The number of golf courses in North Africa is set to double, according to new research by KPMG.
KPMG's first regional report for North Africa found that while the region currently has only 43 courses in operation – predominantly in the tourist areas of Morocco, Egypt and Tunisia – there are currently 40-45 golf projects in different phases of planning or construction, many of which are parts of large master planned resort communities.
The study, which focuses on the business performance of golf courses, also reveals that the average Gross Operating Profit margin for 18-hole courses is 25 per cent in North Africa, compared to 17percent in South Africa.
However, with green fees making up more than 50 per cent of earnings, average revenues at 18-hole courses in North Africa are €945,000, lagging behind other countries including Portugal (€1.8 million), Spain (€1.5 million) and South Africa (€1 million). In addition, the average weekend green fee for 18 holes in North Africa is €59, compared to €78 in Portugal, €66 in Spain and just €30 in South Africa.
“This is an important report as this is the first time the North African golf market has been studied in such detail,” said Andrea Sartori, head of KPMG’s Golf Advisory Practice in EMA. “It is a region that, in golf business terms, has grown over the past decade and continues to develop with a significant number of projects underway.
“Our survey found that golf managers were optimistic about the future business prospects for their courses, although our analysis was conducted prior to the full scale unfolding of this autumn’s global financial crisis. However, we believe the outlook for the North Africa region remains positive.”
The North Africa report is part of the 2008 Golf Benchmark Survey that includes three new regional reports on China, South America and North Africa, plus a comparative report on Europe, the Middle East and Africa. Golf courses submitted key data from 2007 financial results to the overall Golf Benchmark Survey, which is designed to help golf course owners and operators to compare their own business against high, average and low performers in their geographic markets.
