Golf business
in St. Andrews
showing positive
signs for 2004

By Tom Mackin,
Contributor

ST. ANDREWS, Scotland (May 24, 2004) - Even in the home of golf, the fickle fortunes of the world's economy, not to mention the war against terrorism, have had an impact. If you thought that this university town and its famous layouts was sheltered from the economic storms that have traveled the globe over the past few years, think again. A small survey of upscale golf courses, hotels and tour operators in the area point to some hopeful signs that the golf travel market, and especially visitors from the U.S., is on the upswing.

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At Kingsbarns Golf Links, which opened four years ago just a 15-minute drive south of St. Andrews, Director of Golf David Scott feels the signs for 2004 are looking positive. "Having the Open at Royal Troon (in Ayrshire on Scotland's Southwest coast) actually helps," said Scott. "People will go to the Open but not for the whole week. They'll go elsewhere and play golf. We anticipate being pretty busy that week. And then of course there's the 2005 Open at St. Andrews, so we'll be extremely busy then."

That will be a welcome change from early 2003, when business wasn't as good. But thanks to a well-deserved reputation as Scotland's best new course in years, Kingsbarns saw a steady improvement and ended with a complete sellout last September. "What we've lost in Americans (20 percent down from 2002) we've just about made up with gains from England and Europe," said Scott, who added that well above 50 percent of Americans arrange tee times here via tour operators. "They know the in and outs, and it takes the hassle out of the equation."

The emphasis at Kingsbarns is on service, as befitting one of Scotland's most expensive courses (135 pounds for 18 holes, or 200 pounds for 36 holes on the same day, June 1 through Nov. 30). But the layout, especially the 12th through 15th holes, is superb. An added bonus is the best chili this side of Texas, offered in the small but elegant clubhouse.

Scott sounds cautiously confident regarding the rest of 2004. "It all depends on how the world is going. The U.S. economy seems to be stabilizing a little bit so we keep our fingers crossed that it's going the right way."

Justin Hughes, Managing Director of the St. Andrews Golf Hotel, said that business during 2003 was pretty much the same as 2002. "We saw a very small increase in customers, mainly individuals and small groups. There was not a particularly strong comeback for 2003. But that was expected, largely due to the war. Everyone knew that was coming, so advance bookings weren't that clever."

His boutique hotel, located on The Scores just a few hundred yards south of The Old Course, has been in the family for 30 years and served as an officer's billet during World War II. Hughes recently converted two floors with four adjoining rooms into golf suites, with plans to install a bar and plasma screen television. Despite the contemporary trappings, the hotel offers an intimate experience with one of the best restaurants in town.

"We used to be mainly American guests but we're probably seeing half that amount lately. Thankfully the summer weather was very good, so people from Britain have kept us on the 2002 figures pretty much. Normally in January and February you have a good idea of how your season is going to be, and this year had disaster written all over it. But the other non-American markets helped steady the boat a bit. We're getting guests on a couple of weeks notice as opposed to a few months ahead. That's not normally the case."

As for accommodations still available for the 2005 Open, Hughes says at this point you'd be better off looking at private house to rent. "Getting a hotel room will be very tough in and around town," he said. "That week will be epic."

At the luxurious Old Course Hotel overlooking the vaunted course itself, General Manager Jonathan Stapleton says business in 2003 was consistent with 2002 but no better. "The percentage of guests from America is currently around 24 percent, showing a slight growth on last year at 20 percent. But before September 11th, Americans represented 40 percent of our overall business."

That doesn't mean Stapleton is standing around waiting for them to come back. "We have upgraded all of the public space, restaurants and bars, including the Jigger Inn over the past year, and added nine new treatment rooms and a relaxation room to the spa as well as introduced all new cardiovascular and resistance equipment," he said. "We have also made improvements to the Duke's Course, which was voted by readers of Today's Golfer as the UK's best parkland golf course last year. This past January refurbishment of some 50 guestrooms began, with another 50 rooms being refurbished in the winter of 2004." What's priceless is the views of the Old Course from most rooms in this hotel. Just keep an eye out for golfers teeing off on 17 - errant tee shows might wind up on your balcony.

Over at St Andrews Bay Golf Resort and Spa, the American-owned facility just south of town, 2003 represented a big improvement on 2002 according to Ian Knox, Director of Golf Sales. That was largely thanks to the opening of a second 18-hole course, called The Devlin, to go along with the existing Torrance Course, both featuring fantastic views of the North Sea and the town of St. Andrews.

"I think everyone is waiting for Americans to start traveling again and they are still focusing on the US market. However they have learned to look at other areas and Scandinavia in particular is popular. But with Americans not traveling for a few years now, I think many expect them to start coming across again in similar numbers and are still focusing on trying to get them across."

Ron Smartt's tour company, Traveling the Fairways, gets 90 percent of its business from the U.S. "Prior to September 11th, quite a few groups had confirmed golf trips in 2002 and still went ahead and traveled. After September 11th, the phones virtually stopped ringing and bookings were very slow and really did not pick up until the start of 2002. The numbers traveling in 2003 against 2002 were the same."

"In general and after speaking with several other tour operators, the drop off in business was around 20 to 25 percent for 2002 based on 2001 numbers. The 2003 season was very heavily affected by the ongoing problems with the American economy and the fall out from Sept 11th, the lead up to the war in Iraq and the finally the war. Our numbers remained the same as 2002, but clients were not spending as much, particularly on luxury items (i.e., helicopter transportation, suites)."

Kingsbarns Golf Links Green fees: 135 pounds for 18 holes, or 200 pounds for 36 holes on the same day, June 1 through November 30 St. Andrews Bay Golf Resort & Spa Rates: Contact resort Old Course Hotel, Golf Resort & Spa Rates: From 280 pounds, May 1st to October 31st The Old Course Web: www.standrews.org.uk St. Andrews Golf Hotel Rates: Single room 115 pounds a night; Double room 190 pounds per night Traveling the Fairways www.ttfgolf.com Adventures in Golf www.golf-travel-executive.com

The vast majority of his clients still want to play the top courses, and have been heading well north of St. Andrews. "We have slowly started increasing business into the Highlands and see this area as offering excellent value, with courses such as Royal Dornoch, Nairn, Brora, Tain, Old Moray, etc. This area is so unspoiled, and once there the friendliness and charm of the area makes it so worthwhile, not to mention the excellent links golf there."

Smartt agrees with Justin Hughes regarding places to stay in St Andrews for the 2005 Open, but says there is still hope for those who haven't booked yet. "It's worthwhile placing yourself on a waitlist at a couple of hotels if you are making your own arrangements. However, if you use a tour operator they will be in a much better position to advise which hotels may have rooms becoming available and will also be in a better position to inform you of other nearby hotel options."

Another tour operator based in St. Andrews, Jamie Gardner of Adventures in Golf, acknowledges that business in 2003 was slightly down compared to 2002. "Most tour companies, hotels and courses hoped for a swift recovery but it didn't happen," said Gardner. "St. Andrews is a good barometer. For the second year in a row there were, until August and September anyway, gaps in the Old Course ballot on many days, and lots of 2 & 3-balls playing instead of the usual 4-balls."

In fact, figures provided by the St. Andrews Links Trust, which operates five 18-hole layouts in the town (including the Old, New, Jubilee, Eden and Strathtyrum), show on a slight decrease over the past three years. Total rounds played in 2003 were 188,981, as compared to 193,879 in 2002 and 195,531 in 2001.

Gardner believes most of the tour companies and hotels that traditionally have depended on U.S. visitors are still committing their time and resources to that market and trying to ride the downturn out. "It's difficult to realign marketing efforts in the short-term to other regions and, although some hotels and courses have said their UK domestic & European business has picked up this year, they admit that revenues from these visitors are not generally so good."

Early signs regarding 2004 bookings have been positive according to Gardner. "Most people would be disappointed if sales don't grow by at least 10%, although even that would still leave a lot of companies below 2001 levels."

Any opinions expressed above are those of the writer and do not necessarily represent the views of the management. The information in this story was accurate at the time of publication. All contact information, directions and prices should be confirmed directly with the golf course or resort before making reservations and/or travel plans.