The Honourable Kevin J. MacAdam, Minister of Fisheries and Tourism, today tabled the KPMG Golf Study in the House.
The demand for golf on Prince Edward Island has grown significantly in recent years, and as was forecasted in the 1994 golf study, the current supply of golf courses is not sufficient enough to satisfy demand.
This 1999 report shows that Prince Edward Island currently has 18 golf courses offering a wide range of golfing experiences. Much has changed since the last study was performed in 1994 by KPMG, the country's leading golf industry analysts. Three new golf courses have been constructed, and Clyde River Golf Club has expanded by opening an additional nine holes. This new development is all in an effort to meet the growing demand for golf on Prince Edward Island. Further to this, a new course "Dundarave" will be opening 18 holes at Brudenell in the summer of 1999, and an additional 18-hole course, Fox Meadows, is expected to open in the spring of year 2000. Glen Afton will also be opening an additional nine holes in 1999. Surprisingly enough, Prince Edward Island, due to its large tourism market, is still in a position of excess demand. Furthermore, this demand is expected to continue over the next five years.
The Economic Impact: Tourism 1998 report by Enterprise PEI showed that not only are more tourists coming to PEI, but they are also spending more money during their stay. Golf has a strong impact on attracting visitors to PEI, and hence, a strong impact on tourism overall. In order to ensure this attraction continues into the future, PEI must ensure that it can meet the golfing demand.
The Minister noted, "This type of study enables us to assess the needs for our province and determine suitable areas to develop." He added, "There can be opportunities for the eastern and western ends of Prince Edward Island to capitalize on golf development to ensure that traffic to these areas increase. This type of information is key in planning stages."
As per the 1994 report, the direct and indirect golf-related economic impact on PEI totalled approximately $244 per golfing visitor round. This amount was based on average peak green fee rates, average dollars spent on golf items by golfers, operating budgets of golf courses, taxation of daily expenditures, and average expenditures of golfers on food, hotels, etc. Assuming this factor has not changed except for inflation, golf now has a direct and indirect economic impact on PEI of approximately $70 million, according to KPMG. There is a great opportunity for the economic impact to increase even further and PEI's key marketing strategy should continue to promote PEI as a top golf destination for tourists.
Based on the survey analysis, there is sufficient demand for the construction of two additional 18-hole golf courses over the next five years (beyond those currently under construction) by the Year 2003. Furthermore, the calibre of the new courses should be similar to that of Crowbush Cove, Brudenell or Mill River golf courses. However, premier golf courses, in order to be successful must be complemented and supported by premier hotels, restaurants, roads and notable physical settings such as beaches. A more thorough analysis of the land availability and the support services is recommended, and should and must be part of plans to develop additional golf courses. This analysis of support services is vital as the key success factor in any new venture on Prince Edward Island is the maintenance of the tourist traffic. Tourists account for the largest portion of demand for the golf on the Island. Despite the increasing golf participation rates in the province, local golfers on their own are not a sufficient client base to support additional courses.
The report highly recommends that PEI continue to hold professional events like those that have been held at provincial golf courses since 1996 like:
- the 1997 Canadian Amateur at Links at Crowbush Cove;
- the 1998 Export A Skins game at Links at Crowbush Cove;
- the DuMaurier Team Challenge - in 1996 at Mill River Golf Course;
- the CPGA Montclair PEI Classic in 1997 at Mill River Golf Course.
Events similar to these will further enhance the overall visibility of golf on PEI, and we are pleased that 1999 will see the Macdonald's-PEI Challenge at Dundarave as well as the Canadian Senior Ladies Championships at Brudenell in the Year 2000.
PEI has the potential to be one of the top golf destinations in the world; therefore, it is strongly recommend by the KPMG report that the market strategy address all of the needs of the visiting golfer.
"Spinoffs of $70 million and the increased opportunities to host ‘high-profile' events will benefit the tourism industry of Prince Edward Island and, in turn, benefit everyone," noted Minister MacAdam. "The economic benefits of golf courses cannot be denied and with the proper strategic planning, Prince Edward Island is in a position to become one of the world's greatest golf destinations. The natural beauty of the Island lends itself easily to course development and, as the report notes, we have yet to reach our threshold."
This five-year golf market analysis report by KPMG is available through Tourism PEI and Island Information Service, 1st Floor Jones Building, Kent Street.