Tourism & Golf Development. Brief from the Business Plan

Golf equals with “Healthy, Fun, Profitable”

                         

Summary

Sport, in general, is a strong argument for a healthier life. Golf represents pretext for business, respect for nature and ideal  place for family vacation.

This plan propose it self to create an “extended business card” to a business described by distinctive features, compared with the existing ones in Romania  for the golf emerging market.

The main objective of this initiative is to increase the number of golf players within our country, year by year, by offering support for each golf investment within Romania.

In the following chapters, will be described what methods will be used in order to achieve this goal.
T&GD launched the web site www.golfromania.org in 28th of May 2009. This is only first step from many  with the aim of making accessible the golf sportive/business phenomenon to all potential interested.

We are committed to make this sport more appealing to those that have restricted knowledge about the game. T&GD is dedicated also to keep informed the international business medium, about the development of golf in Romania and about the opportunities arising from it.

We would like to mention the fact that dates and terms established trough this document, remains subject of constant changes, because of development conditions from the tourism industry segment where we work.

   

Short Business description

Tourism & Golf Development LTD intends to help resolving the inherent problems linked to national development of this sport.  An essential step in this direction, we consider to be: consistent permanent growth of the players number.     

History of our company is constituted by the experience of those who starts it. 
Founders are: 1 business man from New Delhi; 1 fully qualified PGA Coach  and one investor from Netherlands; 1 IT specialist and investor from Bucharest; 1 golf passionate from Timisoara. Other ten key business partners help us from the begining to achieve the objectives.

  
Services

Our services are:
1.   Golf lessons included in different touristic packages adressed to companies and individuals.

2.   Events organizer: national & international competitions; conferences; media campaign.

3.   Consultancy for golf investors concerning: design; maintenance and management.

What we do in order to increase mass interest for golf:

1.    Presenting the actual golf status, in such a way that shows business opportunities rose within. 

2.    Organize different rules contest with attractive prizes.

3.    Publication of specific articles from International Authorities addressed to golf players.

Market Analyze

Today there are approximate 3000 golf players including expats, and only around 400 participate frequently at national & international competitions. The number of competitions is booming along with prizes and quality of each event. Companies as: BMW, Volvo, Transilvania Bank, Henkel, Mercedes, Auto Europa, Air France, Carlsberg, Toshiba, Marriott, Air France, ING Bank, Playboy etc…represents already tradition as organizer of the highest events of each national competition calendar. To them is added a long list of others key national brands to complete a list of at least  60 competitions on annual national contests program per main 3 Clubs.

Player’s number may very well explode anytime taking into consideration the accessible tourist service price level offered by existing Clubs – but much more because of strongest announced investments in the domain.
From those 22 million people that Romania has, more than 50 % live in towns. Half of them afford to spend each month at least  20 euro for enjoying their free time.

Golf is known to address at medium income to upper society level. With other words, in big towns (over 90.000 inhabitants), exist a potential of around 900 participants to this sport plus another few hundreds readers of golf news, as starting point.
Now there are 6 locations for golf training. Three of them are in Bucharest, 1 in Breaza, 1 in Timisoara and 1 in Alba Iulia.

We consider those Clubs partners. This is exactly why will be publish their instructors curriculum vitae, service packages and prices plus a series of photos and news linked with these locations.

The market quote of each Club is the following: 20 % Timisoara; Breaza 20 %; Pianu 30 %; Bucharest 30 %. Here we don’t mention declared amateurs. What we do take into account is specific team building type of actions including golf, organized by powerful corporations. This domain assure almost 80 % from each Club income, based on more than 400 different entities (companies, tourism agencies) and at least 30 people action groups from each entity.

KPMG market surveys, added to PGAsE (professional golf player associations of Europe) official statements describe clearly a real boom referring to the investments in process for golf courses in central and east Europe. There are well argued data, which shows as around 10 new golf courses open each year. IAGTO (international association of golf tour operators) had published recently a report that says: a casual tourist spends a medium of 50 euro / day in the same time when a golf player uses at least 250 euro / day.

There is without doubt, strong need to better advertise Romanian market golf potential. If the number of tourist coming for golf, increase steadily in Romania – the private and public sector will have nothing else but well amount to gain.
A strong argument, in this sense, is the following: now there are prepared or at construction phase more than 15 projects for golf resorts, in Romania. World wide recognized architects designed most of them. Few of them are Americans. Jack Nicklaus design web site recognizes that it is a design signed by him in Bucharest. Pro TV official news said that Tiger Woods wishes to invest near Brasov. We can only hope that these announcements could be seen as real action as soon as possible.

So the trend is highly in favor of launching this new business. The declared interest of T&GD is to double number of participants with each 2 years passing by. He will increase everyone’s awareness regarding the important image gain by the companies that invest smartly in golf.
Today world financial crisis could be good time to launch this start up. He will do nothing other than to consolidate trustful relations between future key investors within a market with great potential. 

T&GD objectives are the following:
1.    Double the golf players number by 2011.
2.    Make a constant presence as golf news in each sport bulletin from each strong Romanian media, starting from 2009 autumn.
3.    Up date over Romania golf level, made in such a way that international bodies ruling golf along invertors may know the true status and could involve in future development.
4.    Attracting strong financial support in order to sustain national campaigns and smart plans to boost golf gospel spreading throughout Romania.
5.    Open forum for anyone interested by golf. The community strengthen by this, would for sure actively contribute for better plans and actions, towards common highest interest target.
6.    Obtaining substantial income as a result of selling sites products.  The profit will be re invested as to enlarge products/services assured by this company plus invest in other areas.

The optimistic view upon all above mentioned, says that in 2-3 years time the request of team building actions and advertisement will rise so much that we would form a touring agency and an advertisement & marketing entity to take care of this 2 sights of our activity.
Also we proposed ourselves, as urgent as possible, is to form an National non profit Association, with the same name as founder one, to administer the annual National Campaign of promoting golf especially at juniors level but with links to other age category with time.

In case the site/business evolution doesn’t go sufficient good, then we will appeal to new solutions obtained from investments expert.  Even from official launching May 2009 there 2 this kind of experts as partners, exactly for ecluding as much as possible any mistake.

Business strategy & implementation

Proposed implementation of earlier discribed targets, is the following:
1.  Gaining a strong adevertisement company as partner starting from 2011. Payment for this should be made as precentage from the income generated by them.
2.  50 % from golf competitions organisers in Romania should become our partners, until the end of 2011.
3.  T&GD web site and activity, must be well knwon at national level by the end of 2012.
4.  Until 2012 entire profit will be re invested. Starting with 2013 stake holders ROI is to be distributed.
5.  Proposed target market share for 2009 was 2 % and for 2010 is 10 % from all number of golf lessons held in Romania.
6.  Atracting strong sponsors for National Promoting Campaign organization, as more healthier and succesfull life because of golf is needed. 

 
Financial data

Similar data, from tourist resorts which include golf clubs, demonstrate the following income scheme:
•    40 % accommodation
•    30 % team building activities
•    20 % members and competitions
•    10 % golf lessons.
The income level of this type of company, in Romania of the year 2009 may vary from 300.000 and 700.000 euro.

Each Club, has his own specific elements in the financial analyze. Brand worlwide recognized Clubs, wich don’t sell anything else but green fee, membership and competitions, have huge income on which they keep the course in great shape and in the same time assure remarkable profit to the owner. With other words, tourism is the key of this issue. This is why T&GD will seriously take into consideration, promoting tourism as a great tool to boost income.

Proposed income scheme for 2010, is the following:
1.    Group and individual golf lessons = 35 %
2.    organizing golf conferencies, campaign and competitions = 30 %
3.    consultancy = 30 %

Other potential income: sponsorship. This will be totally given for the promoting campaign.
We are open to “barter” way of collaborating, seeing this solution as better than remaining without strong partners.

Proposed spending scheme for 2010, is the following:
1.    Up date functions and site value + golf trainers services = 25 %
2.    Advertisment trough elite national media reprezentatives = 30 %
3.    Selling trough own efforts and trough specializate agency = 25 %
4.    Insurance, accounting, lawyer = 20 %


With the hope of receiving your input at this project, we thank you for the time spent in reading this brief of our Business Plan.