AN ARTICLE BY DINESH THAKUR

September 5th 2013, New Delhi, India: The nation’s most lucrative golf event of US$ 2.5 million – Tri-sanctioned Avantha Masters – will no longer feature in the European Tour calendar, because of the declining Indian currency vis-à-vis the US Dollar. Due to rupee’s depreciation, from a prize money of Rs. 9.8 crores in 2010, the Avantha Masters sponsors had to increase the prize money to Rs. 15.4 crores in four years, a jump of 50% to sustain it.

The other professional event which may not happen is the Kensville Gujarat Challenge, the only European Challenge Tour event in the country with a prize money of 200,000 Euros hosted in Ahmedabad since 2011.

Effectively, this means that there will only be 3 international professional events in India this year – The US$ 300,000 SAIL – SBI Open, US$ 300,000 Panasonic Open India, and the $ 1.25 million Indian Open. Ironically, all these three events last year were supported by Ministry of Tourism of India with sponsorship funds between US$ 100,000 to US$ 250,000. If the ministry does not support this year, the sanctioning bodies will have to work harder to raise the balance funds.

Is it really the decline of the Indian rupee which has led to sponsors moving away from Professional Golf in India? Is it the small target audience and following which does not attract sponsors? Or is it the way the Professional Tour of India functions?

The Indian professional golf body is an organization run by the players, who have short-term visions and eye at earning small incomes by making cuts rather than have unrestricted decision-makers in the form of a marketing team work towards a brighter future for the sport. Even the media tie-ups for the Tour events are weak, resulting in a lack of potential exposure to the masses about ongoing tournaments and only managing to garner negligible interest.

Yes, the decline in Indian Rupee will affect the game as all the products for golf are imported into India. But, it also means that International sponsors will have more value for their dollar. Therefore, there are sponsors who are willing to support, but for a realistic price.

As a South Asian country with over a billion people and only 5% contributing to the tax coffers, golf will never be managed and followed the way it is in the USA or Europe for atleast another 10 years. The playing golfers in India are approximately around 100,000 and the avid followers are around 500,000. With over 200 golf courses in India, if the game of golf is marketed and managed properly, the number of followers can definitely go over 1 million in less than 3 years.

The Indian Golf market is growing at 20%-25% a year. This increase is mostly coming from the age group of 18 and below and also from the nouveau riche community. There are more than 40 new golf courses being built across the country with real estate as their prime business. Golf is a luxury game and if positioned and strategized well, it will always generate revenues.

If Thailand and Malaysia can generate Rs. 3000 Cr a year from golf and golf tourism, we sure can generate more revenues for the country with a combination of golf tourism and golf real estate.