Golf Benchmark Survey 2009

GOLF ADVISORY PRACTICE Golf Benchmark Survey 2009 Regional Report: Benchmark indicators and performance of golf courses in the Caribbean Region ADVISORY

Please note that all Golf Benchmark reports can be downloaded free of charge at www.golfbenchmark.com. Front cover and inside cover: Bahia Beach, Puerto Rico

Golf Benchmark Survey 2009 The Caribbean region 3 Dear Reader, Following our 2007 report, I am delighted to present the 2 nd edition of the Golf Benchmark Survey in the Caribbean region, which covers the most recent operational information and performance results for its golf courses. The key objective of the Golf Benchmark Survey remains to allow courses to compare their individual operational and financial results against high, average and low performers in their geographic markets. Andrea Sartori, KPMG Advisory Ltd. Head of Golf Advisory Practice in Europe, Middle East and Africa info@golfbenchmark.com At the time of this survey, the world economy was facing numerous challenges. The recent economic downturn has impacted world trade and GDP levels, and there has been a significant reduction in international travel and tourism. Consequently, holiday destinations and businesses depending on foreign tourists have been particularly hard hit by the crisis. According to the Caribbean Tourism Organisation (CTO), most countries in the region showed a sharp decrease in tourism arrivals from mid 2008, which continued into 2009. In light of sharply contracting tourism arrivals, it is not surprising that an overwhelming 87% of the golf course operators in our Caribbean sample of 50 courses have indicated that the economic downturn has had a negative impact on their operations and financial results. Below are some of the key findings of this latest Golf Benchmark Survey for the Caribbean region: Only 45% of the participating golf courses reported a positive gross operating profit (GOP), compared to 64% in 2006. These courses had an average GOP of almost USD 600,000 in 2008, with the top 25% of performers achieving a profit close to USD 1 million on average. In 2008, the average number of total rounds played at 18-hole facilities in the Caribbean was approximately 18,450 rounds. This translates into an 8% drop compared to 2006. The top 25% of golf courses in the Caribbean (based on annual turnover) reported revenues of USD 3.2 million, almost twice as high as the regional achieved average of USD 1.7 million. A total of 45% of the courses surveyed have recorded a decrease in the number of their members in 2008, with half of these indicating a striking 10 to 30% drop. In the Caribbean, the average green fee charged for 18 holes of golf was USD 129 in the winter and USD 109 in the summer season. Prospects for golf course owners and operators in 2010 appear rather pessimistic in most surveyed countries.

4 Golf Benchmark The source of industry knowledge For the purpose of this research, golf courses in the following locations were surveyed in this regional report: Antigua & Barbuda Aruba The Bahamas Barbados Bermuda Cayman Islands Costa Rica Cuba Curaçao Dominican Republic Jamaica Puerto Rico St. Kitts & Nevis Trinidad & Tobago Turks and Caicos Islands I hope that this report will provide valuable information to support the future operation and development of your golf course. We would like to highlight that the differences in the structure of the survey sample may also explain some of the differences compared to our findings for 2006. However, we have tried to make consistent comparisons between our findings wherever it was logical. I would like to express my appreciation to all of the golf course owners and operators from 15 different countries who have participated in this research, allowing us to publish this second edition of the Caribbean survey. If you would like to receive any clarification or discuss the survey results, please feel free to contact the Golf Benchmark team or myself. Yours sincerely,

Golf Benchmark Survey 2009 The Caribbean region 5 Overview of the golf market in the Caribbean region Location and number of golf courses in the Caribbean region (2009) Location Number of courses Anguilla 1 Antigua & Barbuda 3 Aruba 2 The Bahamas 10 Barbados 5 Bermuda 8 Belize 2 British Virgin Islands 1 Cayman Islands 3 Costa Rica 12 Cuba 2 Curaçao 2 Dominican Republic 34 Grenada 1 Guadeloupe 1 Jamaica 11 Martinique 1 Montserrat 1 Puerto Rico 23 St Kitts & Nevis 3 St Lucia 2 St Vincent & Grenadines 1 Trinidad & Tobago 8 Turks & Caicos Islands 1 US Virgin Islands 4 Total 142 The golf market in the Caribbean continues to be heavily reliant on tourism demand, with golfers attracted by the favorable climate providing opportunities for year-round golf, and by a wide variety of courses reflecting the diversity of the individual Caribbean islands and their cultures. Statistics on the number of players in the region are not readily available and difficult to monitor. According to our research, the Caribbean Golf Association has approximately 8 10,000 individual affiliated players across the region, through local federations. Nevertheless, our survey compiles a table summarizing the supply of operational golf courses by location. KPMG s research indicates that the overall supply of golf in the region is quite stable. Not surprisingly, given the economic conditions experienced during 2008 and 2009, there have been several golf course closures across the region since our last survey in Aruba, Bermuda, The Bahamas and St. Maarten offset by new courses opening in Puerto Rico and the Dominican Republic. Four golf courses in the Caribbean have been included by Golf Digest as ranking among the 100 best courses outside the U.S. in 2009. The islands of the Dominican Republic and Puerto Rico continue to dominate the golf market in the region and provide 24% and 16% of the total supply respectively, including many signature-designed championship courses. These islands continue to be considered the golf hot spots within the region. The island of Jamaica is also one of the Caribbean s top destinations for golf vacations. It has hosted a number of international golf events, and in 2009 Jamaica s Half Moon Resort was named Golf Resort of the Year in the Rest of the World category by the International Association of Golf Tour Operators. The island chain of The Bahamas is also well established as a premier golf destination. However the global recession appears to have impacted adversely on The Bahamas with five of the islands courses currently either closed or in receivership. Two of these closures could be considered a result of the current economic situation. To the north the island of Bermuda has eight courses on the territory s 20 square miles. Despite its lower number of tourist visitors relative to other larger islands, Bermuda appears able to sustain a high density of courses due to a greater proportion of resident players and members, reflecting the fact that it has the highest reported GDP per capita of any country in the region. Source: KPMG research

6 Golf Benchmark The source of industry knowledge Distribution of supply in the Caribbean region Dominican Republic 24% Puerto Rico 16% Costa Rica 8% Jamaica 8% The Bahamas 7% Bermuda 6% Trinidad & Tobago 6% Barbados 4% Rest of the islands 21% Source: KPMG research Golf in Costa Rica has experienced significant growth over the past decade, and today the country offers at least 12 world-class golf courses. This growth has been fostered by the expansion of real estate development, tourism and environment friendly economic development, as well as sustainable water management practices, ecological balance and the social and political stability of the country. In recent years, given the importance of tourism to the Caribbean economy, newer golf course developments have been concentrated around mixed-use residential and hotel developments incorporating high-end golf courses and other amenities such as marinas and spas. Since our 2007 survey global economic conditions have evolved from a credit crunch to a global economic crisis with tourism and related real estate sales being negatively affected. Not surprisingly, a lack of available capital and financing, and increased caution by lenders and investors has resulted in project failures and cancellations throughout the region. Most Caribbean islands are heavily dependent on tourists from the United States due to the region s proximity to this market and its easy accessibility from Florida and other states on the East Coast. Other important sources of incoming tourism for the Caribbean include France, the United Kingdom, Canada and other European countries such as Spain, Germany, Italy and the Netherlands. China and India are seen as emerging markets for the Caribbean region particularly as a leisure and golf tourism destination. Despite the current downturn, the longer-term outlook for the region remains positive. According to KPMG s 2009 Caribbean Region Financing Survey, which interviewed the leading financiers in the region, there is a belief that travel and tourism in the Caribbean will ultimately rebound as the global economy recovers. This view is supported by travel and tourism industry research. Although GDP from travel and tourism for the region is expected to decline by 9.2% in 2009, average annual real growth in travel and tourism GDP of 3.8% is forecasted for the next 10 years according to data from the World Travel & Tourism Council.

Increased Golf Benchmark Survey 2009 The Caribbean region 7 Demand characteristics Membership and round information are the key demand indicators considered by the Golf Benchmark Survey. Membership Changes in membership size 2008 compared to 2007 The average membership base of Caribbean golf courses is 350 members per course. This is significantly lower than at private clubs in the US and in most European countries, mainly due to the fact that the majority of courses in the Caribbean primarily cater to golf tourists. Decreased 45% 39% 16% Stayed the same The average membership size of golf courses differs dramatically from location to location. Some islands enjoy a stronger domestic demand, primarily due to higher numbers of expatriate workers from overseas. Courses in Bermuda, for example, reported over 420 members on average. On the other hand, facilities in Jamaica (an established tourist destination with limited local participation), reported an average membership base of less than 80. Average number of members at selected locations 18-hole courses 450 400 350 300 250 200 150 426 351 100 50 72 0 Bermuda Jamaica Average Caribbean According to our survey respondents, 45% of golf courses in the Caribbean recorded a decrease in the number of their members in 2008, with half indicating a striking 10-30% drop. The vast majority of these courses continued to lose members in 2009.

8 Golf Benchmark The source of industry knowledge Rounds played Thanks to its favorable climatic conditions, golf in the Caribbean region can be played throughout the year, with courses generally not closed for more than 10 days per annum. According to our survey, the average number of total rounds played at 18-hole golf courses in the Caribbean was 18,450 in 2008. It should be noted that this is significantly lower than in most all-year-round golf destinations in Europe, the Middle East and Africa. Average number of rounds at selected locations with year-round playability 1 18-hole golf courses Middle East 40,237 Spain 34,524 South Africa 33,575 Portugal 26,359 South-East Mediterranean* 23,104 Caribbean in 2008 18,450 0 10,000 20,000 30,000 40,000 50,000 *Note: The South-East Mediterranean region includes Cyprus, Greece and Turkey. Golf courses in Bermuda recorded the highest average number of rounds, totaling some 24,000 in 2008, while locations such as Costa Rica, the Dominican Republic and Jamaica recorded only half of that. Average number of rounds at 18-hole golf courses 30,000 25,000 23,997 22,643 20,000 18,450 15,000 10,000 10,826 11,809 12,951 5,000 0 Costa Rica Dominican Jamaica Bermuda Rest of the Average Republic Caribbean Caribbean To better allow individual golf courses to benchmark themselves with the average of their performance group, we have also calculated the average total rounds for each quartile. We found that top performers with more than 30,000 rounds achieved about 60% more rounds than the regional Caribbean average. 1 Figures for destinations in Europe, Middle East and Africa refer to year 2007.

Golf Benchmark Survey 2009 The Caribbean region 9 Average number of rounds by quartile in 2008 18-hole golf courses 35,000 30,000 30,186 25,000 20,000 21,047 18,450 15,000 10,000 5,000 7,064 13,097 0 1 st quartile 2 nd quartile 3 rd quartile 4 th quartile Average Caribbean In the Caribbean, the proportion of green fee rounds versus member rounds is approximately two-thirds versus one-third of the total rounds played, respectively. The share of green fee rounds is even higher at courses within tourist resort developments, with 71% of the total rounds played in 2008. Average number of rounds at 18-hole golf courses 25,000 20,000 15,000 10,000 20,122 66% 18,450 63% 5,000 0 34% 37% 2006 2008 Member rounds Green fee rounds According to our survey, throughout the Caribbean 48% of total rounds (i.e. more than three-quarters of the green fee rounds) are played by tourists, most of whom originate from the USA, Canada and the UK. Courses in the Dominican Republic (84%) and in Jamaica (74%) have a significantly higher share of rounds played by tourists, whereas in Bermuda, where domestic demand is more established, this figure is only 22%. Share of rounds played by tourists all courses Average Caribbean 48% Dominican Republic 84% Jamaica 74% Costa Rica 65% Bermuda 22% Rest of the Caribbean 43% 0% 20% 40% 60% 80% 100%

10 Golf Benchmark The source of industry knowledge The vast majority (76%) of our survey respondents admitted that the economic downturn, starting in mid 2008, has negatively affected their operations in terms of the number of rounds played at their facilities. Compared to total rounds in 2006, the market witnessed a drop of 8%. As a consequence of the decline in international golf tourism, courses in the Caribbean have noticed a significant loss in green fee rounds: i.e. an average drop of more than 1,600 rounds per course in 2008 compared to 2006. This was especially apparent at those golf courses that are located in tourist resorts and are mainly reliant on North American source markets. On the other hand, member rounds stayed more or less the same. A good benchmark indicator of golf course performance is the average number of rounds per playable day. Courses in Jamaica, the Dominican Republic and Costa Rica are performing relatively poorly in this respect, with only 30 36 rounds played per day on average at an 18-hole golf facility. Courses in Bermuda (and on some other islands in the Caribbean region) perform better, recording more than 60 rounds per day on average; however, this is still low compared to courses in the Middle East (110 120), South Africa (90 100) or Great Britain and Ireland (80-90), for example. At the same time, it should be stated that the top performing 18-hole golf courses in our sample were able to achieve in excess of 90 rounds per day. Average number of rounds per playable day 18-hole golf courses 80 70 60 50 40 30 20 10 0 68 351 364 36 35 339 Bermuda Jamaica Dominican Costa Rica Rest of the Republic Caribbean 360 30 64 354 365 360 355 350 345 340 335 330 325 320 Rounds per day Playable days

Yes, but only for certain membership types Yes58% Golf Benchmark Survey 2009 The Caribbean region 11 Pricing Does your membership scheme require the payment of an initiation fee? Yes, for every membership 56% 26% 18% No Initiation fees applied by surveyed 18-hole golf courses in 2008 (USD) Although membership and pricing schemes applied by the golf courses surveyed are variable and therefore difficult to compare, we have noted some common characteristics: According to our survey, approximately 74% of the golf courses in the Caribbean region require the payment of an initiation fee (joining fee) three-quarters of them for every membership type, and one-quarter for certain types of membership. Regarding initiation fees, a breakdown of our Caribbean sample confirms that the initiation fee required by 45% of the courses is well below USD 2,000. One-third of the courses surveyed charge between USD 2,000 and 15,000 for joining fees, while 22% charge over USD 15,000. Annual subscription fees are also variable and linked to the type of membership (e.g. local home owner, corporate, short-term member, etc.). Survey participants reported an average annual subscription fee of USD 2,839, payable by individual full members. One of our key findings is that membership fees in the Caribbean are far higher than in any of the surveyed regions of Europe and Africa. >15,000 22% 28% <500 The average green fee for 18 holes USD 129 in the winter and USD 109 in the summer season is also relatively high in the Caribbean compared to the other regions considered in our Golf Benchmark series of surveys. Playing a 9-hole round of golf costs approximately 40% less than playing 18 holes of golf. 2,001 15,000 33% 17% 501 2,000 Does an individual full member need to pay to play? While courses typically charge different fees for peak and low seasons, there is usually no price differentiation between weekday and weekend rounds. According to our findings, individual full members pay a reduced green fee at 58% of the facilities surveyed, averaging USD 20-25 for a round of 18 holes. The other 42% of courses do not charge their members for playing. At some facilities it is mandatory to use a caddy when playing, and the average caddy fee for an 18-hole round is USD 25, while cart rental for 18 holes costs USD 31 on average. Average green fees for 9 holes and 18 holes in the Caribbean all courses (USD) No 42% 140 120 100 Winter Summer 129 109 80 60 76 66 40 20 0 9 holes 18 holes

12 Golf Benchmark The source of industry knowledge Revenues, costs and profitability This section provides information on the key operating indicators expressed in terms of revenues, operating costs and operating profitability. Revenues Average revenues of 18-hole golf courses in the Caribbean ( 000 USD) 2,500 2,000 1,500 2,081 1,723 In 2008, the average revenues achieved at an 18-hole golf course in the Caribbean region totaled USD 1.72 million compared to USD 2.08 million in 2006. This equates to a 17% reduction in revenues on average and can mainly be attributed to the loss of golf tourist spending (green fee, food and beverage and pro-shop income, etc). 1,000 500 0 2006 2008 Golf courses that recorded the highest turnover (i.e. the top 25%) reported average revenues (USD 3.25 million) almost twice as high as the regional average (USD 1.72 million) in 2008. Average revenues of 18-hole golf courses by quartile in 2008 3,500 3,000 2,500 2,000 1,500 1,000 500 Thousands Average Caribbean: 1.72 million 1,183 458 1,999 3,251 0 Bottom quartile 2nd quartile 3rd quartile Top quartile On a regional level, golf course revenues are significantly higher in the Caribbean than in most surveyed regions in Europe or in South Africa, but still about onequarter of the average revenues achieved at 18-hole golf courses in the Middle East (USD 6-8 million). Courses in Bermuda were performing significantly better than those in other locations, with average revenues of USD 2.8 million 2 achieved in 2008, which is 8% less than in 2006. 2 Excluding revenues from initiation fees.

Golf Benchmark Survey 2009 The Caribbean region 13 Average revenue per utilized round at 18-hole golf courses in EMA* versus the Caribbean (USD) North Africa 41 GB & Ireland 44 Northern Europe 52 Eastern Europe 60 Benelux 69 Average Caribbean in 2008: USD 94 Middle East 199 0 50 100 150 200 250 *2007 data, converted to USD at annual average exchange rate (1.37 USD/EUR) Revenue per Utilized Round Cost structure and staffing of 18-hole golf courses in the Caribbean 29% Maintenance costs Other costs 28% A good benchmark indicator of operational performance for golf courses is revenue per utilized round (RevPUR), which represents the value of total services sold in connection with one round played. In this respect, 18-hole golf courses achieved an average RevPUR of USD 94, which is 10% less than in 2006, although this is still 30-50% higher than in most other surveyed regions (with the exception of the Middle East). Operating costs The main components of operating costs are staff costs and maintenance costs, which account for 43% and 29% of the total operating costs at 18-hole courses in the region. Other costs include cost of sales, general admin, sales and marketing, etc. 50 45 40 35 6 43% Staff costs Part-time Full-time According to our survey, only a few courses took measures to reduce staff costs in 2008, by cutting their headcount. Staff at an average golf course comprised 38 full-time and six part-time employees, with almost half of them working in golf maintenance. On the other hand, almost 50% of our survey participants intended to cut staff costs in 2009/2010, be it a reduction in headcount, cutting wages, or reduced overtime expenditures. 30 25 20 38 2 15 10 17 5 0 Total staff Golf maintenance staff Profitability In terms of profitability, only 45% of the participating golf courses reported a positive gross operating profit (GOP) in 2008, compared to 64% back in 2006. These courses were able to achieve an average GOP of USD 597,000 in 2008, with the top 25% of performers having declared a profit of USD 958,000 on average (equal to a margin of approximately 30% of total revenues).

14 Golf Benchmark The source of industry knowledge Profitability all courses 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 64% 7% 29% 45% 2% 53% 0% 2006 2008 Profitable Breaking even Loss making Note: We considered as profitable those golf courses where total revenues exceeded gross operating costs, excluding financial charges, depreciation and taxation. More than half of the golf courses surveyed declared an operating loss for 2008, with average losses exceeding half a million USD. This is particularly worrying when we consider that 93% of the respondent courses are operated on a profitseeking basis. Average gross operating profit and loss at 18-hole golf courses (USD 000) 800 600 400 200 0-200 -400-600 -800 Thousands 597 Average GOP at profit-making courses -586 Average GOP at loss-making courses

Golf Benchmark Survey 2009 The Caribbean region 15 What measures have operators taken to offset the crisis? As part of our survey, we queried golf course operators as to the measures they took in 2009 to offset the negative effects of the economic downturn. Almost all of the survey respondents (87%) have taken operational cost cutting measures, primarily the reduction of staff costs. Furthermore, more than two-thirds of the operators have changed their marketing strategies to initiate more demand, either by hosting new tournaments (social events and corporate outings) or through a more active marketing campaign on source markets (mainly the US). Many of the courses have also created stronger alliances with local hotels and with golf tour operators. Approximately half of the operators have not increased their prices. They have also introduced special discounts for target groups, as well as new package deals. Some of the courses that are integrated in residential communities or tourist resorts have refinanced their developments or restructured their operations. Only 5% of our survey sample did not implement any specific measures in 2009, continuing their operations as before. Measures taken by golf course operators to offset the downturn 0% 20% 40% 60% 80% 100%

16 Golf Benchmark The source of industry knowledge Future market expectations Has the economic downturn had a negative impact on your operations? No In the first edition of this survey back in 2007, approximately 75% of the golf courses surveyed foresaw their future business prospects as good or excellent. Since then, the world has encountered an ever more challenging economic environment. 13% 87% An overwhelming 87% of our sample have indicated that the economic downturn had a negative impact on their operations, resulting in decreased rounds (76% of courses) and/or revenues (64% of courses). Rating of expected business performance 2009 Good After 2010 Excellent 16% 13% When do you expect the end of the downturn? 32% Medium 29% 45% Second half of 2010 Yes 26% Already ending 13% Poor 26% First half of 2010 Consequently, at the time this survey was conducted (i.e. the fourth quarter of 2009), less than 30% of our respondents projected their business performance to be positive by year-end 2009. Forty-five percent expected stagnation and 26% to finish the year with poorer results than in 2008. Even Bermudian courses which are reliant on strong local membership demand - have not been able to avoid the crisis and are particularly pessimistic about their future, despite their stronger performance in comparison to others. On the other hand, courses in the Dominican Republic were rather optimistic about their future outlook. 1 Expected performance of Caribbean golf courses in 2009* 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 25% 50% 25% 40% 60% Costa Rica Dominican Republic Jamaica Bermuda *as of fall 2009 When assessing the future outlook of golf courses, it should be noted that 13% of golf course owners and operators had already recognized improving market conditions at the time of our survey, 55% expected an upswing in the course of 2010, and one-third did not foresee the end of the downturn before 2011. 12% 13% 63% 12% 17% 33% 50% Excellent Good Medium Poor 1 It should be highlighted that Bermuda recorded a 17% loss in tourism arrivals in 2009, compared to a mere 1% decline in the Dominican Republic.

Golf Benchmark Survey 2009 The Caribbean region 17 Conclusion It is evident that on average, golf courses in the Caribbean have performed worse in 2008 than in 2006, which can mainly be attributed to the global economic downturn and, consequently, to the decrease in golf travel, especially from the North American market. This weaker performance is reflected in the lower number of rounds played (-8% on average) as well as in lower levels of achieved revenues (-17% on average). Additionally, according to a reading of our results top performing courses, similarly to lower performers, have also been significantly impacted by the crisis. Golf course rounds and revenues in 2006 and 2008 Caribbean average Top 25% performers 2006 2008 Change 2006 2008 Change Rounds 20,122 18,450-8.3% 31,635 30,186-4.6% Revenues (USD 000) 2,081 1,723-17.2% 3,880 3,251-16.2% Our survey suggests that most courses have already taken proactive steps to address the changes in market conditions in terms of staffing, pricing strategies and marketing activities. It will be interesting to see how these golf courses performance will change in the coming years, considering the relatively pessimistic expectations of golf course owners and operators in the region regarding their future prospects. KPMG s Golf Advisory practice remains at your disposal to assist with your development, operational and restructuring challenges and opportunities.

18 Golf Benchmark The source of industry knowledge Distribution of golf courses by country Rest of the Caribbean by size Jamaica 27-hole 2% Bermuda 36% 12% 22% 15% 9-hole 10% 88% 15% Dominican Costa Rica Republic Profile of the Caribbean Sample Covering a total of 15 countries, nearly 50 golf courses participated in the 2 nd edition of the Golf Benchmark Survey in the Caribbean region, conducted during the autumn of 2009. The vast majority (88%) of the golf courses in our sample are 18-hole facilities. Ninety-three percent of the surveyed golf courses in the Caribbean region are profit-seeking businesses, and only a few courses are run on a not-for-profit basis. Almost 76% of the participating courses are owner-operated, and about 17% are operated by an external management company, while the remaining 7% are run by public entities. Fifteen percent of our sample comprises member-only facilities, while 73% operate on a membership and daily fee basis. The remaining 12% do not offer memberships. 18-hole by operational category More than half of the participating golf courses are part of a tourist resort and the remainder is equally divided between stand-alone golf courses and those integrated into residential communities. Membership exclusively 15% 12% 73% Daily fee/pay & play Membership and daily fee integrated vs. stand-alone Methodological note and survey limitations The analysis presented in this report has been performed based on the responses of golf course operators participating in the Golf Benchmark Survey 2009. Requested information mainly relates to the 2008 operating year. Financial data was submitted in the home currency of the respective countries and was converted into USD at yearly average exchange rates of 2008. Respondents were requested to present all pricing-related information and financial data net of VAT or any other applicable tax. 25% 23% Stand-alone golf course Part of a residential community 52% Part of a tourist resort We wish to highlight the following limitations for the survey: Some cross tabulations may be considered indicative but not representative of the market due to a low number of responses. The rounding of decimal figures may lead to some discrepancies when computing input data.

19 2010 Golf KPMG Benchmark Advisory Ltd., a Hungarian Survey limited 2007 liability Europe, company Europe, and Middle a member Middle East firm East of the & Africa KPMG & Africa network of Summary independent Report member Report firms Golf affiliated Benchmark with KPMG International Survey Cooperative 2007 19 ( KPMG International ), a Swiss entity. 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 Europe, 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 benchmark information to the industry. 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 Tel.: +36 1 887-7215 E-mail: andrea.sartori@kpmg.hu Durban Country Club Photo: Grant Leversha 2008 KPMG Advisory Ltd., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

golfbenchmark.com For further information please contact the Golf Benchmark Team: KPMG Golf Advisory Practice in EMA Andrea Sartori H-1139 Budapest Váci út 99 Hungary Tel: +36 1 887 7100 E-mail: info@golfbenchmark.com KPMG contacts in the Caribbean region: Turks & Caicos Gary Brough Managing Director +1 649 941 3882 gbrough@kpmg.tc Anguilla Claudel Romney +1 264 497 5500 gcvromney@kpmg.com Dutch Caribbean Jim van Luipen Director +1 599 9 7325100 luipen.van.jim@kpmg.an The Bahamas Simon Townend +1 242 393 2007 stownend@kpmg.com Antigua & Barbuda Cleveland Seaforth Managing +1 268 462 8868 cleveland_seaforth@kpmg.ag Jamaica Raymond Campbell +1 876 922 6640 raymondcampbell@kpmg.com.jm Bermuda Steve Woodward Director +1 441 294 2675 stephenwoodward@kpmg.bm Barbados Lisa Taylor +1 246 228 2593 lisa taylor@kpmg.bb St Lucia Frank Myers +1 758 453 1471 fvmyers@kpmg.lc Dominican Republic Doris Brea +1 809 412 5999 dorisbrea@kpmg.com Cayman Islands Tully Cornick Associate Director +1 345 914 4372 tullycornick@kpmg.ky St Vincent & the Grenadines Brian Glasgow +1 784 456 266 brianglasgow@kpmg.vc Puerto Rico Miguel Venta +1 787 622 6190 mventa@kpmg.com Costa Rica Alfonso Amen Senior +1 506 2201 4210 aamen@kpmg.com Trinidad & Tobago Raoul John +1 868 624 8749 raouljohn@kpmg.co.tt The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG International ), a Swiss entity. 2010 KPMG Advisory Ltd., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved.