Designing & Maintaining

Sustainable Facilities

in Bulgaria

By Roger Jones – Roger Jones Golf Design Who is Roger Jones?

Architect – Golf Development Consultant – PGA Golf Professional

• 36 years playing golf – 28 years working in golf industry

• In golf terms, that makes me old enough to remember;

• Woods with wooden heads • The introduction of the first ever metal head woods • Brown hard bouncy fairways in the summer • Greens and teeing areas with no irrigation • Temporary greens in the winter • Mats for temporary winter • Golf membership fees less than €250 per annum! • No distance markers on fairways • A round of golf that took between 3 and 3.5 hours to play! Old enough to remember - Woods with wooden heads Old enough to remember – The first ever metal head woods Old enough to remember – golf courses with no irrigation systems

Brown hard bouncy fairways and greens Old enough to remember – temporary winter greens and mats Roger Jones

• Began playing golf at the age of 10 at Oswestry , UK

• Played international golf for Wales at Junior and Youth level

• Became a , aged 18, in 1981 – still a member of PGA

• Played tournament golf until 1985

• Established golf marketing company in UK in 1985

• First involved in golf development in 1990

• Owner of Roger Jones Golf Design – International Golf Course Designers

• Owner of GreenScape Consulting – Golf, Leisure & Tourism Consulting Roger Jones Golf Design International Golf Course Designers & Golf Development Consultants

• Main office based in Ireland – associate offices in Spain & India

• New courses & redesign, renovation and upgrade of existing courses

• Past projects in UK, Ireland, France, USA, Egypt

• Current projects in Bulgaria, Crete, Canada, Jordan

• 18-hole courses, 9-hole courses & Executive courses

• All types of development land including „brownfield sites‟

• Work for private clients and government authorities

• Consultancy work in France, Spain, Israel, Turkey, Croatia & more Roger Jones Golf Design International Golf Course Designers & Golf Development Consultants

• Proud to have won awards with past projects

• Garnant Park GC, Wales - Best New Course in Wales 2003

• Balcarrick GC, Ireland - International Finalist – Renovation of the Year 2008

GreenScape Consulting International Golf & Leisure Consultants

• Market Research • Investment Opportunities & Analysis • Strategic Planning [Feasibility Studies/Business Plans] • Marketing & Public Relations • Design Development • Project Management • Operational Management Advice & Assistance • Business Recovery • Representation Services

• Golf and Non-Golf Projects

• Tourism Amenities, Hotels and other accommodation, Sports Villages • Adventure Sports Centres & Resorts • Residential Property [as part of mixed-use resorts/estates] • Retirement Villages Oswestry Golf Club, Shropshire, UK

• 18 hole parkland course - 70 – 5,533 metres – 6,051 yards • Regarded as one of the very best courses in the region • Home course of Ian Woosnam – Former Masters champion & World No. 1 • A number of other county & international amateur golfers • Club with 700 members • Waiting list of 5 – 7 years to become a member at that time Oswestry Golf Club, Shropshire, UK

• Successful, busy club with members, visitors and golf groups • 1 Head Greenkeeper – 3 Assistant Greenkeepers • Greens mown with pedestrian mowers • Fairways and rough mown with tractor-pulled gang mowers • Bunkers all raked by hand • 1 Secretary/Manager – Husband & Wife bar & catering • 1 Golf Professional – 1 Assistant Professional Time moves on.....

For all of us personally and

For the golf industry Global Golf Supply 2007 – approx 33,000 golf courses

Mature ≤ 25,000 people Developed 25,000 – 100,000 Growing 100,000 – 300,000 Infant ≥ 300,000 No golf courses or not known Global Golf Demand 2007 – approx 55 million golfers

Mature ≥ 5% Developed 1% - 5% Growing 0.2% - 1.0% Infant ≤ 0.2% Not known US – nearly 50% of the golf courses in the world, 60% of golfers

Golf in USA - 1985 Golf in USA - 2007

Golf courses – approx 12,000 Golf courses – 15,970

Golfers – 19.50 million Golfers – 29.50 million

Population per course – approx. 24,000 Population per course – 17,533

Golf participation rate – 8.20% Golf participation rate – 10.7% USA – Courses & Golfers 1985 - 2007

35,000

30,000 29,500 30,000 28,800 27,400

24,700 25,000

19,500 20,000 Players 16,052 15,990 15,970 15,487 Courses 14,074 15,000 12,846 Poly. (Players) 12,000

10,000

5,000

0 1985 1990 1995 2000 2005 2006 2007

Source: National Golf Foundation [NGF] Other US golf market statistics [data from National Golf Foundation]

• 15,970 golf facilities at end of 2007 - 11,555 [72%] Daily Fee or Municipal • Since 1990 number of golf facilities has increased by 3,124 - 1.2% pa • Number of daily fee facilities has grown 2.3% pa - nearly double the overall rate • Since 1990 the number of private golf facilities has decreased by 395 • In 2007, a total of 113 new golf facilities opened, of which 62% were daily fee or municipal • In 2007, there were 780.5 18-hole equivalents in the construction pipeline, including 268 under construction, 263 in planning and 249.5 proposed • About 70% of golf holes under construction were part of a residential community project, but only 22% of existing courses are part of such • The states with the most golf facilities are Florida [1,060], California [927], Michigan [836], Texas [832] and New York [818] - climate and population have an impact on the supply and demand for golf facilities in the US • The average number of rounds played on US golf courses in 2008 was down 0.8% compared with 2007 - 27,966 compared with 28,202 • In 2008 green fee revenue was up 0.7%, food and beverage revenue generally flat at 0.1% and 0.2% respectively, but merchandise revenue down 6.4% for the year The US Golf Economy 2005 [source: 2005 US Golf Economy Report – published 2008]

The US Golf Economy 2005 - by Industry Segment [US$ millions] 2000 2005 Golf Facility Operations 20,496 28,052 Golf Course Capital Investment 7,812 3,578 Golfer Supplies 5,982 6,151 Endorsements, Tournaments & Associations 1,293 1,682 Charities 3,200 3,501 Total Core Industries 38,783 42,964

Real Estate 9,904 14,973 Hospitality/Tourism 13,480 18,001 Total Enabled Industries 23,384 32,975 TOTAL GOLF ECONOMY US$ 62,167 US$ 75,938 • A total impact of US$ 195 billion including indirect and induced effects • A total impact of 2 million jobs • Total wage income of US$ 61 billion • US golf economy bigger than newspaper publishing, performing arts and spectator sports, and the motion picture and video industries Europe – 20% of the golf courses in the world, less than 10% of golfers

Golf in Europe - 1985 Golf in Europe - 2007

Golf courses – 2,914 Golf courses - 6,597

Golfers – 1.31 million Golfers – 4.38 million

Population per course – approx. 200,000 Population per course – 96,730

Golf participation rate – approx. 0.30% Golf participation rate – 1.078%

Source: European Golf Association [EGA] Europe – Courses & Golfers 1985 - 2007

7,000 6,560 6,597 6,423 5,896 6,000

5,041 5,000 4,270 4,381 4,135 4,000 3,698 3,401 Players 2,914 Courses 3,000 2,636 Poly. (Players)

2,000 1,858 1,312

1,000

0 1985 1990 1995 2000 2005 2006 2007

Source: European Golf Association [EGA] Golf Market in Europe – Great Britain & Ireland

Most mature market in Europe Golf courses – 3,044 Golfers – 1.51 million Population per course – 17,308 Average 497 golfers/course - Was 508 per course in 2004 Golf participation rate – 6.5% Approx 900 golf ranges Estimated 2.5 – 3 million golfers who are not members of clubs. Nearly 11% of people in the UK between the ages of 25 and 34 play golf - only 5.5% of the 55+ age group - 55+ age group plays on average more than 3 times as many rounds as the 25-34s.

Average 30,000 rounds played per annum – England & Scotland higher than Ireland & Wales.

3,153 hours of golf were broadcast on UK television in 2007 - 8% of total sports coverage.

Performance data from Golf Benchmark Survey 2006 Golf Market in Europe – North Zone

Golf courses – 1,016 Golfers – 941,646 Population per course – 175,861 Golf participation rate – 0.527% No of golfer per course dropped from 978 in 2005 to 927 in 2007 Scandinavia - mature golf market Sweden – nearly 500 golf courses Sweden – golf participation 6.98% Iceland – golf participation 6.52% Norway – most growth since 1990 High average membership Approx 20,000 rounds per annum Poland – 500% growth in courses since 1995 – Over 200% growth in golfers Russia – over 5,000 golfers end 2007 Low number of rounds per annum

Performance data from Golf Benchmark Survey 2006 Golf Market in Europe – Central Zone

Zone includes Bulgaria Golf courses – 1,270 Golfers – 1.1 million Population per course – 121,491 Golf participation rate – 0.715% Average growth of 5% pa in courses and 9% pa in golfers Significant increases in the number of golfers since 1990, in; Austria – 11.52% pa Czech Republic - 19.19% pa Slovakia – 18.44% pa Benelux countries; Average 770 members Approx 30,000 rounds pa Central European countries; Average 779 members Approx 20,000 rounds pa Eastern European Countries; Average 374 members Approx 9,500 rounds pa

Performance data from Golf Benchmark Survey 2006 Golf Market in Europe – South Zone

Golf courses – 1,267 Golfers – 822,240 Population per course – 192,455 Golf participation rate – 0.337% Average growth of 4% pa in courses and 6.2% pa in golfers Spain – no of resident golfers increased by 10% pa since 1990 Slovenia – no of golfers increased by nearly 20% since 1990 Overall this zone lowest total number of golfers in Europe Development of new courses outpacing new golfers – reliance on golf tourism Spain – average number of members per course approx 1,000 In SEM countries this is way down at approx 200 Courses in Spain and Portugal approx 30,000 rounds pa – SEM countries approx 20,000 pa

Performance data from Golf Benchmark Survey 2006 The Golf Economy in the EMA Region - 2006 Source: The Value of Golf to Europe, Middle East and Africa – published 2008 by KPMG and Oxford Economics

Value of the EMA Golf economy by Industry Segment Economic Impact Direct effect in Golf Economy Clusters Total Revenues Contribution to GDP Total wage Income Revenues [million] Employment [million] [million] [million]

Golf Facility Operations €7,321 34.6% €18,528 35.3% €5,267 36.4% 211,100 47.3% €3,960 40.3%

Golf Course Capital €1,915 9.0% €4,057 7.7% €1,394 9.6% 35,500 8.0% €985 10.0% Investment

Golfer Supplies €1,949 9.2% €3,820 7.3% €620 4.3% 14,100 3.2% €549 5.6%

Golf Tournaments €361 1.7% €820 1.6% €413 2.9% 4,100 0.9% €333 3.4%

Golf Tourism €2,737 12.9% €6,533 12.4% €1,935 13.4% 59,800 13.4% €1,433 14.6%

Golf Real Estate €6,891 32.5% €18,770 35.7% €4,858 33.5% 121,500 27.2% €2,555 26.0%

TOTAL GOLF ECONOMY €21,174 100.0% €52,529 100.0% €14,489 100.0% 446,100 100.0% €9,816 100.0%

• GDP created by the golf industry in 2006 equals the total combined economic impact on the host-nation countries of the last six Olympic Games prior to Beijing • Considering the US Golf Economy estimates, the total impact of the golf economy in the EMA region is only approx one-third of the US golf industry Golf in other areas of the world

Golf in North Africa 2007 Golf courses – 45 Golfers – min. estimate 12,500

Golf in South Africa 2008 Golf courses 460 – Golfers 136,818 Population per course – 71,991 Golf participation rate – 0.413%

Golf in Africa 2007 Golf courses – estimate 750-800 Golfers – min. estimate 180,000 Golf in other areas of the world

Golf in Middle East 2007 Golf courses – estimate 61 Golfers – estimate 40,000 Golf in other areas of the world

Australia Australia is another of the world‟s mature golf markets. Approximately 1,550 golf courses and 1.25 million golfers

New Zealand Golf is the highest participation sport in New Zealand with 482,000 adults playing golf each year Number one sport for men and the number two sport for women There are 419 golf courses and 125,000 registered golfers. Also very affordable - green fees at public courses starting at the low cost of NZ$10 = €4.50

Canada 1,600 registered golf courses and 370,000 registered golfers A 2007 survey revealed that there are in fact 5.95 million golfers There are an additional 400 unregistered courses, mainly daily-fee courses, which provide the golf supply for the 5.5 million Canadian golfers who are not members of registered golf clubs. Golf in other areas of the world

China Accurate statistics on golf in are difficult to acquire Estimated in excess of 300 golf facilities accommodating in the region of 500,000 golfers. Other reports estimate the number of golf enthusiasts to be as high as 1-3 million...and growing. Home to the largest golf club in the world - comprises 12 golf courses

Japan There are currently 2,344 golf courses, an estimated 10,000 golf ranges, and in the region of 10 - 12 million golfers. With a population in the region of 125 million, this places golf participation in Japan at approximately 8 – 10%.

India 197 registered golf courses, many of which are owned and operated by the armed forces 100,000 registered golfers but as few as 30,000 of these are regular players Industry reports place the overall number of golfers in India at around 400,000

Thailand 213 golf courses and 200,000 golfers Popular long-haul destination for golf tourists from Europe – estimated 400,000 foreign golfers visit Thailand annually. So where is the golf industry today?

• Overall, golf industry was in reasonably good shape at end 2007 • Statistics for 2008 and 2009 are bound to show some declines • Since 2000 market stagnation in US • The Tiger Woods Impact – the most recognisable sportsman on the planet • Since 2005 market stagnation in Great Britain & Ireland • More countries have joined the European Union – the European Golf Association now has 38 members, and very few European countries still don‟t have any golf courses • Exciting growth in many former Soviet bloc countries - Czech Republic, Slovakia, Poland & now Russia – Russian golfers are likely to become significant golf tourists because of the high disposable income • More Mediterranean countries realising value of golf industry, and actively pursuing golf development strategies to their tourism – Turkey, Greece, Cyprus • Emergence of the Middle East as a serious golf destination – Dubai, Bahrain, Qatar • Emergence of new markets in North Africa – Egypt, Morocco, Tunisia • Golf tourism is growing – Internet increasingly important for research and bookings So where is the golf industry today?

• Over-reliance on real estate development to support golf development • Too many so-called „championship courses‟, „luxury‟ or „exclusive‟ golf and golf-related developments • Many projects in many countries „on-hold‟ until market conditions improve • Not enough „easy access‟ golf courses that will encourage and promote golf participation • Golfers expect golf courses to be green and perfect all year round • Golfers know what a stimpmeter is! • A round of golf is taking too long to play The Credit Crunch & Global Recession

• Sub-prime mortgage market in US • Banks in trouble around the globe – Some going bankrupt – Many bailed out by their government • Real estate sales slump – Property values decline • Property developers in financial difficulty – banks and investors stop lending and investing • Impact worse in some countries than others • Companies closing – people losing their jobs • Consumer confidence very low • For the golf industry in many countries highlighted over reliance on real estate sales, extent of over borrowing, a lack of a local market to sustain the golf courses in tough times Tulfarris Hotel & Golf Resort, Ireland

• Beautiful location • 18 hole lakeside golf course • 67 hotel rooms and suites • €15,000 member entry fee • €2,000 annual subscription IN RECEIVERSHIP DEBTS IN THE REGION OF

€20 MILLION• Refused permission for real estate • Constantly changing hotel • Little or no golf course drainage • Bunkers – enormous and many styles • Maintenance staff of 12 • Trying to be something it wasn‟t • No local market focus Blarney Golf Resort, Ireland

• Rural location close to Cork City • 18 hole John Daly designed golf course • 64 hotel rooms • 56 lodges for rent IN RECEIVERSHIP DEBTS IN THE REGION OF €50 MILLION Macreddin Golf Club, Ireland

• Co-designed by RJ with Paul McGinley • 18 hole golf course IN RECEIVERSHIP• Adjacent to existing hotel and organic village that is very successful DEBTS IN THE REGION •OFAgainst €advice4 ownerMILLION decided to double the member share fee to €30,000 from original business plan proposal • Sold less than 100 memberships in 3 years K Club, Ireland

• Home of Matches 2006 • Hosted 10 European Opens • Two 18-hole courses • Two separate clubhouses • Ireland leading golf resort NEVER MADE A PROFIT• Owned - LOSSES by Dr Michael Smurfit OF – one of Ireland‟s wealthiest men • Luxury hotel & spa UP TO €5 million SOME• €80,000 joining YEARS fee • €7,000 annual fee • Reduced course maintenance staff to just 6 plus summer casuals • In the „boom‟ years green fees reached €360 per person – now reduced to €100 per person with special offers available Current Golf Industry Challenges

• Oversupply of golf courses in some countries • Shortage of newcomers into the game of golf • The impact of the global recession on developers & owners, and on golfers • Decline in real estate sales and values • Water shortages & increased protection of potable water sources • Environmental considerations of development and maintenance of golf courses • Managing golfers‟ expectations • Maximising maintenance & operational efficiency • The need to design new golf courses that are „more relevant‟ and capable of being commercially viable as „stand alone‟ facilities

We have to find ways to address current challenges We need to design and maintain sustainable golf facilities sustainable - definition adjective

1. capable of being sustained

2. a. designating, of, or characterized by a practice that sustains a given condition, as economic growth or a human population, without destroying or depleting natural resources, polluting the environment, etc. – eg sustainable agriculture

b. governed or maintained by, or produced as a result of, such practices. – eg sustainable growth

R & A definition of a sustainable golf course

“Optimising the playing quality of the golf course in harmony with the conservation of its natural environment under economically sound and socially responsible management” Oversupply of golf courses

• Clearly evident in a number of countries

• GB & I [90% of English golf courses have membership vacancies at end 2008 – source: English Golf Union] • Sweden – since 2005 number of golfers gone down, number of golf courses gone up • Norway - since 2005 number of golfers gone down, number of golf courses gone up • Poland – development of golf courses way ahead of increases in the number golfers. The same applies to Latvia and Lithuania. • Portugal - since 2005 number of golfers gone down, number of golf courses gone up • Bulgaria – increase in number of golf courses without any significant increase in the number of golfer • Countries that are reliant on golf tourism are presently finding that there are too many golf courses and not enough tourists Shortage of newcomers into the game of golf

• Local and national initiatives to promote the game of golf • Support from R & A, Ryder Cup Development Programme, PGA, and national golf associations • Reductions in the cost of member joining fees and annual subs should increase demand • Reductions in the cost of green fees for visitors should increase demand • Still perceived as an elite sport in some countries • “Takes too long to play a round of golf” • “Not family-friendly” The Impact of the Global Recession on Golf

On golf course developers & owners – positives

• Reduction in construction costs • Lower interest rates on borrowings in many countries • Good time to be planning and starting a new project • Funding and investors coming back into the market and looking for good projects • US data shows that number of rounds being played by core golfers is remaining steady • Daily fee courses at lower green fee rates gaining business • Much greater emphasis on promotion of the game by golf bodies • Reduction in cost of operational supplies • Refocusing of marketing initiatives on the local market or new markets The Impact of the Global Recession on Golf

On golf course developers & owners – negatives

• Banks or other funders uncooperative or in worst cases seeking to withdraw funding • Loss of existing members and a low number of potential new members • Reduction in green fee paying visitors, particularly golf tourists • Real estate sales slowed significantly or may be non-existent at present • Other golf facility revenues down - golf shop sales, rentals, food and beverage • A need to refocus marketing initiatives and or increase marketing activity The Impact of the Global Recession

On golfers and potential golfers

• Membership fees reduced at many clubs in many countries • Visitor green fees reduced or prices held at current levels • Membership available at a wider choice of golf courses • Property prices lower at many residential golf developments • Improved customer service at golf facilities • Redundancy or loss of employment making golf club membership unaffordable • Loss of income or lower income making golf holidays more of a luxury purchase • Owners of second homes on golf developments have seen the value of their investment reduced significantly • People aspiring to buy second homes have seen the value of their investments and assets reduced and many can no longer afford such purchases Real Estate Sales and Values

• Probably the biggest issue to have impacted on the golf industry • No country appears to have escaped the impact although severity of impact varies • In 2006 in the EMA region, real estate accounted for €6.9 billion in direct revenue [32.5% of golf economy direct revenues] • In 2005 in the US, real estate accounted for US$14.9 billion in direct revenues • That business is just starting to come back in US and North Africa – Western Europe and South Eastern Mediterranean may take a bit longer yet Water shortages & increased protection of potable water sources

Water

• The most important resource needed for life • The most important resource needed for the establishment and maintenance of golf courses • One of the first questions that a client is asked - Where will the irrigation water come from? • Protected in Europe by EU Water Framework Directive • An effective water management programme should be a priority goal for all golf clubs. • Golf is a legitimate user of water, and studies show that the economic value of water use in golf is often higher than that of other land uses, including agriculture. • But because golf is not producing food it is perceived by the non-golf population as wasteful and or a non-essential use of potable water. • Golf industry needs to maximise its water use efficiency and as much as possible use alternative sources of water Water shortages & increased protection of potable water sources Water shortages & increased protection of potable water sources

• Globally, humans appropriate more than 50% of all renewable and accessible freshwater • The balance between water demand and availability has reached a critical level in many areas of Europe, particularly Southern Europe • Reduced river flows, lower lake and ground water levels, and the drying up of wetlands are widely reported • Overall water is still relatively abundant with a total freshwater resource of around 2,270km3/year • In the EU, energy production accounts for 44% of total water abstraction, 24% for agriculture, 21% for public water supply and 11% for industrial purposes [significant regional variations] • In Southern Europe agriculture accounts for more than 50% of total national abstraction, rising to more than 80% in some regions • Agricultural water use has increased over the past two decades. The EU Common Agricultural Policy [CAP] partly responsibility, having provided subsidies to produce water-intensive crops using inefficient techniques • The abstraction of water for industrial use decreased over the last 15 years, partly because of the general decline in water-intensive heavy industry but also due to technical developments such as on-site recycling • A range of factors influence public water demand, including population and household size, tourism [which includes swimming pools and golf courses], income, technology, and consumer behaviour [buying bottled water] Water shortages & increased protection of potable water sources

“While the presence of a green, well-watered golf course can appear incongruous in arid areas of the Mediterranean, its use of water is no greater than that of a comparable area of irrigated corn and it yields a better financial return [UNEP, 2005]. When the employment created by golf courses is also accounted for, the driving forces for their continued development throughout the Mediterranean region become apparent. A potential solution to limiting the impact of golf courses upon the water resource is the re-use of wastewater for irrigation, a practice already adopted at some golf courses within southern Europe. In the Sperone Resort, Corsica, for example, effluent is subject to lagooning and tertiary treatment by sand filtration before being used to irrigate the neighbouring golf course with a maximum application of 280 m3/day [Mediterranean Wastewater Reuse Working Group, 2007]. While other such examples exist, it is clear that there is the potential for greater use of wastewater to irrigate golf courses across Europe”

A message that golf courses have to take seriously, particularly in light of the timelines of the EU Water Framework Directive EU Water Framework Directive – Directive 2000/06/EC

• Protects all waters – rivers, lakes, coastal waters, and groundwaters • Sets ambitious targets to ensure that all waters meet „good status‟ by 2015 • Sets up a management system within river basins that recognises that water systems do not stop at political borders • Requires cross border co-operation between countries and all involved parties • Ensures active participation of all stakeholders, including NGOs and local communities, in water management activities • Ensures reduction and control of pollution from all sources [including golf industry] • Requires water pricing policies and ensures that the polluter pays • Balances the interests of the environment with those who depend on it Alternative sources of irrigation water - Source: Golf Environment Europe

A number of viable options can be used, those which have been employed most successfully in recent years include:

Water Harvesting - water storage using in-ground reservoirs, aboveground impoundments and aquifer storage and recovery [ASR]. Golf courses - storage ponds to collect storm runoff water

Aquifer Storage and Recovery [ASR] - the underground storage of storm water, surface water, fresh groundwater or reclaimed water, which is treated to potable standards and injected into an aquifer through wells during wet periods.

Brackish Surface Water and Groundwater - Use of brackish waters or even ocean water to supplement other water sources.. Good irrigation system necessary to allow precise application of this water so as not to affect native plant materials.

Brackish groundwater - defined as water with a total dissolved salt concentration between 1,000 milligrams per litre [mg/L] and 10,000 mg/L. Brackish supplies in the low range of these salinities may be used for some agricultural purposes, but they do not meet potable water standards. Alternative sources of irrigation water - Source: Golf Environment Europe

More options:

Desalination - Construction of reverse-osmosis (RO) desalinization plants on-site to produce irrigation water from ocean water or brackish water where other supplies are not available or are very expensive to purchase.

Reclaimed (Recycled) Water - Use of tertiary treated effluent from municipal sewage treatment facilities. This reclaimed or recycled water provides moisture and nutrients to the golf course while helping the municipality avoid discharging the effluent water into nearby rivers. The turf does an excellent job of filtering the water of nutrients and breaking down various chemicals and biological contaminants in the water. Reclaimed water is water that has received at least secondary treatment and basic disinfection, and is reused after flowing out of a domestic wastewater treatment facility. Alternative sources of irrigation water - Source: Golf Environment Europe

Industry Recommendations:

Brackish Water

• Select the most salt tolerant turfgrasses for your region • Regularly flush soil with fresh water to move salts from the rootzone • Use a lower saline water source if you have shallow freshwater aquifers

Recycled Water

• Notify golfers and public that reclaimed water is in use • Obtain annual stats about the quality of reclaimed water being delivered • Account for nutrients in reuse water when developing a nutrient management plan • Regularly test for build up of sodium and bicarbonate Water Efficiency - Source: Golf Environment Europe

Water use efficiency practices fall into two general categories:

Physical Practices • Alteration of golf course design • Updates and changes to irrigation systems that provide long-term benefits in saving water.

Behavioural Practices • Changing individual water use habits so that water is used more efficiently through intelligent management and decision making systems • This applies to all areas of a golf facility - golf course and landscape irrigation, maintenance area wash down, mixing and rinsing, and clubhouse operations. Here are some practical ideas across each of these areas. Water Efficiency - Golf Course Design

Reducing the amount of grass to be irrigated

• Smaller greens and teeing areas • More native roughs that can be allowed to grow naturally • Out of play wastelands • Waste bunkers

But at all times we have to keep the course playable by all levels of golfer, particularly in Bulgaria where very many golfers will be new to golf Water Efficiency - Golf Course Design Water Efficiency - Golf Course Design Water Efficiency - Golf Course Design Water Efficiency - Golf Course Design Water Efficiency - Golf Course Design Water Efficiency - Golf Course Design Water Efficiency - Golf Course Design Water Efficiency - Golf Course Design Water Efficiency - Golf Course Design Water Efficiency - Golf Course Design Water Efficiency - Golf Course Design Water Efficiency - Updates and changes to irrigation systems

Whether a new course or an existing one looking to achieve greater efficiencies in its irrigation system the best advice I will offer is:

• Contact an experienced independent irrigation consultant • Contact your irrigation installer or service company • Contact an irrigation equipment manufacturer Water Quality - Source: Golf Environment Europe

The protection and enhancement of water quality should be a top priority

A key focus area is the potential loss of pesticides, and phosphorous and nitrates from fertilisers. Sediment loss is also a concern during construction and renovation

Water Quality • Reduce or eliminate off-site loss of sediment, nutrients and pesticides • Prevent the on-site degradation of natural resources from pollutants • Reduce total chemical use through an integrated approach to turfgrass management • Control the rate, method and types of chemicals being applied

Lake & Wetland Management • Limit eutrophication by controlling runoff from fertilised areas using measures such as buffer strips • Control eutrophication with in-lake management techniques, such as oxygenation • Maintain flow through ponds and avoid sediment build up Water Quality - Source: Golf Environment Europe

Drainage - Stormwater runoff should be directed away from sensitive areas [streams, shallow groundwater areas, wetlands, etc.] and into areas where ponding and infiltration can occur. Extensive roughs and natural [undisturbed] areas offer excellent stormwater management opportunities.

Runoff management from residential areas and clubhouses should be integrated with runoff control from the golf course itself.

Greens and tees may need 'under-drains' that are directed into areas suitable for storage and passive treatment. These under-drain systems help to protect groundwater from leachate.

Monitoring - Monitoring and maintenance are a key priority, particularly monitoring upstream and downstream from the course to determine if water quality changes are occurring due to the flow through the golf course.

Source/Spill Controls - Proper storage and handling of pesticides, fertilisers, fuel, and other maintenance chemicals helps to reduce pollutant loading. Abide by Material Safety Data Sheets [MSDS] requirements. Establish and follow Spill Prevention Control and Countermeasures Plans for maintenance facilities. Environmental/Ecological Concerns & Considerations - Source: Golf Environment Europe

“Perhaps more than any other sport, golf's relationship with the natural world is one of its defining characteristics. As relatively large green spaces, often with a variety of natural and semi-natural vegetation, and typically with sizeable out-of-play areas, all golf courses have the potential to contribute to the conservation of nature and promotion of biodiversity.

But golf courses are not automatically beneficial to the protection and enhancement of ecosystems, nor their associated habitats and species.

All golf facilities should take the opportunity to maximise the ecological value of their courses.

The big question is...how to do that? How to create ecological richness and diversity in a way that compliments golf?” Environmental/Ecological Concerns & Considerations - Source: Golf Environment Europe

Industry Recommendations:

Natural Resources • Identify and evaluate the existing ecological value and function of your course • Take advice on the steps you could take to conserve and enhance • Define projects that will improve ecological function and golfing quality • Communicate successes. Talk about habitats created or enhanced, and species conserved

Evaluating Habitats • Consider all statutory and non-statutory conservation designations • Inventory all existing habitats • Survey and evaluate the diversity, richness and viability of species populations • Evaluate habitat value based on size, diversity, positioning, shape, structure, maturity and naturalness • Establish the overall ecological value and function of the course in relation to species occurrence and types of internal and external habitats • Also consider the habitat's fragility, rarity, typicalness, recreatibility Environmental/Ecological Concerns & Considerations - Source: Golf Environment Europe

Landscape Ecology Patches - vegetational elements [for example woodland, heathland, or unimproved grassland] which have a degree of isolation – like islands

Edges - Edges are areas of interaction between adjacent habitats and vegetation types

Corridors - the most familiar ecological components. Many ecologists believe that they are extremely valuable because they provide between fragmented resources

Pathches & Edges • Soften hard woodland edges • Naturalise exotic tree plantations • Increase structural diversity in woodlands • Connect woodlands, scrub and wetlands with rough grassland • Allow rough vegetation to wrap around the back of tees and greens Valderrama GC, Spain Valderrama GC, Spain

Sanctuary 3 Sanctuary 5

Sanctuary 8 Sanctuary 13 Managing golfers expectations

What do golfers expect?

• „Perfect‟ putting greens year round • A „perfectly‟ green golf course year round • To be able to walk onto 1st tee and play whenever they want to • To be able to get their golf at the lowest cost possible • To be able to play their best golf all the time without ever taking a lesson and using the golf range – even thought they know they should!! • To be able to hit a long shot that lands and stops perfectly – and get loads of backspin of shorter shots like Tiger Woods – and if the ball doesn‟t stop or spin it must be the greenkeeper‟s fault because he hasn‟t put enough water on the greens!! • To own a graphite-shafted titanium headed superduper driver with the biggest head on the market that hits the ball perfectly straight another 50m further than their last driver!! • To have distance markers every 10m, a rangefinder and GPS system – and then when they under or overhit it must be one of those aids that is wrong!! • To be able to play as quickly or as slowly as they want to without being held up by the players in front or holding the players up behind!! Managing golfers expectations

Re-educating golfers:

• „Perfect‟ putting greens year round - A „perfectly‟ green golf course year round

Golf courses cannot be like Augusta 365 days a year

Enjoy watching golf on satellite TV but remember that those courses are set up for that tournament ,and TV cameras have green filters fitted to give you the best pictures Managing golfers expectations

Re-educating golfers:

• The Stimpmeter Managing golfers expectations

Re-educating golfers:

• Distance markers and other distance devices

Have they really been any benefit to the game of golf? Maximising maintenance efficiency

Golf Benchmark Survey 2007 – data for Eastern Europe

• Average number of members per golf course - 350 • Average number of rounds played per playable day – 38 • Average number of total rounds – 9,677 – 48% members, 52% green fees • Average membership fees – Entrance fee €1,831 – Annual €691 • Average green fees – Weekday €29 – Weekends €37 • Average revenueWhat per 18 -doeshole golf it costcourse to - €maintain573,000 a golf course? • 31% of revenueExcluding from members staff = – 31%approx from green€7,500 fees per – 38% hole from perother annum revenue sources • Revenue per utilized roundExcluding [RevPUR staff] - €45 = €14.25 per round • 675 of golf courses reported profitable in 2007 survey • Operating costs 85-90% of total revenues [€501,375] • Average golf maintenance staff – 7 full-time, 2 part-time • Average total staff – 27 full-time, 5 part-time • Salary costs - 30-35% of total costs [€162,947] • Course maintenance costs – 25-30% of total costs [€137,878] Maximising maintenance efficiency

Staff – Average number per golf course

• Eastern Europe – 7 full-time, 2 part-time • Northern Europe – 3 full-time, 4 part-time • Great Britain & Ireland – 4.5 full-time, 2.5 part-time • Western Europe & South East Mediterranean – 9 full-time, 2 part-time

Golf courses in Bulgaria should look closely at the maintenance operations in Northern Europe and Great Britain & Ireland – it may be more prudent than looking at Western Europe & South East Mediterranean Maximising maintenance efficiency

Machinery & Mowing

• Make sure the machinery is right for the golf course • Examine whether mowing patterns can be changed and simplified, and change machinery if necessary • Can more out-of-play areas be found to reduce the mown area – improves environmental credentials of course at the same time • Are spraying and todressing machinery outputs efficient? • Mow greens with ride-on mowers when budget becomes an issue • Will suppliers offer Contract Hire rather than Lease or Purchase? • Monitor which members of staff are the most productive on various machinery

Be prepared to make changes and recommendations to become more efficient before changes are imposed on you by owners, managers or funders and investors Maximising maintenance efficiency

Water & Drainage

• The golf course is too dry!! – How many time shave you heard that said? • Improved drainage increases number of playable days = more rounds = more revenue • Improved drainage increases turfgrass health = less fertiliser and pesticides • A dry, playable golf course improves golfer experience = golfer loyalty = more revenue

• Irrigate as little as needed – the golf course does not have to be perfectly green • Is there scope on the course to create some more wasteland areas [waste bunkers] Maximising maintenance efficiency

Bunkers

• Probably the most expensive features of a golf course to maintain • Raking, Mow edges, Trim edges, Reinstate storm damage, Replace sand Maximising maintenance efficiency Maximising maintenance efficiency Maximising maintenance efficiency Maximising maintenance efficiency Maximising maintenance efficiency Designing golf courses that are relevant

What does „relevant‟ mean? • Golf courses that can be built at sensible cost • Golf courses that can be maintained at sensible cost • Golf courses that are designed and built for their target market • Golf courses that are challenging and enjoyable to all golfers • Golf courses that are encouraging to newcomers to golf • Golf courses that can be played in a reasonable time • Golf courses that can sell their product at prices patrons are willing to pay • Golf courses that will add real value to a residential golf community • Golf courses that will add integrity to a country‟s golf tourism product • Not all golf courses have to be so-called „championship‟ courses • Not all golf courses have to be „luxury‟ and „exclusive • Not all golf courses need „ritzy branding‟ Designing golf courses that are relevant

What type of golf courses?

• 18-hole courses

• 9-hole courses

• Executive courses

• Member courses

• Daily fee courses

• Academy or par 3 courses

There is a market for most types of golf course but everything comes at a price and has to be sustainable - be it as an add-on to real estate, stand-alone, as a tourist amenity, as a public amenity...or as a private playground Designing golf courses that are relevant to market conditions

Relevant design criteria?

• Using the natural features of the development land

• Challenging enjoyable courses

• Safety – for all golfers and adjacent facilities

• Environmental and Ecological considerations

• Water considerations

• Budget considerations

• Market considerations

• Who will maintain it, and how will they maintain it Designing golf courses that are relevant

Design ideas to minimise construction cost?

• Shorter golf courses

• Smaller putting greens – 10% reduction in size could reduce construction by €100,000

• Teeing areas with synthetic grass surfaces

• More traditional style bunkers

• Fewer bunkers, smaller bunkers, more grass hollows and bunkers

• More playable wasteland areas

• More daily fee courses than member courses

Unless there are genuine plans and ambitions to host PGA events no golf course really needs to be more than 6,000 – 6,500 metres Designing golf courses that are relevant Designing golf courses that are relevant

The Design & Development Process There are primarily seven phases involved in the design and development of a golf course and associated golf practice facilities.

• Phase 1 – Design Feasibility & Preliminary Studies • Phase 2 – Schematic Design & Master Plan • Phase 3 – Detailed Design • Phase 4 – Construction Drawings, Specifications & Bills of Quantity • Phase 5 – Construction – Inspection & Management • Phase 6 – Establishment & Pre-Opening • Phase 7 – Operations Designing golf courses that are relevant

Sometimes the quality of preliminary information can be limited! Designing golf courses that are relevant

Diva Roza Country Estate, Yambol region • Two 18-hole courses • One 9-hole „academy course‟ • Practice range, short game area • Sports Village • Retirement Village • Residential & Commercial Units • Hotel, Casino & Spa • Ecology audit identified in excess of 300 species • Hydrology and Hydro-geology reports identified water sources and usage • Feasibility Study identified relevant hotel and spa size, optimum number of residential units, potential sales velocity, selling prices Designing golf courses that are relevant Designing golf courses that are relevant

Perivolakia, Crete • 18-hole course • 4-hole „academy course‟ • Practice range, short game area Image to be inserted • Tennis Academy • Residential & Commercial Units • Botanical estate concept – existing olive trees on-site • Hydrology and Hydro-geology reports identified water sources and Designing golf courses that are relevant Conclusions

• Bulgaria is at very early stage in its golf history • Bulgaria has beautiful land for golf • Bulgaria is very rich ecologically • Bulgaria has a great climate for golf • Bulgaria has to develop a local golf demand • Bulgaria has to develop golf facilities for a local market • Bulgaria needs its tourist golf resorts but it cannot rely solely on them and they have to be built in appropriate clusters • Bulgaria needs residential golf communities but the golf facilities are not sustainable solely with residents • Bulgaria needs a detailed cohesive golf development strategy that includes all types of golf facilities, all sectors of the golf market, and all necessary support and enabled services

Together we can learn from the mistakes made elsewhere, we can design and maintain sustainable golf facilities and we can create a vibrant golf economy in Bulgaria RJGD offer to Bulgaria

Our offer:

• Municipalities to provide land for daily fee courses • Municipality funds cost of construction or enters PPP with third party • RJGD will design an appropriate golf course – no upfront design fees • RJGD will take a percentage of revenue for agreed term • Subject to contract, terms and conditions

RJGD is committed to the development of the game of golf and the golf industry Thank you for your attention