Fall 2014 Volume No. 23 Issue No. 4 FEATURES STAFF 10 INSURANCE, TAXES, HR Editorial Team Operational back-end costs can be a Jack Crittenden pain, unless you know how to play the Editor-in-Chief [email protected] game. Just beware of bunkers, rough 10 Mike Stetz, Managing Editor and bad lies. Laira Martin, Associate Editor 858-810-7093 Robert Vasilak, Senior Editor 19 MOST POWERFUL James Prusa, Editor-at-Large, Asia PEOPLE IN GOLF Tiffany Porter, Proofreader Eric Affeldt, Donald Trump and Rory Shannon Harrington, Art Director Phillip Haut, Ad Production charge up the list as the industry welcomes new money, new ideas and 19 a new idol. Publishing Team Katina Cavagnaro, Publisher Mindy Palmer, Marketing and Sales Consultant Elizabeth Callahan, Director of Audience Development 34 CREATIVE VISIONS Wendy Ullman, Director of Marketing and Promotion From fantasy courses to short courses Trish Newberry, Office Manager for kids, we share nine creative design concepts that promise to bring more New Subscriptions: 34 Contact subscriber services by emailing golfers to the course. [email protected]. Complimentary Subscriptions: Golf Inc. provides a complimentary digital subscription to the top decision-maker at golf courses, golf course management companies, development firms, and to advisers, consultants, architects, engineers, planners, investors and financiers. If you match these criteria, please email [email protected]. NEWS & TRENDS Change of Address: Please send your inquiry to 4 Four big deals bring money into golf [email protected]. 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POSTMASTER: Send address changes to Golf Inc. at 7670 Opportunity Road, Suite 105, San Diego, CA 92111 Fall 2014 www.GolfIncMagazine.com 3 003TOCPrint.indd 3 9/11/14 10:44 AM MOST POWERFUL PEOPLE IN ASIA BY JAMES PRUSA Asia continues to move forward, holding the banner of hope for the golf world. While new development has slowed in China, the future is still very bright for the industry as a whole. We profle the industry leaders who are taking the steps necessary to develop new players, build new courses and bring sophistication to management and operations. Tese pioneers are making an impact in their home countries and all across Asia. And it is this list that should determine the extent of growth for the industry into the future. Fall 2014 www.GolfIncMagazine.com A1 000_digital_AsianPowerful.indd 1 9/11/14 4:28 PM “We decided to take these unclaimed stray Tenniel Ken golf balls and set up our own little putting course in our family’s yard employing the strategic course design creativity of young kids. No. 1 Ken and Tenniel Chu Afer setting out Chairman, Vice Chairman our holes we Mission Hills Group 2013 Ranking: 1 were ready to China play. However, we did not have Today, Ken and Tenniel Chu are the most pow- company since he graduated from college in erful Asians in golf, respected for their leader- 1995, and Tenniel joined him six years later. putters. So, in a ship and eforts to develop the game. Tey spearheaded the planning and execution But not too long ago, the brothers were new of Mission Hills Haikou with the Chinese gov- true Canadian, to golf, as was most of Asia. ernment, starting in 2008. When complete, it As boys, they lived in Canada and their home will have 22 golf courses. hockey-loving was adjacent to a golf course, which meant Ken Chu leads the organization as chair- way, we decided errant balls would litter their backyard. man and CEO. Te company’s operations reach “We decided to take these unclaimed stray outside of golf into spas, resorts, hotels, shop- to simply use our golf balls and set up our own little putting ping malls, entertainment, dining and business course in our family’s yard, employing the stra- centers — and they are extremely infuential in hockey sticks.” tegic course design creativity of young kids,” promoting professional tour events as well as —Tenniel Chu Tenniel said. “Afer setting out our holes, we world golf competitions for amateurs, profes- were ready to play. However, we did not have sionals and kids. putters. So, in a true Canadian, hockey-loving While the brothers stay keenly focused on way, we decided to simply use our hockey frst servicing China, the Chu’s leadership sticks.” reaches out to all of Asia. Tenniel, vice chair- Te innovation that Tenniel and Ken brought man of Mission Hills, concurrently serves as the to their Canadian backyard is now being deputy commissioner of the OneAsia Tour, and employed as they seek to improve the market- this brings him and the Mission Hills Group ability of golf and attract juniors to the game. into a powerful leadership role, dealing with (See profle on page 26). multiple governing bodies of golf in China, Te brothers took over the Mission Hills Asia and throughout the world. He is also the Group when their father, Dr. David Chu, passed frst member fro China in the R&A, which sets away in 2011. Ken had been involved with the rules for all of Asia. A2 Golf Inc. Fall 2014 000_digital_AsianPowerful.indd 2 9/11/14 4:28 PM No. 2 Ryusuke Kamata business model predominates, he has built attempted leveraged buyout of Accordia CEO, Accordia Golf Co. one of the few daily-fee, public golf opera- last year, it has had to regroup. Early this 2013 Ranking: Not ranked tions. His operations boast annual green year PGM made a deep reduction in work- Japan fee revenues between $80 million to $100 force at its headquarters, jettisoning many million. long-term employees What a diference a year can make. SKY72 company’s golf courses are some Ryusuke Kamata, who has served as CEO of the busiest in the world. With fve golf No. 5 Mike Sebastian of Accordia Golf since May 2012, recently courses and a mega learning center, it’s a Owner and CEO, Asia Pacific Golf made a bold move to sell of a major por- leader in utilization. Two of the courses are Group tion of the public company’s golf courses, lighted and push annual rounds of 120,000 2013 Ranking: 6 but to continue as a third- each per year, with two others steady at Singapore party operator. In June, 90,000 rounds. Play is so heavy that the shareholders approved the cups are changed fve times a day to spread During the past 12 months, Mike Sebastian sell-of of 89 golf course the wear from golfer trafc. has further advanced his infuence on the properties to a newly Under construction for 18 months, a Asian golf industry by forming an formed investment trust 385-room boutique-service hotel close to alliance with the CMAA to launch in Singapore which could SKY72 golf courses and adjacent to the the Asia Pacifc Chapter of that net $626 million. Incheon International Airport was opened organization. Improving the capital recently. Tis was a strategic move that Sebastian founded Asia Pacifc position will strengthen will allow the facility to serve both air busi- Golf Group in 2006 and has grown Accordia’s balance sheet and make it near ness travelers and the SKY72 golf customer the brand to include Asian Golf impossible for its arch rival, Pacifc Golf base. Monthly magazine, Asian Golf Management, to attempt a hostile takeover. Rather than waiting for the Asian golf Business e-zine, Asian Golf TV Accorida had to fend of such a move ear- industry to develop professional training and the Asia Pacifc Golf Summit. lier in the year. and continuing education for golf course With APGG now named as the agent Accordia, with approximately 10,000 management, Kim gave orders to start for the Asia Pacifc Chapter of the CMAA, employees, currently manages 137 golf SKY72’s own annual winter seminars and Sebastian has established a Pan-Asia indus- courses and 24 driving range centers and even opened them up to all other Korean try operation that ofers Asia’s golf course has 755 afliated driving ranges, hotels, golf courses in the nation’s best interest. operational decision makers a venue for restaurants and branded merchandise. networking and ongoing, professional development. No. 4 Arihiro Kanda No. 3 Kim Young Je Chairman, Pacific Golf Management President & CEO, SKY72 Resorts 2013 Ranking: 2 No. 6 Khun Santi 2013 Ranking: 3 Japan Bhirombhakdi Korea President & CEO, Singha Corp. Arihiro Kanda is the chief executive of 2013 Ranking: 7 It has been another intense year for Kim PGM, the mega operator of 153 18-hole- Thailand Young Je, who has a reputation for being equivalent golf courses, hotels, cemeteries ‘Mr. Intense’ in everything and highway hospitality and service areas. he does. He’s been an Similar to, and a Khun Santi Bhirombhakdi, the most entrepreneurial leader, golf competitor with infuential golf businessman in Tailand, journalist, principle golf Accordia, PGM has seen his power grow as the common course owner and a pow- Holdings was set up market of Southeast Asia, the ASEAN erful infuence for golf in by Lone Star Funds, Economic Community, ofcially comes Korea and Asia.