The top trends of 2013
25. Clubs are investing in simulators
Golf simulators, in which players, often corporate groups, can play any course in the world inside regardless of the weather outside, and in a short amount of time, can be huge revenue generators for clubs.
Golfers can book the simulators at hourly rates of about £30 per person, for up to 12 hours a day, every day.
Also in Wales, Cottrell Park Golf Club invested £120,000 in two golf simulators. The GPS Surround Proshot simulators, which replaced 10 of the driving range’s previous 21 bays, feature over 100 courses from around the world as well as technical coaching aids. They have so far mainly been used for coaching and corporate events.
But simulators aren’t always a success story. Stapleford Park in Leicestershire spent £250,000 refurbishing a building next to its clubhouse so that it would house two simulators. However, a colony of bats was found in the building during the work and the project was delayed by several months.
24. CASC is becoming less lucrative
Hundreds of private members’ golf clubs have registered as Community Amateur Sports Clubs (CASC) since 2002, which entitles them to business rates relief, partial corporation tax exemption and the ability to claim Gift Aid on voluntary donations. In exchange the clubs have to be open to the entire community, while all profits must be invested back into the club.
However, some proprietary golf clubs have complained that some private members’ golf clubs have gained unfair competitive advantages via this.
The government, in 2013, therefore proposed that if members of golf clubs pay more than £1,040 per year to play the game – which includes the cost of their annual subscription plus all other expenditure – the golf club can no longer secure CASC status.
While many proprietary managers support this, not everyone is happy. England Golf’s Paul Keeling said this shows the government lacks understanding about golf, while Robert Twydle, a VAT expert, said the scheme was unworkable and the ‘politics of envy’.
Clubs that are currently CASC registered but feel they do not fit into the new criteria will be allowed to withdraw within one year without any penalties.
23. Building homes on parts of your course is a great revenue generator … but be warned
Several clubs, including Celtic Manor, The KP, The Lincolnshire and Falmouth are planning to build lodges overlooking their courses that can be rented out to visitors for a few days at a time. This can be lucrative.
But clubs that have tried to go one step further have encountered problems.
Ullesthorpe Court Hotel and Golf Club in Leicestershire applied to build 53 full-scale houses by the southern end of its golf course in order to fund an academy and driving range. Shirley Golf Club in the West Midlands applied for planning permission to sell land it owns to be converted into 57 houses, which would have raised about £2.5 million to fund a new driving range and disabled golf academy. Windmill Hill Golf Centre in Milton Keynes and Brynhill Golf Club in Wales also wanted to build homes on part of their golf courses.
All had planning permission refused.
However, Dunbar Golf Club in Scotland has been granted approval to build 37 homes and 30 apartments on its golf course.
22. Innovative marketing and revenue-generating ideas are taking off
There was a time when golf clubs didn’t want anyone to know about their venue because they already had enough golfing customers.
Those days have long gone.
In 2013 venues have tried all sorts of creative methods to get people visiting and spending money.
In 2013 Kingswood Golf and Country Club in Surrey hosted a combined golf and poker day, Dartmouth Golf and Country Club in Devon secured more than 100 new members thanks to a ‘buy one get one free’ winter membership offer, Thames Ditton and Esher Golf Club in Surrey used AmazonLocal to offer a month-long membership package, Thorpeness Hotel and Golf Club is Suffolk teamed up with a 500-year-old grade I listed hall and gardens to market a combined attraction to visitors, Stonelees Golf Centre in Kent provided free rounds if it was your birthday and South Moor Golf Club in Durham gave a year’s membership to families who bought a home at a nearby residential development.
21. Golf clubs are becoming more professional
Results of the biennial England Golf Golf Club Membership Questionnaire came out in 2013, and they showed just how much clubs are changing: there’s been a huge increase in golf clubs that are trying to recruit corporate golfers (more than a third of golf clubs now have a corporate membership category, more than double the figure from 2010) and a huge drop in those that charge a joining fee (just one in three clubs charge one now, and drop from nearly 100 percent 20 years ago), for example.
“Golf clubs in England are more accessible and inclusive than ever before,” said an England Golf spokeswoman.
“Without doubt, the golfing environment in England has changed significantly with some golf clubs under financial pressure and experiencing challenging times. However, from a participant perspective, golf is now more accessible and inclusive than it ever has been.
“Clubs are becoming increasingly customer-focused as they strive to attract new golfers and to recruit and retain members.”
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Energy has gone up 23% (CBI) in the last four years, and clubs still haven’t cottoned on that this is taking off their bottom line? – expect this to make the list next year! The managers therefore are still missing where savings long term can be made… something that big business looks at seriously in recession.
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