The business of golf versus facilities offered

The business of golf versus facilities offered

By Sirikit Syah

SURABAYA (JP): Indonesia's golf-course management business is
experiencing difficult times. Its development is incomparable
with similar businesses in other Southeast Asian countries like
Malaysia and Thailand. In those countries, golf is not considered
an exclusive sport, played only by the "haves". It is already
considered as having a balance of cost and benefit.

Ciputra Golf's general manager, Margiman, said in an interview
on Monday, "On top of that, the development of this sport is very
much supported by their governments and other related sectors."

According to Margiman, the golf-travelers market is a very
potential sector to sell East Java tourism. Many golfers travel
around the world to find different places to play golf, and East
Java has some of the most beautiful golf courses available. The
main problem for developing this potential is the lack of support
from the government. In East Java, for instance, the local
government still considers golf a profitable business, in no need
of help. In fact, according to several golf-course managers, most
of them must get support from large companies, usually property
businesses, in order to survive. In addition to very high
operational costs, membership numbers are very small.

Asked what kind of support clubs need from the government,
Margiman talked about promotion of East Java tourism.

"It is important for us if the government can promote and
invite travelers, Asian golfers at least, to East Java. We
provide the sites and facilities," said Margiman.

Costly

Asked about the expectations of this business for 2001-2002,
Margiman said they would be no different from 2000. High
operational costs are mainly due to imported machinery,
spare parts and fertilizer. Labor costs (regional minimum wage)
have also increased. Margiman said that at Ciputra Golf, for
example, 50 percent of costs went to workers' salaries and 30
percent for water and electricity. This year, he expected an
increase of those components.

Even though, he said, higher costs lead to higher membership
fees and a reduction of membership numbers, members at his golf
club increased 8 percent last year. Ciputra Golf, which also runs
a Family Club at the golf resort in western Surabaya, could pride
itself as having the most sophisticated and complete facilities
for all family members.

There are, however, other golf clubs that have different
specialities. Taman Dayu, located in southern Surabaya, has The
Residence, a luxury accommodation complex, where golfers can rest
and relax after playing. It also has one of the most beautiful
view, being sandwiched between two mountains in the Malang area.

Bukit Darmo Club, sells itself "as the golf club in town".
Located near an exit of the Surabaya-Darmo toll road, it can be
reached easily by Surabaya golfers who want a game at the end of
the working day.

Almost all of East Java's golf clubs are presenting themselves
as resort and recreation centers. But Yani Golf, the oldest golf
club in Surabaya, could be the only one which deals with training
golfers. Located in a dense area of Surabaya called Gunungsari,
Yani has developed itself as a golfers' club. Athletes from this
club are popular in every tournament. Its latest most remarkable
achievement might be the 15th National Games (PON 15), for which
East Java was the host, where golf was featured and most of the
athletes were from Yani Golf.

Yani Golf's director, Made Adnyana, said: "PON 15 motivated
younger golfers to be more active. Especially in anticipation of
the February selections in Jakarta for the upcoming Sea Games. We
are quite busy preparing our athletes."

Yani Golf has about 1,600 members.

What makes him happier is that now, there are many local clubs
emerging in Surabaya. The clubs include one for the Surabaya Sea
Port, the electricity company, one called Metropolis Surabaya
Golf, etc. "All are under the guidance and organization by the
Indonesian Golf Association," said Adnyana.

Asked about the obstacles in maintaining and managing a golf
club, he said one of the problems was the expensive imported
machinery and fertilizers for the course. Unlike other golf
clubs, Yani does not charge a high membership fee. A person pays
Rp 15 millions for a life membership, and then pay a monthly fee
Rp 100,000. There are no other fees, even when playing on a daily
basis at the club.

This is quite different to some other clubs; one club in
Surabaya charges Rp 200,000 to Rp 300,000 every time members
wants to play, even though they have already paid a life fee and
a monthly membership fee.

Yani Golf Club's motto is We live from members, by members and
for members. Having about 120 employees, it is rather tough for
the club to survive, let alone increase its facility. Fees are
mostly spent on operational costs, including salaries.

"It might be difficult for us to increase our facilities, but
we have very active programs," Adnyana said proudly. There is at
least one tournament every month. For tournaments, of course,
participants do pay an admission fee.

Ciputra Golf admitted that it has not acted on teaching
members. While it has been in the works two years, the club has
given priority to developing and increasing facilities and
services for members.

"It is not easy to get a good coach/trainer, who knows the
theory and has practical experience," said Margiman. Junior
golfers are also busy with their studies and have limited time to
practice, which they do mainly on Sundays. Ciputra Golf is
thinking of having joint projects with some schools to find
talented players. That is if the club gets a balanced budget and
good trainers.

What bothers golf managers like Margiman is the lack of
attention from the media. "The press may think that golf is not
interesting," he said sadly. From Jan. 23 to Jan. 27 2001, it
held a tournament called Kosaido Ladies Asia Golf Circuit,
attended by 120 participants from many countries.

The international tournament went well, except for the lack of
media coverage.

"The players expressed satisfaction regarding the event and
facilities we provided. The tournament organizer was also happy,"
said Margiman. Now, he said, he is preparing the club's next
programs, which are rather more social. Sponsored tournaments,
where the proceeds would go to needy people, institutions or
organizations.