Maxx Marketing News

Golf Course Study Report Part 3

Nov 04/05 - This is the final part of a report produced for Alberta Economic Development in 2004 regading Best Pratice Studies.

CANADA’S DESERT LINKS
Penticton, BC
Website: http://www.golfdesertlinks.com

Background:
The Canada’s Desert Links consortium is a group of seven independently owned and
operated public and semi-private courses located in the Southern Okanagan area of
British Columbia. The group was founded four years ago, largely through the initiative
of Keith Archer, General Manager of the Summerland, BC GCC, and a couple of other
General Managers of area golf courses who could see the need to create a cooperative
marketing group with the goal of better promoting golf in their area.
Climatically, the Penticton / Osoyoos / Summerland area is very arid, and in many ways
mirrors the desert golf experience of more traditionally thought of desert golf destinations
such as Arizona or Nevada. This consortium has deliberately set out to create a “brand”
and identification for their area as a “desert” type of golf product, embracing the fact that
they have hot summers and an extended season attractive to more snowbound residents of
their key target markets in Alberta, BC, and the Pacific Northwest.
Prior to the year 2000 when the group was formed, golf in this area consisted of mostly
semi-private courses with fairly large local member bases that nonetheless relied heavily
on daily fee green fee revenue to be profitable and keep fees low for their members.
Increased competition from existing courses and new ones coming on-stream in the
Kelowna and Kamloops areas of the Okanagan to their north were making it increasingly
difficult for courses such Penticton , Summerland, and Osoyoos to attract visitors and
with small marketing budgets on their own, it was even more difficult to mount any sort
of effective marketing campaign. Some of the General Managers spearheaded an effort
for their area courses to form a consortium wherein they would pool their resources.
They hired a Marketing Director, who has been instrumental in creating their marketing vision and campaign, and has also enabled them to tap into BC Tourism funding through the Thompson Okanagan Tourist Assn (TOTA) Their membership had been at 8 participating golf course partners, but one course left the group for the 2004 season, apparently largely due to conflicts within that course’s own Board of Directors.

Funding
Each participating golf course contributes $8,000 per year to the consortium, and they
also receive funding from TOTA, which this year will amount to $50K. The $116,000
total marketing budget is therefore now much more effective and enables them to make a
concentrated, far-reaching campaign that has resulted in a tremendous increase in
awareness of the area. There are five hotel partners with whom they have negotiated Play
and Stay packages, and WestJet airline is a non-cash contributing partner who helps
facilitate easy and affordable air travel into the area. The hotel partners do not contribute
cash directly to the program, but their hotel taxes are a major source of funding for the
various Tourist Associations throughout BC that redirect funding back into their
respective areas.
Some resistance has been generated to the consortium from the member bases at the
various clubs. Issues such as access to their golf courses, and tee time booking privileges
that are granted to tourists and yet are unavailable to members have created some friction
at the member level. But General Managers have been largely able to diffuse these
interest groups by reminding the members of their need to generate green fee revenues to
keep costs affordable for local members.

Trickle Down Effects
They could not readily identify any particular case of a tourist-related local
business that had been created in the past four years specifically because of the formation
of the Canada’s Desert Links consortium, but did point out that the area is doing well
with overall tourist traffic in the summers, and of course golfers form a significant
portion of those visitors.
In a manner similar to the Audubon Golf Trail in Louisiana, Desert Links partners are
encouraging visitors in their literature and website to take in the entire area tourist
experience, including wine tours, boating and water sports and other tourist attractions.
They want golf to be a major reason why visitors come to the area, but they see their role
as helping promote the overall economic health of the region as well.

Media and Advertising
Consumer golf shows have been very successful in helping build brand and product
awareness. At the Calgary Golf Show while I was interviewing Mr. Archer for this
report, there were numerous instances of people coming by their booth and being amazed
at the fact that the images being portrayed in their display were of Canadian golf courses.
Many thought the courses were in Arizona.
The visual impact and ability to provide instant information about their consortium has
proven to be very valuable marketing for their group. They also have a good website,
with very attractive visuals and information easy to obtain on the site for packages and
directions to the courses.
They do not do much in the way of magazine advertising, but do some newspaper
campaigns into key target markets, especially in early spring or late fall when they are
still open and other areas are not. Their Marketing Director handles all the negotiations
with TOTA, makes the media buying decisions, and reports to the Board quarterly. They
do not appear to have much in place in the way of specific tracking mechanisms to assess
the productivity of various print media purchases.

The Internet
There is a toll-free phone number in place, but no direct online tee time booking system.
The site has a page where someone can request a tee time in a certain time frame, with
confirmation promised with 24 hours, subject to availability. Okanagan Reservations Inc.
acts as the fulfillment center to handle the entire booking and accommodation
procedures, and they in turn receive fees from the consortium for this service. There are
overviews of each participating course along with links to their respective home websites.

Convention and Visitors’ Authorities
Under a section captioned “Visitor Services” on the website, there are direct links to five
area Chambers of Commerce. Navigating through these various sites would give
someone a good idea of what other tourist attractions might be available, and would
enable them to contact someone regarding meeting or convention infrastructures.
Contact with the Penticton Chamber of Commerce revealed that while the C of C were
well aware of the Desert Links consortium, they could not point to any specific instance
where the group’s existence was the determining factor in attracting any one particular
convention or meeting. However, the Chamber does have Desert Links literature on hand
to include in sales kits to decision-makers inquiring about convention and meeting space
availability and amenities.

Best Practices
A key success factor for this particular consortium has been their creation of a “brand”
for their group with the desert connection. They have some unique climate advantages
over competing destination areas, and they have taken full advantage of that. They
recognized the fact that their competition was doing some effective marketing as a group,
and they were able to overcome their own in-house competitiveness to see that the
common good was more important to their collective health than any one particular golf
course’s special interests.

KOOTENAY ROCKIES
Kimberley, BC
Website: http://www.bcrockies.com

Background:
The Kootenay Rockies region is located in the southeastern corner of BC, and markets
their area as “British Columbia’s Mountain Playground”. The entire province of BC is
branded as “Super, Natural British Columbia” and this is one of several regions within
the province that market their respective areas not only for golf, but for other recreation
experiences such as skiing, hiking, fishing, water sports, snowmobiling and general
outdoor activities in addition to sightseeing and other tourist attractions. Within the
Kootenay Rockies region are 23 golf courses that are all members of this region’s
collective marketing initiatives.
Twenty-five years ago, the only golf courses in this area were The Springs at Radium and
Fairmont Hot Springs Golf Resort. Since that time, and especially over the past 10 years,
a number of new courses have come on stream, led by world-class, high end properties
such as Greywolf, Eagle Ranch, St, Eugene Mission and others that have transformed this
region into an outstanding golf destination. As a result of this growth, the region has
adopted a more comprehensive and far-reaching marketing strategy.
In the 70s and early 80s, golf in this area was quite low key, with skiing and winter sports
predominating, along with the tourist attractions of the hot springs at Radium and
Fairmont. The core market for golf was a combination of local residents and the rubber
tire market tourist who drove through the area in the summer. Their climate allowed the
few courses in the market to extend their golf seasons in the early spring and late fall, and
their marketing efforts consisted largely of word of mouth and newspaper advertisements
in the Calgary and Edmonton areas, their major markets for visitors outside their
immediate area.
As new resort courses came on stream catering more to daily fee play than to a local
membership base, the reach of their marketing efforts needed to be expanded. With the
increased variety and quality of these new courses, the area became much more attractive
as a destination where golf would be the primary focus and reason for a visitor to attend,
rather than options such as the mountain scenery and hot springs with golf almost as an
afterthought. Courses such as Greywolf and St. Eugene Mission started to receive
national and international recognition from industry heavyweights such as Golf Digest
and SCORE Golf Magazine.
Today, every one of the 23 golf courses in the Kootenay Rockies region belongs to their
marketing association. They pay a nominal fee of $300 to register, and each course
decides on their own how much they can afford to contribute towards the budget. They
can pick and choose which initiatives in which they wish to participate, and contribute
accordingly on an a la carte basis.

Funding
The Kootenay Rockies region receives funding from the BC government tourism budget,
as do several other distinct areas in the province. Each region establishes a tourism board
which allocates these funds toward different activities, including golf. The overall budget
to promote golf in this region annually is just over $800K. The tourism board contributes
50% of the cost of mounting a particular campaign, whether it is a lure piece, newspaper
campaign, television spots, or direct mail piece. Each golf course can participate as they
see fit within their own capability.
For example, the area produces a 160,000 copy lure piece and a full page insertion in the
magazine costs $10K, of which the golf course puts in 50%, matched by BC Tourism. A
course such as Greywolf or Eagle Ranch would participate as a part of its overall
marketing scheme, but a smaller, low-end property such as Windermere Valley in
Invermere puts its entire marketing budget for the year into this one item. They feel they
get maximum exposure for their limited budget with one media buy. Hotels and
accommodation providers can this year for the first time be listed in these print materials
for which each pays a smaller fee for their “Directory” type listing.

Trickle Down Effects
There has been a very noticeable boom in construction of tourist infrastructure over the
past 10 years in this area, most of it directly attributable to the increase of golf courses.
New motor inns and restaurants have led the way , but with the increased attractiveness
of the area as a retirement destination with the influx of new golf courses, there has been
substantial new residential housing built, much of it of the very expensive variety. A new
casino and spa complex is being developed adjacent to the St, Eugene Mission GR near
Cranbrook and there are numerous million dollar homes in a new housing development at
Greywolf, as examples of this type of development driven by the rise in golf-related
tourism.

Media and Advertising
The group participates in a wide variety of different media. Their main lure piece has a
160,000 copy run and is their major promotional document for trade shows, direct mail
inquiries and on site distribution at the golf courses and visitor information centers. They
use magazines, newspapers and participate in several consumer shows with participating
booths usually all in one section under a “BC Rockies” banner. These golf shows have
been very successful in not only helping generate awareness of the area as a destination,
but to help build their data base for individual course’s direct mail offerings.
The advertising and marketing agency of RMV Advertising in Kimberley, BC under the
direction of Kathy Cooper prepare most of the creative and marketing materials. They
have also organized successful Fam Tours with golf writers from major markets such as
Calgary, Edmonton and the Spokane/Seattle areas to great benefit. Each participating
golf course is represented on a board of directors that meets annually in the fall to review
their previous year’s marketing plan and discuss new initiatives for the coming year.

The Internet
This group does not have one “call to action” phone number or fulfillment center to
accommodate inquiries. The website incorporates several sections including other
activities, of which golf is only one and not the major focus as such. In fact, it is not
really that easy to find information on the site about golf. The BC Rockies site does
provide information about each participating course, but there is a further step to access
the course’s own website for complete information, golf packages, etc.
There is a link in the website for what purports itself to be an online tee time booking
service, but there is no online link to that service provider, nor does it appear that
interested parties have any capability of booking tee times online at any of the consortium
courses.

Convention and Visitors’ Authorities
The region does not really have anything in the way of a convention center that would
attract any sizable groups. Visitors have been tourism-oriented for generations, whether it
had been for the scenery, hot springs, and more recently the increased number and variety
of golf courses. All the local Visitor Centers in the communities throughout the Kootenay
area have the BC Rockies lure pieces prominently displayed to provide information to
visitors not necessarily familiar with all the golf options available. Staff in local
Chambers of Commerce surveyed for this study had a good knowledge base about
participating golf courses in their area.

Best Practices
This consortium was one of the only ones studied that had such a wide variety of courses
participating in their program. Many other consortia seem to have made a conscious
effort to deliver a reasonably consistent product within their group in terms of price point
and overall aesthetics. The BC Rockies group takes a different tack, not necessarily
better, but certainly a different approach. Some of their member golf courses are among
the worlds finest, while other courses are more mundane, but each has the ability to be
part of the consortium. The smaller, less-expensive courses are able to attract more
visitors because of the general increase in tourist traffic plus the fact that many of the
newer courses are more expensive to play and difficult to get on. The larger courses
benefit because they can always offer potential customers the option of playing at another
local course and returning later in their vacation if they have a full tee sheet on a
particular day.
The option of participating in marketing programs allows any of the courses to be part of
the “brand” without having to have a large marketing budget of their own.

MESQUITE, NEVADA AND ST.GEORGE, UTAH
Las Vegas, NV
Website: http://www.golfmesquitenevada.com

Background:
Mesquite, Nevada is located about an hour north of Las Vegas along Interstate 1-15 and
St. George, Utah is a further 30 miles north of Mesquite. Mesquite has four major hotel
and casino complexes, and although St. George does not have casino gaming as they are
in Utah, the area is becoming an attractive golf and recreation destination. There have
been several golf courses built in the area in the past 10 years, and eight of the courses
have partnered with the four casino hotels in Mesquite to form the GolfMesquiteNevada
consortium. Six of the golf courses are in Mesquite and two are in the St. George area.
Three of the Mesquite courses have been doing some collective marketing for several
years, but they have just added the St. George courses this year and there is another new
course in Mesquite opening in 2004, so for all intents and purposes, this particular
consortium is brand new.
Three of the hotel/casinos in Mesquite are owned by the same corporation: The Oasis,
The Virgin River, and The Eureka. The Casa Blanca Resort and Spa is independently
owned but they have their own golf course which is the site of the well known Re/Max
World Long Drive Championship held annually in October. This event has been won
four times by Alberta’s Jason Zuback.
The Mesquite area has been trying to market their hotels and casinos as a somewhat more
low-key alternative to the crowds, glitz and excesses of the Las Vegas experience. But
because they do not have direct air service into Mesquite, they have found that they
needed something more to lure visitors that would either fly into Las Vegas and then
drive the hour north, or stop in on their way south to Arizona, or California. The
expansion and increased availability of golf courses in Mesquite and neighboring St.
George, Utah has helped fill this requirement. Golf in Las Vegas is tremendously
expensive, especially for mid-market and higher-end properties, and Mesquite has been
able to provide a reasonably priced alternative to Las Vegas and is beginning to generate
increased traffic that is making them as a destination of choice.

Funding
Each golf course and hotel partner shares equally in the marketing budget. Even though
there are no hotel partners in the St. George area ( no casinos!) the two higher end St.
George courses are finding that they have been able to more than justify their
contributions to the consortium due to their relative proximity to Mesquite and the
increased word of mouth publicity their membership is generating. The website and
brochure offer one and three-night packages catering to the short holiday vacationer.
Most of the 3-night packages include one round at one or the other of the St. George
courses.
Funding is entirely from the hotel/casinos and golf courses with no assistance from the
Utah or Nevada tourism boards.

Trickle Down Effects
The Mesquite Chamber of Commerce has done an excellent job promoting their town
around the benefits of low taxes and affordable real estate. The construction of the newer
golf courses in Mesquite has had both a cause and effect relationship with the growth of
Mesquite over the past five years. There has been a significant number of new home and
business development in the town recently. The city of St. George is quite a bit larger,
with a population of about 50,000 compared to about 12,000 in Mesquite, so it would be
harder to say that any new growth in that community would be directly attributable to the
opening of the Entrada and Coral Canyon golf courses in the past three years.

Media and Advertising
Trade shows play an important role in their marketing, especially in Canada. The
consortium was represented at both the Edmonton and Calgary shows this spring.
Billboards, magazines and direct mail form the bulk of the balance of their advertising,
with television mainly into the Las Vegas and southern California markets on a selected
basis. The development of the Re/Max World Long Drive Championship has been a
major force in increasing name recognition and knowledge about the area across North
America. They receive national television exposure with the telecast of the event as well
as significant room sales during the week-long Finals. Their literature and website also
promote the variety of other attractions in the area such as the Grand Canyon, Lake Mead
and Zion National Park that have widespread appeal to the whole family rather that just
the golf enthusiast and gambler market.

The Internet
Their Call to Action toll-free phone number appears to be the only means by which
visitors can book golf and accommodation packages. The website provides the costs of
the golf packages, but does not allow visitors book these packages online. It appears that
they are encouraging visitors to peruse the lure pieces or the website to choose their
package before phoning to book their stay.
There are descriptions of each participating course and hotel on the site, but no links to
any stand-alone course or hotel websites.

Convention and Visitors Authorities
The lure piece brochure contains the toll-free phone number and website for the
Economic Development Office of the City of Mesquite. They report that the growth of
the golf industry in the city has been a major reason why many businesses and residents
have decided to locate in Mesquite. The major attraction for conventions and meetings of
course remains the gaming industry, but most conventions have golf outings as a part of
their package and the increased availability and variety of course in the city has helped
build their convention business as well.

Best Practices
The Re/Max World Long Drive Championship has probably done more by itself to raise
the awareness of Mesquite golf than anything although this cannot be directly attributed
to the GolfMesquite consortium. They have established a Mesquite Amateur tournament
in late May, that while in its infancy, offers very reasonable pricing and the chance for
participants to sample several of the area courses in a fun, but competitive environment.
The Myrtle Beach area has done phenomenally well with their large annual amateur
tournament, and it appears the Mesquite group are trying to mirror that success.
Focusing on the wide variety of other attractions, spa treatments, and scenery helps widen
the scope of what they have to offer other than golf and gaming.

End of Report

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