An innovative business strategy scores a hole-in-one

AFTER a number of years of wallowing in the financial doldrums, Durban Country Club has turned a corner and has posted a profit for the first time in many years.

In a recent letter to members providing them with the halfyearly financial report, chief executive Pascale van Maris wrote: “I am delighted to report that before depreciation the club made a trading profit for the first six months of this year. You will see from the comparative figures that this is a huge improvement on last year and the first profit made in more than five years in the first six months of trading.”

Van Maris believes this is largely due to the club’s business strategy, guidance by the board and hard work by club staff.

Sports clubs and, in particular, golf clubs worldwide, are struggling with patronage and the costs of maintaining their facilities. Following a recent trip to the US, Howard Buttery, the chairman of the Durban Country Club Trust, reported that one golf course was closing every eight hours there. Other studies show that since the economic crash of 2008 there had been a steady decline in the number of members and registered golfers in the US and Europe. A recent article in the Washington Post quotes the National Golf Foundation saying that the game had lost about 400 000 players in the past year, attributing it to the economic downturn, bad weather and a focus of potential young players shifting to online social networking rather than playing sport.

It comes as a relief to many that one of Durban’s icons, and a golf course rated as one of the top hundred in the world, has been on its way back to financial stability since management took some crucial decisions.

One of the decisions, to restore the courses, was taken in 2011. World-renowned course architect and designer Peter Matkovich was consulted. In addition, the day-today maintenance of the course was outsourced to a leading course maintenance company which has highlighted the rolling dunes of the fairway that make the club such an interesting golf venue.

Three years later, the club is reaping the benefits, having two of the best-conditioned courses in the country. The improvements have resulted in an increased number of rounds being played at both of the club’s courses – 77 000 rounds were played last year, and they are on track to exceed this figure this year.

Chairman Richard Pemberton believes the club, as a preferred venue for big stage tournaments, has also had a massive positive impact. The club has hosted 17 South African Opens, the European Tour in 2012 as well as the Volvo Tournament of Champions in 2013.

Attention to detail by Van Maris and her team has also played a significant role.

The club energy usage reduction programme achieved savings with a substantial energy efficient lighting project, a hot water project using heat pumps, and a selective automation programme using an advanced wireless automation system. “By micro-controlling usage, the club has realised a more than realistic return on investment,” she said.

“The projects undertaken have realised a rand saving well in excess of R1.6 million for the club and we have further plans ahead for energy reduction. We are also looking at programmes to reduce water consumption at the facility as a way of further reducing daily running costs.”

In addition to outsourcing the golf course maintenance, the tending to the 120 staff members, the cleaning and laundry have also been outsourced. Under the guidance of executive chef, Xanthos Giannakopoulos, the focus on serving fresh, local produce and healthy food in the restaurants and at functions has played a significant role in the turnaround strategy and finances of the club.

Another big drive is to increase membership of the club.

Internationally, as well as in South Africa, the only area of golf membership not in decline is in the women’s section, with numbers growing slowly but steadily in recent times.

This perhaps bodes well that there are two women at the helm of the club, Van Maris and Sandi Canning as the chief financial officer. This may also account for the shift in focus towards making the facility more family-orientated than it may have been in the past.

“So far, the main attractions of membership are two top-rated golf courses supported by a fully equipped golf practice centre and two fully-stocked pro shops.

“There are several restaurants and bars, a swimming pool and poolside bar area, an excellent children’s facility called the Kidzone, four squash courts, six floodlit tennis courts and a bowling green, all run by professionals within these codes,” Van Maris said.

The clubhouse has seven function rooms with great views and facilities to suit all occasions. Club members receive a 50 percent