by Dave McKibben
It's been buried beneath all the negative coming out of Mexico, but something quite fascinating is happening south of the border—Mexico is becoming a golf destination and more of a golfing nation.
While golf course development in the United States has plummeted every year since 2008, the sport is booming in Mexico. Golf is bringing in more than $2 billion per year to the Mexican economy and that number is expected to reach $10 billion by 2015. Fifteen to 20% of the country's 220 courses have been built in the last 15 years and 60,000 nationals are playing, according to the Federation of Mexican Golf.
Go figure.
"We've experienced a massive slowdown in business in the states, so Mexico and Latin America have sustained us," said Julio Viscontti, president of development for Greg Norman Golf Course Design. "We've been surprised at the amount of business there."
The explosive growth is being driven by Mexican nationals and Americans. Nationals are spending $480 per month on golf, foreigners are spending $2,183 a month on average. Sixty-four percent of the rounds are played by nationals and 36% by tourists-- 90% of the tourists are American.
Grupo Vidanta, Mexico’s largest golf course and resort developer, is joining a growing list of companies who are actively seeking American tourists to populate their courses.
"Mexico has realized that golfers are tourists who spend money, want high-quality services and hotels, and are willing to pay for it," said Jesus Torres, managing director for Vidanta Golf, which has courses in Nuevo Vallarta, Acapulco, Los Cabos and the Riveria Maya. "This trend towards targeting a high-end, sophisticated tourist is a deviation from years past, when Mexico positioned itself as a bargain destination."
Until a few years ago, golf was a sport enjoyed by only the upper class in Mexico and there weren't many places to play. Now there are well over 200 courses splattered around the country and most golf course architects are legends of the game—Norman, Nick Faldo, Nick Price, Gary Player, Jack Nicklaus and Tiger Woods.
Mexican golf experts are crediting champion female golfer Lorena Ochoa for expanding golf beyond the elite. Ochoa, a Guadalajara native, won 27 LPGA tournaments and two majors before retiring last year to start a family and design courses.
“Some are calling the surge in popularity of Golf in Mexico ‘the Lorena Ochoa factor,’ much like the Tiger Woods factor boosted the game in the U.S.,” Viscontti said.
Fernando Chavez, the eldest son of iconic civil rights leader Cesar Chavez, travels several times a year from California to play golf at a high-end resort course. He has noticed the courses are no longer filled with millionaires.
“Now the young, the middle class and the upper middle class are playing,” said Chavez, who lives in Northern California. “Golf is becoming a world sport. Why would Mexico be immune from its influence? It’s become a huge social event and a place to conduct business for Mexicans and Americans who travel there. The golf course is where things get done.”
So how have developers managed to build so many golf courses with such a slowdown in the global economy? There are several factors, but the main one might be the affordable price of real estate along the water.
"You can buy an oceanfront home or lot with a golf course view for less than half of what it would cost in Southern California," Torres said.
It also helps that Mexico has more millionaires per capita than almost any country, so the projects are nearly 70% funded from private sources. Much of the new projects are being planned for Mexico’s golf mecca, Los Cabos, with half a dozen courses set to open there in a few years. Cancun is the new kid on the block with at least 12 high-end courses.
Torres said Mexico is now competing with Hawaii as a high-end golf alternative for Americans.
“People don't have to spend as many hours on the plane to get a golf destination in Mèxico,” he said. “And wherever they go, they’ll always get to play a course designed by one of more important designers in the world.”
Grupo Vidanta facts: Vidanta Golf is the largest golf course and time share operator in Mexico. Its award winning golf courses are located in the most beautiful beaches of Mexico including: Acapulco, Los Cabos, Nuevo Vallarta, Riviera Maya and Puerto Penasco. To learn more about golf with Grupo Vidanta, visit www.vidantagolf.com Vidanta golf has three more courses planned for Nueva Vallarta, two more for Puerto Penasco and several more throughout Mexico.
|
|
|
