Turkey the Rising Star of Golf 2015 Gloria Golf Resort, Belek Turkey – the Rising Star of Golf | 3
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KPMG GOLF ADVISORY PRACTICE Turkey The Rising Star of Golf 2015 Gloria Golf Resort, Belek Turkey – The Rising Star of Golf | 3 Contents 6 Tourism in Turkey 10 Golf in the Mediterranean and in Turkey 19 Future outlook for golf in Turkey 20 Turkish Airlines presents – Flying the flag for golf 22 Afterword by the Turkish Golf Federation Cover photo: The Montgomerie Maxx Royal, Belek © 2015 KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 4 / Turkey – The Rising Star of Golf Dear Reader, I am delighted to present our report on golf in Turkey, one of today’s most successful golf tourism destinations in the past decade globally. With its 18 golf clubs and 6,776 golfers, today Turkey represents a golf market in its infancy that still relies heavily on international golf tourism. However, in light of a progressing tourism industry and favourable climatic conditions, together with its highly successful junior golf programme, and commitment of industry stakeholders to further the development of golf in the country through various initiatives, I believe that golf in Turkey has a great development potential. In the autumn of 2015, KPMG’s Golf Advisory Practice interviewed key market Andrea Sartori players and queried all golf course managers and operators currently active in Partner Turkey to gain an understanding of their operations and their future expectations Global Head of Sport about the golf market. [email protected] Some key highlights of our findings include: • Supply for and demand of golf in Turkey is mainly concentrated in Belek (Antalya Province). With 11 golf clubs and its 16 courses (18-hole equivalent) and a total of 513,000 rounds played at these facilities in 2014, Belek represents one of the fastest growing Mediterranean golf tourism destinations; • While in Istanbul and Ankara over 90% of rounds are played by members, at clubs located in tourist regions around 2% of the rounds played are member rounds with the rest generated by green fees (mostly international golf tourists); • With more than 32,000 rounds played in Belek at an 18-hole (or equivalent) golf course on average, this region is one of the best performing golf markets in Europe. Turkey’s choice of Belek for the development of such a major golf cluster, at least in European terms, has proven to be successful within the country and the golfing world. With further courses in the country’s planning stage, and Belek being Turkey’s most prominent golf destination, there is a wealth of acquired knowledge and experience in this region on which Turkey can capitalise to grow its overall golf market. I would like to express our appreciation to Turkish Airlines and the Turkish Golf Federation for their support during the course of preparation of this report and to all of the golf course managers and operators who have contributed to this research. If you would like to receive any clarification or discuss the survey results, please feel free to contact the Golf Benchmark Team or myself. Yours sincerely, Andrea Sartori © 2015 KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Turkey – The Rising Star of Golf | 5 Dear Reader, We are delighted to support this Rising Star of Golf report, which outlines the impressive growth of Turkey as a golf destination and highlights the future of the sport in the country. Although Turkey has experienced significant and continuous tourism growth, making it now the sixth most visited destination in the world, there still remains much untapped potential. We see golf as an important element to support this future growth and help us reach our 2023 ambitions of welcoming 50 million tourists to Turkey. Not only do we recognise an opportunity in golf tourism but we see golf as a key M. İlker Aycı vehicle for growing the Turkish Airlines brand around the world. Turkish Airlines Chairman of the Board and serves a total of 278 flight destinations in 110 countries and last year transported Executive Committee 54 million passengers around the world; by 2023 our aim is to transport 120 million. Turkish Airlines Inc. Golf is a truly global sport that is played by over 80 million people around the world, providing the company with a platform to engage with existing and new passengers in many of our key markets. Over the coming years Turkish Airlines, together with the Ministry of Culture and Tourism and the Turkish Golf Federation, is committed to continuing the drive towards Turkey becoming one of the most desirable golf destinations in the world. Yours sincerely, M. İlker Aycı Turkish Airlines has been supporting professional and amateur golf around the world since 2010. The Turkish Airlines World Golf Cup, which launched in 2013 in 12 destinations, spanned 70 destinations globally in 2015 and in 2016 even more destinations with new impressive tournaments will be included. This year was also the company’s fifth year of sponsoring the Turkish Airlines Ladies Open, one of the Ladies European Tour’s most popular events and was also our first year as a partner of the inaugural Porsche European Open. However, the event that secured the brand global fame amongst the global golf community is the Turkish Airlines Open. Now in its third year the event attracts Europe’s finest golfers and many greats from elsewhere around the world to Temel Kotil, Ph. D. experience the all the country’s delights. The tournament has propelled our brand Deputy Chairman and CEO recognition in many key markets, particularly the USA. Still today, people talk Turkish Airlines Inc. about Tiger Woods hitting balls from Europe to Asia on the world famous Bosporus Bridge. As we continue to work towards achieving our 2023 growth goals, we see that golf will continue to be an integral element to the airline’s marketing strategy and the positioning of Turkey as Europe’s star golf destination. Yours sincerely, Temel Kotil, Ph. D. © 2015 KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 6 / Turkey – The Rising Star of Golf Tourism in Turkey Over the past two decades, Turkey has placed itself among Looking closer at Turkey’s source markets, we see that its the world’s elite as one of the top tourism destinations. The top three markets represent one third of the nation’s overall story of Turkey’s development as a golf tourism destination arrivals: Germany, Russia, and the UK provided a combined begins with the very fundamentals: the importance of total of 12.3 million arrivals to Turkey in 2014. tourism to the country and its strengths as a destination. In terms of tourist arrivals, Turkey grew by 110% and climbed Distribution of arrivals by top ten source markets, 2014 the global rankings from 12th in 2004 to an impressive sixth position in 2014. World Tourism Organization (UNWTO) statistics show that Turkey is the fourth most visited country 14 in Europe. 42 12 Tourist arrivals to Turkey, 2004-2014 % 40 7 35 5 5 30 2 4 n Millio 2 25 3 4 20 Germany Russia UK 15 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Georgia Bulgaria Iran Source: Turkish Ministry of Culture and Tourism The Netherlands France Iraq Greece Others According to the World Travel and Tourism Council (WTTC), in terms of economic value, Turkey has earned nearly 12% Source: Turkish Ministry of Culture and Tourism of its total contribution to GDP through travel and tourism, equivalent to USD 96 billion total contribution towards its GDP in 2014, which is double the European average and Nearly 50% of international tourists spent an average of five 14th globally. nights in the Turkish Riviera, a Mediterranean coastal region Matching this growth in arrivals over the past decade, in 2014 spanning four Turkish provinces: Izmir, Aidin, Mugla, and hotels and similar establishments have witnessed an 115% Antalya, which registered the largest share of arrivals. increase since 2004, along with the number of guest nights In terms of overnight stays, Antalya had 11.9 million growing by 96%, according to the Turkish Ministry of Culture international tourists in 2014, who spent an average of 5.3 and Tourism. nights, representing 64.3% of the total in Turkey. By contrast, in Istanbul five million international tourists visited and stayed in hotels and similar establishments in 2014, spending an average of 2.5 nights, representing a share of 12.8%. © 2015 KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Turkey – The Rising Star of Golf | 7 In 2014, approximately 75% of visits to Turkey were for the Turkey offers a reasonable supply of lodging options. Antalya purpose of holiday and leisure activities, 10% visited friends in itself offers a greater supply than anywhere else in Turkey, and relatives, 7% went to Turkey for meetings, conferences approximately 21% of the share of hotel beds, whereas and exhibitions, and the remaining 8% travelled for other Istanbul possesses more than a 10% share of hotel beds reasons (religious, health, shopping, etc.). available in the country. Purpose of visit to Turkey, 2014 Distribution of hotels, 2014 Number Number Number % 10% of hotels of rooms of beds 75 Visit friends Holiday and leisure Istanbul 633 19,497 37,611 and relatives Antalya 935 33,506 75,517 7% Turkey 5,643 165,207 354,273 Meetings, conferences, Source: Turkish Ministry of Culture and Tourism exhibitions 8% Other Source: Turkish Ministry of Culture and Tourism firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.