THC MONTHLY
January 2010
Golf Trends
The way forward for Kenya
By Ikua Karanja
If you have ever played golf
and experienced that fabled (to
us high handicappers) perfect
shot, then you will understand
why golf is the fastest growing
sport around the world. The
sport has turned itself into its
own industry, with large
sporting events, media
coverage as well as ultra
modern equipment and
merchandize.
In the past golf courses were
not seen as much of an asset
The to a hotel business model;
primary however, with over 32,000 golf
revenue
source for
courses worldwide, its no
Kenyan surprise that they are the focal
Golf point of multifaceted projects
Courses such as luxury resorts,
is from
members. residential communities and
retirement villages.
1
In Kenya, most golf courses
are independent businesses
that rely on memberships as
their main source of revenue.
Kenya has 39 golf courses; of
these only 12 are 18 holes; of
these 12, only one can be said
to have USGA type standards
and that is at Vipingo Ridge.
In addition to this statistic,
Kenya has only three golf
resorts; Leisure Lodge Beach
& Golf Resort, Windsor Golf
Hotel & Country Club and
Great Rift Valley Lodge & Golf
Resort.
Compared to other African
countries, such as South
Africa, Morocco, Tunisia and
Egypt, the ratio of Kenya’s 18-
hole golf courses to its total
number of courses falls far
short of the other countries
ratios (see illustration below).
According to a 2008 KPMG
Golf Benchmark Survey, North
Africa (Egypt, Morocco and
Tunisia) has 69% of its courses
as 18 holes and only 4% are 9
holes. South Africa has 69% of
its courses as 18 holes and
23% as 9 holes courses.
In spite of these shortcomings
the sport is still alive in Kenya
and has great upside potential.
Kenya receives an estimated
one million visitors a year,
according to statistics by
Kenya Tourist Board
approximately 60% of visitors
are here primarily on holiday.
THC MONTHLY January 2010
Distriubution of Golf Courses
North Africa
South Africa
Kenya
27+ Holes 18 Holes
Most business models used in Kenya’s golf
courses do not attempt to capture this
market. The primary revenue source is
membership subscriptions resulting in the
best tee times reserved for the members. A
few courses though do offer prime tee times
to area hotels. KPMG’s survey indicates that
courses located in tourist destinations have a
higher percentage of green fee rounds.
Green fee rounds can generate great revenue
for golf courses; however, they are subject to
seasonality. Attracting golf tourists can result
in a significant boost. The last check on the
number of tour operators that specialize on
golf tourism in Kenya yielded only three
companies, a segment that is poised to grow
in the future.
The potential benefits to the country are
important. According to the KPMG survey, the
golf economy includes a number of sub-
sectors that are directly related to the game
(either from the golf facilities or players
perspective) and also impacts other industries
that have a relationship with golf in some form establish itself as a golf destination. Attracting
(e.g. hospitality, tourism and real estate).
Growth of golf as a sport will create a need for what is needed is due diligence and action.
qualified professional Greens Keepers, Course
Managers, and other staff, as well as raise the THC offers investment advisory services for
bar of expertise in the field and with it the
wages. In turn, this will lead to the sport
offering career opportunities in its various
Improvement of
100.00% existing golf courses
and facilities and
75.00% the development of
new higher quality
50.00%
golf courses is
25.00% necessary for Kenya
to establish itself as
0%
a golf destination.
9 Holes
facets to young and talented individuals
further diversifying employment opportunities
in the country.
Finally, the sport can contribute significantly to
the tourism industry in the country. An
additional source of revenue for the industry is
necessary to diversify its attractions thus
reducing overall reliance on one particular
segment.
It seems that Kenya’s golf industry has a long
way to go, but when it does get going, and it
will, the potential impact of the sport in the
country will certainly be obvious. Vipingo
Ridge has certainly set the pace and standard
of the kind of course development the country
needs. In-line with Kenya’s Vision 2030, there
are a number of project proposals that feature
golf courses as part of their multifaceted
development.
Improvement of existing golf courses and
facilities and the development of new higher
quality golf courses, is necessary for Kenya to
high profile tournaments, will require USGA (or
USGA type) courses. The potential is there,
golf courses through its international network
of consultants. Contact us at
thc@tamarind.co.ke