KPMG: golf tourism could provide a new opportunity for Romania’s tourism

Newsroom 26/05/2014 | 15:07

By 2020 nearly one in three tourists to Europe will choose a CEE destination (WTA data) and golf can be an important attraction to the region and Romania, said KPMG in Romania representatives. “According to Economic Research Associates, a London based tourism advisory firm, the types of tourist most attracted to golf are also keen on combining sport with culture and heritage, which Romania has in abundance, and which is still largely undiscovered,” they added.

There are approximately 500 affiliated golf players in Romania but only five courses where they can play, according to the firm. By comparison, in the entire Central and Eastern Europe region there are a total of 200 golf courses.

However, the lack of facilities and the number of registered players in the Romanian Golf Association do not represent a true reflection of the market’s potential, thinks Richard Perrin, partner advisory, KPMG. “When we look at our neighboring countries, Romania is close to bottom of the league table in terms of golf courses. We are, of course, a long way behind the Czech Republic with its 96 courses, but we also do badly compared with Poland, which has 27 courses and 3,000 affiliated players, Hungary, which has 15 courses and 1,400 players, and Bulgaria, which has seven golf courses and 640 players,” he added.

The CzechRepublic, is the most mature golf market in Eastern Europe, has seen the opening of some 20 new courses since 2008. The 55.000 affiliated players in the Czech Republic have, at their disposal, 96 locations for this sport.

A far as golf tourism is concerned, Europe’s most visited destinations continue to be Spain and Portugal, followed by Scotland and Turkey. Other increasingly popular locations include Italy and Bulgaria, the new emerging golf tourism hot spots of Europe.

 

 

A costly business

It costs around EUR 12 million to develop a high quality 18-holes golf course, including a conference facility, restaurant and bars, 12 chalets, spa and recreational activities, according to KPMG. This estimation assumes that the investor can obtain the land on concession.

Over the period 2008-2013 the average development cost for a golf hole in Eastern Europe, based on courses of all sizes, was EUR 367,000. This was three times higher than the EUR 106,000 cost reported for the 2004-2008 period. The reason for this is that recent developments in the region have typically been of higher quality, according to the same source. By comparison, the average development cost in Western Europe and south east Mediterranean Europe (France, Italy, Portugal, Spain, Cyprus) is EUR 450,000 in EMA it is EUR 328,000.

KPMG in Romania is organizing its first golf tournament in Bulgaria at Balchik, with its partners Ferrari, Mondial Voyages GSA Club Med, Air France, Comptesse du Barry, La Cave d’Olivier FUCHS, Istyle and Marsh.

KPMG’s Golf Advisory practice has provided professional services to developers of new golf courses and integrated real estate projects. “Additionally we have assisted several tourism institutions with the creation of golf development strategies and helped managers of existing golf courses to become operationally more efficient. We hope to have the opportunity soon to announce the opening of the first 18 hole golf course recognized by the professional federation in Romania,” according to company representatives.

KPMG in Romania and Moldova operates from six offices located in Bucharest, Cluj-Napoca, Constanta, Iasi, Timisoara and Chisinau.

Simona Bazavan

 

Photo: Lac de Verde, Prahova, Romania

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