Over-par prices driving golfers away?

Unrelenting price increases, inflexibility and extra charges threaten Ireland's status as the world's number one golf destination. Carl O'Brien reports.

Tom Barnum, a US-based tour operator in the business for over 30 years, says he has detected a chill creeping into the Irish welcome for golfers in recent years.

"It does make me sad," he says. "The experience isn't quite the same as it was. It used to be such good value. I do question where they are going with this. They can't go on raising the prices year after year."

As well as rising green fees, he says inflexible booking procedures and mean-spirited refund policies are also damaging the image of Irish golf.

"The screws are being turned on terms and conditions. That flies in the face of the biggest sales pitch of Ireland: the friendly and accommodating people. Sometimes we're paying in full, non-refundable, up to nine months in advance."

Mr Barnum, who brings over about 200 US golfers each year through his travel firm, Value Holidays Inc, isn't the only tour operator grumbling over green fees and the price of Irish golf.

In response to criticism from other operators, the Minister for Arts, Tourism and Sport, Mr O'Donoghue, warned golf clubs last year that excessive charging threatened Ireland's position as the biggest golf destination in Europe. While hotels and airlines responded to the economic downturn by reducing prices, he warned many clubs had not followed suit and were overcharging tourists. Fáilte Ireland, anxious to retain the 250,000 golfers who visit Ireland each year and the €170 million they spend, wrote to clubs asking them not to increase their green fees.

A year later, the warning has prompted a mixed response. Many clubs noted the clanging alarm bell and froze prices. Others, citing factors such as insurance and major investment projects, continued to increase fees. Whatever about concern over the cost of golf, many clubs still have stubbornly high green fees. And it's unlikely that prices will stand still in an inflationary economy where the price of goods and services continues to rise.

Yet, for all the dire talk of Ireland pricing itself out of the international golf market, some of the most expensive clubs are reporting strong demand this summer in what has been an underwhelming year for the tourism industry in general. Business is up by around 12 per cent in the Old Head of Kinsale course in Cork, which has green fees of €250 for non-members, while other more established clubs are also reporting small but significant increases in tourist numbers.

These established clubs pride themselves on offering a "golfing experience" from the moment they enter the grounds, with top-quality cloakrooms, clubhouses and accommodation. Their view is that they wouldn't charge the prices they do unless the market could take it.

"People don't have any problem with what we charge," says John O'Connor, joint owner of the Old Head.

"That's what you pay for a high-end course in the US or the UK. Just ask the people who come here, or have a look at the comments book. Everyone who comes here has a wonderful golfing experience."

The K Club, which has the distinction of being the most expensive club with non-member green fees of €265, also says customers pay for the level of service they get. "You won't get a level of service like this anywhere else," says Paul Crowe, the K Club's director of golf. "We have much higher staff levels, we keep the golf course in the best possible condition . . . We believe we're as good as anyone else in the world. We compete on an international scale and compare ourselves to the great courses in the US and UK."

The terms and conditions, however, are what frustrate many visitors. In revered Ballybunion, all payments are non-refundable and non-transferable, which simply sends out the wrong signals, according to tour companies who spoke to The Irish Times. In Portmarnock, tee times are allocated on the basis of receiving a non-refundable deposit of 50 per cent.

The Old Head's policy is that changes to bookings made less than 30 days in advance of date of play are non-refundable and non-transferable. "Our booking policy is flexible," says Mr O'Connor. "We started the policy of taking deposits and credit card details because we discovered we were getting a lot of phantom bookings. If there is a cancellation outside of the 30 days, they get refunded. If it's within the 30-day period, each individual situation is looked at."

What most concerned Fáilte Ireland was not, however, the high cost of the top-end clubs which will always have strong demand, but the rising price of those lower down the pecking order. The European Club in Co Wicklow increased its green fees to €125, as did Powerscourt in Co Wicklow, which increased its green fees from €100 to €110. The owners of these courses point out that the Government - which had blamed the industry for high prices - is itself responsible for a substantial chunk of green fees in the form of VAT increases, PAYE, PRSI, fuel tax, local authority rates, and so on.

Despite cost increases, there are still bargains to be had, though they are outside of the traditionally high-demand golfing territory. High-quality courses in the midlands and along the north and west coast, which typically charge between €45 and €70 for non-members, say demand is growing.

"Our courses are every bit as good," insists John McGloughlin of North and West Coast Links, which markets 10 courses from Connemara to Castlerock. "They are all championship courses, with top-quality greenkeeping, but we have that bit of time that we give to people which makes a real difference."

These courses have ploughed significant amounts of money into marketing and are beginning to develop services such as three- and four-star hotels, along with top-quality clubhouses and other facilities. For many of these clubs the majority of their business is from members or Irish golfers, but they see visitors as a key growth area in the years ahead.

Fáilte Ireland, which sent out a warning letter last year over the rising cost of green fees, says, however, that with a few exceptions, golfers get the standard of service they pay for.

"When we sent out that letter, it was a warning shot," says Damian Ryan, Fáilte Ireland's director of golf. "I think the industry accepted the fact we have to be careful and need to charge a price which matches the level of service.

"A lot of clubs heeded the advice, some didn't ... that's democracy ... in most cases you get the standard that you pay for. There are one or two which need to bring their level up."

Mr Ryan insists Ireland is performing ahead of golfing destinations such as Scotland because of the culture of the "19th hole" and aggressive marketing. But he is concerned about issues off the golf course, such as the rising cost of goods and services, along with extra costs such as the €20 charge Aer Lingus and Ryanair place on visitors who bring their golfing bags into the country.

It's an issue which Minister O'Donoghue has raised with Irish airlines, though he is still waiting for a positive response.

"These charges have the potential to cause difficulty for tourists coming from Britain, Europe and the US," Mr O'Donoghue told The Irish Times. "In Portugal they have been highlighting the fact that they don't have a surcharge for golf bags. I'm concerned about this and hope they might reconsider the situation."

Whatever about competing with Spain and Portugal, green fees among the top courses in Ireland seem pricey when compared to the top clubs in Britain, which have also been accused of charging hefty sums for a round of golf.

A round at Royal Troon costs €250; The Belfry is €216; the Old Course at St Andrew's is €150 and Royal St George's is €136.

Many championship courses in the US charge similar prices, though prestige courses can be even more expensive.

Pebble Beach's $380 fee, for example, is only part of the price, given that advance bookings are not accepted unless you stay at the Lodge at Pebble Beach ($510 per night), the Inn at Spanish Bay ($460) or Casa Palmero ($655).

For first-time visitors to Ireland, Tom Barnum says price is not the major issue. It is, however, for repeat visitors.

"The biggest problem is for a repeat visitor who wants to play the secondary courses. They are still expensive. There aren't many bargains out there. I think we'll see more going to Spain and Portugal and your country should be concerned about that."

Mr Barnum says the overall price of a golfing holiday is also a big talking point among US visitors who are now less likely to spend as much outside of the golf course.

"It used to be such good value. But people are paying over the odds for normal things, like a sweater in a clubhouse. The traveller is really nailed ... But you can't tell me, for example, that Guinness tastes 30 per cent better than it did just a few years ago, can you?"