a few changes to the Ayrshire & Arran golf course stock in recent years, notably the developments at Rowallan, Brunston Castle and Dundonald Links. There are currently planning applications in place for: The Ayrshire, in Irvine Bay, an 18-hole links pay-and-play course featuring a hotel and holiday homes spread over 171 acres. If the planning application is successful the course would open after Loudoun Castle theme park redeveloped into a golf course and academy as part of a 300m redevelopment plan, includinga five-star hotel, a whisky distillery, homes, retail space and a "food and drink centre of excellence". The application has been submitted by project management company Vicon UK. Ayrshire & Arran has a strong core product of golf courses with the majority of the courses attracting visitors being links courses. Prestwick, Turnberry & Royal Troon of course are the most prominent in the (international) marketplace. Ayrshire & Arran is able to provide in most circumstances year round golf for the visitor. The courses differ not only in physical terms but also in the way that they are managed, the degree of dependency on visiting golfers and the markets which they meet. Our research has revealed a trend that many courses are now actively looking to attract visitors as a mean to generate additional revenues, however many do not have the resources to undertake additional marketing activity. Some key findings from the SGU research data and our consultations on the services and facilities offered by the Ayrshire & Arran Golf Courses for visitors are: 43 of the courses are fully open to visitors 5 31 of the courses have on line tee booking facilities for visitors 6 46 of the courses are open all year round 42 offer restaurant and bar facilities 42 provide changing facilities for visitors 52 of the courses have the services of a professional golfer 7 There are limited practice facilities and golf ranges in Ayrshire, however the 5 golf centres in the regions provide good facilities to learn / improve golf Only 16 provide equipment hire Only 13 take credit cards for visitor green fees 8 20 Ayrshire courses contribute to the Golf Tourism Monitor Conclusions From a visitor perspective Ayrshire & Arran has a strong and robust core golf product i.e. there is a variety and range of golf courses to meet the needs of all golfers. There are a number of challenges that need to be addressed to improve the product but also to support the clubs in current difficult economic conditions. 1. As large proportions of the clubs are membership clubs, there is a balance to be found in catering for both types of golfers (members and visitors) within a club/course. The main frustration for golf club members is playing alongside a group of visiting golfers who may be less understanding of a golf course s etiquette and also may be moving more slowly around the course. Courses increasingly realize that they must welcome more visiting golfers for their economic survival and so it is their responsibility to manage the expectations of both groups. 2. There is limited networking and sharing of information across the golf industry. There is a need to support industry engagement and partnership working opportunities for businesses and clubs to 5 SGU survey self completed by clubs, may be some data omission 6 This figure is above the norm and needs clarification of SGU data 7 Pro cover is for more than one course in some instances 8 As point 5 above Ayrshire & Arran Golf Development Group Final Report September 2013 Page 9

10 learn from one another and market collaboratively. Encouraging more clubs to contribute to the Golf Tourism Monitor will provide more substantial information for Ayrshire. 3. There are some good examples of collaborative working between clubs and hotels and more locally based tour operators. Several packages have been developed and are marketing individually by the operators and courses. 4. Scotland's West Coast Golf Links is a marketing consortia of 10 of the Ayrshire links courses. Launched in 2009 to undertake marketing and promotional activity. However without a dedicated resource the consortia has had little impact. The web site is out of date and has limited up to date useful information for the visitor. 5. Knowing the visitor: A number of clubs do not have robust databases or procedure for noting enquiries and researching who their visitors are. They are not able to identify the number of visitors or where the visitors come from, an impediment to targeting their marketing for maximum effect. 6. Our survey of golf clubs in the course of this commission affirms that while many more courses now want to attract visitors, there is still the restriction of availability to mid week tee times. 7. There has been a significant increase in recent years of clubs adopting on-line tee booking and the survey reflects this positive aspect of Ayrshire & Arran Courses. 8. The underpinning quality of golfers experience is dictated in part by the customer service standards of courses, clubs and ancillary tourist facilities and in part by course quality and maintenance. There is a need to motivate courses, stakeholders and partners to keep quality standards high and ensure the quality of the experience on offer in Ayrshire exceeds their expectations. 9. Golf clubs operate within very tight financial constraints, in many cases there are few or no resources allocated to marketing. This reflects the comments from clubs of the need to work collaboratively. Many of the clubs engage with Tour Operators but do not have commission structures in place. They have as yet not realised the potential of Tour Operators to increasing their visitors. 10. Only 3 golf courses are members of The International Association of Golf Tour Operators. 11. Only 6 Courses and 2 businesses are members of Golf Tourism Scotland. 3.2 Market Analysis Golf in Ayrshire & Arran The Golf Monitor collects data from 225 courses throughout Scotland. Now operated by the SGU with support from VisitScotland and Scottish Enterprise, it quantifies trends in golf tourism in Scotland. According to the 2011 National Golf Tourism Monitor, the UK provided the largest share of inbound golf tourists in the year, with a trend towards playing links courses. Although not unique to Scotland, this type of course is considered a very different proposition to the norm for most golfers. The coastal location, dramatic views and historic nature make the links courses the most sought after place to play for many golfers. The sand based courses are also very permeable during periods of heavy rainfall so closure is seldom. In 2012, visitor rounds were down 1% compared to 2010 across the Scottish regions; however, there are two regions which saw growth: the South East and North East. The largest difference between 2010 and 2011 came from the Scottish Heartlands, where visitor rounds went down over 12%. The latest Golf Monitor figures are for Throughout Scotland visitor numbers were down in 2012 (compared to 2011) by 2.52%, with revenue falling by 0.75% 10. The Monitor catalogued the percentage decrease in visitor rounds played by region, with the South West (which includes Argyll & Bute and Dumfries & Galloway and 20 courses in Ayrshire) suffering the largest decline in the number of visitors rounds played nearly 23%, with the next largest decline being Central at 15%. While these figures should be treated with caution 11, the pattern is disturbing. 9 Still in draft at the time of writing. 10 Over the 7 month playing season, April to October Because of methodological issues related to the number of courses submitting figures Ayrshire & Arran Golf Development Group Final Report September 2013 Page 10

11 The analysis of the origination of visiting golfers to those clubs participating in the Golf Monitor is useful, suggesting that the South West trails other regions (other than Central and North East) in the proportion of North American players, other overseas visitors and those from the rest of the UK; on the other hand it does better than most other regions for European players: Table 2 Percentage breakdown of visitor green fee revenue by origin of visitors Course Category North America Europe Other Overseas Scotland Rest of UK Highlands & Islands North East Historic Heartlands Central South East South West Source: Golf Monitor, SGU South Ayrshire Golf, operated by the local authority s Leisure and Culture Section is preparing its golf tourism strategy and has its own analysis of performance in the 8 public courses it manages. Although the trend in the decline of golf rounds played continues since 2004, South Ayrshire golf bucks the trend: in 2012 an increase in all rounds played (4.1%) has been seen and visitor rounds up 14.7%. 12 In addition: Membership sales (season tickets) also peaked in 2004 at almost The current figure is just under 4000 with the decline being steady over the same period. During 2012 membership rounds played have slightly increased whilst member numbers have declined slightly but otherwise income remains strong with sizable increase in monthly memberships. 3.3 Golf Club and Tourism Operators Survey Summary We review here the responses of the golf clubs and courses and tourism operators who participated in the survey, during May and June These results provide evidence for both the appetite for and the business case for a regional golf development group for Ayrshire and Arran. Golf Clubs 13 golf clubs replied to the electronic survey plus a representative of South Ayrshire Council, representing 8 local authority courses. Two other courses were interviewed face to face. This in total represents 23 of the 47 courses in Ayrshire and Arran, representing 49% of all the courses. Interestingly 100% of the 7 Arran courses responded to the survey. Clubs were contacted 4 times by and twice by telephone. Respondents are catalogued in the appendices. The full results of the survey are also catalogued in the survey. Here we present a summary. All respondents (100% of the survey) agreed that visiting golfers (individuals & small groups) are very important to the clubs, while 57% of the clubs indicated the importance of members guests as being very important or quite important. 64% of clubs said that corporate groups were very important or quite important to them. Patently, several clubs catalogue where their visitors are from and amongst the comments we received were: from Scotland and England, quite a few Scandinavians. we have many from all over the world, evenly divided between, Scandinavia, America, Europe. Visitors mainly British, some Germans. We attract couples and families. some Australians. Visiting golfers are predominantly from North America and then Europe. 12 South Ayrshire Council draft golf marketing strategy Ayrshire & Arran Golf Development Group Final Report September 2013 Page 11

12 Again, 100% of respondents to the survey said that visiting golfer green fees are very important to the club/course; 93% said visiting golfers were very important to the overall finances of the club/course; 85% said they were important to shop sales, 79% said they are important for food and drink sales. 79% said that visiting golfers are very important for the positive word of mouth or reputation of the club. Three comments are very telling Club totally depends on visitors for survival in present form. Green fee income is fundamental to the Club's finances. Visiting golfers are hugely important for increasing green fee revenue, average paid green fee, shop sales and food & beverage sales. 13 of our 14 respondents to the survey said they want to encourage more visiting golfers to their club or course, while one was unsure. The appendices show the range of marketing activity currently undertaken, with their web sites, golf passes and online tee time booking being ranked most important amongst their marketing activities. To help identify what a potential golf development group for Ayrshire and Arran might assist clubs to deliver in their marketing: 79% don t have incentives for referrals 57% don t give commissions to e.g. tour operators; 50% of respondents don t undertake customer surveys 13 ; 43% do not give discounts (e.g. midweek); 36% don t do any Direct mail, and newsletters; 36% don t collaborate with accommodation providers One club said: Marketing activity to date has been very limited and there has been no specific marketing budget. When asked what clubs thought were their greatest threats 77% said too many competing destinations 64% said not enough revenue 50% not enough members One comment: inability of A & A to market itself as a golfing destination is the major threat. We asked what the development and growth priorities are for clubs. Highest priorities (in order) were: More revenue/income Just sustaining ourselves More marketing and promotion When we asked what the opportunities for golf in Ayrshire and Arran are, the highest priorities (in ranked order) are: Generate & disseminate better market research on e.g. visiting golfers (1=) Put Ayrshire and Arran more strongly on the tourism map (1=) Create a stronger identity for Ayrshire and Arran golf More collaboration by everyone in golf and tourism More joint marketing Provide business/marketing support to clubs and courses Develop better "stay and play" packages Improve the standard of welcome 13 Encouragingly this means 50% re undertaking customer surveys Ayrshire & Arran Golf Development Group Final Report September 2013 Page 12

13 Improve customer care More collaboration between courses Comments include: Marketing most important. Most of the other questions are trying to be addressed by other clubs but lack of resources major problem. Sharing resources will be beneficial. Opportunity to highlight and exploit Ayrshire's tremendous golfing history. Ayrshire has been left behind in a competitive market The main focus of collaboration in golf in Ayrshire and Arran are thought to be (in ranked order): Develop a stronger "golf in Ayrshire & Arran" identity against the competition Market Ayrshire and Arran as the destination for golf Develop strong PR Be a strong "voice" for golf in Ayrshire & Arran Help market all courses Work with tour and specialist golf operators Develop more golf promotions (i.e. web, exhibitions, print) 79% of respondents to the survey agreed that the concept of the Ayrshire and Arran golf group or partnership is good idea and should be developed. The remainder (3 respondents) are unsure or need convincing. Most clubs are unsure about the structure and chairing, but 57% thought it should be voluntary association and open to all businesses dependent on golf tourism. Comments include: This has to be a joint partnership. A golf partnership would definitely help to improve the marketing of golf in Ayrshire and Arran and allow clubs to access both marketing and advertising at a level they can afford financially. Need a dedicated resource to get out and promote golf in Ayrshire. Ayrshire and Arran Tourism Operators We asked the same questions of tourism and hospitality operators in Ayrshire and Arran. 44 operators participated in the survey. Of those that responded to the question about what sort of business they are (i.e. sectors): 27% said guesthouses 32% bed and breakfast operators 19% hotels 16% incoming tour operators 22 respondents answered the question about their annual turnover, which combined was over 23.5m. When ask for their views on how important visiting golfers are to their business 81% said very important or quite important. 97% said the same for the importance of visiting golfers to supporting tourism in the Ayrshire and Arran area. Most tourism operators seemed to be very active in marketing to golf visitors, responses include: Offer special golf packages including Golf at South Ayrshire Courses and Private courses plus accommodation. Work with Ayrshire of Bed and Breakfast Association marketing, internet marketing through google, and links with travel agents in Europe etc. E marketing to database. Our whole business is targeted at golf tourism. Online presence is our key marketing effort. However 4 respondents said none and one said Word of mouth. Ayrshire & Arran Golf Development Group Final Report September 2013 Page 13

14 95% of respondents said that they want to encourage more visiting golfers to Ayrshire and Arran, while 5% were unsure. Tourism operators see the following opportunities for attracting more golfers to Ayrshire and Arran (in ranked order): Put Ayrshire and Arran more strongly on the tourism map More collaboration by everyone in golf and tourism Create a stronger identity for Ayrshire and Arran golf More joint marketing More collaboration between courses Develop better/more "stay and play" packages Provide business/marketing support to clubs and courses Generate & disseminate better market research on e.g. visiting golfers Improve the standard of welcome Improve customer care Better web site(s ) Central tee time booking facilities Apposite comments include: Provide a complete Golf Package including accommodation, golf, restaurants and transport..we get many guests who will not come back to particular courses or in some cases Ayrshire due to the way they have been treated by some club staff and their members. The biggest challenge is getting the courses to agree that they need to work together Creating a package of 5 or 6 Courses to play over a 3 or 4 day deal, including accommodation and transport. In terms of operators views about collaboration in Ayrshire and Arran, they felt the main focus (in ranked order) should be: Develop a stronger "golf in Ayrshire& Arran" identity against the competition Market Ayrshire and Arran as the destination for golf Be a strong "voice" for golf in Ayrshire & Arran Develop more "stay and play" packages Develop strong PR Bring golf courses and e.g. hotels, B&Bs, together Work with tour and specialist golf operators Develop more golf promotions (i.e. web, exhibitions, print) Develop easy online tee time booking Bring public and private sectors together Comments include: Encourage the tour operators to sell Golf in Ayrshire but need the right package, we have great courses, we have great accommodation we just need them to 'get' here. I definitely think that golf tour operators (like ourselves) have an important role to play in collaboration with everyone in the public sector tourism. There needs to be one voice that leads and show struggling golf courses how to collaborate. Hoteliers etc. to do tee time bookings. 88% of respondents to the survey agreed that the concept of the Ayrshire and Arran golf group or partnership is good idea and should be developed. 2.5% (1 respondent) said it wasn t while 9.5% (4 respondents) are unsure or need convincing. There was more certainty amongst tourism operators (as opposed to golf clubs) about the structure, but no definite consensus: Ayrshire & Arran Golf Development Group Final Report September 2013 Page 14

15 45% said it should be a voluntary association 44% were unsure whether it should be a legal entity (with the balance split between whether it should be or not) 60% said it should be chaired by the private sector 93% said it should be open to all business with an interest in visiting golfers. Comments include: I believe strongly that a partnership or group should be created. We have some of the best Golf courses in the world. We need to market this better across the world and even into Japan and China. Target specific markets e.g. Irish, Spanish and Scandinavian. The Swedes love golf and whisky, we can provide both and extend their short season. I think a golf partnership or group is a good idea and should be actively encouraged. Bringing the courses together under a council-led forum will see things develop at public speeds, whereas a commercially-based focus should move things along quicker - albeit the effort will need to be made by the councils to move at the same speed. It is a real challenge! Voluntary Associations have no impetus and die. Business needs speed of action, clarity and the ability to change quickly to follow market trends. This is long overdue. Packages and exposure are needed. 3.4 Roles and Activities of Golf Organisations in Ayrshire & Arran In establishing the business case for an Ayrshire & Arran Golf Development Group we have reviewed the roles and activities of golf organisations in Ayrshire & Arran to understand their contribution to the overall Ayrshire & Arran Golf Product. The table below summarises these agencies and organizations. Table 3 Golf Organisations active in Ayrshire & Arran Local to Ayrshire and Arran Golf Related National Agencies South, East & North Ayrshire Royal and Ancient Golf Club Golf Tourism Scotland Councils Ayrshire Golf Association Golf Club Managers Association Scottish Enterprise Ayrshire & Arran Tourism Club Managers Association of VisitScotland Europe Visit Arran Scottish Golf Union / Scottish Event-Scotland Ladies Golf Association Golf South Ayrshire Professional Golfers Association Scottish Incoming Tour operators Association (SIGTOA) British & International Golf Greenkeepers Association There are many organisations and agencies involved in Golf development in Ayrshire and Arran (and Scotland). There are many initiatives already in existence to support and develop golf in Ayrshire, however, greater coordination, closer working and focusing on all aspects of golf development are needed. Specifically there is no one organization that has the lead responsibility for developing Golf Tourism in Ayrshire & Arran. The Ayrshire & Arran Tourism Team has assumed this role. However, there is a need to promote stronger working together on joint business development, market intelligence and marketing initiatives to realize the vision and ambitions outlined in the Ayrshire & Arran Tourism Strategy. Equally, the Ayrshire & Arran golf product has to be represented more strongly with the wider tourism community, Golf Tourism Scotland and other area golf partnerships. Table 5 on the next page summarises the activities of the various organizations. Ayrshire & Arran Golf Development Group Final Report September 2013 Page 15

16 Table 4 Activities Organisation Policy & Strategy Advocacy Business Development Skills Development Professional Development Networking Industry Engagement Education Destination Marketing Marketing - Visitors Marketing - Membership Visiting Golfers Market Research Event Delivery Event Promotion Monitoring and Evaluation Quality Assurance Facilities Participation 1. Ayrshire & Arran Tourism 2. Golf Tourism Scotland 3. VisitScotland 4. Local Authorities 5. Golf South Ayrshire 6. Visit Arran 7. SIGTOA 8. Event-Scotland 9. Scottish Enterprise 10. SGU 11. SLGA 12. R & A: 13. PGA Scotland 14. CMAE 15. GCMA 16. BIGGA 17. AGA Glossary SIGTOA:- Scottish Incoming Golf Tour Operators Association SGU: Scottish Golf Union SLGA: Scottish Ladies Golf Association R&A: Royal & Ancient PGA Scotland:- Professional Golfers Association Scotland CMAE: Club Managers Association of Europe BIGGA: British and International Greenkeepers Association AGA:- Ayrshire Golf Association Ayrshire & Arran Golf Development Group Final Report September 2013 Page 16

17 3.5 Ayrshire & Arran Golf Product SWOT The analysis of the strengths, weaknesses, opportunities and threats for Golf in Ayrshire & Arran follow: Table 5 Strengths Opportunities Two Open Championship Venues High quality championship links courses 14 of Scotland s top 100 courses Good visual scenery Good range of accommodation, heritage, cuisine and accommodation Proximity to Prestwick, Edinburgh & Glasgow Airports with increased air access and growth of low cost airlines from new destinations Accessibility with short journey times between courses Club Open Competitions and Golf Weeks Golf Packages and Experiences available Effective consortia of public courses under Golf South Ayrshire Committed local authorities working together Scotland s West Coast Golf Links Arran Golf Pass VS Dedicated golf team Relatively free draining, frost free coastal / links courses Hosting of Open Championship 2016 and other Golf Tournaments Golf Weeks Growing number of golf travellers in USA, Scandinavia and Germany and in women's golf worldwide Targeting the independents golf market from UK and continental Europe Meetings & Incentive golf market Scottish, UK and European geographic market segments Value for money from second tier courses willing to promote their product and work with accommodation providers Promoting open competitions in member clubs Low cost airlines provide the opportunity to develop the value golf product Promotion of autumn/winter golf especially to staycation / Scandinavian visitors A willingness to develop golf tourism Links with Machrihanish and Northern Ireland Working with Infratil to develop new air routes from key golf markets Belleisle Manor development Planned golf development at Irvine Bay and Loudon Castle Weaknesses Fragmentation and need for leadership and sharing of information Capture of information on visiting golfers and understanding of their needs Formality of courses Limited use of e-marketing and social media Threats Increased global competition from new markets Increased competition from rest of Scotland and other regional development group New developments at Trump development in Aberdeenshire and the Wyndham Grand in Angus Fragmentation of golf in area Customer focused approach Loss of Ryan Air flights to Prestwick Airport Clash of Golf Event dates with key Ayrshire Events (Scottish Bowling Championships, Ayr Flower Show) Limited marketing resources of golf clubs Limited tee time availability at some courses Lack of awareness of good value, second tier market in the UK and Europe Ayrshire & Arran Golf Development Group Final Report September 2013 Page 17

18 3.6 Trends in Golf Tourism Globally, golf tourism is highly competitive, with destinations marketing aggressively, new resorts and destinations coming on stream, with the lead being variously resorts, the golf travel trade and public tourism authorities (and governments) depending upon location. Golf tourism, in its own right, has developed into a successful business, and there are numerous tour operators tailoring their offers to the specific needs of golfers all over the world. Whether as a primary motivation for a holiday or simply as a secondary activity, golf attracts millions of holidaymakers worldwide The value of Golf tourism has further increased in According to IAGTO s 2013 Golf Tourism Report, recently published, global golf holiday sales grew by an average of 9.3% compared to the previous year, and their member operators alone catered for 1.6 million golf travellers in 2012, with golf holiday sales exceeding an estimated EUR 1.5 billion. Most tour operators were also positive about the future, with the vast majority expecting further growth in the years to come. The trend in golf bookings still looks positive, with 57% of the surveyed golf tour operators having experienced an increase in the number of golf trips in Some key finding in trends from the IAGTO report are: 1. Golf tour agents play a central role in helping golfers select destinations, resortss and booking packages, and the roundness of the golf experience, with accommodation and other elements of the stay and play package, is a critical component in decision making by golf visitors. 2. Golf tourists have become more price sensitive in recent years, and the cost of a trip has become the key decision making factor when choosing a golf trip 14. Nevertheless, golfers still care about the quality of courses and related accommodation facilities, and require more value for money. Accessibility also remains a key factor, with the availability of direct flights to golf destinations playing an important role. Figure 2 3. Social media is now a big influence in selecting golf destinations and word of mouth has gained further importance in recent years. Golf tourists are strongly influenced by referrals on Facebook, Twitter, Tripadvisor and various other golf and travel blogs. 4. Industry surveys of travel agents revealed that most bookings are made over the phone or by e- mail/internet, with golfers seeking personal contact with agents in order to receive information and advice. While many of the operators didn t find internet a viable option for golf trip bookings only a year ago, the main trend mentioned in this year s survey was the emergence of improved online booking systems, as well as various Smartphone and IPad/tablet applications. With changing customer needs, this direction is expected to gain importance in coming years. 5. Golfer booking trips through tour operators, the timing of bookings, about half of the trips are booked 1-6 months prior to the travel date, while 31% are booked more than six months in advance (typically group bookings). About one-fifth of the bookings are made within one month of the travel date. 14 Source KPMG Golf Insights 2013 Ayrshire & Arran Golf Development Group Final Report September 2013 Page 18

19 Conclusions Through the process of consultation and review of research, reports and other materials we have drawn a number of conclusions and these are summarised below. 1. Networking: Several organisations offer networking opportunities, but there is no specific cross sector bringing together of golf courses, tourism operators etc. There is a need for a strong network and communication across the cluster to improve the overall understanding of importance of golf tourism and how to maximise the benefits and learn from one another. 2. Marketing to Visitors: A number of businesses are marketing to golf visitors; however there is no cohesive co-ordinated or clear offering for visitors about golf across Ayrshire & Arran. There needs to be a strong emphasis on the destination message why Ayrshire & Arran is the better buy for the golf visitor and holidaymaker. 3. Golf Brand: There is not a clear brand identity for golf in the destination. Scotland the Home of Golf is the brand identify being adopted for the profiling of Scotland nationally and internationally. Ayrshire & Arran needs a strong golf brand that will enable the destination to compete in a global market place and that sits well with the Home of Golf Brand. 4. Familiarisation Visits and Media: Publicity activities and familiarisation visits will support the positioning and profiling of Ayrshire as a golfing destination. A coordinated approach involving the industry needs to be undertaken focussing on value golf, regional spread and bundling of additional leisure activities. 5. Packages and Bundling: There are suggestions that communicating bundled offers (Spa, Food, Heritage, and Whisky) may be the most effective method of influencing the choice of destination for golf travelling couples and families. Cross marketing should be explored between compatible products building on the offers and opportunities identified in the Ayrshire & Arran Tourism Strategy. 6. Visiting Golfers Market Research: There is limited information on the volume, value and characteristics of golf visitors to Ayrshire & Arran. 7. Monitoring and Evaluation: The biggest gap is in the ability and actions of individual courses and clubs to understand by monitoring and research - who their customers are, where they come from, what they want and how to give them the best experience. 8. Quality Assurance: the professional organisations have an impressive track record in promoting quality standards, but the biggest gap lies in the quality standards (and systems to deliver these) within individual courses and clubs to attract and accommodate golf visitors. 9. Market Share: Ayrshire is losing competitive positioning, has lower proportions of North American and rest of UK players and as a result will potentially place some golf clubs with serious financial challenges. 10. Events: One of the biggest marketing tools available to Scotland is the coverage of major golf events and in particular the Open Championship. They provide significant media coverage, raising the profile of golf in Scotland. With the Open returning to Ayrshire in 2016 and the commitment from South Ayrshire Council in developing an events fund there needs to be an agreed co-ordinated approach in positioning and profiling of Ayrshire in the lead up to 2016 and the opportunities from other events e.g. Seniors, Women s Open etc. 11. Access: The impact of the loss of Ryan Air flights to Prestwick Airport had a significant impact on Golf Tourism in Ayrshire, especially from Scandinavia. Awareness of the proximity to Glasgow & Edinburgh Airports and the relatively short travel times to get to Ayrshire needs to be undertaken to position Ayrshire & Arran in the minds of the consumer. The main source of access may be perceived as flights yet it is worth remembering that the majority of golf visitors will travel by road either independently or as part of an organised group. Therefore the ease of access in and around the destination needs to be promoted. Ayrshire & Arran Golf Development Group Final Report September 2013 Page 19