KPMG: Golf in Scotland Now a £1 Billion Industry, New Study Finds
(St Andrews, Scotland- June 4, 2013) Golf in
Scotland is now a £1 billion industry, according to new research
conducted by KPMG in association with Oxford Economics.
The 'Value of Golf to Scotland's Economy' report, commissioned by the Scottish Golf Union in conjunction with VisitScotland and Scottish Enterprise, and published today at the KPMG Golf Business Forum in St Andrews, found that the industry generates £1.171 billion in revenues, including direct, indirect and induced effects. (see note 1)
More than 20,000 people are employed in golf in Scotland- one in every 125 jobs are dependent on golf - creating wage payments of £300 million.
Once costs are taken into account, golf directly contributes £496 million to Scotland's gross domestic product (GDP) annually, equivalent to 0.4% of the country's total economic output. (see note 2)
While Scotlandis known worldwide as 'The Home of Golf', it is the first time the value of golf to Scotlandhas been measured in this way.
Hamish Grey, CEO of the Scottish Golf Union, said: "This report clearly demonstrates the significant value of golf to Scotland's economy. Comparing it to other industries, we can now see for the first time that for example golf's direct contribution to GDP is 89% that of fishing and fish farming, and 83% of air transport.
"The 'Value of Golf to Scotland's Economy' report, commissioned by the Scottish Golf Union in conjunction with VisitScotland and Scottish Enterprise, provides credible data for all interested in Scottish golf to work from. A related and complementary study of the social impact of golf in Scotland is being developed concurrently and will be finalised later this summer.
"Scottish golf clubs are continuing to operate in challenging conditions, particularly in terms of finance and climate, and the Scottish Golf Union are providing our affiliated clubs with increased support, guidance and help with future business planning to ensure we have stronger clubs in the future to take advantage of the money spent in the industry. '
"Our collective challenge is to work together to build on the evidence base from this report and ensure that future generations of Scots benefit from this great game and the related industry."
Dr Mike Cantlay, chairman of VisitScotland, added: "Golf is a hugely important contributor to the economy of Scotland, and tourism in particular. With a number of major golf events on the horizon in Scotland, it was important to understand the scale of the industry as a whole in order that we continue to build and grow the industry in future."
The report focuses on six sectors of the golf industry - golf facility operations, golf course capital investments, golf supplies, golf tournaments and endorsements, golf tourism and golf real estate - and is based on 2011 data.
Other key findings include:
Golf Facility Operations
• There are more than 600 golf
facilities in Scotland, of which 597 are golf
• In total, golf facilities support more than 12,300 jobs
• Golf facilities generated annual revenues of £582 million
Golf Course Capital Investment
• As well as investment in existing
courses, there are at least eight golf course
projects currently in the planning and development phases
• 18-hole golf courses typically spend £44-55K per year on new machinery
• Some larger courses spend £70-120K per year on new machinery and equipment
• Sales of golf supplies (equipment,
apparel and accessories) resulted in
revenues of £157 million
• Golf professionals / on-course golf shops account for approximately 85% of
• The golf supplies sector supported 1,660 jobs in total
Golf Tournaments and Endorsements
• In 2011, golf tournaments and
endorsements generated total revenues of
£46 million. (However, the Open Championship was not played
in Scotland in 2011. The R&A forecasts the 2013 Open Championship
at Muirfield will deliver an economic benefit of approximately £70
million to the East Lothianand Edinburgh region)
• There were three European Tour events in Scotland in 2011; the Scottish
Open at Castle Stuart, Johnnie Walker Championship at
Gleneagles and Alfred Dunhill Links Championship at St Andrews, Kingsbarns
and Carnoustie Links
• The Ricoh Women's British Open took place at Carnoustie Links
• Golf tourism generated £120 million in revenues for the Scottish economy.
(This excludes green fee revenues, which are counted in golf facility
operations data. Scottish Enterprise estimates the total economic impact of
golf tourism in Scotlandto be £220 million annually.)
• Approximately 1,480 people were directly employed in golf tourism jobs
• Approximately one-third of all green fee payers were from outside Scotland.
Of these, 57% were from the rest of the UK, 19% from Europe,
17% from North America and 8% from elsewhere.
Golf Real Estate
• Golf real estate generated
revenues of £14 million (2011)
• Approximately 150 jobs were supported by golf real estate
• Total wage income was £4 million
Andrea Sartori, Head of KPMG's Golf Advisory Practice, said:
"While Scotland is the Home of Golf and there has always been an
understanding that the sport produces economic benefits for the
country, this research will empower decision makers and
help them make policy and investment decisions accordingly.
"Many of the international delegates at this week's Golf Business Forum have come
to St Andrews specifically to learn more about golf in Scotland as it is seen not only
as a world-class golf destination, but a world leader in the golf business."
The Golf Business Forum, hosted at The Fairmont St Andrews Hotel and supported by VisitScotland, Scottish Development International and Fife Council, with the assistance of Golf Tourism Scotland, will bring together up to 300 delegates including leading brands, developers and world-class golf and leisure operators from more than 40 countries.
For more information and to download a copy of the report, visit: www.golfbusinesscommunity.com
Notes to editors:
The Golf Business Forum, developed by KPMG's Golf Advisory Services in Budapest, is
a unique platform for professionals involved in the golf business industry to meet,
learn, exchange ideas and do business at an exciting and memorable event. The
GBF has quickly established itself as the foremost golf industry event. Since it was introduced in 2004, KPMG has held nine successful Golf Business Forums, each year taken to a different venue and location, such as Hungary, Czech Republic, Cyprus, Ireland, Wales, Turkey, Italy and this year to The Fairmont St Andrews Hotel, Scotland.
For more information, visit: www.golfbusinessforum.com
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Zita Valint Gary Firkins
KPMG Golf Advisory Practice Landmark Media International Ltd.
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Note 1: Direct effects: economic activity in each of the six clusters e.g. green fee and membership fees, food and beverage revenues, spend at hotels used by golf tourists. Indirect effects: indirect impact of the golf industry on its supply chain e.g. golf course suppliers. Induced effects: proportion of wages spent by employees of golf business and supplying companies on goods and services elsewhere in the economy.
Note 2: Gross value added (GVA) contribution to gross domestic product (GDP)
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