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.