Environment, Enterprise & Transportation Committee 19th November 2009 Agenda Item No: 9 Fife Golf Alliance Report by: Keith Winter, Head of Development Services Wards Affected: All Purpose This report proposes actions to oversee and support the development and management of a fully integrated golf product within Fife. Recommendation(s) Members are invited to approve: The proposal for the development of a Fife Golf Alliance to oversee the development, management and promotion of a fully integrated Fife golf product. Approve an award of £30,000 from the Fife Strategic Tourism Development Fund over the periods 2009/10 and 2010/11 to meet the consultancy costs associated with phase I and phase II delivery. Resource Implications The consultancy costs associated with this work will be funded from the Fife Strategic Tourism Development Fund over the financial period 2009 – 2011. Thereafter the operational costs of running the alliance will be met by members through annual subscription and Development Services’ commitment to match fund contributions up to £7.5K Legal & Risk Implications A letter of award will specify the terms and conditions within which the funding will be provided. With any external funding there is a risk that the monies will not be applied properly to the project, or that the project becomes inoperable for some other reason. In this case the risk is considered to be minimal and can be covered by appropriate terms and conditions. Funding will be made in terms of section 20 of the Local Government in Scotland Act 2003. Policy & Impact Assessment This proposal aligns with the economic objectives presented within Fife’s Single Outcome Agreement and, specifically, Fife Council’s Big 8 Objective: Improving local conditions for economic development and supports the Fife Tourism Strategy 2007-2015 which identifies developing golf tourism as a key priority for action. Consultation This proposal has been considered by Performance and Organisational Support’s Democratic Services, Finance & Procurement, the Head of Development Services and at officer level. 1.0 Introduction 1.1 This paper provides a brief overview of Fife’s diverse golf product along with insight from Fife’s golf product providers whose views have been sought on the need for the creation of a managing body with the remit to oversee Fife’s extensive golf product. The paper also recommends consultant activity to complete a two-phase research and development project to build the business case and inform the development of an alliance. Phase I: complement the baseline data presented within this paper and complete a robust review and critical analysis of the Fife golf proposition; engaging with the private sector and with Fife’s golf product providers’ to prove / disprove the hypothesis that Fife is in need of an overarching body [an alliance] to manage the end to end golf product. Phase 1 research will also develop a gap analysis of the works of those bodies currently remitted to develop and promote golf in Fife. Phase II: facilitate the development, set-up and year-one management of the proposed Fife Golf Alliance. 1.2 The report has been written with input from the Promoting Fife paper EE&T May 2009, the Fife Tourism Strategy 2007-2015, the Housing & Communities Services’ Policy Review of Golf Courses 2009 and the BIGGAR Economics East of Scotland Golf Alliance Evaluation Report. 1.3 Scotland is recognised as a global centre of excellence for golf. The industry contributes significantly to the Scottish economy – in 2008 golf was worth an estimated £220m1 to the country’s economy. The value of golf to Fife is not limited to revenue, in St. Andrews alone The St Andrews Links Trust has estimated that some 700 jobs are directly supported by the golf industry. Across Fife it is estimated that a further 500 jobs are directly supported by golf – green-keepers, golf professionals, course management and administration, bars and catering. When you also factor in the additional local businesses that benefit from visiting golfers – hotels, guest-houses, restaurants, bars etc - golf’s economic footprint and impact is even more significant. 1 Figure from Golf Scottish Golf Tourism Market 2009, by SQW. Based on spend of visiting golfers and visitors to golfing events i.e. Open Championships 1.4 Fife’s golf revenues are primarily realised through the golf tourism proposition – comprising green-fees, catering and accommodation. However the Fife golf product proposition extends well beyond these traditional revenue streams. Fife has a fully integrated golf product - vertically, horizontally and laterally: vertical integration through the supply chain from manufacture to retail and distribution horizontal integration across related industries, products and services lateral integration realised through golf education, training and development The depth and breadth of the Fife golf product and experience is quite unlike anything else on offer in Scotland, the UK or overseas and presents Fife with a significant competitive advantage and economic opportunity. 1.5 To enable Fife to maximise the economic opportunity presented by its rich and diverse golf product there is a need to better align those organisations operating through the various stages of the golf value chain. This will be achieved through a complementary partnership of golf product providers which can harness Fife’s diverse golfing skills, capabilities and propositions. Capturing Fife’s golf capability under a single cooperative umbrella and channelling it through a single resource will better enable Fife to maximise its golfing potential. 1.6 The value of alignment and collaboration to deliver enhanced benefits for golf has been identified in independent research. An independent evaluation of the wider East of Scotland Golf Alliance by BIGGAR Economics, found that “partners believe that they could benefit from joining together with other golf businesses (sharing ideas on how to perform better and developing products together), as well as support from an appropriate business adviser.” Applying this logic at a local level and extending the focus to embrace Fife’s extensive golf proposition presents Fife’s golf community with a positive commercial opportunity. 1.7 Adopting an overarching position to support the development and promotion of Fife’s golf product will bridge the gap that currently exists in relation to golf promotion at a local and national level. Those bodies currently ‘responsible’ for promoting golf in Fife and in Scotland do so, primarily, from a packaged pay and play perspective – with the focus placed upon the retail end of the spectrum. There is little evidence of any end to end programme to support the development of the wider golf product. 1.8 To more effectively develop and promote Fife’s golf product greater focus must be given to the linked industries and organisations comprising the full golf proposition: education providers, course maintenance and management, manufacturers, visitor attractions, cultural centres, retailers and distributors. Similar attention and focus must also be given to accommodation and service providers so as to ensure a consistent and high-quality customer experience at each and every stage of the Fife golf experience. 1.9 The creation of a robust and high-quality ‘end-to-end’ golf product proposition will represent a significant competitive advantage for Fife and will provide a ‘tangible’ product through which to define and differentiate Fife as a unique and competitive location. Whilst performing a distinct function in support of Fife’s golf product and Fife’s golf community, the alliance is also a valuable component and will perform a valuable function in the wider promotion of Fife and additionally during the Open Championship – helping to establish the preferred understanding of Fife as a great place in which to live, work, visit and invest – reflecting the vision of Fife as presented in the Fife Community Plan. 2.0 Issues and Options 2.1 The creation of a Fife Golf Alliance comprising self-selected membership from all sectors of Fife’s golf community is being proposed by Development Services’ Resources Portfolio. 2.2 This baseline proposal has been developed in partnership with key stakeholders from the Fife golfing community and represents the view of the private and public sectors. Stage one consultations have been undertaken through a series of one to one stakeholder meetings, led by Development Services. These initial consultations were complemented with a customer consultation and engagement event at The Open 2009. Hosted by Fife Council the business development event was attended by the following companies, all who support this proposal:- St Andrews Golf Company, Elmwood College, Communications Mgr, St Andrews Links Trust / St Andrews Golf Development Group, Spindrift Hotel (ex Chair of Fife Tourism Alliance), Adventures in Golf (& Secretary of Golf Tourism Scotland), Wilkinson Golf Ltd (& ex Chair of Golf Tourism Scotland), First in Fife Golf pass, Royal & Ancient, Links Golf Tour Operator 2.3 Across all sectors and through all consultations, parties have enthusiastically supported the proposal. There is considerable support, in principle, for the creation of an alliance. Consulted parties did, however, display a degree of reticence towards managing the implementation and start-up of any alliance. Clarity with regard to the structure, governance and financing of an alliance would also be required in advance. 2.4 Previous approaches to similar initiatives in the past have been “top-down” driven (i.e. Scottish Enterprise Fife’s Golf Tourism Initiative). As a result this approach was not received well in the private sector due to the perceived lack of knowledge and needs of the public sector in this area. The difference with this proposed is that the Fife Golf Alliance will be created from the input from the private sector and will be driven and shaped by them. 2.5 Currently the groups that exist in Fife to promote golf are: St Andrews Links Trust, St Andrews Golf Development Group, First in Fife Golf pass, Links with History, Elmwood College These groups/organisations are disparate and don’t have a joined-up approach to their activity, with no one body representing Fife as a whole. On a national level, organisations with Fife golf within their remit include Scottish Golf Union, VisitScotland, East of Scotland Golf Alliance and Golf Tourism Scotland. Currently Fife isn’t feeling significant direct benefit on a local level from the activities of these bodies. 2.6 To address these concerns a further level of research and analysis is required which it is proposed a consultant be appointed to deliver. Works required include a deeper level of stakeholder engagement, competitor and competitive analysis, benchmarking and a gap analysis of the above listed companies (in point 2.5). From this robust analysis an informed business case for the Fife Golf Alliance will be prepared. 2.7 The proposed consultant will be tasked with developing and conducting further investigation to cross reference the responsibilities and remit of existing golfing bodies (Scottish Golf Union, Golf Tourism Scotland etc), to critically assess the gap in organisational remit and address the need for an overarching golf alliance to manage the end to end Fife golf product. This cross referencing is critical to ensure duplication of effort and activity is avoided. 2.8 Based upon a positive research outcome (in phase I), the appointed resource will then be required to commence phase II and address the operational challenges presented in the start-up and initial administration of an alliance. The resource will assume the lead-role for the alliance through year one and will facilitate the alliance through the delivery of pre-agreed baseline deliverables. 2.9 It is proposed that a consultant be appointed by January 2010 to start Phase I. This will enable all initial Alliance planning, development and implementation to feed into the Fife Pavilion at the Open 2010 and be instrumental in informing existing resource to shape future economic and marketing activity. 2.10 Full details with regards to the ongoing management and structure of the alliance will be determined in respect of the agreed operational aims and objectives identified in Phase I. 2.11 It is proposed that a funding allocation of £30,000 from the Strategic Tourism Development Fund is provided to support this work. There is budget provision within the Strategic Tourism Development Fund to meet this proposed allocation. 2.12 Option Appraisal With reference to this project, the consequences of doing nothing, doing something and doing it all are bulleted below: Do nothing: Negative reputation impact for Fife Council – having “warmed” the private sector up, to then not continue with the discussed activity Fife continues to have a disparate golf product Lack of joined up representation of Fife’s golf product at the Open Golf Championship 2010 Do something: A robust analysis (Phase I) would happen to inform the best course of action, without Phase II activity this would be in vain and not change the current status. Do it all: A Fife Golf Alliance is created to represent the collective identity of Fife’s golfing industry to manage, promote and develop the Fife golf product. 3.0 Conclusions 3.1 There is currently no overarching body to manage and support the marketing, promotion and ongoing development of the Fife golf product. As a result the customer experience is varied and determined by the quality of the individual product or service provider. Similarly the focus of golf product promotion is currently skewed, limited, towards the retail [packaged pay and play] proposition. This is the promotional situation at local, national and international level with limited focus placed upon delivering a holistic view of golf and to developing an improved understanding of the breadth of golf product available in Fife. As a result the wider, more diverse, product is overlooked. To enable Fife to present itself as a true centre of golfing excellence and to differentiate itself from the competition, the golf community will greatly benefit from working in partnership to develop and deliver a true end to end golf product proposition. 3.2 To address these concerns and to develop the business case for the implementation of Fife Golf Alliance it is proposed that a consultant is appointed to conduct a two-phase research and delivery project. 3.3 It is envisaged that a Fife Golf Alliance will provide the collective identity for Fife’s golf industry. The Alliance will be independently led by a board of Governors who will represent the common-interests of Fife’s golf product. The Alliance will work to inform, educate and support Fife’s golf business providers at all stages of their development and at all stages of the industry value-chain. 3.4 It is recommended that Strategic Tourism Development Fund supports a £30,000 funding allocation towards the cost of implementing Phases I and II of the Fife Golf Alliance project. Background Papers The following papers were relied on in the preparation of this report in terms of the Local Government (Scotland) Act, 1973: Fife Tourism Strategy 2007-2015 BIGGAR Economics, East of Scotland Golf Alliance Evaluation Report Housing & Communities Services’ Policy Review of Golf Courses 2009 Promoting Fife paper, EE&T May 2009 Report Contact Authors Names Abbie Jessop & Alison Laughlin Authors’ Job Title Promotions & Marketing Officer & Economic Advisor Development Services Workplace Fife House, Glenrothes Telephone 08451 55 55 55 + VOIP Numbers 44 67 94 & 44 22 78 Email abbie.jessop@fife.gov.uk or alison.laughlin@fife.gov.uk