IMPACT ON THE GOLF INDUSTRY – POST COVID 19

Despite the setback the golf industry has faced in the first half of 2020, the outlook for the growth of golf is still positive. This is because golf continues to be an aspirational sport in this country. State governments, realizing its value, place a premium on the development of a golf course in order to attract international investors and cater to a more global audience for their projects. This is especially true in the proposed SMART City development projects being undertaken across the country. In order to attract, investment and interest in the project, the government is looking to provide world class amenities in these proposed cities and golf development is an important element. 

Despite the temporary shock experienced during the COVID 19 lockdown period, development of these projects will continue. State governments are also seeing the potential of golf tourism and actively encouraging the development of golf in tourist spots to promote these zones. As states look to appeal to not just a domestic but international audience, among other facilities, golf stands out as an activity which they are keen to embrace. 

In addition to renewed interest from the public sector, in a post COVID 19 world golf development will also find favor with the private sector developers. The reforms brought about by introducing RERA and the access to funds from REIT will provide immense support and stimulus to developers. These reforms bring a uniform level of quality and higher standards of quality required for golf development projects. It is expected that larger companies will be more aggressive with their expansion and launch projects targeting an affluent segment. As a luxury lifestyle development golf stands to benefit from this expansion. 

With regard to the consumer market, the initiatives launched by the government so far have increased access to credit for individuals and the moratorium on loan repayments is also a positive move. As home buyers have more credit, the demand for residential projects will increase. This growth will also be seen in secondary and tertiary towns which will see more new projects as against the saturated metros in the country. Going forward the demand for golf can be from these secondary cities as they seek attract ‘second home’ buyers from the cities as well as premium customers from those locations. 

The philosophy of using golf to add value to a development continues to be sound. However, our engagement with developers must evolve. Designers must be more sensitive to the costs involved in golf course construction and land aggregation in India. Golf course designs must be environmentally sensitive and conservative in resource utilization. Golf courses have always provided multiple benefits to urban and suburban locations: 

1.    Golf courses act as buffer zones, protecting local flora and fauna 

2.    In major towns and cities golf courses act as important lung spaces 

3.    Local labor employed on golf courses as caddies or maintenance personnel will provide invaluable employment for underprivileged youth in secondary towns and the urban poor 

4.    Golf courses can be partially utilized as environmental parks and access can be allowed to the public in certain areas of the course at certain times.  

5.    It is possible to develop golf courses on landfill sites of the city, allowing the land to be utilized rather than leaving it undeveloped, ugly, unhealthy and in-arable  

6.    Areas surrounding the golf course also benefit as the land value around a golf course appreciates faster than those further away 

It is important to highlight these ideas around development of golf especially in a post Covid 19 world. Golf facilities need to be sensitive to conditions of the environment and needs of the community. The positive changes in real estate development policy offers the opportunity to change the way golf development is perceived. If more golf courses are successful, they will set powerful precedents for the future. Post Covid 19 offers a new future where golf is not viewed as a resource consuming enterprise, but an enterprise that is sustainable, ecofriendly and positive to the community. It is time to write the next chapter in the growth story of golf in India and learn from earlier mistakes.  

Golf after a pandemic – Where do we go?

The world is experiencing unprecedented times; a severe pandemic, the economic repercussions from countries enforcing nationwide lockdowns, global supply chain networks have come to a virtual standstill, people are changing their lifestyles – either working from home, or social distancing – the fallout of all this will have lasting impacts on our society and world view. 

One of the earliest industries to be impacted by this pandemic was the sports industry. As news of infections spread, sports associations and bodies announced cancelation of events/matches, isolation for players and suspension of matches held in stadiums to prevent spreading the infection to unsuspecting fans (Of course as the virus become more contagious, with WHO directives, governments began preventing people from gathering in large numbers and this included sporting events). 

The loss of revenue across the globe translates to billions of dollars (there is a loss of sponsorship, loss of TV revenue as well as loss to players who have to retrain to again achieve match fitness after such a unprecedented and extended break. 

The sport I would like to focus on, is golf. Even before the novel coronavirus outbreak, golf had been going through a silent crisis. The repercussions from the global 2008 financial crisis had left the industry reeling with extraordinarily high course closures, very limited new golf course construction and even fewer new participants into the game. 

In an effort to counter this, the industry tried various methods of engagement, a drive pitch and putt program was introduced by the USGA to promote golf across the USA and get youngsters excited about the game by reducing the distance factor. Many developers began constructing shorter golf courses (par 3 or 9 hole courses) thereby reducing the capital cost of land required. You did not need over 150 acres to create 18 holes of golf. New events promoting the ‘fun’ aspect of golf, were created such as the ‘World Long Drive Championship’ which featured ‘pros’ who were specialized in only long driving. The European tour began introducing ‘skills challenges’ before tournaments for participating pros such as a 14 club challenge, horse etc. 

Top Golf in the USA began operations and captured the imagination of the non golfer by making the concept of a driving range fun and similar to going to a bowling alley. It has now grown outside the US to Europe and parts of the middle east. 

All this finally culminated, with the R&A and USGA taking some bold decisions in 2019 to do away with unnecessary rules and simplifying procedures for golfers across the globe. 

At the end of 2019, the industry was in an exciting place. There were encouraging numbers emerging about youngsters taking the game, developing countries were looking to embrace golf through golf tourism, course construction numbers were on the rise; albeit in a different style – 9 hole and par 3 courses; professional golf tours were seeing some increased numbers in spectators and viewership both from online platforms and TV coverage. 

And now a lockdown. 

So, what lies ahead for the industry and how can we as golfers pick ourselves up from here. 

There is no secret, the growth of the golf industry is tied to the economic climate of the country – favorable and growing economy will encourage golf development and growth in club memberships. 

The novel coronavirus has dealt a body blow to global economies. Major economists are even suggesting a paradigm shift with countries looking at their own self interest rather than the good of their neighbors. 

In this scenario, golf being a lifestyle and luxury industry will be impacted (Some sections of the industry more severely than others). For example though professional tournaments will resume, the number of spectators for non major events may see a decline (due to social distancing advisories or even lack of disposable income to purchase tickets) 

In this new world, the industry must embrace changes positively and proactively. The governing bodies of the sport must start to recognize multiple alternative formats of the game that exist. Rules the regulations must be formatted to encompass these styles of play. The bodies must be proactive in reaching out for new ideas that will be beneficial to all participating countries for the sport. This dovetails into the next crucial point which is to establish a global council for golf, with representatives from penultimate national bodies in each country. 

The professional tours of the PGA, European and Asian tours are doing their bit to get involved with the participating regions. From profiling professionals from various backgrounds, to announcing a schedule that takes the tour to new and developing locations, to announcing even a back to back schedule, this takes golf to the spectators and also ensures more events and more opportunities for upcoming professionals. 

Golf course designers and developers need to now design golf courses that are sustainable and environmentally sensitive. Developers need to be advised to look at alternative golf course designs such as par three’s, pitch and putt facilities, which offer the look and feel of the golf but at a fraction of the cost. Affordability needs to be a buzz word for designers. 

Unfortunately as a player and member of a golf club, the impact of the virus will leave me with less disposable income. Reducing numbers of members, no appetite for high green fees, is going to hurt golf courses. 

The pandemic has pushed the golf industry to a cross roads. The band aids introduced post the 2008 financial crisis, were only temporary, but a further more deeper view needs to be taken. The governing bodies of the sport must evolve to truly look at controlling, developing and nurturing this industry in a hands on approach rather than the back seat. National bodies for the game must embrace stakeholders of the industry in their region to discuss future development, growth, new technology and new ideas. This could include – highlighting new golf courses through the professional, community engagement is another, enforcing engagement with home clubs. 

I would like to conclude with a thought - Some time ago a debate raged about the length of courses, professionals are hitting the ball longer our golf courses are not long enough. The courses need to be longer to be tougher. What should we do? I believe the novel corona virus pandemic answers this question. Golf courses need to be built to be sustainable and profitable. Creating a course for a tournament held once a year is not a viable solution. In fact it is a major reason why golf courses are closing down. If football players are fitter and have more stamina, you don’t build bigger football pitch. When athletes push their bodies to run faster and faster, do you change the size of the track?

You adapt what you have to accommodate this new dynamic. Courses can alter their designs to factor the new further length, new hazards can be developed using natural topography, careful selection of golf courses for the schedule is also critical. Setup of those courses also becomes a new area to develop ad explore.

What I am trying to say is the mind set around golf needs to change. We need to think out of the box, because though we may apply another band aid, the old wounds have not yet healed.  

It's time to overcome Elitism in Golf!

It is no secret that golf in India is considered an elitist sport. It is an expensive sport to play with equipment being almost prohibitively priced. In addition access to golfing facilities in most cities of India are restricted to only members of ‘Golf Clubs’ though pay and play facilities are available the fees are at times prohibitively high. 

Despite this golf in India has been witness to some incredible stories of transformation. Caddies (people who carry bags for players) have now gone on to become stars on the Indian Professional Golf circuit. Many of these caddies have no formal education and for a few caddying has saved them from getting into the wrong crowd and going down a dark path of self-destruction and abuse.

One such story is of Chikkarangappa of Bangalore. He is the son of a greens keeper at Eagleton in Bangalore and now plays professional golf on the Asian Tour. Another similar story is of Rashid Khan, currently one of India’s top professional golfers; previously he was employed at the Delhi Golf Club as caddie.  

However, recently a very unfortunate incident occurred where Rashid Khan was denied entry to the Delhi Golf Club (a club he’s grown up on) based on his past behavior and the fact that he is not a member of the club.

It is my belief that institutions like the Delhi Golf Club in Delhi, Karnataka Golf Association in Bangalore, Royal Calcutta Golf Club in Kolkatta, have a responsibility to the game and players that goes beyond what would otherwise be termed ‘acceptable’ for a club. These golf clubs are not just golfing clubs, they are pillars for the game in India, where the sport is already so fragile. In India they represent the elite of golf clubs and if these golf clubs do not champion the cause of underprivileged golfers who will?

When Caddy turned professional golfer, C. Munniappa won the Indian Open, the Karnataka Golf Association took the unprecedented step of awarding him honorary membership to the club. The same happened to Chikkarangappa at Eagleton. These individuals and their stories should be regaled for all to see, it is the story of transformation especially in a sport where we have few local superhero’s.  

It is not about the prize, but what counts far more is the example that a gesture like this sets. It signifies that we are ready to rise above petty squabbles and recognize true talent from anywhere it may come from. Unlike other countries, some sports in India are forced to beg for recognition, access even acceptability. When reactions like this are publicized, it makes you wonder how these sports can even develop? Let us celebrate our hero’s aka professionals. Lets give them the credit and respect they deserve. It is these individuals who are going to inspire future generations to take up the sport and they need to be nutured and protected. 

Tiger Mania –Back Again!

Much has already been written about the amazing comeback by Tiger Woods when he claimed his fifth green jacket at Augusta National. After the scandals of 2012 and the numerous surgery’s in the past 2 years, it was getting hard to imagine a day when Tiger would start, contend and win a major title in golf. But on Sunday at the Masters, all that changed; it was a day that will truly be remembered in sporting history.  

Tiger forever changed the sport of golf, a game he has dominated. He pushed the boundaries of physical fitness and raised the bar for manufactures, demanding perfection. And then there was the crowd… Wherever Tiger went they followed and in numbers; thus the phrase Tiger Effect was born. To this day the ‘Tiger Effect’ is used to gague the field of players assembled in a tournament whether they will be a good enough draw for spectators.

Tiger Woods helped create a new breed of young golfers (most whom are now contending on the PGA Tour) who are thriving in this new paradigm. Many of the old war-horses like Ian Poulter, Matt Kuchar and Phil Mickelson have altered their game in order to stay competitive and relevant.

It is safe to assume there is no one else in the game of golf anywhere in the world, who has this kind of effect on the game… is it a coincidence then that in the past 4 years professional golf has seen a decline in viewership especially in non major events. Is it also a coincidence that in the past four years golfing merchandise revenues have also declined at golf courses in the country and abroad and one of the biggest names in professional golfing equipment, Nike has withdrawn its golf club manufacturing line?

The past few years have been difficult for golf. Growth rates have been well below par in the west and in the developing world golf is still finding it difficult to shake off its elitist image. The numerous golf course closures in the US and other parts of the world have not helped either. Golf was looking for a miracle, something to kick-start the growth, something to get people back into the game. Once again, it appears to be Tiger Woods, who seems to have stepped up to the plate.

Consider for instance the aftermath of the Tigers win in Augusta; almost all Tiger Woods memorabilia and apparel was sold out online on Amazon, Taylormade reported an 20% increase in the orders for the same driver and clubs used by Tiger after the win, Bridgestone was sold out of its golf ball played by Tiger Woods. Nike and Acushnet (the holding company that owns the brands of titleist and footjoy) shares rose around 2% and continue to rise on the NASDAQ

https://www.bloomberg.com/news/articles/2019-04-14/tiger-s-masters-win-a-major-boost-for-the-brands-still-with-him

In the evolution of a sport, there comes a time when spectators need something more – almost magical – to rekindle that sense of wonder that brings us back to the field, to watch and experience it, for instance in football the legends just keep on coming with Ronaldo, Messi, Mo-Salah added to the list, in basket ball you have Steph Curry, Dirk, Lebron James, D-Wade, in American Football you have Tim Tebow, The Manning Brothers and Tom Brady, In tennis you have Roger Fedderer, Djokovic and Nadal who seem to be ageless.

When it comes to golf it needed a fairytale. Something to get the fangirl and boy in everyone excited again. Any sports business needs its fans whether it is to drive ticket sales or merchandise.

Even though has to its credit, some of the oldest and tournaments that are greatly contested, it still needs its larger than life figure, someone who can leave everyone astonished, that brings everyone to the edge of their seat.

What Tiger’s win means to the sport of golf, is far beyond a major title, it is a catalyst for growth. Already, the governing bodies of the sport took a major decision in 2019 to fundamentally alter some of the rules of golf in an effort to modernize the game. This was a forward thinking move to encourage beginners to play and learn the game.

In addition, sports need their icons, either playing or past. Unfortunately such is the game of golf that to really dominate this game requires a different class of mastery; in 2010 people realized that Tiger is human, by 2014 they realized that he might never swing a golf club ever again.

By April 2019 he has achieved the impossible. What makes this more special is the human element of the story.

Tigers roar, I am excited because the sport needed its hero back and to win, what will follow appears to be an exciting period for anyone in the golfing business, so…. What’s your Tiger Effect?

Changing the mindset of Golf

When the game of golf was first played, the courses were carved out of land that was naturally contoured and readily available. In its earliest form it was developed on grass lands in Scotland by local herders tending their livestock. In the centuries that followed, the sport transformed from a game played by common folk to a sport enjoyed by the elite of society, the once open pasture land becoming the private manicured golf courses of kings and nobleman.  In the context of today, the golf courses are managed and owned by committees and associations of which golfers are members of an ‘elite club’.  

The effect of these changes, has altered the nature of the game itself. Pasture land has been replaced by lush green grass carpets, holes are not arbitrarily scattered; they are carefully cut into the grass at ‘precise’ locations, the natural orientation of the land is altered with artificially created contours and gradients enhancing the aesthetics of the course.  Achieving this costs money and requires an immense effort to maintain and is a strain on the natural ecology of the surrounding regions. 

It is not uncommon for golf courses to be designed using grass that is not naturally occurring, nor flora that is native to the region. This results in golf courses not only becoming an artificial micro-environment, but also dependant on fertilizers and other growth stimulants for survival.

In fact on golf courses that are popular, there is a over dependency on these artificial growth stimulants to an extent that the very nature of the soil has changed and the ground is no longer arable for other uses.

It is sad that a sport, which was created to be very much, a part of nature has drifted so far away from its roots… But ALL is NOT Lost.

The aftermath of countless campaigning coupled with the jolt of golf development being banned across China, as spurred golf developers to become much more environmentally conscious.

Perhaps one of the biggest changes is the creation of the AUDOBON Society in America and the special rating given to golf course that follow sustainable methods of development and maintenance. The selection of Chambers Bay as a host sits for the 2015 US Open was another game changer, as these golf courses is recognized as one of the most environmentally sustainable in America.

In the past few years it is encouraging to note that both developers and golf courses designers are becoming more conscious to the local environment. In fact it is now not uncommon to find designers proposing to utilize such environmental zones as an integral part of the golf course. In most courses new ‘environmental buffer zones’ have been created to promote naturally occurring vegetation.

I have always believed that golf is one of the few sports that can truly be a blessing for any region, not just in its beauty, but also in its ability to protect and preserve local ecology; both flora and fauna. It is my belief that golf courses have a responsibility to the entire area it is developed in; not just to the few luck members. 

Modernising the Rules of Golf

2019 promises to be a big year for the sport of golf; not because Tiger Woods is on the comeback trail, but because the Rules of Golf are undergoing a fundamental change. It is an effort by the United States Golfing Association (USGA) and The Royal and Ancient (R&A), the twin Governing Bodies of golf, to modernize the rules; making it easier for beginners to understand and to speed up the pace of play. 

 This is a very bold step for a sport that is steeped in tradition and has hardly ever seen radical changes to the rules. The last major revision of the Rules of Golf was in 1984 when a 4-year cycle was introduced to update the rules of golf as well as the decisions to the rules of golf.

The modernizations to the rules of golf in 2019 continue in this cycle, but for the first time, the principles behind the changes is to make the rules of the game easier to understand and apply during casual rounds of golf.

Some highlights of the changes one can expect in 2019:

1)  The number of rules have reduced significantly from 34 to 24

2)  It is now easier for individuals to drop and replace a ball; a ball can be dropped from as little as 2 inches from the ground!

3)  In a non professional round of golf, if a ball is hit out of bounds or lost, you may drop a ball at the point where it crossed out of bounds or where it is lost rather than playing from the tee box again

You can now drop a ball from knee height not shoulder height

4)  You may now touch and move loose impediments in a bunker 

For a detailed list of the changes to the rules you may visit http://www.usga.org/content/usga/home-page/rules-hub/rules-modernization/major-changes/major-changes.html

The rules of golf are not easy to master, but it is these nuanced rules and high standards that set golf apart from other sports. I believe, unlike the critics, that modernization of the rules was desperately required. Though the Decisions Book to the rules of golf provides some clarity, it is never practical for recreational golfers to carry the Decisions Book to each game. In addition, interpretations became subjective to the expertise of individuals. Not many golf courses have access to certified Rules Officials, leaving interpretations to enthusiastic members who may not even be qualified.

This modernization of the rules comes at the right time, when the sport needs to grow and attract more individuals to learn the game. One of the most common deterrents to people who wish to take up the game of golf, is the extensive rules. It is heartening to note that the governing bodies have taken cognizance of this and responded in a timely fashion and in a manner that keeps the game enjoyable while the spirit of the game remains intact.   

Development on a landfill sites

In India Landfills have now become an environmental hazard. The metros are drowning under their own trash that is an estimated 60 million tons a year. The oldest landfill in India is located in Mumbai and covers 326 acres. In New Delhi the total acreage of all landfills put together is 500 acres.  In Bangalore villages in the periphery, where garbage was being dumped, virtually revolted against dumping into the already overflowing landfill.  These landfills are seemingly bottomless pits with most garbage being dumped directly into the landfill without proper segregation. The tallest working waste landfill site in India is the Ghazipur landfill that currently stands at over 50ft in height. 

One aspect that can be overlooked is the health of those individuals living in proximity of the landfill site. But most disturbing is the damage these landfill sites cause below the surface. It is documented that around the landfill site ground water is polluted and the nature of the land itself changes into being completely unusable for agriculture. Since most landfill sites are located in the rural areas, this is a tremendous disruption to the normal way of life and work for those communities, for no fault of their own.

So how can we manage a landfill site that needs to be closed? Most common is the compaction of waste and the creation of a pubic park on the site for the use by the community.

I propose another option for landfills closer to urban areas, which is the creation of a golf course. A golf course can elevate the profile of the area, improving marketability and raising the price of real estate. Land surrounding or facing the golf course can even be sold at a premium.

Though this may not be an ideal solution for a landfill site, this concept could work because it benefits the community through appreciation of land prices and as a source of employment (casual labor on the golf course and employment as caddies). As a model it can fit any size of land as little as 6 acres to as large as 100 acres. A recreational club can also be developed on the site, where memberships can be sold. Depending on the location of the landfill this can completely transform the landscape of such semi urban areas.