Asia

Asians are crazy about golf and the recession has done little to curb their enthusiasm. Asian destinations are looking for ways to attract golfers whether regionally or internationally who tend to be high-spenders, the spread of golf in Asia also indicates a rising standard of living as well as a lifestyle and status that consumers aspire to.

Number of International Standard Golf Courses in Asia 2009

Golf and related property development are enjoying government support especially in Southeast Asia. Countries with underdeveloped tourism infrastructure - Cambodia, Laos and Vietnam - are targeting golf visitors. Malaysia and Thailand lead the pack where the sport is bundled with resort, adventure and eco-tourism. Cross-industry cooperation has helped lure golfers from Japan, South Korea, Singapore and China through packages and marketing campaigns. Golf tourism in Thailand was estimated to be worth US$800 million in 2009, with 260 courses growing 10% per annum. Tourist Authority of Thailand (TAT) partnered with luxury hotels and golf clubs to launch the “Golf in a Kingdom” campaign in 2009 (www.golfinakingdom.com), specialising in custom itineraries, the Thai campaign goes beyond intra-regional to lure North Americans and Europeans, offering comparable quality at a fraction of the price.

Japan has 2,500 golf courses, with an estimated one in 10 Japanese playing regularly because of the drop in course fees. The sport has seen a revival due to younger stars, namely Miho Koga, and Ai Miyazato who have generated interest among urban, upper middle-class Japanese women. Golf is considered a low impact, lifestyle sport, golf clubs attract women with ladies-only packages and a chance to socialise many clubs offer ladies-only courses and free golf clinics. Accordia Golf Co Ltd is Japan’s largest golf course operator with 123 owned courses and plans to spend US $163 million buying10 new courses per year.

Rapid economic growth in China has created a new elite class jumpstarting golf demand. China is ranked fifth in the world with more than 300 golf courses and hundreds more in the pipeline, Shenzhen is home to the worlds s largest golf club, Mission Hills Golf Club. The majority of China’s golf courses are luxury resorts. Golf membership was designated as luxury by the government with a 23% consumption sales tax, 18% higher than other sports. In November 2009, the World Golf Championships took place in Shanghai with discounted tickets, Golfer Yang Yong-eun helped raise awareness of the sport as the first Asian born winner of the PGA Championship, which he won in 2009.

The Southeast Asian Golf Trail is fast becoming the most popular and affordable way to enjoy golf in Asia. Introduced in 2009 by Golfasian (www.golfasian.com), the trail combines premier courses in Thailand, Vietnam and Cambodia at a low cost.

Laos is a new, cheaper destination for golfers offering four major golf resorts with a rustic appeal. The Laos side of the Mekong River is undergoing a mass development project, it will house a golf course, casino, several hotels, duty-free zone and be connected to Southern China by a new highway.

Vietnam won the "Undiscovered Golf Destination of the Year" by the International Association of Golf Travel Operators (IAGTO), however the country faces setbacks. There are 144 golf projects under construction, with only 18 operational. Complex planning procedures, public discontent, poor infrastructure and corruption mean projects take 10 years to finish.

“The growing popularity of golf tourism in spite of the global financial crisis shows that the “Lipstick Effect” is also happening in the travel and tourism industry whereby consumers are unwilling to forgo life’s small luxuries in times of hardship.”
Caroline Bremner, Global Travel and Tourism Manager,
Euromonitor International

With real GDP growth in Asia Pacific expected to slow, the cost of playing golf will be a major hindrance. Lower membership fees, incentives and bundled tours will help pique demand, golf clubs and resorts should explore partnerships with airlines and tour operators for improved cross-industry and cross-border cooperation. Women continue to offer an untapped resource in Japan with great potential for health/wellness alliances. The 2009 WGC-HSBC Championships preceded the 2010 World Expo and presented a unique opportunity to promote golf in Shanghai and beyond. To promote golf in Vietnam during its infancy, it is important to target domestic visitors and local players.

Future Outlook

Growth in world-class golf courses, celebrities and international tournaments point to a dynamic future for golf tourism in Asia. The region is expected to lure back regional golfers who may have chosen Western locations, as well as Western golfers, with exceptionally low prices on premium courses.

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