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PROPERTY FOCUS: Golf courses here, there, and everywhere
16:00 Fri 04 Apr 2008 - Anelia Zaharieva
 

Traditionally, football-mad Bulgaria has had little time for more upmarket sports such as golf or cricket. Nonetheless, to date, there are four functioning golf courses –St. Sofia Golf Club & Spa, 15km from Sofia; Golf Club Air Sofia in Ihtiman, 40km from the capital; the Golf Course in Sliven; Ibar Golf Club in Dolna Banya near Borovets ski resort –and more than 15 are in the pipeline.

Obviously, the latest craze for announcing golf projects shows an explicit interest in the sector from developers. Construction of a golf course takes more than five years, according to Razlog mayor Lyuben Tatarski, to say nothing of the hefty investment it entails. So it is a logical question how and whether Bulgaria, a country boasting no golf traditions or culture, could spawn enough demand to absorb the projected supply and fetch satisfactory returns to all players. Despite vehement criticism of these projects from environmentalists, both the Cabinet and business are predicting a bright future for Bulgaria’s fledgling golf industry.

“Golf tourism offers some of the highest rates of return in the world. Combined with its mild climate, natural sights and mineral springs, Bulgaria could become the preferred golf destination in the Balkans,” a Cabinet media statement released in February read.

“A golf development does not abide by classic marketing rules,” Manuel Ferry Sanchez, the developer of the 500-million-euro Kuttina golf resort near Sofia, told The Sofia Echo. One cannot speak of over-saturation, because golf is like gambling – your only rival is the field and, once you have vanquished it, you move to another course, he explained.

“Bulgaria has the potential for 100 golf courses,” according to golfing legend Gary Player. By comparison, Scotland, which has an area of 79 000 sq m [Bulgaria’s area is 110 912 sq m] and a population of 5.1 million people [about 7.6 million in Bulgaria], has 400 golf courses, he said.

“Golf tourism is extremely important for attracting more affluent tourists,” says Kuncho Stoychev, an investor in Black Sea Rama golf development. “If an average tourist usually spends about 50-100 euro a day, a golfer might spend 400-500 euro,” he said.
It is impossible to predict what will happen when all the envisaged stock is delivered on the market. Some schemes might perish, wiped out by the ruthless natural selection law – “only the best/first survives,” others might never come into fruition.
So what does a golf project developer rely on, in order to make it a high-yielding enterprise? Who are the consumers of this “specific” product in Bulgaria?

The Sofia Echo approached for comment the executives of two golf establishments –St. Sofia Golf Club & Spa (SSGC), which has been functioning since 2004 and BlackSeaRama (BSR) in Balchik, whose first phase, the Golf Academy, is scheduled for opening on May 1 (the nine-hole golf course will be launched on June 1 and the 18-hole one will break ground on September 1).

 “Our marketing plan is in two areas –membership marketing and daily green fee or visitor play. In general terms, we promote our membership by means of word of mouth, referral, internet, invitation, and specific media,” SSGC general manager Alan Rogut said.

“Tourists are attracted through deals with local business, hotels, magazines, newspapers, radio, and internet. They come from a wide spectrum of nationalities, mostly linked by a common love of the game of golf, from actors, politicians, businessmen, to retirees and holiday-makers. In general, factors such as disposable income and “disposable time” play a role but the game is as affordable as tennis or skiing.

“Members are the lifeblood of any golf club. At the same time, golf courses cost money to operate and it is vital to attract daily visitor play as well as appease the wishes of the members.

“Our golfers are some of the most valued customers, because they are prosperous, money making opinion leaders. They are highly educated, dynamic and well informed.”

BSR, on the other hand, is treating 2008 as its “year zero” and was still elaborating marketing strategies and incentives to attract clients, marketing and sales manager Violeta Budeva said.

However, apart from golf courses, the complex offers vacation properties, which is another item of the budget income.
“About 80 per cent of the units, put up for sale, have been bought. Average prices currently stand at 2300-2 400 euro a sq m [up from the initially quoted 1500 euro a sq m].

“Appreciation could be attributed to the project’s uniqueness and quality, low construction density, picturesque landscape, the Gary Player-designed golf course and the adjoining developments in the compound – tennis courts, swimming pools, a boutique hotel and Spa centre,”  Budeva said.

“We were surprised by our clients’ profile – our original expectations of having around 80 per cent foreign customers, primarily British, proved wrong. Currently, Bulgarians account for about half of our membership and only 10 per cent falls to British,” she added.

Another important issue, concerning the successful running of a golf course, is staff recruitment. A golf resort is not like a regular hotel or recreational establishment. Employees should master specific knowledge and skills.

“Personnel with the proper expertise to operate a top end golf facility should have the right attitude, attention to detail, customer service and knowledge of their subject. There are key positions and a specific structure, starting with the General Manager who oversees the entire operation, creating financial plans, budgets, and establishing the policies, vision and mission of the owner, investor or committee by which the club will run,” Rogut said.

At SSGS, that is ensured by four key personnel, starting with the golf director, who oversees all golf-related matters –running tournaments, handicap software (golf handicap is a numerical measure of an amateur golfer’s playing ability), establishing and maintaining playing times and ensuring that the proper golf etiquette and rules are implemented and followed by players.

The head golf professional, who has to be qualified by the Professional Golf Association (PGA), runs the shop and is responsible for merchandising, retailing, club-repair, and some teaching. The bulk of teaching, however, is handled by the head golf instructor, who also has to be PGA qualified. Finally, the superintendant maintains the course and makes necessary purchases.

Newcomers, such as BSR, are expecting to hire key personnel abroad and training their own staff. “We are experiencing difficulty in recruiting qualified staff, because golf is a pioneering sphere in Bulgaria,” Budeva said.

“There are three key activities, related to operating the golf complex – management of the club, management of the golf academy and the so-called greenkeeping (golf course’s maintenance), or, in other words, there will be about 30 people, engaged in these processes.

“The heads of the different units will be foreign specialists with experience, recruited through competitions, who will be in charge of training Bulgarian staff. We will certainly rely on teaching programmes, held abroad.”

 
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