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If the annual number of visitors is around 40,000, how would I operate it?

- Diversification of Revenue Models

Over the past 20 years, the author has gained experience ranging from golf course management to overseeing operations in the United States and Japan. In 2016, they personally acquired and operated an 18-hole course in Hawaii. Additionally, as the representative of IMG GCM KOREA, a joint venture with IMG, they provided consulting services for golf course operations in countries such as Vietnam and China.

One interesting observation from this experience is that both advanced golfing nations like the United States and Japan, as well as countries in the growth stages of the golf industry like Vietnam and Malaysia, struggle to surpass an average annual visitor count of around 40,000 for their 18-hole golf courses.

Recently, during a meeting with the responsible party at Yas LINKS Golf Club in Abu Dhabi, it was mentioned that their annual visitor target is 35,000. This figure is similar to major golf courses in Asia and nearby Japan.

On the other hand, the average annual visitor count for golf courses in South Korea exceeded 70,000 before the COVID-19 pandemic in 2019, and it is known to have surpassed 80,000 nationwide in 2022.

Considering South Korea's profound interest in golf, evident from having more than double the number of golf courses compared to other countries, and the significant time and cost investment, can the country sustain profitability while attracting more than double the average visitor count of other nations?

From a cost perspective, since the average visitor spending at South Korean golf courses is more than double that of other countries, South Korean golf courses arguably yield more than four times the economic benefit.

However, if the average annual visitor count for South Korean golf courses were similar to that of other countries, around 40,000, could they still maintain profitability while ensuring service quality, course conditions, and brand recognition, all while remaining competitive?

How did Yas LINKS manage to maintain impeccable course conditions and secure competitiveness, even with 35,000 annual visitors and hosting events like the HSBC Championship?

In such a market scenario, extreme measures such as significantly raising green fees to enhance the golf course's brand and value, making it a desirable destination for everyone to play, and thereby ensuring profitability, or alternatively, substantially reducing green fees, or implementing dynamic pricing to secure more visitors, may become inevitable.

Nevertheless, evaluations of golf course green fees may come from golfers rather than the golf courses themselves, presenting a challenging situation for the golf courses.

- Reversal Phenomenon of Demand and Supply

Certainly, it is difficult to imagine an extreme scenario in the Korean golf course ecosystem as it boasts a more stable supply of golfers than any other country worldwide.

However, it is essential to objectively examine whether we possess sufficient competitiveness in each aspect when business naturally grows under the market driven by suppliers and when the environment shifts to a demand-driven market due to external factors.

One suggestion for golf courses is to explore more sophisticated and diverse marketing strategies, such as strengthening branding and marketing through alliances with major golf course associations worldwide, similar to airline alliances, alongside the individual marketing efforts that each golf course can undertake independently.

As an example, by participating in the 'TIGER PRESTIGE CLUB', a global alliance of major golf courses, golf courses can enhance their competitiveness through staff exchanges, increased membership benefits, and customer loyalty enhancement.

The robust network of major golf courses in each country ultimately leads to strengthening the brand of golf courses.

Source: Golf Industry Newspaper (http://www.golfin.co.kr)

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