The Value of Golf to Europe, Middle East and Africa

GOLF ADVISORY PRACTICE IN EMA The Value of Golf to, Middle East and Africa A Study on the Golf Economy ADVISORY

2 The Value of Golf to, Middle East and Africa This study is supported and endorsed by the following organizations: The Club Managers Association of (CMAE) is a non-profit making professional association with members involved in the management of many different types of sports and social clubs throughout. The majority of our members (over 85%) have golf facilities within their clubs. The CMAE is also the pan-an unifying organisation for a variety of national professional associations for club managers and secretaries. The an Golf Course Owners Association represents the supply side of golf in. Over 600 golf courses in 17 countries are united in the EGCOA. Our goals are to professionalise the golf business, to look after the interest of the golf courses and to grow the game of golf. The an Golf Industry Association is an alliance of national golf trade associations supported by major brands. Its aim is to represent an manufacturers, wholesalers and distributors of golf equipment and to assist with the development and promotion of the golf industry throughout. The an Institute of Golf Course Architects (EIGCA) represents s most qualified golf course designers and has over 80 Senior and Associate Members spread throughout 20 countries. Through their skill, experience and training Members have demonstrated that they can design and supervise the construction of golf courses to the highest standards. The Federation of an Golf Greenkeepers Associations (FEGGA) is the umbrella body for 21 National Greenkeeping Associations in ; The Federations main role is assisting the promotion of the profession of golf turf management country by country. Working with golfing bodies, Patron Members and other allied Associations many benefits are now visible across with Educational Programmes, Environmental Policies and general recognition of the profession. The Golf Environment Organisation is a non profit NGO which believes that golf is uniquely placed to enrich people's lives and the environment, and that doing so makes for greater enjoyment and better business. The PGA an Tour, a company limited by guarantee, operates a broad range of business initiatives essential to its primary mission of administering professional tournament golf. It is a unique business which generates profits for the benefit of the Members the tournament players who receive their dividends by way of competing and winning prize money. With the development of the an Union in 1989, one body was needed to represent the profession of golf. The PGAs of was formed in 1990 with just 10 member countries. Now there are 37 member countries representing 15,000 PGA professionals. Seven PGAs are International Members, located outside. Education is the priority among seven areas outlined in the Mission Statement. The R&A is golf s world rules and development body and organiser of The Open Championship. It operates with the consent of 130 national and international, amateur and professional organisations, from almost 120 countries and on behalf of an estimated 30 million golfers in, Africa, Asia-Pacific and The Americas (outside the USA and Mexico).

The Value of Golf to, Middle East and Africa 3 Dear Reader, After several months of research, I am pleased to present our study on the Value of Golf to the EMA region (, Middle East and Africa). It is a ground-breaking report, calculating for the first time the economic value of the golf industry across the region. It has been prepared by KPMG in cooperation with Oxford Economics, and with the full support of key bodies from across the golf business and the professional game. Andrea Sartori Partner, KPMG Advisory Ltd. Head of Golf Advisory Practice in, Middle East and Africa info@golfbenchmark.com The study aims to assess the economic impact of the golf industry across six key sectors, from core activities such as facility operations, course investments, tournaments and golf supplies, to associated businesses like golf tourism and golf real estate. It draws on wide-ranging data and much primary research, including interviews with many industry stakeholders. As you will read in the following pages, the golf business across, Middle East and Africa is now worth EUR 53 billion in revenue terms, and supports almost half a million jobs across the EMA region. And while the industry is about one-third the size of the US golf business, it is growing fast, especially in the tourism and real estate sectors, which together account for close to 50% of golf s EUR 14.5 billion contribution to the region s GDP. Together with KPMG s annual Golf Benchmark Survey, the definitive study of golf course performance in the EMA region, and KPMG s Golf Course Development Cost Survey, I hope this report will prove an invaluable aid to investors and decision-makers across the industry. This research also represents a unique coming-together of the golf community. I would personally like to thank all the industry bodies and individuals who have participated contributing their knowledge and worked together so harmoniously to produce this study. If you would like to receive any clarification or discuss the study s results, please don t hesitate to contact the KPMG Golf Benchmark team or myself. Yours sincerely,

4 The Value of Golf to, Middle East and Africa Table of Contents Page Overview: a EUR 53 billion industry 5 Methodology and metrics 13 Cluster 1: Golf facility operations 14 Cluster 2: Golf course capital investments 16 Cluster 3: Golf supplies 18 Cluster 4: Golf tournaments and endorsements 20 Cluster 5: Golf tourism 22 Cluster 6: Golf real estate 24 Summary of key indicators 26

The Value of Golf to, Middle East and Africa 5 Overview: a EUR 53 billion industry Methodological note and study limitations This study has been prepared by KPMG Golf Advisory Practice in EMA in cooperation with Oxford Economics. In performing this research study we have faced several challenges. In fact, in many cases we are not dealing with official economic data and commonly accepted definitions. Even simple, however critical questions, such as what facilities can be considered golf courses and who can be considered a golfer do not have a standard answer. Also, differences in currencies, fluctuation of exchange rates, limited and sometimes contradictory statistics and information concerning the stage of development of golf in different countries are limiting factors that we have only partially been able to overcome. Statements, assumptions and estimates made in this study were based on a variety of sources of information. Wherever we considered it necessary, we complemented our secondary research with primary research, including a large number of personal interviews with industry stakeholders. Please note that the rounding of decimal figures may lead to some discrepancies when computing input data. This study sets out to measure the economic value of the golf industry in, the Middle East and Africa, using the most recent full-year statistics available for the year 2006. It calculates the region s total golf economy by measuring six segments or clusters of activity, including: facility operations, development of new courses and other capital investments, spending on hardware and apparel, tournaments, broadcasting rights and enabled industries such as tourism and real estate. Key findings: how big is the golf economy? In 2006, the golf industry generated total direct revenue of EUR 21 billion in the EMA region economy. This was driven primarily by three industry segments of activity: golf facility operations, real estate and tourism. Once we include the knock-on effects on the golf supply chain and the effects of golf-industry workers consumer spending, the game s total economic value is EUR 53 billion in revenue terms. This equates to EUR 14.5 billion in GDP the value of the industry once its costs (for goods and services) have been subtracted. As the chart below illustrates, this amount equals (in a single year) the total combined economic impact on the host-nation economies of the last six Olympic Games (prior to Beijing 2008). GDP created by the golf industry versus Olympic Games in EUR billion (2006 prices) EUR billion 16 14 12 10 8 6 4 2 0 Golf Olympic Games Athens Sydney Atlanta Barcelona Seoul Los Angeles Source: KPMG, Oxford Economics and Blake¹ 1 See Blake, A (2005), The economic impact of the London 2012 Olympics, Christel DeHaan Tourism and Travel Research Institute, Nottingham University Business School for studies on Olympic Games.

6 The Value of Golf to, Middle East and Africa Total golf revenues in the US and EMA region economies in EUR billion (2006 prices) EUR billion 180 160 120 100 80 66 40 20 0 EMA region U.S. Source: KPMG, Oxford Economics and SRI The industry supports close to 450,000 jobs (which is 0.1% of total employment in the EMA region), and pays almost EUR 10 billion in wages. Yet, when considering estimates from the SRI Golf Economy Report 2005 2, the total impact of the golf industry in the EMA region is approximately one-third the size of the US golf industry in revenue terms, but it is growing faster. There are more than 19,000 golf facilities in the US compared with an estimated 8,500 in, the Middle East and Africa; and the US has five to six times more players. 3 When looking at alone, the number of both courses and players has more than doubled since 1985. In the US, growth is much slower, with the number of courses and the number of players essentially stable since 2000. Development of supply and demand in the U.S. (1985 2007) Thousands 35,000 30,000 Golfers (NGF definition) Regular courses 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1985 1990 1995 2000 2005 2007 25,000 20,000 15,000 10,000 5,000 0 Source: National Golf Foundation Development of supply and demand in (1985 2007) Thousands 7,000 Affiliated golfers Regular courses 7,000 6,000 6,000 5,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 0 1985 1990 1995 2000 2005 2007 0 Source: EGA, national golf federations, KPMG research 2 Figures from the SRI report have been adjusted for comparison: inflated to 2006 prices using the US GDP deflator and translated to EUR. 3 The total supply of golf facilities includes regular courses (7,100 facilities) and non-regular golf courses, including par-3 courses, executive courses, practice ranges and other golf facilities.

The Value of Golf to, Middle East and Africa 7 Cluster by cluster: where is the money made? The golf economy includes a number of sub-sectors that are directly related to the game of golf (either from the golf facilities or the players perspective) and also reaches out to other industries that have a relationship with golf in some form (e.g. hospitality and tourism, real estate). In order to be able to measure the size of the golf economy, we have analyzed the following industry clusters: Golf Economy Clusters 4 Cluster 1: Golf facility operations Green fees and membership fees Food and beverage revenues Sponsorship revenues Lease fees, rental fees Other revenues Core industries Cluster 2: Golf course capital investments Cluster 3: Golf supplies New course developments Expansion of existing course Other investments (e.g. clubhouse renovation, irrigation system replacement, etc.) Hardware and apparel (clubs, balls, shoes, bags, gloves, clothing etc.) Cluster 4: Golf tournaments and endorsement International tournaments Player endorsements Broadcasting rights Enabled industries Cluster 5: Golf tourism Cluster 6: Golf real estate Spending of golf tourists on travel, accommodation, F&B, entertainment etc. Golf-related residential developments The economic value of the golf industry is measured by adding together the direct, indirect and induced effects of its activities in each cluster. Direct effects relate to the spending that occurs on site, for example at golf courses, golf equipment retailers and the hotels in which golf tourists stay. Indirect effects relate to the economic impact on golf s supply chain, via the industry s purchases of goods and services. 5 Induced effects are those brought about by consumer spending by employees in the golf industry and its supply chain the proportion of their wages they spend on goods and services in the wider economy. 4 Our analysis does not include: golf books and magazines, golf associations or golf-related charity activities. 5 To calculate the size of the indirect effects of the industry we have used supply chain output multipliers calculated from the domestic use matrix of individual countries input-output tables. The relationship between the direct effect of an industry and the cumulative effect on the supply-chain is called the Type I multiplier. The supply chain (Type I) multiplier shows the impact of spending an extra euro on each industry and its domestic supply chain. So for example, a figure of 1.75 shows that an extra euro spent generates EUR 1 in the industry concerned and EUR 0.75 in its supply chain. Type II multipliers have been used to calculate the size of induced effects. These show the ratio between the total impact and the direct effects.

8 The Value of Golf to, Middle East and Africa The following table summarizes our findings on the value of the golf economy, cluster by cluster: Golf Economy Clusters Direct effect in revenues (million) Total Revenues (million) Contribution to GDP (million) Economic Impact Employment Total wage income (million) 1. Golf facility operations 7,321 34.6% 18,528 35.3% 5,267 36.4% 211,100 47.3% 3,960 40.3% 2. Golf course capital investments 1,915 9.0% 4,057 7.7% 1,394 9.6% 35,500 8.0% 985 10.0% 3. Golfer supplies 1,949 9.2% 3,820 7.3% 620 4.3% 14,100 3.2% 549 5.6% 4. Golf tournaments 361 1.7% 820 1.6% 413 2.9% 4,100 0.9% 333 3.4% 5. Golf tourism 2,737 12.9% 6,533 12.4% 1,935 13.4% 59,800 13.4% 1,433 14.6% 6. Golf real estate 6,891 32.5% 18,770 35.7% 4,858 33.5% 121,500 27.2% 2,555 26.0% Total Golf Economy 21,174 100.0% 52,529 100.0% 14,489 100.0% 446,100 100.0% 9,816 100.0% Whilst the impact of the golf industry on the EMA region as a whole is not so significant, it is important to individual countries and groups of countries. This becomes clearer if we group the clusters geographically and we consider the core (defined as those involving the actual playing of golf: clusters 1 to 4) and enabled industries (defined as those that would not exist without golf: clusters 5 and 6). Whilst the overall GDP contribution of the core and enabled industries to the EMA region are broadly similar (EUR 7.7 billion versus EUR 6.8 billion, respectively) 6, the location of the impacts differ significantly. Most (55%) of the impact on GDP from the core golf industry occurs in Great Britain and Ireland (see chart below). In contrast, 79% of GDP derived by the enabled industries of tourism and real estate within the EMA region occurs in Western. GDP created by the golf industry in the EMA region in 2006, by sub-region (EUR million) 7 EUR million 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Core Industries Enabled Industries impact of golf tourism and real estate impact of abundant supply of golf facilities and high number of golfers Western GB & Central Northern South Rest of Benelux Middle Eastern SE Ireland Africa Africa East Medit. 6 That split compares against a 51% for core industries and 49% for enabled industries in the United States in revenue terms, as estimated in the SRI Golf Economy Report, 2005. 7 For the purpose of this study Western includes: France, Italy, Spain and Portugal; Central include: Austria, Germany and Switzerland; Northern includes: Denmark, Finland, Iceland, Norway and Sweden; South-East Mediterranean includes: Cyprus, Greece and Turkey.

The Value of Golf to, Middle East and Africa 9 Contribution to total employment of the golf economy in EMA, by cluster Golf real estate 27% Golf tourism 13% Golf facilities 48% Tournaments Capital 1% investment Golf supplies 8% 3% The disparate impact of the core industry clusters on the British and Irish economies (as well as in the Benelux, Central and Eastern ) and the enabled industry clusters on Western and the Middle East reflects the different drivers of the two parts of the business. The core industry clusters are largely determined by the number of golf courses and players in each region: the greater the number of courses and players, the higher the economic impact of the core industry clusters in each sub-region. Most of the impact of the golf industry in Western (France, Italy, but above all Portugal and Spain) reflects golf enthusiasts traveling to the sub-region for golf holidays and their purchase of holiday homes built as part of golf communities and golf resorts. The following chart shows that over 80% of all the GDP created by the golf industry in Western comes from real estate and tourism. Contribution to GDP by cluster in sub-regions of, Middle East and Africa (2006) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% GB & Benelux Northern Western Central Eastern SE Middle South Rest of EMA Ireland Medit. East Africa Africa Total 34% 13% 3% 4% 10% 36% Golf real estate Golf tourism Tournaments Golf supplies Capital investment Golf facilities A full analysis of the economic value of the six clusters is contained in the chapters that follow, but here is a summary of the study s headline findings on each. Golf facilities: the region has an estimated 8,500 golf facilities, generating in total EUR 18.5 billion revenues in the EMA economy. They contribute EUR 5.3 billion to EMA GDP and account for more than 200,000 jobs. Most of this impact occurs in, where the majority of courses and players are located,and especially in GB and Ireland, where golf accounts for about 14% of all the sporting facilities, and where golf facilities contribute about 13% of the sub-region s total GDP from sport. 8 Direct revenue from s 6,400 golf courses adds up to about EUR 7 billion, compared with approximately EUR 23 billion made by the 16,000 courses in the US. 8 Source: Office for National Statistics' Annual Business Inquiry data for 2006.

10 The Value of Golf to, Middle East and Africa Golf course capital investments: in 2006, more than 160 18-hole equivalent golf courses and close to 100 major golf course expansion projects were underway in, the Middle East and Africa. In addition, approximately 35-40% of existing golf facilities invested in renovation or improvement of their facilities. In total, these capital investment projects generated EUR 4 billion in revenue in the EMA economy. An estimated EUR 1.5 billion was spent on new courses, and EUR 0.7 billion on existing facilities. The direct revenues generated by capital investment projects in were almost two-thirds of that generated in the (much bigger) US golf economy. Golf supplies: the retail sales market for golf equipment and apparel in, Middle East and Africa is estimated at EUR 1.9 billion in 2006. accounts for approximately 96% of the total market. The production and retail sales of golf supplies generated EUR 4 billion in total revenue for the EMA economy and supported approximately 14,000 jobs. Golf tournaments and endorsements: in 2006, this cluster generated EUR 820 million in revenue for the EMA economy. Tournaments, including broadcasting rights, are by far the highest contributor to that figure, supplying three-quarters of all revenue and two-thirds towards total GDP, as well as supporting 92% of all jobs and generating 66% of wage income. These totals exclude the economic impact of the 2006 Ryder Cup, at the K-Club in Ireland, which alone generated EUR 143 million in direct revenues. The remainder is endorsement income of the top 150 players on the an Tour estimated to generate EUR 103 million in direct revenues in 2006. Golf tourism: golf tourism in the EMA region earned a total of EUR 2.7 billion in direct revenue in 2006. Of this we estimate 82% was spent in, 17% on the African continent and the remaining 1% in the Middle East. 50% was accrued in Western alone, even though this region has only 16% of the supply of EMA s golf courses. Overall, golf tourism supports the employment of approximately 60,000 people throughout EMA. Golf accounts for 1 1.5% of all leisure trips in the EMA region, and our research suggests golf tourists spend an average of EUR 250 per day on a week-long golf holiday, only 26% of which is spent directly on golf (the rest on travel, accommodation, food, etc.). Golf real estate: golf courses are increasingly being used to support quality residential developments in, the Middle East and Africa. In fact, when also considering indirect and induced effects, new real estate developments now generate more revenue (EUR 18.8 billion) for the EMA economy than accrues from core activity at golf facilities (EUR 18.5 billion). They contributed EUR 4.9 billion to EMA GDP and supported just over 120,000 jobs. More than 150 golf-related real estate projects were estimated to be realized in this region in 2006, providing 17,000 new villas, houses and apartments that s 2.25 million square meters of new residential space. Our research suggests that buyers are prepared to pay a 5% to 30% price premium on a property if it is located in a golf community or golf resort.

The Value of Golf to, Middle East and Africa 11 Context: how big is the EMA golf market? Countries located in, Middle East and Africa host close to 7,100 regular golf courses and around 4.5 million affiliated golfers 9. The following map indicates the countries with the most and least mature golf markets according to the size of population per golf course (supply), and proportion of the population in each country who plays golf (demand). Golf supply (population per course) in, Middle East and Africa mature 25,000 people developed 25,000 100,000 growing 100,000 300,000 infant > 300,000 Golf demand (participation rate) in, Middle East and Africa mature 5% developed 1% 5% growing 0.2% 1% infant < 0.2% 9 Statistics on the number of players mainly regard affiliated/registered golfers. Beside the fact that the definition of who can be considered a golfer, in addition to affiliated players is fairly subjective, statistics on non-affiliated players are very limited in most countries. However, based on feedback from different golf bodies, we have made the assumption that an additional 35 40% of players are not affiliated in the whole EMA region, leading to a total estimate of approximately 6 million players.

12 The Value of Golf to, Middle East and Africa hosts over 90% of both the golf supply and demand, as the charts illustrate: Distribution of supply (regular golf courses only) in the EMA region Distribution of demand (affiliated players only) in the EMA region S-E Mediterranean 0.3% Eastern 1.9% Benelux 3.7% Central 12.8% Northern 12.9% Middle East 0.3% South Africa 6.4% Other Africa 2.4% GB & Ireland 43.4% Western 15.9% Eastern 1.0% Benelux 7.4% Central 15.0% Western 17.2% S-E Mediterranean 0.2% Middle East 0.4% Northern 20.7% South Africa 3.4% Other Africa 0.2% GB & Ireland 34.7% Sources: an Golf Association (EGA), national golf federations, KPMG research, where one out of every 150 citizens is a golfer, has the highest golf participation rate of the three sub-regions. Great Britain and Ireland comprise by far the largest golf market in, with approximately 3,000 regular courses and around 1.5 million affiliated players. Given its strong golfing traditions and abundant supply of quality courses, Scotland is also an important golf tourism destination. Golf is very popular in the Nordic countries, especially in Sweden, where participation rates are significantly higher than the rest of the EMA region, and where there is an abundant supply of golf courses. The Iberian Peninsula is an extremely popular golf tourism destination. In Portugal particularly, golf demand from inbound tourists offset the relatively low number of local players. It is interesting to observe that in recent years the sharp development of golf demand in countries like Austria and the Netherlands has been supported by the broad participation of female players, one of the keys to the success and increasing popularity of the game in these countries. Although in its infant stage of development, the growing economies of Eastern present a clear potential for golf developments. In Africa, currently there is a relatively low penetration of golf, with the exception of South Africa, which is also a popular golf tourism destination. Other countries like Morocco, Tunisia, Egypt, Kenya and Mauritius are also trying to capitalize on the benefit golf tourism can bring to their economies, while in the rest of the continent the potential for golf development is yet to be realized. In the Middle East, the growth of the expatriate population from traditional golfing markets such as Great Britain and Ireland, the US, South Africa and Australia; the identification of golf as a value added to lifestyle real estate projects; and the promotion of Dubai as a leading golf tourism destinations are all contributors to the positive outlook for further growth of golf in this region.

The Value of Golf to, Middle East and Africa 13 Methodology and metrics Beyond the economic effects As this study concentrates on the economic aspects of the industry, we do not consider in our research the health or environmental benefits of golf courses. However, these are areas of growing interest and fundamentally important in evaluating the all round sustainability of the sector. Although it is often debated, golf courses can have environmental benefits. In fact, they can offer long term, stable green space which improves environmental quality. They also often enhance the visual appearance of a locality. In particular they can help to protect ecosystem services, which are increasingly recognized as being of high financial value. The value of the golf industry is measured through the quantification of the direct, indirect and induced effects, which are defined as: Direct effects the direct economic impact of the golf industry is the economic activity that occurs in each of the six clusters. The impact occurs at the location of the golf facilities; manufacturers and retailers of golf equipment; firms dealing with the broadcasting, marketing and running of golf tournaments; and transport facilities, hotels and restaurants used by golf tourists. Real estate activities that are linked to a golf course also create economic value. Indirect effects the indirect economic impact of the golf industry are the effects it has on its supply chain. These effects occur through the industry s purchases of goods and services. This spending generates output, profits and employment at suppliers. In turn, these firms draw on others for inputs further down the supply chain. Induced effects the golf industry and the firms directly in its supply chain pay their staff wages. A proportion of this income is spent on goods and services. The induced economic impacts are the effects on the rest of the economy of this consumer spending. The impact is initially felt at retail and leisure outlets close to where the employees live. But there will also be secondary effects down the retail sector s supply chain. Total economic impact includes the direct effects of economic activity of all golf-related economic clusters, as well as the indirect and induced (or multiplier) effects on the overall economy. The study presents information on four measures of economic activity (revenue, contribution to GDP, employment and total wage income) generated by the golf industry. The base year of this study is 2006. The metrics are defined as: Revenue the value of sales generated by the golf industry, expressed in EUR millions. Contribution to Gross Domestic Product (GDP) GDP is the main measure of the total level of economic activity in a country or region. In this study, the golf industry s contribution to GDP is measured. This is its value added. It is the difference between the industry s revenue and the costs of the inputs of goods and services consumed in the production of the industry s output. The contribution to GDP is a better measure than revenue to compare what each industry contributes to the economy as it excludes the cost of bought-in inputs which are made by other sectors. Golf s contribution to GDP is expressed in EUR millions. Employment or total jobs describes the total number of people employed in the golf economy. Wage income includes salaries and wages paid to full-time and part-time staff employed in the golf industry, expressed in EUR millions.

14 The Value of Golf to, Middle East and Africa Cluster 1: Golf facility operations Number of regular courses and average revenue of 18-hole facilities by sub-regions Average revenues (EUR '000) at 18-hole facilities Number of regular golf courses 5,318 4,000 Golf facilities (mainly courses and driving ranges) lie at the heart of the golf industry. 10 This is where players of all abilities play and practice the game. Aside from giving rise to much pleasure, they also generate considerable economic activity. Facilities earn revenue through green, membership and range fees; golf cart rentals; and players and their friends spending on food and beverages (F&B). Facilities provide employment for green keepers, the club professional, pro-shop, catering and other support staff. Middle East 1,564 1,297 1,112 1,052 1,036 Benelux Western Central South Africa GB & Ireland 692 Northern 573 Eastern Source: Golf Benchmark Survey 2007 3,000 2,000 1,000 0 This activity indirectly supports output and employment at companies in the facilities supply chain (e.g. grass seed suppliers,chemicals and fertilizer suppliers, F&B suppliers etc.). The induced effect of golf facilities is the consumer spending of the courses and ranges staff and those directly employed in their supply chain. Key findings According to our research the existing 8,500 facilities including ranges, par-3 courses and executive courses generate in total EUR 18.5 billion revenues for the EMA economy. They contribute EUR 5.3 billion to EMA GDP. This cluster accounts for 211,100 jobs which pay EUR 4.0 billion in wages. Most of the impact occurs in, where the majority of courses and players are located. The following table summarizes the economic impact of golf facilities in the EMA region. Economic value of golf by facility operations: share by sub-regions % 100 80 1.3% 0.4% 2.5% 0.8% 2006 Direct Indirect Induced Total Revenues (million) 7,321 4,841 6,366 18,528 Contribution to GDP (million) 2,069 1,385 1,813 5,267 Employment 159,400 22,400 29,300 211,100 Total wage income (million) 2,056 840 1,064 3,960 60 40 20 94.5% 95.7% 84.3% 94.6% The direct economic impact of golf facilities comprises the revenue, contribution to GDP, employment and wage income created at the golf courses, driving ranges and other golf facilities. 0 4.2% 3.9% 13.2% Revenue Contribution Employment to GDP 4.5% Wage income Africa Middle East In 2006, golf facilities in the EMA region earned a total of EUR 7,321 million in direct revenue. Assessing the regions, earned the most at EUR 6,917 million (or 94% of total), Africa ranked second at EUR 307 million (or 4%) and the Middle East ranked third at EUR 96 million (or 1%). Within, facilities within Great Britain and Ireland earned EUR 4,174 million (or 57% of the EMA region total) and Western (France, Italy, Portugal and Spain) earned the second highest amount EUR 1,133 million (or 15%). 10 The analysis presented in this section is based on information collected for the Golf Benchmark Survey 2007 and KPMG s own database of golf facilities in the EMA region.

The Value of Golf to, Middle East and Africa 15 According to the Golf Benchmark Survey 2007 (golfbenchmark.com), South African 18-hole golf courses employ close to 50 people on average, being the second highest staff number after the Middle East (around 180 staff). On revenue of EUR 7,231 million, golf facilities contributed EUR 2,069 million to the EMA region GDP. They employed close to 160,000 people. As is evident from the chart, African facilities employ a disproportionate large number of people (over 13% of all direct employment at golf facilities in the EMA region) reflecting lower salary costs and high average staff per course on this continent. Regarding the indirect effects, golf facilities purchases of inputs are estimated to generate EUR 4,841 million of revenue in their domestic supply chain in the EMA region. The spending on inputs is estimated to contribute EUR 1,385 million to EMA region GDP, of which approximately 96% goes towards the an GDP. Just over 22,000 people are employed in the EMA region providing the inputs the golf courses and ranges use. The induced impact of golf facilities are the effects of the consumer spending by those employed by courses and driving ranges or directly in their supply chain. We estimate staff employed at golf facilities and in their supply chain in the EMA region spent EUR 6,366 million on consumer goods and services in 2006. Reflecting their location, most is spent in (EUR 5,790 million or 91%), EUR 545 million is spent in Africa and EUR 31 million in the Middle East. This consumer spending creates EUR 1,813 million in GDP and supports 29,300 jobs in the EMA region. Info box: vs. US revenue comparison an golf facilities earn about 30% of the revenue of their US counterparts. This is broadly in line with the number of courses. In fact, the 2005 Golf Economy Report prepared by SRI states that in the US there are over 16,000 courses (in comparison to the approximately 6,400 in ); and that direct revenues in the US are approximately USD 28 billion (or EUR 23 billion in 2006 prices) compared to an courses 2006 EUR 7 billion. Direct revenues* of golf facilities million 25,000 20,000 15,000 10,000 5,000 0 U.S. *US figures are adjusted to 2006 prices and converted to euros at annual average exchange rate of 2006. Source: The 2005 Golf Economy Report (SRI), KPMG and Oxford Economics

16 The Value of Golf to, Middle East and Africa Cluster 2: Golf course capital investments The direct impact of golf course capital investment 11 is made up of two major types of investment: (i) capital investment at existing golf facilities and (ii) brand new course construction. Investment at existing courses includes improvements to on-course facilities such as tees, greens and bunkers, replacement of the irrigation system or the cart fleet, purchases of maintenance equipment, renovations to the clubhouse and pro shop. In addition to maintaining and renovating existing golf course facilities, significant investments are made each year to construct new golf courses or expand the facilities of existing courses. Info box: Cost per hole KPMG s latest Golf Course Development Cost Survey indicates that the average construction cost of a golf course per hole in the EMA region is EUR 217,000 and that a 9-hole golf course costs on average three to four times less than an 18-hole golf course. Find out more at golfbenchmark.com Key findings According to our research, in 2006 in excess of 160 18-hole equivalent golf course constuctions and close to 100 major golf course expansion projects were underway 12. In addition, approximately 35 40% of existing golf facilities invested in renovation or improvement of their facilities. All these capital investments generated EUR 4 billion in revenue in the EMA economy, which contributed EUR 1.4 billion to GDP. The investments supported 35,500 jobs, which paid almost EUR 1 billion in wages. Most of the impact occurs in (90%), where the vast majority of existing and newly opened courses are located. The following table summarizes the key indicators of the Golf Course Capital Investment cluster. 2006 Direct Indirect Induced Total Revenues (million) 1,915 1,097 1,045 4,057 Contribution to GDP (million) 665 372 357 1,394 Employment 16,400 9,900 9,200 35,500 Total wage income (million) 475 256 254 985 11 Data for capital investment costs are derived from the Golf Benchmark Survey 2007 and the Golf Course Development Cost Survey 2008. 12 We considered golf course expansions at facilities where at least 9 holes were added to an existing course.

The Value of Golf to, Middle East and Africa 17 Value of Capital Investments in 2006 Capital investment at existing courses 39% New golf course construction 52% Direct impact includes the total construction cost of new golf facilities 13 (including course expansion) in the EMA region, which is estimated at EUR 1.2 billion, and investment in existing facilities (including replacement), which is slightly above EUR 0.7 billion. Total direct investment translates into a EUR 665 million contribution to the EMA regions GDP, supporting 16,400 jobs and generating close to half a billion Euros in wage income. Golf course expansion 9% Info box: Architects assignments Interviews and survey of nearly 70 golf course architects recently performed by KPMG reveal that in the last five years approximately two-thirds of their assignments were new course, while the remaining one third were re-design projects. For the sake of comparison, direct revenues generated by golf course capital investment projects in in 2006 were almost two-thirds of those estimated in the US by SRI in 2005. To calculate the indirect effect of golf course capital investment we applied the country level multipliers for the construction industry to the direct level of golf course capital investment on new golf courses and golf course expansions in each country. 14 Total indirect revenue of EUR 1.1 billion translates into a EUR 372 million contribution to the EMA regions GDP, supporting about 10,000 jobs and generates EUR 256 million in wage income. The induced effect is the effect of the consumer spending by those involved in the capital investment programs or in the supply chain. As with the indirect impact, we apply the country level multipliers to the direct level of golf course capital investment on new golf courses and golf course extensions. In total, we estimate the EUR 1 billion in induced revenue contributed EUR 357 million to the EMA regions GDP in 2006, supported around 9,000 jobs and generated EUR 254 million in wage income. 13 Capital investment at new golf facilities comprises two broad components: building the golf course and making initial investments in the supporting infrastructure, equipments, club house etc. The cost of new golf course construction is based on the number of new holes and the average construction cost per hole. The cost of supporting infrastructure is based on interviews with developers of golf courses, with renowned golf architects and upon KPMG s own experiences. We estimate that on top of course construction costs an additional 60% of these costs would cover the initial investment in clubhouse, maintenance buildings and equipments and working capital. 14 We chose not to include other forms of investment such as replacement/improvements to tees, greens, or renovations to the clubhouse as we assumed that these investments are financed through facilities revenue (Cluster 1) and are excluded from the calculation of indirect effect to avoid double counting.

18 The Value of Golf to, Middle East and Africa Cluster 3: Golf supplies The golf supplies cluster covers both the production and retailing of golf equipment, such as golf clubs, golf balls, golf bags and golfing apparel like shoes, polo shirts and rain jackets. The economic impact of golf supplies accrues from EMA manufacturers production of equipment and retailers sales of both imported and domesticallyproduced supplies to customers. Share of retail market of golf supplies in the EMA region in 2006 Rest of 4.7% Central 13.3% Western 15.4% South Africa 2.2% Northern 14.3% Rest of Africa 1.5% Middle East 0.2% GB & Ireland 48.3% Key findings Based on our research and interviews with representatives of major industry players, we estimate that the retail sales market of golf equipments and apparel in EMA was valued at EUR 1.9 billion in 2006 15. accounts for approximately 96% of the total market. It is assumed that golf equipment makes up about 60% of the total market sales while the remaining 40% are the sales of golf apparel. The four largest markets in are Great Britain and Ireland, Germany, France and Sweden, which also have the highest number of players. In 2006, the production and retail sales of golf supplies generated nearly EUR 4 billion in revenue for the EMA economy. This revenue supported approximately 14,000 jobs which paid almost EUR 550 million in wages and contributed EUR 620 million to GDP. The following table summarizes the key indicators of the Golf Supplies cluster. Source: KPMG research 2006 Direct Indirect Induced Total Revenues (million) 1,949 736 1,134 3,820 Contribution to GDP (million) 334 114 172 620 Employment 7,500 2,600 4,000 14,100 Total wage income (million) 293 101 155 549 15 Estimates of the value of the EMA golf supplies market are drawn from a number of different sources, including: a US commercial service report 2005 on golf equipment sales, estimates based on consumer surveys conducted by Sports Marketing Surveys, interviews with industry experts and annual reports of top sport equipment manufacturers, Eurostat and OECD statistics.

The Value of Golf to, Middle East and Africa 19 Relative contribution of retail and production to key economic measures of the Golf Supply cluster in the EMA region % 100 80 60 40 20 0 4% 96% Revenue Contribution Employment to GDP Retail 16% 84% 11% 89% Production 12% 88% Wage income The direct economic impact of golf supplies is calculated by adding together the revenue manufacturers of golf equipment receive from exports outside of the EMA region and retailers revenue on sales of both domestic and imported supplies. In total, we estimate the direct effect of golf supplies from both the production and retail sales of such items to be worth EUR 1.9 billion in revenue terms to the EMA region, they contribute EUR 334 million to GDP, support approximately 7,500 jobs and generate EUR 293 million in wage income. Most of the impact is from retailing compared to production, since most of the production facilities are located outside of the region. Applying the relevant multipliers to the producers and retailers margins gives total indirect revenue in 2006 of EUR 0.7 billion, which translates into a EUR 114 million contribution to the EMA regions GDP that supports slightly more than 2,600 jobs and generates around EUR 100 million in wage income. The induced effect is the effect of the consumer spending by those involved in the production and retail sale of golf supplies and employed in their supply chains. As with the indirect impact, we apply the country level multipliers to producers and retailers margins in the retail supplies market. In total, we estimate that EUR 1.1 billion in induced revenue contributed EUR 172 million to the EMA regions GDP in 2006, supported almost 4,000 jobs and generated EUR 155 million in wage income.

20 The Value of Golf to, Middle East and Africa Cluster 4: Golf tournaments and endorsements This cluster of the golf economy focuses on the economic activity created by international golf tournaments staged in the EMA region. It quantifies the economic impacts from hosting tournaments, the sale of broadcasting rights, payment of prize money to players and player endorsements. Internationally recognized players often earn more off the course than on the greens. Player endorsements refer to all revenues generated by the players off the golf course 16 including business revenues earned from advertisement, appearance fees, corporate outings, speaking engagements, licensing fees and course architecture that capitalize on a person s status as a player. In our analysis we do not however include the players investment income. Relative contribution of tournaments and players endorsement to key economic measures of the golf tournaments cluster in the EMA region % 100 80 60 40 20 0 22% 78% Revenue Contribution Employment to GDP Tournaments 31% 69% 8% 92% 34% 66% Wage income Endorsements Key findings Tournaments, including broadcasting rights, are by far the highest contributor to the cluster, contributing three-quarters of all revenue, two-thirds towards total GDP, supporting 92% of all jobs and generating 66% of wage income. Based on our research, there were over 120 international professional golf tournaments in the EMA region in 2006, out of which 84 were staged in. 17 In 2006, the Golf Tournaments and Endorsements cluster generated EUR 820 million in revenue for the EMA economy. This revenue supported approximately 4,100 jobs which paid EUR 333 million in wages and contributed EUR 413 million to GDP. The following table summarizes the key indicators of this cluster: 2006 Direct Indirect Induced Total Revenues (million) 361 165 294 820 Contribution to GDP (million) 286 45 83 413 Employment* 1,500 1,000 1,600 4,100 Total wage income (million) 249 32 53 333 *Employment includes: tournament organizers, broadcasting staff, players involved in endorsements and these players management. 16 Off-course earnings of the top 50 earners are published by the Golf Digest Magazine annually. 17 Apart from the major tournaments, there are a large number of smaller golf tournaments organized in most of the countries every year. We estimated that smaller tournaments generate an additional 10% on top of major tournaments revenues.

The Value of Golf to, Middle East and Africa 21 Info box: Prize money In 2006 prize money hit EUR 95 million in the EMA region, of which EUR 84 million (88%) was competed for on courses based in where the vast majority of tournaments are played. The direct economic impact of the tournaments and endorsements cluster is the revenue, contribution to GDP, employment and wage income. Tournament revenue 18 in 2006, including broadcasting rights for the major Tours amounted to EUR 258 million. Endorsement income of the top 150 players on the an Tour is estimated to generate EUR 103 million to bring total direct revenue in the tournaments and endorsements cluster to EUR 361 million. In 2006, tournaments and endorsements directly contribute an estimated EUR 286 million to the EMA regions GDP. This cluster of the golf economy employed approximately 1,500 people, and generated EUR 249 million in wages. Revenue estimates for the supply chain are calculated by multiplying the various sources of revenue (tournaments/ endorsements and broadcasting rights revenue) by their respective multipliers. Applying the relevant multipliers gives total indirect revenue in 2006 of EUR 165 million, which translates into a EUR 45 million contribution to the EMA regions GDP that supports almost 1,000 jobs and generates around EUR 32 million in wage income. The induced impact of tournaments and endorsements are the effects of consumer spending by those employed by the various professional golf tournaments organizers in the EMA region or employed directly in their supply chain. In total, we estimate the EUR 294 million in induced revenue contributed EUR 83 million to the EMA regions GDP in 2006, supported 1,600 jobs and generated EUR 53 million in wage income. Info box: Impact of the Ryder Cup 2006 In 2006 the Ryder Cup was staged at the K-Club in Ireland, an event which gave a significant boost to the golf economy in, Middle East and Africa that year. According to a study prepared by Deloitte for the an Tour, the Ryder Cup generated EUR 143 million direct revenues, while its total economic impact was valued at EUR 240 million. 19 18Revenues generated by professional tournaments were calculated on the basis of prize money, to which a multiplier factor was applied to estimate overall revenues. Our research and interviews conducted with tournament organizers and industry experts indicate that tournament prize money has a strong correlation with the total revenues of an event. It is estimated that around 40-50% of the revenues of a typical tournament are contributed to its prize pool. 19 The economic impact of the Ryder Cup 2006 is not included in our analysis because our study aims to quantify the economic value of golf in a standard year, a year without exceptional events.

22 The Value of Golf to, Middle East and Africa Cluster 5: Golf tourism Which are the most important factors when choosing a golf destination? Quality of golf courses Climate Price of package Accessibility Quality of accommodation Number of golf courses Gastronomy Relaxing surroundings Entertainment & nightlife Golf tradition Sightseeing opportunities Not important Very important Source: KPMG s Golf Tour Operator Survey Golf tourism 20, 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 holiday makers worldwide, thus contributing to a great extent to the golf economy. The spectacular growth of low cost air travel in in the past few years has also contributed to the easy accessibility of golf courses throughout the region. The economic impact of the golf tourism cluster is based on estimates of the number of golf trips 21 in the EMA region, both domestic and international (including arrivals from outside EMA); and on the average spending per trip. Golf tourists 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 and cart rental. It is, however, important to mention that spending on the golf course and in the pro-shop are already accounted for in the Golf Operations and Golf Supplies clusters, respectively, and are therefore not taken into consideration when calculating the economic effects of golf tourism. Key findings Economic value of golf tourism: share by sub-regions % 100 80 60 40 20 0 1.3% 82.0% 1.5% 79.2% 1.2% 82.9% 1.4% 93.2% 16.7% 19.3% 15.9% 5.4% Revenue Contribution Employment Wage to GDP income Africa Middle East In 2006, golf tourism was estimated to account for approximately 1 1.5 % of all leisure trips in the EMA region. Based on our research we estimate that around 90% of these golf trips were made by golfers within the EMA region, while the remaining 10% were made by golfers arriving from outside this region. In 2006, the golf tourism cluster generated EUR 6.5 billion in revenue for the EMA economy. This revenue supported approximately 60,000 jobs which paid EUR 1.4 billion in wages and contributed EUR 1.9 billion to GDP. The following table summarizes the key indicators of the Golf Tourism cluster. 2006 Direct Indirect Induced Total Revenues (million) 2,737 1,801 1,995 6,533 Contribution to GDP (million) 806 538 592 1,935 Employment* 25,500 16,200 18,100 59,800 Total wage income (million) 604 387 443 1,433 20Information sources include golf and tourism reports, national statistics in some countries, KPMG s Golf Tour Operators Survey, interviews with international golf tour operators and national tourism authorities. 21For the purpose of this study a golf trip is defined as a leisure trip taken within a country or cross-border, includes at least one overnight stay, and where the traveler s main motivation of the trip is to play golf.

The Value of Golf to, Middle East and Africa 23 Info box: Tourists spending According to our research, golf tourists spend on average EUR 150 180 per day on a short trip, and approximately EUR 250 per day while on a long haul golf trip. The following chart presents the estimated breakdown of golf tourist spending during a long haul trip of 7 9 days. Half of all tourism related revenue (51%) generated within the EMA region accrued in Western, despite this sub-region containing just 16% of the total number of golf courses in EMA. In stark contrast, the GB and Ireland sub-region received only 12% of the golf tourism related revenue despite being the location to a little over 40% of all the golf courses. The direct economic impacts of golf tourism are the revenue, contribution to GDP, employment and wage income generated by tourists golf trips and their associated spending within the EMA region. In 2006, golf tourism in the EMA region earned a total of EUR 2.7 billion in direct revenue. Of this we estimate EUR 2.2 billion was spent in (82%); EUR 458 million (17%) was taken in the African continent and the remaining EUR 36 million (1%) in the Middle East. Other 15% F&B 18% Accommodation 20% Source: KPMG research Golf 26% Travel 21% We estimate golf-related tourism directly contributed EUR 806 million to the EMA regions GDP in 2006, supported around 25,500 jobs and generated EUR 604 million in wages. A range of different industries such as the hotel and catering, retail and the travel industry were taken into consideration in order to quantify the indirect economic effects of tourism expenditure in the EMA region. Applying the relevant multipliers we estimate a total indirect revenue of EUR 1.8 billion, which translates into a EUR 0.5 billion contribution to GDP. This supports slightly above 16,000 jobs and generates close to EUR 400 million in wage income. In terms of the induced impact we estimate that the almost EUR 2 billion in induced revenue contributed EUR 600 million to the EMA regions GDP in 2006, supported 18,000 jobs and generated over EUR 440 million in wage income.

24 The Value of Golf to, Middle East and Africa Cluster 6: Golf real estate Info box: Developments location In, the majority of real estate developments is concentrated in Western and is typically marketed as second homes. Golf related real estate developments in the northern areas (including the UK) are scarce and usually feature a smaller number of units. South Africa, with 14% of projects, is the location of a significant number of golf real estate developments. Location of golf real estate projects in the EMA region (2006) Middle South Africa East 2% 14% Other 2% GB & Ireland 3% Eastern 4% Source: KPMG research Other Africa 2% Western 72% Golf courses are increasingly being used to support quality residential developments. Although the residential golf community concept has a much shorter history than in the North American market, it is widely recognized that the location of apartments and villas alongside golf courses can help developers to increase sales velocity and add a sales premium to pricing. Numerous studies have indicated that golf courses only come second to water as the most desirable amenities for a housing community. The estimate of economic impact of golf real estate cluster is based on the number and size of golf estate projects realized in the EMA region. We have researched and analyzed a large number of golf developments with real estate components, interviewed developers and real estate agents and set up a database of golf estate projects. The resultant database contains information on number of units built/sold, average size of units in different categories (villas, townhouses, apartments), average construction costs per square meter and average sales price per square meter. The building and sales of such real estate properties has an economic impact: they create revenue, GDP and employment. 22 Key findings According to our research, in 2006, more than 150 golf-related real estate projects were completed in the EMA region. These projects provided 2.25 million square meters of new residential space in just over 17,000 individual villas, townhouses or apartments. Nearly three quarters of these properties were built in the south of France, Portugal and Spain, benefiting these countries favorable climate and existing image as golf tourist destinations. In total, these new real estate developments built alongside golf courses in 2006 generated EUR 18.8 billion in revenue in the EMA economy and contributed EUR 4.9 billion to EMA GDP. They support more than 120,000 jobs, which pay EUR 2.6 billion in wages. Most of the impact occurs in where the majority golf-related property is built. The following table summarizes the key indicators of the Golf Real Estate cluster. 22There are different approaches to assess the economic impact of real estate golf developments. For the purpose of this study, we have considered the following inputs: the number of units constructed and units sold in 2006, cost of those units which were constructed that year, and the sales margins realized on the units sold in 2006.

The Value of Golf to, Middle East and Africa 25 Economic value of golf-related real estate: share by sub-regions 2006 Direct Indirect Induced Total Revenues (million) 6,891 6,326 5,553 18,770 % 100 4.1% 4.6% 1.7% 2.9% Contribution to GDP (million) 2,435 1,621 802 4,858 80 60 93.8% 93.3% 93.3% 95.4% 40 20 0 2.1% 2.1% 5.0% 1.7% Revenue Contribution Employment Wage to GDP income Africa Middle East Employment 59,900 35,200 26,400 121,500 Total wage income (million) 1,269 728 558 2,555 In 2006, real estate developments in the EMA region earned a total of EUR 6,891 million in direct revenue. The majority of the revenue (94%) was earned in. Developers and constructors of golf real estate in the Middle East earned EUR 282 million (4%) and those in Africa EUR 143 million (2%). The lower revenue received in Africa is partially explained by the trend to sell plots of land with planning permission rather than finished properties (especially in South Africa). In the Middle East, approximately three times as many units were sold than constructed in this specific year, which explains the relatively low amount of jobs, but high amount of revenue created by this region in the EMA golf economy. Info box: Price premium KPMG has carried out numerous interviews with golf real estate developers and real estate agents throughout the EMA region. These interviews have indicated that, depending on the location of the golf course, property buyers are prepared to pay a 5 30% price premium compared to similar developments without a golf course. To calculate the size of the golf-related real estates indirect effects we have used construction and real estate supply chain multipliers. In the EMA region, developers and builders of golf-related property purchased goods and services worth EUR 6,326 million from their domestic supply chain. The spending on inputs of goods and services is estimated to contribute EUR 1,621 million to EMA region GDP in 2006. We estimate that 35,200 people are employed in golf-related property s supply chain who are paid a total of EUR 728 million in wages. The induced impact of developing and building golf-related propertes are the effects of the consumer spending by those employed by the developers and construction firms or directly in their supply chain. Akin to the indirect effects, we have used multipliers calculated from the domestic use matrix of individual countries input-output tables. We estimate staff employed developing and constructing golf-related property and in their supply chain in the EMA region spend EUR 5,553 million on consumer goods and services in 2006. This consumer spending is estimated to contribute EUR 802 million in EMA region GDP, create 26,400 jobs and pay a total of EUR 558 million in wage income.

26 The Value of Golf to, Middle East and Africa Summary of key indicators The following table summarizes the indicators of the golf economy by industry cluster. Direct Indirect Induced Total Golf Facility Operations Revenues (million) 7,321 4,841 6,366 18,528 Contribution to GDP (million) 72,069 1,385 1,813 5,267 Employment 159,400 22,400 29,300 211,100 Total wage income (million) 2,056 840 1,064 3,960 Golf Course Capital Investments Revenues (million) 1,915 1,097 1,045 4,057 Contribution to GDP (million) 665 372 357 1,394 Employment 16,400 9,900 9,200 35,500 Total wage income (million) 475 256 254 985 Golf Supplies Revenues (million) 1,949 736 1,134 3,820 Contribution to GDP (million) 334 114 172 620 Employment 7,500 2,600 4,000 14,100 Total wage income (million) 293 101 155 549 Golf Tournaments and Endorsements Revenues (million) 361 165 294 820 Contribution to GDP (million) 286 45 83 413 Employment 1,500 1,000 1,600 4,100 Total wage income (million) 249 32 53 333 Golf Tourism Revenues (million) 2,737 1,801 1,995 6,533 Contribution to GDP (million) 8,6 538 592 1,935 Employment 25,500 16,200 18,100 59,800 Total wage income (million) 604 387 443 1,433 Golf Real Estate Revenues (million) 6,891 6,326 5,553 18,770 Contribution to GDP (million) 2,435 1,621 802 4,858 Employment 59,900 35,200 26,400 121,500 Total wage income (million) 1,269 728 558 2,555 Total Golf Economy Revenues (million) 21,174 14,967 16,388 52,529 Contribution to GDP (million) 6,597 4,074 3,818 14,489 Employment 270,300 87,200 88,600 446,100 Total wage income (million) 4,945 2,342 2,525 9,816

272008 Golf KPMG Benchmark Advisory Ltd., a Hungarian Survey limited 2007 liability company, and a Middle member firm East of the & KPMG The Africa network Value Summary of independent of Golf Report to member, firms affiliated Middle with KPMG East International, and Africa 27 a Swiss cooperative. All rights reserved. Real estate Golf Leisure Tourism KPMG's Golf Advisory Practice possesses in-depth know-how and experience of the business side of the golf industry. We provide professional services to developers of new golf courses across, Middle East and Africa, particularly for those courses included in integrated real estate developments and tourist resorts. We have also assisted tourism institutions with their golf development strategies and helped numerous owners and operators of existing golf courses in becoming operationally more efficient in an increasingly competitive market place. In addition, we are the organizers of the annual Golf Business Forum (golfbusinessforum.com), and have initiated numerous studies which provide valuable information to the industry. Our surveys and researches can be accessed at golfbenchmark.com. Our services include: Market and financial feasibility studies Business plans Project conceptualization and investment planning Golf development strategies Business performance improvement Valuation services Transaction services Management contract negotiation Contact: Andrea Sartori Partner Tel.: +36 1 887-7215 E-mail: andrea.sartori@kpmg.hu Durban Country Club Photo: Grant Leversha