Unlike many other leisure activities such as health and fitness, the barriers to entry in the urban golf and multi-sports complex market are significant, and as a result competition is limited. Traditional providers, such as local authorities, may no longer have the financial resource to develop new facilities. Some local authorities now seek to outsource their leisure provision, including golf and other sports facilities.
Playgolf has historically focused on the local authority market and has built up a long track record as a provider of golf services to the community through partnerships with local authorities. As a result, Playgolf is well placed to work in the future with local authorities to improve derelict urban spaces, such as was done with Playgolf Northwick Park, for the benefit of the community as a whole. With planning designation for this kind of land prohibiting development for anything other than outdoor recreation, competition from other forms of development is not possible.
Playgolf has also developed close links to various governing bodies in the sport. This enhances the Company's credibility with planning authorities where a demonstrable upside for leisure planning is often required for large-scale commercial developments.
The Group will open other sites similar to Playgolf Northwick Park in 2008 and beyond. Playgolf's new centres will offer a wide range of facilities far surpassing the traditional golf club, and will be easily accessed by customers looking to play golf on a high quality course in a shorter time than usual, as well as by families and non-golfers attracted by the other first-class sports and leisure facilities on site. Other facilities, such as retail outlets and restaurants, will also be developed at each site. These ancilliary facilities will attract customers in their own right.
