The Golf Tourism Market

"Golf is first and foremost, a game to be enjoyed and the courses in Scotland allow you to play the game where it first developed. The beautiful settings, combined with magnificent facilities, makes playing links golf an unforgettable experience"

Colin Montgomerie

Golf is a global industry with huge growth potential. World-wide, 1000 new golf courses are being built each year. There are 25 million golfers in North America, over 5 million in Europe, and if participation rates in Asia rise to North American levels, there will be 200 million more!

North Americans currently spend an estimated $24 billion a year (U.S. National Golf Foundation) on golf travel, while Europeans spend £1.5 billion (Golf Research Group) - so there are major markets for Scotland to exploit.

Spain and Portugal are the principal destinations competing for European golf travellers, and both continue to show growth. France is emerging as a competitor, particularly in targeting golfers from the southern half of the UK. The USA continues to attract a share of European golfers, but is more particularly a competitor in relation to the USA market itself, where less than 10% of golf travellers will choose a destination outwith the States.

While Scotland competes with all of these destinations and more for a share of the lucrative golf travel market, its greatest direct competitor is Ireland. With its broadly similar golf product, Ireland competes fiercely with Scotland for a share of those golf travellers who will consider a 'non-sun' destination. Considerable investment in a programme of course and resort development and in marketing saw golf tourism to Ireland grow quickly into the 90s. In 1997 Bord Failte (Irish Tourist Board) estimated that some 214,000 travellers (Britain and other overseas) visited Ireland with golf as either their main or subsidiary activity and they spent an estimated £95 million. The overall number of golf travellers to Ireland has however been dropping since its highpoint in 1995.

Golf tourism is worth almost £100m to the Scottish economy

Stonehaven

The golf tourism market to Scotland

Around £70m comes from UK visitors, with £21m of this from those whose main purpose was golf. Spending by overseas golfers is conservatively estimated at £28m, coming predominantly from the USA.

Roughly 200,000 people from the UK take trips including golf in Scotland each year, which equals around 3 per cent of all UK holidays in Scotland. Half of these count golf as the main purpose of their trip. In addition, 60,000 overseas visits include golf representing 3% of all overseas trips.

Golfers average a higher spend per trip than other holidaymakers, with overseas visitors generally spending three times as much as those from the UK.

National monitoring studies do not provide a detailed picture of the typical golf visitor to Scotland, least of all those coming from overseas. This strategy identifies, and suggests ways to fill, some of the gaps in our market knowledge.

However, survey evidence also shows that Scotland's share of the market declined during the 1990's. From being the most popular destination for UK golfers in 1993, we had fallen by 1998 to fourth place, behind England, Spain and Portugal. Our popularity with UK golfers was on a par with the US, and twice that of Ireland, which is also in decline as a golfing destination.

During the Open at St Andrews

The Old Course, St Andrews

In addition to the UK market, VisitScotland targets its promotion of golf tourism at the main leisure and corporate golf markets in the USA, Scandinavia and Germany.

USA

This is Scotland's biggest overseas golf market. Golf travel continues to grow, up from 8m trips in 1989 to 11.8m in 1998, though fewer than 10 per cent of these US golf travellers venture abroad. Mexico, Canada and UK are their top three foreign destinations. The Scottish Incoming Golf Tour Operators Association (SIGTOA), reports that their US clients spend an average of £1600 per trip. Women's golf is growing fast, albeit from a small base, and new initiatives are necessary to attract more women golfers to Scotland. The womens version of the Ryder Cup - The Solheim Cup - will be played at Loch Lomond in October 2000.

Sweden

Some 67 per cent of Swedish golfers take golfing holidays, with a growing number taking two or more golf trips annually. Scotland is mentioned as a popular choice for future trips.

Germany

Participation in golf is growing. The base is still smaller than in Sweden, but Germans are more enthusiastic holiday golfers, with 74 per cent of players taking golf holiday trips. They are also very adventurous in their choice of destinations, with Scotland ranking at fifth choice for future holidays.

Corporate/incentive markets

Golf also forms an important element in conference, incentive and corporate marketing. It is a highly attractive lure to those looking for an activity 'experience' during their time in Scotland, and is thus integral to a key area of market growth.

SWOT Analysis

Strengths

Weaknesses

> Scotland is known world-wide as the Home of Golf - a genuinely unique selling proposition.

> 5 of the 8 Open Championship venues are Scottish, which gives huge 'free' publicity on a regular basis.

> Strong golf product - large number, variety, and geographical spread of courses.

> Committed and golf friendly accommodation providers, specialist tour operators and golf organisations.

> Weather - Scotland cannot compete in the 'sunshine' golf holiday market.

> Mismatch between customer demand and product availability.

> Inadequate market information.

>Golf Club marketing and customer service skills are variable.

> Marketing spend outmatched by the competition.

Opportunities

Threats

>Capitalise on Scotland's recognised position as the Home of Golf and frequent host to The Open Championship and other championships events.

>Growing number of courses now ready to market their product to visitors.

>Development of websites and on-line booking systems.

>Golf Classic competitions and other consumer golf events.

>A knowledge-based, targeted, and co-ordinated national effort to expand and diversify our markets.

>Growing number of golf travellers in USA, Scandinavia and Germany and in women's golf worldwide.

>Growing international competition, with technology giving world-wide access to even the smallest competitor destination.

>Failure to segment, and then match, products and markets.

>Continuing problem of pricing and availability of the well known courses.

>Fragmentation of effort, sectorally and geographically.

>Failure to develop overall a more flexible, commercially aware provision of visitor golf.