Country Snapshot Spain KPMG Golf Advisory Practice in EMEA The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. GOLFBENCHMARK.com The KPMG name and logo are registered trademarks or trademarks of KPMG International. © 2015 KPMG Hungária/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. 2 Country Snapshot Spain Golf supply and demand trends Golf was first introduced in Spain in 1891 when a Overview Spain Europe group of British nationals living in the Canary Islands founded the Real Club de Golf Las Palmas. Since then, Number of golf courses 349 6,924 golf has grown and expanded throughout Spain. Today, Number of registered golfers 270,463 4,186,116 the country has 349 golf courses and 270,463 players affiliated to the Royal Spanish Golf Federation. Average golfers per course 775 605 Average golf participation rates 0.58% 0.92% Source: European golf associations with KPMG elaboration Change in supply and demand State of participation of registered golfers in Spain, 2015-2017 in Spain, 2010-2017 290,000 Supply 285,000 (+4 golf 280,000 courses) +1% 275,000 270,000 Demand Registered golfersRegistered 265,000 (-61,070 -18% golfers) 260,000 Source: Royal Spanish Golf Federation with KPMG elaboration Source: Royal Spanish Golf Federation with KPMG elaboration Number of golf courses by region France Asturias Cantabria P. Vasco Galicia Navarre La Rioja Cataluña Castilla y León Aragon Portugal Madrid C. Valenciana Castilla-La Mancha Extremadura I. Baleares Murcia I. Canarias Andalucía Algeria Morocco • Cueta Melilla Source: KPMG research © 2018 KPMG Advisory Ltd., 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. 3 Country Snapshot Spain Supply Distribution of golf courses in Spain by size, 2017 Over the past seven years, the Spanish golf market has been 9 18 stable in terms of golf course 27+ supply. Since 2010, there has been a net increase of four new golf 24% facilities or +1%. In 2017, the Royal 13% Spanish Golf Federation tallied a total of 349 golf clubs. 63% The majority of golf clubs in Spain consist of 18-hole courses, representing 63% of the total supply. Nine-hole golf clubs, and 27-hole or larger clubs, represent 24% and 13% of total supply respectively. 221 18-hole equivalents 349 Golf courses Source: Royal Spanish Golf Federation with KPMG elaboration Demand Distribution of registered golfers in Spain, 2017 Based on our research, the distribution of registered golfers in Spain has seen a slight decline in recent years. Golf is dominated by adult-males (63%), females account for 24%, and junior participation is at 13%. With, more than 34,000 registered junior players, Spain is ranked in the top five countries in terms of the total number of junior golfers in Europe. Source: Royal Spanish Golf Federation with KPMG elaboration Evolution of the Spanish golf market, 2010-2017 350,000 400 300,000 350 rs fe 250,000 300 s 200,000 250 course ered gol 150,000 200 100,000 150 Golf Regist 50,000 100 0 0 2010 2011 2012 2013 2014 2015 2016 2017 Golfers Source: Royal Spanish Golf Federatio n with KPMG elabor ation © 2018 KPMG Advisory Ltd., 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 Country Snapshot Spain Interview with Gonzaga Escauriaza President of Royal Spanish Golf Federation What are the key trends shaping Based on our research, relationships in a crowded sport the state of the Spanish Industry? domestically Spain is looking marketplace. Therefore, golf clubs healthy, also it is in the top five and facilities have developed loyalty We can distinguish two key profiles countries in Europe in terms of schemes and implemented policies of potential players: under 16 total number of junior’s golfers. aimed at involving and acquiring new and over 30-35 years. The direct What can be done to encourage members. engagement in the game is only a female participation? 7% between ages 16-30. All our programmes (Golf in Schools, Almost one third of golfers in Spain Junior Academies, Friends Cup and Our programme Golf in Schools are women. We are satisfied with other campaigns) are being run as part takes place nationwide and is this figure. Our efforts have boosted of a web platform where each Regional supported by all local Federations. the percentage of new young golfers Federation as well as the National It has a double objective. On the under 16 years. Programmes like Federation (RFEG) can monitor how one hand, all children can discover Golf in Schools and also the TV the four programmes are working. the game at school in Physical show Holagolf, broadcast free-to air, Education classes, as a regulated has an exclusive section dedicated What are your thoughts about the subject. The second objective is that to female golf and it is creating a biggest opportunities to the golf children, who want to take their golf positive impact on women by making industry in the coming years? a step further, can sign up for free golf accessible and it seems to be introductory courses. The Golf Industry goes hand-in-hand increasing women’s participation. with tourism, both domestically and Finally, we promote a kind of internationally, so I think Spain, even Open Day initiative named Friends How do you see golf facilities if it is ranked top in Europe, still has Cup. Friends Cup is a non-official involving to accommodate a positive outlook about welcoming competition in which an active golfer costumer behavior? more tourists. We must remain can invite a friend, a non-player, to More and more golf clubs and vigilant in order to ensure that the the golf day. Twenty one per cent of facilities are aware of the need to product offered maintains the right those who try it, went on to take up adapt to the new times, the way standard. regular golf. of life of their customers and their Picture: Centro Nacional de Golf, Madrid, Spain © 2018 KPMG Advisory Ltd., 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. 5 Country Snapshot Spain Golf tourism For more than 40 years, Spain has In 2016, Spain was the third most 357,000 golf tourists) already present been established as one of the world’s visited country in the world. In in Spain, as the table indicates. The leading golf tourism destinations. terms of travel and tourism’s total most active golf travellers still come Spain’s success in achieving this contribution to annual GDP, Spain from the more affluent nations with position has been a result of the focus ranked amongst the top 10 countries long-standing golfing traditions, i.e. on tourism for the country, and its in the world. Taking a closer look Britain, France, Germany, Ireland, strengths as a destination: climatic at Spain’s source markets, we see and Scandinavia. Furthermore, the conditions which provide excellent that its top three tourism markets most preferred touristic golf facilities playing conditions throughout the year; (England, France and Germany) are located on the coastline in the relatively simple access and strong represent 71% of the nation’s overall region of Andalucía, Murcia, C. connectivity to the rest of Europe; arrivals in 2016. In order to broadly Valenciana and Cataluña, and on the and the development of clusters of assess demand potential, if we apply Islas Baleares. high quality golf, accommodation, and the golf participation rates in these supporting infrastructure and amenities source markets, there appears to be in strategic locations. an estimated demand (up to almost Travel and tourism's total Tourism in Spain – estimated golf demand, 2016 contribution to GDP, 2016 Top 3 source Share Total Golf Potential Ranking Country (EURbn) markets of total arrivals participation arrival of 3 Germany 320.2 arrivals rate golfers 5 UK 240.7 1. England 31% 16,961,140 1.2% 205,230 6 France 188.1 2. France 20% 10,767,308 0.6% 67,834 8 Italy 176.5 3. Germany 20% 10,734,120 0.8% 83,726 9 Spain 150.6 Total of the top 3 71% 38,462,568 356,790 14 Turkey 74.8 Source: Spanish Tourism Organization, KPMG reasearch Note: Potential arrival of golfers based on numbers of arrivals 2016 EU average 51.1 World average 48.7 Source: World Travel & Tourism Council Oslo 4h Major markets' Stockholm 4h 15min accessiblity by air The top four Spanish Edinburgh 3h 10min airports in terms of Copenhagen 3h 35min arrivals in 2017: Madrid, Dublin 2h 50min Barcelona, Palma de Berlin 3h 15min Mallorca and Malaga. London 2h 35min Prague 3h 10min Paris 2h 20min Munich 2h 45min Barcelona Madrid Lisbon 1h 05min Palma de Mallorca Source: KPMG research Malaga © 2018 KPMG Advisory Ltd., 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.