Hungarian handicaps

"Golf is becoming extremely popular all around the world and Hungarians deserve to be able to be part of this growing sporting phenomenon," said András Sugár, president of the Hungarian Golf Federation. "Golf is good for the whole of society and can be enjoyed by all ages and levels of ability. It's a good way of developing your skill without getting in the way of anyone, and provides plenty of exercise in the natural environment."

One of the federation's goals is to promote golf as a regular sport accessible to everybody, thus dispelling the elitist image it has for many in the country.

"We want to change this perception," Sugár said. "More schoolchildren should be able to play for very discounted rates as with all regular sports. We want there to be the opportunity for the whole class to go and try it."

Sugár pointed out that playing golf is not as expensive as might be thought, with a round not costing any more than a daily ticket for skiing in Austria. "As new courses open there will be competition between them, which will lead to lower prices," he said.

Spreading the green

There has been a marked drive in golf-course development in Hungary, with around six new courses currently being developed.

"We predict that Hungary will have 35-40 golf courses and at least 15,000 registered golfers by 2020," said Andrea Sartori, head of KPMG's golf advisory services team and founder of the Golf Business Forum. The fourth Golf Business Forum was held in Budapest in May and brought together some 250 key stakeholders in the golf industry, including designers, developers, investors, tourism officials, suppliers, and operators from over 40 countries.

Nine-hole courses are also expected to contribute to that number and a new course in Budapest, the first to exist in the capital for nearly a century, has just opened.

In certain CEE countries, both demand and supply have risen sharply in the past years, with the Czech Republic producing the most spectacular growth - it currently has about 63 golf courses, compared with just 19 in 2000, according to KPMG's 2006 Golf Benchmark Survey.

"[In Hungary] we can clearly see that there are two major clusters of golf course developments - one around Budapest and the other around Lake Balaton," said Sartori, adding that most developments also integrate residential, spa and wellness hotel or conference tourism facilities.

Sugár said: "This will already double the opportunities for golfers, as well as provide further choices for golf tourists, many of whom will be able to play a different course every day of their stay." With Hungary's existing golf courses all on the western side of the country, the next step is to spread the sport eastwards, engaging many more of the population.

Passionate investments

Like all investment in golf in Hungary today, future developments will probably materialize as private investments, while cheap but highly playable public courses, which are part of the scenery in established golfing nations such as the UK and US, will come once local governments wake up to the significance of the sport, opined Sugár.

"Within 10 years we expect a tenfold increase in the number of registered golfers, and there are talented young players here," Sugár said, adding that Hungary's youth team is in the top 20 of European nations, after a strong showing in last year's European Junior Masters.

The progress has been such that Hungary will host the European Junior Masters in 2010.

"This shows that the European association is moving its thoughts towards the East. A huge task now is to develop the golf skills of 12-13 year-olds so that they are ready to compete in 2010," Sugár said. In addition, Sartori said the increasing media exposure and development of a few low-budget golf courses affordable to the wider public, plus integration of the sport into education and health initiatives, can help its penetration into the population.

"We believe decision makers recognize golf's potential as a sport and a tool to enhance tourism revenues and raise real-estate value, and also a terrain where support from European Union funds is available," Sartori remarked.

So far in the CEE region, golf development is primarily driven by private investments, and targets mainly golf tourists, expat and corporate communities, instead of locals, according to KPMG's 2006 Golf Benchmark Survey.

"Membership fees are relatively high compared to the average disposable income, and golf is still commonly perceived as a sport of the elite. Thus, authorities are often reluctant to facilitate progress due to public perception," the survey said.

However, examples of Austria, Ireland and Cyprus, cited at the Budapest forum, proved that the success of golf developments often relies on public involvement - governments and tourism authorities can help create a golf strategy, set clear requirements and easy permitting processes, run adequate campaigns and provide relevant information.

Like other emerging markets, the first few of Hungary's existing golf courses were built by golf lovers driven by a passion for the game, rather than by profitability.

Tourism in full swing

Some experts feel that to make a country an attractive golf-tourism destination, the cooperation of individual courses and tourism authorities is essential, making golf an integrated part of the tourism product of a country or a region.

"This is only possible if there are enough true quality courses, which together can offer an exciting golfing experience to adventurous golf tourists, who love visiting new destinations with several quality courses close to each other," Alois Windbrechtinger, owner of Hungary's prime Pannónia Golf Club, said. He also commented that he could hardly wait for the completion of the nearby Budapest Gate Golf Club, proving that quality courses are more companions than competitors.

If Hungary wishes to become a player in the international golf-tourism market, the country at least five or six courses in close proximity, namely within a maximum one-hour drive, suggested Sartori, adding that one way of moving forward is the formation of clusters of quality courses, as has recently been achieved in Turkey.

Sugár said the Hungarian Golf Federation has struck up an agreement with the National Tourist Office in which golf is to be treated as a major selling point for tourism, along with the likes of sailing, hunting and tennis. However, golf alone is not enough to attract and serve tourists.

"In order to succeed, Hungary needs to market its golf product with other recognized products such as its culture and heritage, wine and gastronomy, wellness and spas, as well as business and conference tourism," he said.

Robert Smyth

This is an edited version of an article which originally appeared in Budapest Business Journal