Golf is and will continue to be the main draw for luxury resorts and one of the key drivers that will help the tourism sector recover from the second half of the year onwards. This is one of the conclusions drawn from the webinar organized yesterday by Arum Group, in collaboration with the Spanish Association of Golf Courses (AECG), which under the title 'The before and after of golf resorts in the time of COVID-19', has tried to shed light on the future that lies ahead after the pandemic.

Golf is making a comeback. It can be played individually or in small groups, outdoors, amidst spectacular scenery. It's considered a 'safe' sport, even by health experts, which has helped ensure its continued growth, even in a year as challenging for sports as the last. The numbers don't lie.

The number of golf federation members in Spain grew throughout 2020, for the second consecutive year, reaching 271,788 members, 270,219 of them amateurs and 1,569 professionals, according to the Royal Spanish Golf Federation (RFEG).

But… what has the golf sector learned from this crisis and what challenges does it face from now on? These are questions that three executives from leading resorts in Spain answered in this meeting, moderated by Jesús Abellán, CEO of Arum Group: Carlos Erburu, Head of Operations of La Manga Club, in Murcia; Vicente Rubio, general manager of Cortesín Estate, in Malaga, and Rafael Noblejas, general manager of the Timón Group and its real estate and hotel division, Grupo Tropical Hoteles, which manages Abama Resort in Tenerife.

In his opinion, although golf may benefit from the pandemic, resorts will need to adapt to the new needs of potential customers. Trends that were already emerging before the health crisis will accelerate.

“We’re not talking about anything new, but changes in consumption patterns are going to accelerate, and people will be looking for more security,” Vicente Rubio emphasized. The values associated with resorts will be on the rise; issues such as solidarity, sustainability, carbon footprint, healthy living, mindful eating, sports, yoga, meditation, wellness, and the health and safety of the environment will be key to the success of golf resorts in the future.

“Each brand’s adaptability to these new concepts will be key to maintaining our leadership in the tourism sector. Our ability to maintain our leadership will depend on how quickly we move compared to other competing markets, such as Turkey,” added Carlos Erburu.

Tourism will recover exponentially after the pandemic, while business travel will slow down. Rafael Noblejas explained: “We are seeing the light at the end of the tunnel. Our forecasts are that, if the vaccination rate is met globally, normalization will begin in the second half of this year, with significant growth expected in 2022. However, technological developments and how we have learned to communicate during this crisis, when mobility was limited, will cause a more radical shift in the business sector. Many trips will be unnecessary.”.

For his part, Javier Ínsula, vice president of the AECG, recalled during the introduction to this webinar that golf will play a crucial role in job creation in the coming months, since 7 out of every 8 euros it generates do not go to the sector itself, but to external networks, such as services, hospitality and the real estate sector, something that will help to boost the economy in general.

This is one of the results of the 2020 economic impact study of golf, commissioned by the AECG and the RFEG, which reveals that the sector generates more than 11 billion euros, 121,000 jobs directly and indirectly, and attracts around 1.2 million golf tourists to Spain each year.

Impact on the real estate sector

Golf is and will continue to be the main driver of real estate investment in resorts, according to these experts. Spain will continue to develop new properties because land is available, but “the trend in the future will be low density, the creation of resorts with no more than 10 homes per hectare,” noted Vicente Rubio.

In their opinion, golf courses, like every business unit, must be profitable on their own. It makes no sense for the other units within a resort (hotels, wellness, restaurants, other sports facilities, real estate division, property management, concierge service, and community administration, among others) to be financially impacted, jeopardizing the overall viability of the business.

Remote work and the search for security will benefit the purchase of larger homes in open spaces within a controlled environment with amenities, which will undoubtedly encourage investment in the future of golf resort real estate. In this regard, digital marketing and online sales are emerging as fundamental tools for promoting homes in particular and other resort services in general.

The diverse range of services and activities, as well as the option to rent out the property, are increasingly important for a resort's success, but not necessarily for achieving profitability across the board. For example, the owner of a €4 million property is more concerned with its upkeep than with generating income from it. The concept of profitability is typically associated with properties built under hotel brands.

These are some of the topics covered in the first of a series of webinars organized by Arum Group and the AECG, which, with different approaches, will give a voice to professionals with proven experience, and will present the challenges, problems and strategies that may be vital for the golf sector in the short term.

SOURCE: Arum Group and AECG

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