Golf tourism in the Balearic Islands generates an impact of € 1,350M and represents 10.5% of the national total

The Balearic Islands is one of the Autonomous Communities that lead the income classifications for golf tourism, and a large part of this leadership does not correspond to spending on the golf courses themselves, but to the ability to import foreign capital that this industry implies.

They are the main conclusions of the independent study on the economic impact of golf tourism, carried out by IE with the collaboration of the Spanish Association of Golf Courses (AECG) and the Royal Spanish Golf Federation (RFEG), which has been presented at the gala presentation of the final of the Challenge Tour “Road to Mallorca” in which the president of the Spanish Association of Golf Courses, Luis Nigorra, participated; the president of the Royal Spanish Golf Federation, Gonzaga Escauriaza; and the president of the Balearic Golf Federation, Bernardino Jaume.

The Balearic Islands is one of the autonomous communities with the largest number of golf courses, which, according to the study data, they invoice 7.75% of the national total (60.2 of a total of 777 million euros). The report also reveals that the global economic impact of Balearic golf and golf tourism is much greater than the wealth generated directly by the courses themselves: a total of 1,350 million euros, which corresponds to 10.5% of what golf generates in the whole from the country.

Beyond its role as an economic catalyst, Balearic golf is also an important generator of employment in the whole of Spain: around 13,000 jobs per year after adding those produced directly and indirectly by golf courses (858) and those that correspond to golf tourism, which represents a total of 11,750 jobs, direct, indirect and induced. An industry that can be essential to help the economy recover after the Covid-19 pandemic.

The capacity of golf as an importer of capital from abroad, both for tourism activity and for investment in second homes, together with the great distribution of tourism income among numerous companies, SMEs and the self-employed, makes golf tourism key in the economic recovery from the crisis derived from Covid-19.

For this, it is necessary to have adequate tools common to the rest of the tourism sector. In this sense it is more necessary than ever the application to golf of the reduced VAT rate common to the rest of the sector, and this in order to maintain the competitiveness and leadership position of the Spanish golf destination in Europe.

“The IE study highlights and quantifies the importance of golf for the economy as a generator of wealth not only in its facilities, but in other subsectors, seasonally adjusting the tourist season and generating permanent and quality employment,” he commented during the presentation the president of the Spanish Association of Golf Courses, Mr. Luis Nigorra. “It is important to highlight the enormous difference between the income of the golf courses and the total expenses of the golf tourist made in their destination, these being 12,000 million euros per year. Some data that confirms, in short, that golf belongs to everyone. “

The IE professor who led the research, Mr. Juan Santaló He explained that to understand the total income from golf tourism, it is necessary to take into account the domino effect that activity on golf courses triggers for the global economy and employment in the Balearic Islands.

“The activity of the golf courses generates an economic effect that goes beyond the direct billing of the golf courses themselves and the tourist spending. In this sense, an indirect effect is defined as that generated by golf course providers and golf tourist service providers which, in order to meet the demand of golf companies and golf tourist service providers, they generate additional demand for other companies which in turn generate more demand for others, in a multiplying process of economic activity ”, explained Santaló.

The study also offers other key data on the economic impact of golf for the Balearic economy:

Thus, for example, golf tourists spend more than 500 million euros a year in the Balearic Islands, once the expenditure made on the golf courses themselves has been excluded. Up to 7 of 8 euros of golf tourist spending benefits other service providers and tourism subsectors, showing its potential as a catalyst for economic activity.

What’s more Golf increases the quality of employment since 95% of the contracts on golf courses are permanent and 94% are full-time. On the other hand, golf attracts international investment in second homes, reaching a total value of 5,000 million euros. And is that around 22,300 golf tourists own a second home in the Balearic Islands.

Bernardino Jaume, president of the Balearic Golf Federation, has underlined in the presentation “the importance of carrying out studies like the one presented, prepared by prestigious entities such as IE University. Because only from the rigor of the data can we make correct decisions for the future. And also because only from these data can we claim the importance of golf for our society from an economic point of view. It is essential that after our passion for this sport we have a professional, rigorous and effective management that also helps the Administrations and companies to bet on golf ”.

Likewise, he celebrated that “the Balearic Islands are consolidated as one of the great golf tourist destinations, something we have been working on for years together with the Government and the Consell de Mallorca and with the support also of private sector companies, to those of us who appreciate their commitment to golf ”.

We would love to thank the author of this short article for this awesome content

Golf tourism in the Balearic Islands generates an impact of € 1,350M and represents 10.5% of the national total

Mozart Dinner Concert