Present

The network of golf courses in Mallorca has an economic impact of 166.94 million euros

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On September 29, at the Son Muntaner Golf Club, the report “Network of Golf Courses in Majorca. Economic Impact Study.” was presented. It was promoted by the Balearic Golf Federation and the Association of Golf Courses of Majorca and was carried out by the Foundation Impulsa Balears. The event included the participation of the Presidents of the Federation and the Association, Bernardino Jaume and Luis Nigorra respectively; the presentation of the report was by the technical director of the Foundation Impulsa Balears, Antoni Riera; and with the closure being in the hands of the Minister of Labour, Commerce and Industry of the Government de the Balearic Islands, Iago Negueruela.

The network of golf courses in Mallorca, made up of 19 courses in 9 municipalities of the island, has an economic impact of 166.94 million euros, and is an economic multiplier that has the potential to contribute to the productive transformation of the archipelago. Antoni Riera explained that

“… currently, the network has a proposal that represents solid value that is materialized in a wide-ranging, cross-sector, service offering, supported by quality sports and non-sporting facilities. Therefore, it is able to establish itself as an active player in tackling the challenges that are currently strategic for the promotion of the competitiveness of the Balearic Islands”.   

 

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In addition, golf makes a significant contribution to regional accounts in terms of production, added value and employment. It gives shape to a comprehensive menu of services amounting to 81.65 million euros annually, most of which are derived from the sports side (43.2%) and, especially, from the services it provides regarding accommodation (38.4%) and gastronomy (12.2%).

The total economic impact of the network rises to 166.94 million euros, representing 0.59% of the annual production of goods and services in Majorca. A percentage that comes to 0.47% if the impact is extended to include the whole region.

Its activity also has an effect on added value and employment, with percentages (0.66 percent and 0.59 percent, respectively) which can be compared to the direct contribution which is made on this scale by the municipalities of Sa Pobla and Campos to the insular and regional aggregate respectively.

The activity of the network causes, for each euro invoiced, a production of goods and services of 2.04 euros in Mallorca and 2.08 in the Balearic Islands. Riera highlighted that “its total multiplier effect is similar to or exceeds that of other service activities which are highly representative of the island – such as accommodation (2.04), gastronomy (2.02) and air transport (1.97) – as well as those classic articles that are so much part of the Majorcan industrial specialisation – such  as the manufacture of alcoholic beverages (1.87) “.

 

 

All the market segments of the productive structure of the Islands benefit, to a greater or lesser extent, from the increase in production that the development of the network’s value proposal creates. Its total economic impact is therefore highly cross sectional, given that from the 5 areas that make up the deployment of the comprehensive menu of services, we can see how it extends to a total of 60.

Riera stated that

“… the network has the potential to contribute to the generation of new services with greater added value. Its direct link with productive segments of the market which form part of the ‘accommodation and tourism’ cluster and, by extension, the so-called ‘experiences industry’ allows it to reconfigure its current value proposition starting from the relations that it maintains with tourism and business services.”

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