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The quest for status Modern golf first arrived in China Global implications To date, golf is still played by very few with the opening of the Chung Shan In addition to its impact on players and Chinese and participation is concentrated Hot Springs, located an hour-and-a- developers at home, golf’s increasing among the country’s wealthy elite. half’s drive from the former Portuguese popularity in China, combined with a While a regular golfer, Li usually plays colony of Macau. The intention of surge in the number of Chinese travelling at medium-sized courses. Wang, on the owner Henry Fok was to give the resort overseas, could also have substantial other hand, is able to afford the more “international status … and golf fitted the ramifications for the industry beyond extravagant offerings. bill”. This same mentality in golf course the country’s borders. According to According to Wang, because of the development has been carried through the United Nations World Tourism sport’s domestic lack of attention and the early 2000s. Chinese golfers gradually Organisation, the number of Chinese coverage, the entry barriers are extremely adopted these foreign traditions and travelling abroad grew from 10-million high. On the development side, the etiquettes and have learned to expect the in 2000 to 83-million in 2012. expansive space a golf course requires same services and amenities afforded to Moreover, China’s expenditures on can become an expensive venture, foreign players. international tourism reached US$102- especially considering today’s burgeoning The combination of all these factors billion in 2012, a 40% increase over 2011. Chinese real estate market. means that the Chinese golfing sector With this surge in travel spending, China The same reasoning applies to in- is well-poised for growth. According to has surpassed Germany and the US – city driving ranges, which are scarce the legendary Jack Nicklaus, who helped formerly the two top-ranked spenders and expensive. For the consumer, just design the Shenzhen Mission Hills Golf – in total outbound travel spending. As learning to play can be an extremely Club: “Golf is just exploding in China”. highlighted by Yong Chen, a specialist costly venture, given that instructors are With only 750 golf courses today and in Chinese outbound tourism at Hong rare commodities. Moreover, because the a growing upper class, the country is Kong Polytechnic University, until now game has a steep learning curve – which seen as a key market for sporting goods Chinese tourists have focused mainly requires constant practice, expensive companies and course operators. on shopping (more so than any other greens fees and high costs – practice global travellers) and spend an average sessions attract only the elite with China is a key of US$1230 per trip. sufficient disposable income. market for sporting While Chinese golfers have yet to While there are membership-free begin travelling in large numbers for the golf courses that cater to the general goods companies exclusive purpose of playing golf, it is population, most courses in China serve easy to see the potential for China’s the wealthy elite, requiring fees ranging from US$16000 annually, all the way up to lifetime memberships of US$490 000. Many of these high-end courses, while originally built for foreign golf tourists, have evolved into Chinese-style, full- service facilities. According to Wang, the Chinese elite has made golf an even more personalised game and experience, with players being treated as emperors. In addition to choosing his/her own handicap and score, each player can also choose the pace and experience of the game. For example, one could choose to enjoy a slow game with friends/business partners, accompanied by caddies and waitresses who serve food and champagne, all while enjoying the view and the scenery. In addition, an increasing number of golf courses are being built in China and marketed toward foreign tourists, An upmarket Prada store in Chengdu, the fourth most populous city in China. particularly Koreans and Japanese looking The country is slowly beginning to see the emergence of a new upper class for discount golf holidays. Third quarter 2014 strategicmarketingafrica 55 52-56 Emerging Markets v5.indd 34 2014/06/26 12:32 PM