With the global credit crunch affecting all aspects of the golf industry, there could be some bargains to be had out there. Local club membership prices have been heading south, with top and mid-range clubs seeing a sharp decline in current fees compared to 12 months ago. However, while those numbers may be decreasing, it seems that overall revenue has not been adversely affected, according to a couple of local clubs.

Roy Higgs, general manager of Tanah Merah Country Club, says up to December last year the club had not experienced a significant drop, although there was some impact on F&B revenue in both November and December. However, year on year, the club's golf income has been slightly higher due to an increase in corporate event fees.

Regionally, Mr Higgs believes that the first six months of 2009 will be difficult, as the effect of the downturn will affect corporate entertainment at golf courses. 'But members are expected to continue using their clubs as a refuge of tranquillity from the economic storm,' he says.

The bottom line hasn't changed much at Laguna Golf & Country Club, according to golf manager Chua Leng Heok. 'From a golfing point of view, there is no significant reduction in terms of revenue as the number of golfers and guests playing on the course has not reduced significantly at the moment,' she says. 'We are doing slightly better compared to the same time period in 2008.'

The club currently sees around 4,500 rounds per month even though this time of year is traditionally a lull period. 'We are introducing good value golf promotions and packages to maintain golf utilisation,' says Ms Chua. 'At the same time, good service and membership privileges and the upkeep of proper facilities are important factors to ensure the maintenance of membership value.'

While local clubs are claiming status quo, how are some popular overseas clubs faring? According to Gary Lee of Spring City Golf & Lake Resort in Kunming, the weakening of the Korean won and the economic slowdown has dampened Korean consumer sentiment. 'We've noticed a significant decrease in Korean golfers since June 2008. The Korean market accounts for about 20 per cent of our total market share,' he says. 'I would say that the current global credit crunch has affected our bottom line in terms of numbers of golfers and revenue.'

He adds their current monthly figures do differ from this time last year. 'We had approximately 40 per cent drop in visitor numbers when it came to peak seasons for Korean golfers in July, August and December - we have recorded a decrease in revenue by 14 per cent compared to figures in 2007. In addition to a plunge in Korean golfers, other factors would include the Wenchuan earthquake and Beijing Olympics restrictions, which impeded our business performance during that period.'

Joondalup Resort in Perth is another popular destination for Singaporean golfers. The club, which sees around 5,000 rounds being played per month, has a full membership with a current waiting list. However, it has introduced a 9-hole walking 'special' after 4pm which has proved popular and helped with maintaining its numbers. Other initiatives include offering 'Play and Stay' packages as an offer to entice overseas golfers. 'We are only into our first month of our new financial year but at this moment we are holding up okay with our figures in line with last year,' says general manager Mark Duder. 'We are hoping that with the Australian dollar devaluing by 30 per cent, Singaporean and Malaysian golfers will find Perth an attractive proposition once again.'

He adds: 'Especially as we have a cooler climate and it is a safe destination too, plus we are benefiting from budget airlines advertising from Singapore.'

Joondalup's revenue has increased over the past 12 months, according to Mr Duder. 'At the moment our corporate golf is looking quite strong for 2009. We have a very good product in our resort, which includes a hotel. We have been the No. 1 resort course in Australia for the last six years.'

He adds: 'We provide a golf course that is always in top condition and we are also trying to improve it each year. We are expensive but we do give value for money in facilities and service, and that is the key.'

Blue Canyon Country Club in Phuket is another well-liked course by the Singaporean golfing fraternity. According to a club spokesman, the number of golfers peaked last year, even with the troubles in Bangkok. However, January's numbers are down 15 per cent from the same period in 2008.

The club, which hasn't reduced its prices but offers a number of packages, currently has a strong member golfer base (around 70 per cent), together with a healthy number of international visitors. 'The past 12 months have been a bit shaky, but we still managed to float because we have enough members and guests to survive,' the club says. 'The global economy and instability in the local political situation haven't helped much, but since the guests are coming here for a holiday, they'll enjoy it no matter what.'

Starhill Golf & Country Club in Johor Baru is popular among day-trippers, but arrival figures are down, says the club's executive director Shafik Abu Hassan. 'While revenues are on a downward trend the costs of doing business are moving up - for example chemicals, spare parts and machinery (a new golf buggy costs RM30,000 (S$12,540) compared to RM20,000 a few years ago).'

'We used to have 60,000-plus rounds in the early and mid-1990s, but we would be happy to have 10 per cent less these days. It has declined steadily over the years, and we recorded a slight decline in 2008 compared to 2007. Surprisingly, the figures in the last few months of 2008 and last month show better results if compared to 2007, month on month.'

Mr Shafik says the current state of the golfing industry in Johor is 'quite bad'. He says: 'Perhaps there are just too many golf courses chasing after the same and limited pool of golfers. We are just too dependent on the Singapore and expatriate market. Since 1998, the green fees and the golfing packages generally have been in a downward trend. To survive, clubs are willing to offer playing packages.

He adds: 'Starhill has 55 per cent Japanese arrivals, 30 per cent Singaporeans and 15 per cent locals. We project more Singaporeans and locals in the future.'

Asiatravel.com has been operating since 1995 as an online travel portal and a Golf Division established in 2005. It offers golf packages within Asia with Thailand and China being the most popular destinations. Director of sales Roanna Wong says there has been a slight decrease in the number of outbound golfers. 'They are not very substantial but I realise that most of the people are all hunting for bargains', she says.

Meanwhile, corporate golf trips have been on a slight downswing, with some corporates cutting down on the length of their trips as well as the destination, from the likes of Dubai and South Africa to Asian destinations.

Golf clubs like Spring City, which on average see about 5,500 rounds per month, have seen the need to be proactive and have been actively promoting their new package rates.

Adds Mr Shafik of Starhill: 'What the future holds is anyone's guess but for certain, those in the industry must get together to develop ways to ensure that the industry remains viable. The earlier they realise that we are just not competing among ourselves, but also with neighbouring countries, the better. These days, flying overseas is cheap and most of these places can offer much more and better things than we can.'

btnews@sph.com.sg

This article was first published in The Business Times.