PRICE OF MEMBERSHIP:Oversupply of courses, combined with a general economic downturn, has made joining a good club a less expensive experience, writes JOHN O'SULLIVAN.
THE GROWING frequency of the advertisements in national newspapers and golfing publications heralding the availability of club memberships over the past 12 months is indicative not only of a downturn in the economy but of a more discerning public, most of whom have elevated value for their euro above any perceived social cachet attached to membership of a particular club.
It is also illustrative of the choices available to prospective members and a pronounced role reversal. They are now being courted by clubs whereas previously applicants faced a convoluted process largely dependent on having the right circle of friends.
There is also the inescapable reality that supply - outside of the Dublin Metropolitan area and some of the bigger private members' clubs in Limerick, Cork and Belfast - has overtaken demand.
This is borne out by a closer examination of the recent trend towards the high-end resort-style development that includes on-site housing and a premium-grade hotel alongside 'the championship golf course'.
Much as with the game of golf itself, it appears timing is all important. The success of Mount Juliet and The K Club - coincidentally both opened in 1991 - in that niche market was followed by Fota Island (1993), Druid's Glen (1995), Powerscourt (1995), Adare Manor Hotel & Golf Resort (1995) and, more recently, Doonbeg (2001), Carton House (2002) and The Heritage (2004).
The current economic climate has engendered caution, as those new developments that covet the status of the aforementioned are beginning to appreciate.
A growing number of clubs in Ireland have abolished entrance fees while others have been forced to moderate their financial demands. It's not a reflection on the quality of the product, just a response to the harsh realities of the marketplace.
In 2006 as Ryder Cup fever assailed Ireland, the Paul McGinley-designed layout at Macreddin Golf Club, near Aughrim, Co Wicklow, sold 80 memberships with a €30,000 entrance fee.
The entrance fee has since dropped to €8,000 (a preference share) with an annual subscription of €1,500. In order to compensate those that paid the higher levy, the club offered them one of two options: they could either elect never to pay a subscription again for the rest of their lives or they could receive another three shares, thereby effectively coming into possession of three additional memberships they could distribute.
Nine holes were open for play last year, with the second nine due to open on July 1st. David Leech, Macreddin's membership director, offered a candid appraisal of the problems facing a development that started in boom times but is due to finish in the economic downturn.
"The whole market has changed in the last three-and-a-half years and we have had to react to that. The project has taken longer than envisaged, primarily because of weather issues. Ideally, we had hoped to open last year. We have been pushing the membership again and there have been about 40 to 50 positive inquiries.
"We have encouraged people to come down and play to fully appreciate the layout.
"We came in at a certain price tag and after the initial sales the market stalled. We had to be realistic thereafter and make a decision on a figure from which we wouldn't drop down."
He added the current entrance fee definitely won't decrease.
The Macreddin club have been proactive in reassessing their position in the marketplace and are by no means alone in having to undertake that action.
The Champions Club at Moyvalley, eight kilometres from Enfield and a Darren Clarke-designed course, have also taken a decision to cut their entrance fee, from €17,500 to €10,000 (€1,250 annual sub).
That particular offer is due to finish on Monday, when there will be an incremental increase on the latter figure.
Moyvalley's James Taplin explained: "It is important for us to get the correct economic basis for future growth. We have only been open (for membership) for the past five weeks and interest is beginning to pick up. We recognise that members are vital (there are just under 30 at present) and would look to have about 200 regular playing members.
"In terms of our fees we know that we need to be competitive without underselling the quality of the product that we have here."
Another new development is the Castlemartyr resort in east Cork. The Ron Kirby-designed course is currently open for membership, pitched at €25,000 (entrance fee) and (€1,200 annual subscription) for the individual while also offering corporate, international and family packages.
The world renowned Capella group run the five-star hotel on the site, and there are homes available for purchase.
Castlemartyr's Fiona McDonald (formerly of the Old Head GC) pointed out: "Forty of the 52 houses have been sold and they come with golf-club membership. A further 25 memberships have been sold, 18 since the start of spring.
"There are obviously marketplace issues that we are conscious of in terms of the pricing but the interest shown is encouraging. There are a certain number of people who are awaiting the completion of the clubhouse at the end of May before making a decision."
The club have been proactive in piquing local interest by offering green fees at €40 for the past three months. The challenge now is to generate the 250 or so memberships the €80-million development cherishes.
While any of the resort-style complexes require flexibility to accommodate hotel guests on the golf course and also ensure space on the timesheet for green-fee traffic, be it individual, corporate or society, there appears an absolute prerequisite to establish an endemic, thriving membership-based golf club. This would financially help to underpin the long-term stability of the venture. There are a number of examples to support the proposition.
Bunclody Golf & Fishing Club, a golf-course and property development funded by 13 local businessmen, is due to open this summer and already boasts more than 200 members. The Jeff Howes design meanders through a 300-acre layout.
The highly regarded Canadian golf-course architect is also involved in upcoming projects in Mallow and Killaloe and another of his designs at the Farnham Estate in Cavan will open later this year.
Farnham's Vari McGreevy acknowledged a more cautious golf market was a factor in the decision to wait before deciding on entrance fees and annual subscriptions.
"We will have nine holes open for play in the summer and all 18 by the autumn. We haven't made any decision yet on the pricing yet but do have some proposals on the table," said McGreevy.
"We are in a position to wait a little bit and that's what we are doing. Farnham is first and foremost a health resort but golf will obviously play its part and we'll soon test the local market in terms of membership."
Even those resort-style enclaves in gestation can run into problems long before any sign of golf course completion. CarrigGlas in Longford; which promised a luxury hotel with extensive housing and a Retief Goosen-designed course, has seen the development put on hold.
It may recommence but it represents a cautionary tale for those attempting similar ventures.
It doesn't seem to have deterred many as there are no shortage of new projects, including a brace of golf-course facelifts at premium hotels.
Ashford Castle in Cong, Co Mayo, is believed to be considering an expansion and redesign of their nine-hole course to a full 18, no doubt conscious of the impact of Ron Kirby's revamped layout at Dromoland Castle.
Parknasilla, once a modest 12-hole track, is being extended to 18 holes under the baton of Christy O'Connor jnr as part of the major refurbishment that includes the hotel and housing at the beautiful Kerry venue.
It seems to reinforce the supposition that five-star resort hotels need complementary high-quality accoutrements, one of which is a golf course.
There are a couple of other major developments in the pipeline. Pádraig Harrington is working on his first signature course: The Marlbrook - country house hotel, homes, golf course - outside Clonmel.
It's due to be completed in 2010, the same year a proposed course at Humewood Castle is expected to be ready.
The John Lally-backed project is currently at the planning stage but the American golf-course designer Kyle Phillips - his work includes Kingsbarns (Scotland) and The Grove (London) - has been approached to work on the 400-acre site.
Of more immediate import to the Irish golfing scene is the eagerly awaited Jack Nicklaus design at Killeen Castle scheduled to open his year.
Set in 350 acres, using natural woodlands, it will be the venue for the 2011 Solheim Cup, a remarkable achievement for a course that wasn't open when the honour was bestowed.
These ventures will have to compete among the established cadre of elite resorts in Ireland. A glimpse of what can be achieved from a golfing membership perspective can be gleaned from Doonbeg.
Setting aside the property at the Clare venue, the golf club itself boasts 553 members.
Last year the club set a target of 75 new members between Ireland and the USA. They managed 77, 65 of which were Irish. The membership - €44,500 ($70,000) entrance fee, €3,500 annual subscription - is split 50/50 between Irish and American.
The current economic climate favours those in a position to shop around for club membership.
That new freedom of choice is unequivocally enhanced by the fact that the market for the resort-style golf club is being flooded by supply.
The top table is becoming increasingly crowded, especially with the arrival of each new hungry mouth.
Pitching for the correct niche in the marketplace and researching local and international demand is becoming increasingly important.
Where once selling property on site might have paid sundry bills, including those for the development of the golf course, it's no longer so in the present economic climate: very much a case of caveat vendor.
Druid's Glen
Membership:280
Individual entrance fee:€50,000
Annual subscription:€2,689.93 plus 13.5% VAT
Other categories:Corporate, Husband & Wife, International
Moyvalley
Membership:25
Individual entrance fee:€10,000 (preference share)
Annual subscription:€1,250
Other categories:Corporate, Family, International
Powerscourt
Membership:934
Individual entrance fee:€50,000 (preference share)
Annual subscription:€2,058 plus 13.5% VAT
Other categories:Family, Short term (5 years), Corporate
The Heritage
Membership (closed):400
Individual entrance fee:€40,000 (preference share)
Annual subscription:€1,250
Other categories:Corporate, Family
Macreddin
Membership:80
Individual entrance fee:€8,000
Annual subscription:€1,500
Other categories:Family, Husband & Wife, Corporate
Castlemartyr
Membership:65
Individual entrance fee:€25,000 (lifetime)
Annual subscription:€1,200
Other categories:Husband & Wife, Corporate, International
Doonbeg
Membership: 553
Individual entrance fee:€44,500 (Preference share)
Annual subscription:€3,500
Other categories: Local, International, Family, Husband & Wife
Interesting options . . .
Mount Juliet
Membership:96
Country entrance fee (living more than 50 kilometres from course):None
Annual subscription:€3,200.
Other categories:Individual, Corporate, International, Husband & Wife
Skellig Bay
Membership:400
Individual entrance fee:None
Annual subscription:€695
Other categories:Family, Husband & Wife
Westport
Membership:595
Individual entrance fee:None
Annual subscription:€590
Galgorm Castle
Membership:648
Individual entrance fee:£1292.50 Annual subscription: £692
Other categories:Young Masters, Junior, Student, International
County Longford
Membership:670
Individual entrance fee:€1,270 (can be paid at 10% over 10 years)
Annual subscription:€697
Other categories:Junior, Family, Student.
