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Bansko Razlog golf news: 25 July 2007
Bulgarian construction industry weekly Construction City published an exclusive interview with Pirin Golf & Country Club - Bansko CEO on golf course construction and golf development in Bulgaria. The interview gives for the first time an important insight of Bulgarian golf development process and market.
We offer parts of the interview , which will help better understand golf property investment in Bansko and Razlog and may influence golf property investment in this area.
Question (Q): What is essential for the success of golf resorts?
- High quality is crucial for any golf resort to become a success story. The combination of high quality holiday services and good infrastructure is the key factor. Investments in golf complexes are about providing top quality tourist, entertainment and sports services. Our projects are an example - they have not only golf courses and equestrian centres, but also service centres, SPA, restaurants, bars, shops, sports complexes with tennis courts, basketball grounds, volleyball, mini-football.
Q: How are golf courses evaluated?
- The category depends on the golf course design and the overall project and on whether the world standards have been strictly followed. The basic standards for a golf course are set in the technical specifications - playing length, width and space as well as location of the different playing grounds, distance between them and the surrounding facilities. If a complex with golf course meets the standards it has to occupy from 80 to 100 ha of land. If the site for such a complex is on an uneven, hilly ground, the necessary plot of land has to be around 1,000,000 sq. m.
Eighteen holes are the standard for an average golf course. But there are nine hole courses , where two sets by nine holes are played for a whole game. There are golf complexes with 27 holes where different combinations can be made for a whole game of 18 holes. There are complexes with 36 holes as well.
Q: What in the development of such a project takes most of the time and the resources?
- No doubt, it is the purchase of land, which is a single large expenditure when for a short period of time a serious portion of the investment is made. It is important to understand that the necessary plots for the complex are difficult to consolidate. For a top quality 18-hole course, only for the development of the course EUR 5,000,000 to 10,000,000 are needed.
Another major expenditure item is maintenance, which takes about EUR 30,000 - 40,000 per month. If some money are saved on these expenses this would lead to ground quality deterioration.
Q: What is the share of the design in the investment volume?
- For a quality golf resort the investment in the design of the course is up to 10% of all costs when we talk for a category with a special design and the signature of a famous golfer. For a whole resort the investment in the course is about 10% of the whole volume. Quality access infrastructure and local links have to be build as well..
How are the large maintenance costs covered?
- Generally, a mixed approach is adopted. Every gated golf resort as a rule has Golf Club with members who pay a club membership fee and also an annual membership fee. Another source for raising funds is through the organization of golf tournaments. The third source comes from fees paid by single non-member players.
Q: What do fees depend on?
- Fees depend on the type of golf course, location etc. In the world, a membership card may be from EUR 1,000 to 50,000, the annual fees - from EUR 1,000 to 5,000, the price per game - from EUR 20 to 300. They depend on the type of golf course, the services and the market.
Q: Is the golf course operation a money making business?
- For the full text of the interview please contact us ...
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