Issue 8 | Fall 2011 BY DESIGN Excellence in Golf Design from the American Society of Architects

Changing thescene How ASGCA architects are helping to reposition golf

Also: ASGCA membership by the numbers • Lessons from the ski business • China • Bunkers

FOREWORD

ike it or not, change is inevitable. We must change with the times. The CONTENTS golf industry, as traditional as it is, is not exempt from the changing times. LAs such, golf course owners and operators must continuously alter their business models and management methods to deal with the new circumstances Digest 5 in which they find themselves. ’s Le Golf National wins the When a golf course’s business model is changed, it’s hardly surprising that race for the 2018 , plus the golf course itself—the facilities greatest asset—must be remodeled, too. a fresh start for golf in Cuba and the Across America and the world, ASGCA member architects are helping clubs and results of the recent Tee it Forward owners to refine their courses to suit the economic environment of today, and of initiative tomorrow. Read our cover story on golf course repositioning to find out more. Even in a golf market as young as China’s, renovation and repositioning of golf Changing the scene 8 courses is happening. At this year’s ASGCA Annual Meeting in Denver, members How ASGCA architects are helping heard from Chinese golf industry leader Ernie Wang on the state of business in golf facilities around the world his country. A summary of his report, and of several of the excellent presentations reinvent themselves to suit changing given at the meeting, can be found in our ‘Lessons from Denver’ feature. economic circumstances When planning the Denver meeting, and the golf that went with it, I wanted members and guests to see some of the excellent public courses we have in The meaning of the area. Public golf is central to the game’s development, as it allows new membership 12 players to access the game. Joe Steranka of the PGA of America told ASGCA ASGCA membership is as much about members that seeming unwelcoming to beginners is a major problem for architects’ design future as it is their past golf’s image. It’s something we all need to work on. Lessons from Denver 14 The state of the Chinese golf business, plus other presentations from ASGCA’s Annual Meeting Yours sincerely, Golf trends 16 Henry DeLozier of Global Golf Advisors highlights four key worldwide trends in the golf business Closing thoughts 18 ASGCA President Rick Phelps on his hopes for his year in office

Rick Phelps, ASGCA President American Society of Golf Course Architects COVER

Issue 8 | Fall 2011 BY DESIGN Excellence in Golf Design from the American Society of Golf Course Architects

Editor: Adam Lawrence; News: Sam Ballard; Design: Paul Robinson; Bruce Graham; Publisher: Toby Ingleton; ASGCA Staff: Chad Ritterbusch; Therese Johnston; Mike Shefky; Aileen Smith; Marc Whitney; Photography: supplied by iStockphoto Subscribe to By Design at www.tudor-rose.co.uk/bydesign © 2011 American Society of Golf Course Architects. All rights reserved. www.asgca.org Changing By Design is sponsored by: thescene How ASGCA architects are helping to reposition golf

Also: The ASGCA membership process • Lessons from the ski business • China • Bunkers

Deltona Club, Orlando

03

DIGEST

Ryder Cup Watson inducted Albatros set for Tom Watson was inducted into the ASGCA at the 65th course co-designed Annual Meeting in Denver. by two ASGCA Watson’s firm has created A members has been designs around the world, chosen to host the 2018 including the Cassique Ryder Cup. course at Kiawah Island Le Golf National Albatros, in South Carolina and the which was designed by Independence course at Rick Baril, ASGCA and Reunion Resort in Orlando. Mike Smelek, ASGCA; in collaboration with the late Rain Bird Robert Van Hagge and film awards French architect Hubert Rain Bird’s fourth Intelligent Chesneau was designed as Use of Water film the permanent home of the competition has honored French Open. three winners at its screening “We designed Le Golf in Beverly Hills, California. National with the vision The Albatros course was previously a flat, featureless field The ceremony, which was that one day, it could, hosted by Jack Hanna, gave indeed, host the Ryder the final magnificent now, hosting the Ryder Cup out three awards: by the Cup!” said Baril. “We course that was 100 per truly renders that reward!” jury, the audience and green developed the course in cent pure fabrication and The course, which is industry professionals. a very dramatic fashion, collaboration. capable of holding more where the final four hole “I know Bob von Hagge than 70,000 spectators, will Golf Industry Show ‘gauntlet’—15, 16, 17 (who died in 2010) would be just the second to have The Golf Course and 18—can all feel the have been thrilled,” he ever hosted the competition Superintendents Association drama. This all materialized added. “He always said, on continental Europe, after of America (GSCAA) and from a flat featureless ‘The true reward will be the Club de Golf Valderrama in the National Golf Course field, to chaos, then to recognition we receive.’ And Spain in 1997. Owners Association (NGCOA) have announced that San Antonio will be the Development venue for the 2015 Golf Industry Show. This will follow visits to Las Vegas, Cuba opening up to golf development San Diego and Orlando in 2012, 2013 and 2014 The Cuban government appears to be respectively. reversing a hard-line stance it made against golf courses 50 years ago. Programs to be When Fidel Castro originally gained power, launched in China in 1959, one of his first acts was to get rid The Golf Course of all golf courses in Cuba, which, at the Superintendents Association time were seen as being against socialist of America is to launch principles. some of its educational However, in an unprecedented move, programs in China. the administration has given preliminary GSCAA, which has approval to four new golf resorts, the first of become a partner of two more than a dozen that are in the pipeline. leading Chinese golf shows, The four projects total more than US$1.5 will work with organisers billion, with the government due to take an Reed Guanghe to conduct approximate 50 per cent cut in the profits. educational events at the Tourism benefits to Cuba’s economy are also Asia Golf Show and China likely to have influenced the new policy. Cuba is set for four new golf courses Golf Show.

05

DIGEST

Master Planning Toro introduces Fall the time to master plan Workman Toro has launched the all is the perfect new Workman MDX-D, time to evaluate the company’s first mid- F a golf course and duty utility vehicle with a develop a master plan for diesel engine. The firm says improvements, says Rick that the new unit provides Phelps, ASGCA president. powerful performance, “Golf courses everywhere greater fuel efficiency and are subject to standard wear operator comfort with a and deterioration, while payload capacity that is one others were damaged by of the highest in its class. floods or scarred by drought this year,” Phelps said. “That Boom in Thai makes this a particularly golf tourism good time for golf course The value of foreign golf management to review what the typical life expectancies tourists to the Thai economy needs to be done before the of golf course components. is expected to hit $2 billion next golf season—and those Phelps is hopeful for in 2012. The figure, which that follow.” developments to be made is based on a forecast by His points, which are in the creation of family the local tourism authority, included in the ‘Master tees, turf reduction leading predicted a record 19 Planning: Questions to water and maintenance million inbound visitors next and Answers’ brochure, savings, irrigation system year with 600,000 of those published by ASGCA, are consultation and aesthetic being golf tourists. aimed to help golf course and functional advances to managers, superintendents, the practice range. Wind power professionals and owners Whitehead Golf Course, understand the process of The free brochure is available Northern Ireland, is developing a master plan and at: http://www.asgca.org/ beginning to see a return the importance of assessing free-publications on a $156,400 investment it made in 2009 on two 15 kW wind turbines. The course is now set to make Course length approximately $20,339 per year from the investment Positive results for Tee It Forward in saved electricity bills and government incentives. Results following the first year of the Tee said that 86 per cent of the facilities that It Forward campaign have been extremely trialled the scheme said they would be China firm in Iceland positive, according to a survey looking into continuing to use it. Chinese businessman the success of the initiative. “We are extremely pleased with the initial Huang Nubo is trying to The program, which has been supported results from golfers using Tee It Forward,” buy 300 sq km of northern by the PGA of America and the United said PGA of America president Allen Iceland, with plans for States Golf Association, encourages faster Wronowski. “Golfers told us that they had a wilderness tourism play and more fun with tees best suited to a positive experience. It was our hope that development, including a players’ ability. by moving to a different set of tees, golfers golf facilities. According to According to the results: 70 per cent would have a more enjoyable, relaxing and reports, the land sale has found golf more enjoyable, 91 per cent fun experience—that certainly appears to been agreed and is waiting were likely to recommend the scheme to be the case.” on government approval to a friend and 52 per cent said they were compete the deal. likely to play golf more often knowing Find out more about the program results at: that they could use Tee It Forward. http://www.usga.org/news/2011/August/ A separate survey, conducted by the PGA, PGA-Announces-Results-Of-Tee-It-Forward

07 COVER STORY

Repositioning | Adam Lawrence

Changing thescene Across the world, golf course markets are changing. Adam Lawrence looks at how golf architects can help owners find the right solution to match their new requirements

veryone in the golf design, private club with a small membership for example—such as Ireland a few development and operation may well not work well if the course years ago and Australia today—a E business knows that a golf is to become a daily fee operation, number of old-established golf clubs, course is a living entity that changes looking to maximize rounds. Even located in relatively urban areas and over time, and needs work every now changes to the facility that, at first thus sitting on extremely valuable real and again to keep it looking fresh and glance, shouldn’t affect the golf course estate, have concluded that selling performing well. may well have an impact. If you need their existing course to a developer But what not so many realize is that to expand your clubhouse because moving to a new, out of town site and the same is true for a golf business. you are moving from private to public, building an entirely new course is a A business model that was highly is there room in the original land plan, good way to secure their future. Some successful twenty years ago may not or will golf holes have to be changed of the deals that have been done are be ideal today, and a proposition that to accommodate the bigger building? mindboggling, with clubs finding seems crazy at the moment could well Golf courses around the world are their property’s value to developers is be the perfect solution in the future. facing this kind of question all the enough to buy a new site, construct When an owner or operator realizes time. Course changes are needed a golf course and associated facilities that a change of business model is for many different reasons, and the and still have a large sum of money in needed, the likelihood is that the ideal solution for each will be wholly the bank for a rainy day. golf course will need to be changed dependent on circumstances. In In difficult economic conditions, of to match. Characteristics that suit a markets where land values are strong, course, this kind of solution is likely

08 | By Design Newport National in Rhode Island was originally planned as a private club, but is now the top public access facility in the state to be rare, and courses are more lots more currently being considered. land was used for 300 age-restricted often looking to find ways to increase “We’re currently working on a condominiums, transforming the revenue or cut costs. Some, sadly, project to change a par 35 nine hole economic position of the club. are being repositioned right out of course to par 31, to accommodate a Another solution—especially business, and being turned into public substantial brownstone and townhouse relevant today given the demand open spaces, housing developments development,” says Arizona-based for alternative golf facilities that has or office and retail parks. But in many architect Forrest Richardson, ASGCA. been chronicled in previous issues cases, owners and operators are At the Deltona Club, near Orlando, a of By Design—has been converting working with golf architects to change successful project a few years ago saw courses into practice facilities, their course to make it more suited to Bobby Weed, ASGCA entirely redesign executive courses or similar. At the a different business model, often with the golf course. Weed’s dramatic North Olmsted Golf Club in Ohio, remarkable success. redesign made use of the site’s natural originally opened in 1946, a redesign One solution that has been popular in sand to create large, dramatic waste- led by ASGCA Past President Bill many different locations is to redesign type bunkers, significantly increasing Amick saw the course shortened the golf course in order to carve out the course’s visual appeal; the project from a conventional length nine a parcel of land that can be used for was named Florida’s best restoration holes to an executive course of 1,702 residential or commercial development. for the year. On top of this, the redesign yards, playing to a par of 30. Amick’s There are many examples of such created a 17 acre parcel of land project enabled the developer to free projects that have been completed, and within the site for development; this up land for constructing and selling

09 COVER STORY

Bobby Weed, ASGCA, reinvented Orlando’s Deltona Club housing, which has been successfully million to build a new clubhouse and members to part with large sums of completed, and the course has been community center. money to buy their way into a golf passed over to the ownership of the Blume reshaped the greens and club can be difficult. Northern Ohio Golf Association. bunkers of the 1970 course, with the That’s why, across the US, there Often, course repositioning happens aim of creating affordable municipal has been a trend for private clubs because of a change of ownership. A golf that could compete with the to be converted into semi-private or classic example of this is at Isleworth local daily fee courses. By increasing even daily fee operations in the last in Florida, where after Tavistock the gradient of some areas on the few years. Sometimes, this process Group bought the property, architect course, Blume’s project improved the requires course changes as well; Steve Smyers, ASGCA was brought previously ineffective drainage, creating what’s ideal for a low-key private club in to redesign the course, which had four new lakes around the property is unlikely to be suitable for a busy originally been designed by ASGCA to contain runoff. The course is now pay and play operation. Past President Ed Seay and Arnold ranked top affordable public course in Newport National Golf Club in Palmer, ASGCA. the Houston metropolitan area. Rhode Island is an example of how Architect Jeffrey Blume, ASGCA, is The upshot has been that the successful this kind of change can becoming something of an expert at neighborhood around Quail be. Opened in 1991, and designed by this kind of project. At the Quail Valley Valley, previously in decline, has ASGCA Fellow Arthur Hills and his Country Club, in City, outside been revitalized, to the extent that then associate, Drew Rogers, ASGCA, Houston, which hosted Shell Houston the project received the Houston Newport National was envisioned as Open in 1973 and 1974, Blume led Business Journal’s 2010 Community a private facility through planning a renovation project that has played Impact Award. “We have resurrected and development, and remained a major role in the rebirth of a dying a community rather than just that way through the early years course. “Quail Valley was set to become renovating a golf course,” says Blume. of operation. But membership a housing development until the city The upscale private golf club sales were slow on the take, and stepped in to acquire the property model is appealing to commercial ultimately a decision was made to through eminent domain and convert developers, as, if the project is a open the course to the public. Now, it from a private country club into a success, the initiation fees paid by Newport National is the top public municipal golf course,” Blume says. members will enable investors to get access course in the state. The city paid $7.4 million for the club, a fairly rapid return on their money. “Very little has been done to the funded Blume’s $5 million renovation, But it is risky for all that; when course through the years—it is being and is now investing another $7.5 times are tight, persuading potential conditioned at the level that was

10 | By Design CASE STUDY: THE TRANSFORMATION OF SAIL HO IN SAN DIEGO In San Diego, the Sail Ho course, created this great little nine hole short course, by the U.S. Navy in the 1920s, has been and opening it to the public, has transformed as part of a large-scale created a wonderful golf facility for the redevelopment project run by the city. community,” says local architect Cary The course was part of the now-closed Bickler, ASGCA, who led the renovation Naval Training Center. After the closure, of a course he has played since his the Spanish style historic buildings childhood. “It’s very popular, in part along the waterfront and the Sail Ho because it’s affordable and fun. Everyone course were turned over the city for can play from grandchildren with their redevelopment into a new 460 acre grandparents, to advanced skill level mixed-use community, now known golfers who drop by to play a quick as Liberty Station. “The renovation of round to tune up their short game.”

initially envisioned,” says Rogers, who continues to consult at the course today. “The course is much the same, primarily because of the simplicity of the original design. It was built with on a modest budget, with little earth movement, and the simple contouring promotes firm and fast conditions, which was necessitated because there was not much water available for irrigation. So we have a simple irrigation system, double row, and selected turfgrasses that fit the conditions.” And, occasionally, things go the other way. At Houston National in Texas, which had been struggling for some time, local businessman Robert Steele bought the property last August. Formerly a 27-hole facility, Steele hired Jeff Blume to add another nine holes, making the club’s south course into an eighteen hole layout. Which they then launched as a private club! Opened in September, the new, private Sterling Country Club at Houston National already has 250 members, and is going from strength to strength. • For more information on repositioning Cary Bickler, ASGCA led the renovation of the nine-hole Sail Ho course he or to find an ASGCA member near you, has played since childhood, originally part of a now-closed Naval facility visit: www.asgca.org/members

11 EXPERT VIEW

The meaning of membership | Marc Whitney An evolving market Photo: Joann Dost Joann Photo:

The recently-open Whistling Rock course in South Korea, designed by Ted Robinson Jr, ASGCA

eturn on investment drives or simply the wherewithal to speak more important. Members who have everything from multi-million professionally to everyone involved— experienced the economic ebb and R dollar business decisions to from superintendents to city council flow of previous decades (as opposed the appliance purchases made by the members—how does anyone know to just recent years) have seen the average homeowner. Golf courses which architect is correct for the job? ASGCA take on greater significance. are run in the same way and owners When Donald Ross and thirteen Gary Linn, ASGCA, has worked and operators will always seek a others formed the American Society as a golf course architect for more strong return on their investment of Golf Course Architects (ASGCA) than 30 years and serves as ASGCA when designing or redesigning their 65 years ago, they could not have membership committee chairman. properties. imagined the business climate which He has seen firsthand the increased How much should I spend? What exists today: golf played in some of positive impact ASGCA members are short-term and long-term benefit will the most remote corners of the world having around the world. “We are be gained from the work done and the and an international cross-section of the ‘American Society’ but are truly person hired for the job? How strong is professionals designing the courses a worldwide society based in North the working relationship between staff played on. And yet, the structure they America,” says Linn, and the numbers and the person hired? These questions put in place continues to serve not only support his statement. and more must be taken into account for the ASGCA, but for golf industry A recent ASGCA survey displays when balancing a project’s needs. professionals around the world, who the breadth of member influence When it comes to selecting an know what to expect when they hire around the world. Current ASGCA architect to assist in a project, there someone with the ASGCA designation members have been part of projects have never been more options. following his or her name. in 92 different nations, from Australia Whether from various professional The international component of an to Qatar and Kazakhstan to Vietnam. backgrounds, years of experience, association—despite having ‘American’ On average, an ASGCA member has successful projects brought to fruition in its name—has never been greater or worked in six additional nations

12 | By Design Any meeting involving ASGCA members means I am going to bring back some concepts which will help our company and clients Todd Quitno, ASGCA Associate, Lohmann Golf Designs outside of North America. But new Course Superintendents Association Even the idea of competing against business is built on quality not of America or Major Partners fellow members in a challenging quantity. Each project is impacted by including Toro, JacklinGolf, Rain Bird design market does not deter Quitno. the individual architect’s past work. and Profile Products. They are competitors, of course, but “In some parts of the world ASGCA “I hope my education in this industry I don’t view the members that way,” is better known than in others,” Linn never stops,” says Todd Quitno, ASGCA he explains. “We still bounce ideas continues. “But it is the work you do Associate, who works alongside off of each other, commiserate about and the reputation built over time which ASGCA Past President Bob Lohmann the industry and generally have great matters most to decision makers.” at Lohmann Golf Designs. “I am always friendships.” Linn maintains that the nature of looking for opportunities to learn • ASGCA membership practices set something new and become a better a tone that is still respected in the problem solver. Any meeting involving golfing world. ASGCA applicants have ASGCA members means I am going to ASGCA BY THE NUMBERS their courses reviewed and rated by bring back some concepts which will current members, who report back to help our company and clients.” ASGCA recently conducted a survey of the rest of membership before voting Being a leader also means seeing members concerning their professional on admission takes place. opportunities before others, and experience. How does the members’ breadth and depth of experience “The oversight of fellow architects providing options to your customers. translate in numbers? and members looking at courses Throughout his presidency, Phelps means a great deal,” Linn explains. has highlighted the 95 percent of On average, an ASGCA member has: “An applicant has to not only produce courses which are not created for a body of work, but meet a standard championship play, but rather for years experience of design excellence which illustrates pure enjoyment of the game. ASGCA as a golf course a depth of knowledge.” members lead the way in designing architect Becoming an ASGCA member is a shorter courses, multiple tees and 29 new 18-hole milestone for golf course architects, ‘family friendly’ facilities. Past Designed but is not the end of the line. Members President Bill Amick, ASGCA Fellow, courses (or equivalent) share the drive and desire to continue is one of many members designing 42 their professional development smaller courses which can be just through their own work, and continue as challenging, fun and rewarding Created their professional development, often as longer courses. “Today we need master plans through joint educational efforts more, smaller courses,” he explains. 71 shared with other members. “They are easier to maintain, faster, Touched or projects ASGCA President Rick Phelps notes less expensive and easier to play for consulted on the personal desire and professional beginners and families.” expectation for education among Andy Staples, ASGCA Associate, sees 147 ASGCA members exists year round, and the collegial benefits of membership, Worked in often extends outside the association. but also knows ASGCA is about nations outside North America “In the last decade there are tools members doing good work. “If ASGCA available to members far beyond what is to continue holding its weight, its 6 we have had in the past,” Phelps says. members have to produce the best ASGCA members have designed “Besides the ASGCA Annual Meeting work,” he says. “We need to keep courses in 92 different countries which always has a strong educational focus on the truly great work from around the world, from Australia to element, there are webinars, multi-day members and motivate the best future Qatar and Kazakhstan to Vietnam. As a seminars and conference calls sharing architects to join and get involved comparison, the 2010 Winter Olympic news and information.” Regular in the association. Education and Games in Vancouver, British Columbia webinars may include participation promotion will continue to be the welcomed athletes from 82 nations. from industry partners like the Golf keys to the future.”

13 EXPERT VIEW

ASGCA meeting | Adam Lawrence Lessons from Denver

SGCA Annual Meeting, though a relatively close-knit provided will be of value to developers, operators and golf gathering, attracts a selection of high quality guests clubs alike. In particular, the material from Joe Steranka of A from around the golf business. As such, we thought it the PGA of America will be of direct interest to every US golf worth sharing brief summaries of several presentations from operator, and Michael Berry’s presentation on the growth of this year’s meeting, held in Denver. This short snapshot can’t snow sports contains some fascinating insights that could be cover everything that was discussed, but we hope the insights of benefit to the golf business.•

ERNIE WANG: THE CHINESE GOLF MARKET Chinese golf entrepreneur Ernie Wang relatively consistent with the last few years. is already forcing older facilities to upgrade gave meeting attendees a summary of Wang’s statistics, which he accepts are to stay competitive. There are now more the current state of the industry in his incomplete, showed 172 projects under than a million golfers in China, while the country. China’s golf business moves so construction across the country. Most are population core of golfers, those playing fast and is so difficult for outsiders truly in already developed provinces, such as more than eight rounds of golf in a year, to understand that the views of an insider Hainan, Yunnan and Shandong, but the has reached 333,000, an eleven percent like Wang—the creator of the Chinese focus has switched from the largest cities increase on the previous year. editions of Golf magazine and Golfweek—is to second and third tier cities. Wang said Urbanisation remains a huge trend in especially precious. he expected the proportion of projects in China, with millions flocking to the cities Wang said that 52 golf facilities— smaller cities to continue increasing. each year. There are now more than 100 equivalent to 60 eighteen hole courses— Expansion and renovation of existing cities with a million or more inhabitants opened in China during 2010, bringing facilities is gaining pace in China. Wang in the country. The country now has more the country’s total to 395 facilities, or said he was aware of thirteen expansion than 400,000 millionaires, and, Wang around 490 eighteen hole courses. The projects and at least sixteen renovations, said, these people are starting to focus on annual growth rate of 13.5 percent is suggesting that the boom in new courses quality of life issues.

Clearwater Bay, China, one of 395 golf facilities now open in the country

14 | By Design MICHAEL BERRY: LEARNING FROM THE SKI INDUSTRY Michael Berry for the National Ski Areas Association discussed how the snow sports industry has gone about growing participation in recent years. The industry has been transformed in the last decade, with gross revenue growing over 30 percent since 2001/2, a track record the golf industry should be keen to learn from. Berry’s ten lessons included the importance of having a model that quantifies the impact of trial and conversions. NSAA’s model shows that ten percent of visits to ski areas come from beginners, 63 percent from those considered core and 27 percent from predict how likely they are to become and this is key to planning. Managing ‘revivals’, those who have been before but regulars. Price, while important, he said, is this process has helped the snow sports lapsed. Recent increases have largely come far from being the only, or even the central industry boost participation among core from this group, a message of obvious factor in visitors’ perceptions of the value users. Finally, Berry said, the industry importance to golf, which has a similar large of their experiences. has realized that business areas such as number of lapsed participants. Understanding demographic changes, equipment rental and snow school are not Bottom-up growth initiatives, Berry and their likely impact on the business, just key to beginner conversion, but are said, work better than those imposed pays off in both the short and long term, vital revenue generators in their own right: from the top down, while understanding he said. What people want from their a message with obvious resonance for the the motivation of beginners helps to leisure activities changes during their lives, golf industry!

JOE STERANKA: THE GOLF 2.0 ROADMAP RICK BARIL: A DIFFERENT APPROACH TO PGA of America CEO Joe Steranka talked about the BUNKER MAINTENANCE organization’s Golf 2.0 project, a roadmap that aimed to see the ASGCA member Rick Baril spoke about his design of the American golf sector grow from its present level of 27 million recently-opened Stensballegaard Golf in Denmark. The participants and around $33 billion in revenue to 40 million design included some large areas of sand, with indistinct and $40 billion by 2020. The plan segments involvement edges and planned low maintenance fescue surrounds. with golf in many levels, from the most basic—watching golf Discussion between Baril and the course’s developers as to on TV and playing golf video games—to those that regularly how the bunkers should be maintained led to the creation play eighteen hole rounds. The middle tiers of this pyramid, of an unusual policy, which, Baril said, is an interesting above mini golf, but below regular participation in ‘real’ golf, experiment for the industry as a whole to keep an eye on. is currently underserved, but, Steranka said, are being filled by Essentially Stensballegaard is going back to an older model new concepts such as TopGolf. of bunker maintenance, with the aim of both reducing costs The key area for growth, Steranka said, is lapsed golfers. There and reinstating sand hazards as a truly strategic element are 61 million people in America who have played golf, are not within the course’s design. The only grooming of the doing so at the moment, but are interested in starting again; bunkers is aimed at keeping plant growth within the this, he said is the obvious focus for golf marketing. bunkers down and retaining the sandy feel. There are no Golf 2.0 has three pillars: retaining and strengthening rakes on the course; players are requested to smooth the sand the core, engaging the lapsed and creating interest in non- down with their feet or a club. traditional groups. The second pillar will focus on making Baril told the meeting that he and the club created a the game more attractive to women, creating ‘welcome back’ bunker policy document to be given to members, explaining programs for lapsed players and targeting children and families. the ideas. Talking to players has revealed that many Alternative golf formats are, Steranka said, vital to providing believed there was an official standard for bunkers, which a ladder of opportunity by which people can progress from must be maintained on a quality golf course, and also that, a basic engagement with golf to becoming a regular player. because the course was designed by a high-profile American As well as the obvious messages of cost and time, the PGA’s firm, they expected elevated levels of maintenance quality. research has identified a number of reasons specific to why Baril suggested that changes could be made in golfers’ individual demographic groups don’t play more golf. Spouses expectations in regard to bunker maintenance, but that it that don’t play and a lack of welcome for beginners were was vital to present it in terms of the strategic design of the mentioned by many groups, creating obvious opportunities for course, rather than as a cost saving measure. programs that could boost participation.

15 EXPERT VIEW

Golf trends | Henry DeLozier Worldwide changes for golf

game that reveres tradition to proven brands that routinely market segments and refining and historic culture, golf fulfill their intended lifestyles. membership programs to align them A continues to evolve in its Trust in the brand promise has with current market demand and many aspects around the globe. proven to be a great advantage to elasticity for memberships. Among Golfers are changing and so too are top clubs, resorts and brands. This top-performing clubs that show the expectations and preferences of competitive advantage has emerged growth, 92 percent have realigned golfers. While new golf projects have as the top performers have exercised membership programs after updating slowed somewhat, change for golfers three critical tactics for market their previous market analyses. remains constant. For designers and differentiation: Finally, reinvention of member planners the imperative is to maintain First is reinvestment in capital programs. Second only to member pace with change and to anticipate assets. In early 2010 some clubs and satisfaction quotients, members the direction and ripple-effects of golf-related businesses worldwide (and customers of golf brands and change in golf. began to show separation arising services) require new energy and First, and undeniably greatest in from ongoing improvements programs to keep them engaged in the global platform, is the growing to facilities, processes and new their clubs. The most popular new dominance of international golfers technologies. Among the most programs are tied to combining in worldwide competitions. In a common capital investments at the social programs and dining. Second time when the US PGA Tour was the top-performing businesses have in popularity for new programs has destination, golf grew and flourished. been new social programs, improved been generational memberships that As the emergence of the European easy-to-use technologies, and updated enable multi-generational families to Tour becomes powerfully profound, capital equipment such as exercise share club memberships and ‘special golf is poised for another halcyon equipment, course maintenance times.’ International and reciprocal period when the global economy equipment and interior décor. membership programs have been indicates stabilization. Hard on the In fact, among the top performers the most successful new programs at heels of popular growth comes the almost eight-in-ten (78 percent) clubs with strong seasonal changes in Asian Tour with its legion of capable report membership growth after member usage and frequency. and determined young players. club improvement investments Brand reliability—the assurance that Golf is acting out the promise of were unveiled. Tired clubhouses one will receive an experience that is globalization by attracting new and and disappointing turf conditions as good as or better than expected— diverse audiences. were cited as the most frequent is attracting more members and How, then, should golf planners, ‘disappointments’ in the category of customers than price reductions. designers and builders prepare to underperforming clubs. Flight to Quality Top-performing provide golfers what they want? Secondly, updated market analyses. clubs are being rewarded for Following are four global trends, Demographic and economic maintaining high standards and for which were identified in a recent market segmentation has shifted updating facilities. More than one- survey by Global Golf Advisors in most markets. Clubs and resorts half (53 percent) of respondents to (GGA), which offer directional which have updated their market the recent GGA survey indicated guidance for the future of golf around knowledge and reprogrammed a preference for joining a ‘better the world: according to new and current club which features regular facility, Migration to Reliability Golfers data points are prospering. This program and service improvements’ and prospective golfers have moved endeavor involved identifying new as a part of the club culture.

16 | By Design Many underperformers have hunkered down to protect cash reserves and to await clear signals from the market; but the top perforing clubs have re-committed to a superior market position

The market bias that rewards weakness in sustaining initiation markings for women, carefully reinvestment and high performance fee collections. Nonetheless, the considered forced-carries and standards first emerged during the performance metrics for the most negotiable hazards, and receptive third quarter of calendar year 2010 successful clubs (detailed in the course conditions—such as flowers and persists. table below) illustrate the overall and decorative considerations— Accelerated Metrics Top clubs have significance of dedicated attention attract women golfers. increased net member counts—new to excellence. Female survey respondents members added less resigning Female-Driven Programs Planners indicate that ‘women know what members—and posted improved and designers must integrate the other women want’ and the result is financial performance along the way. wants, needs and expectations improved relevance for the club and Erosion ControlIn short, Perimprovedformance performance has of women into their concepts for increased satisfaction for the club Average percent effectiveness borne more favorable results. Among clubs and resorts. Women indicate member participants. 100% the characteristics that improved at a desire for the club to provide a ‘Better is the enemy of good.’ Many most upscale clubs are member count, platform for socialization. Programs underperformers have hunkered down 90% dues revenues, use-fee revenue and that enable the making of new to protect cash reserves and to await facility utilization. friendships and the opportunity to clear signals from the market; but the 80% Derek Johnston, Senior Associate share fun activities and pastimes top-performing clubs have re-committed at Global Golf Advisors in Toronto, resonate successfully to influence to a superior market position. Those 70% notes: “The top performers have increased utilization among the clubs and golf businesses that are distinguished themselves through women of the club. improving the member/customer 60% superior financial management and Best management practice indicates experience are prospering. facility utilization.” He notes that great value in the empowerment • 50% under-performing clubs routinely of women in the club for leading High Performance Straw/Cottondo not measureDouble-Net utilization andBonded are newDouble-Net programs and-Flexible for engaging Hydraulicunaware Mulch of theStraw powerful Blanket influenceFiber Matrix of femaleExcelsior participation.Blanket Growth Slow-growingMedium a systematic approach to increasing programs benefit significantly when activity in club programs. women members are allowed to Across the board, most clubs lead them. Well-planned concepts (91 percent) have experienced include proper course signage and

Return on investment The best perfoming clubs are those which have continued to increase capital investment Category Top Clubs All Other Clubs Henry DeLozier Dues Revenue Up 2.2% down 17.4% Henry DeLozier is a Principal in Utilization Up 13% down 18% Global Golf Advisors, an international Labor Costs Up 7.8% Up 2.7% consulting firm specialized in golf Capital Expenditure Up 8.3% Down 5.8% businesses. Reach Henry at www.globalgolfadvisors.com

17 CLOSING THOUGHTS

The challenge is to deliver a fun golf experience at a price that is appealing to players, but which keeps the facility financially sound

Community facilities | Rick Phelps, ASGCA A standing Rick Phelps, ASGCA Denver-based Rick Phelps is principal of Phelps-Atkinson Golf Course Design, ovation and the President of ASGCA

t is a great honor to serve as ASGCA tournament, but they continue to base: to work with them and find President. To follow in the footsteps host 30,000-50,000 rounds each ways of reducing inputs—manpower, Iof so many other Presidents— year, and they represent the heart equipment, chemicals—to cut costs including my own father, Dick Phelps, and soul of the golf business. without having a big impact on the who held the post in 1980/81—has These, in my mind, are the courses, quality of golf. made me a very proud man. owners and operators that deserve a Ensuring that the quality of golf ASGCA’s former Presidents, standing ovation. experience provided by a course including most recently Erik Larsen, Not only are these courses at the stays the same or gets better, even have done great work. Erik’s ‘value heart of golf, they’re also pretty while cutting back on costs is of the golf course’ initiative has been close to the heart of the majority absolutely essential. Customers a great help in explaining to people of ASGCA members. Of our nearly don’t take kindly to being asked to around the industry and beyond why 180 members, I estimate something accept a worse product. For example, golf courses are important assets like 70 percent make their living architects are often asked about for communities and organizations, working with this kind of golf course. removing bunkers, because bunker including those who don’t actually Too often, people seem to assume maintenance is a big cost. But the play golf. Because of the way in which that the letters “ASGCA” after an real question course owners and real estate development has driven architect’s name means he or she operators need to work through, the bus in recent years, we have, to a will only be interested in big dollar, with their architect’s help is which large extent, gone away from viewing high profile work. But, throughout bunkers, and how many. Golfers still golf as a standalone business. That has the society’s history, the core of our want interest, and if, by removing to change; we can’t expect real estate membership has always been people too many, or the wrong bunkers you sales to subsidize golf in the way they practicing mostly on a regional basis make the course less interesting to have in the past, and so we have to and working largely on smaller scale, play, you will lose customers. focus more on how golf courses can ‘mom and pop’ projects. Ponds, greens, tees, bunkers, stand on their own two feet. The challenge for these golf courses fairways and trees all need to be With this in mind, I plan to use is to deliver a fun golf experience considered when you’re thinking my Presidency to help get some at a price that is appealing to about managing costs. It isn’t just recognition for ‘the golf course down players, but which keeps the facility the amount you spend on taking the street’—the kind of courses financially sound. That’s tough to care of those things themselves, but that millions of people, in America do at any time, given how fierce the their impact on your other costs. and beyond, play week in and week competition is between courses in Take trees, for example: if you have out. It’s at these courses that the the US and elsewhere, but it’s even maintained grass with trees in it, how real value of the game is found, in more pressing when times are tight. much longer does it take—and thus both economic and social terms. Architects are being asked by courses how much more does it cost—to run They may never sniff a professional to help them reorganize their cost your rough mowers around trees?• 18 | By Design SPONSORS

By Design would not be possible without the support of its sponsors, who have played a key role in the publication of this magazine.

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