Economic Value of Golf Debate

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Department: HM Treasury

Economic Value of Golf

Michael Tomlinson Excerpts
Wednesday 13th April 2016

(8 years, 7 months ago)

Commons Chamber
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Karl McCartney Portrait Karl MᶜCartney
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I thank my colleague and fellow all-party group chairman for his welcome intervention.

I am aware that the Government have set five priorities in their “Sporting Future” strategy, one of which is economic development. When the results of the widely available report I referred to were published last month, it was clear that golf makes a vast contribution to our economy, much of which has been unheralded and unsung thus far. I trust this debate will go some way towards promulgating the good news.

The economic value is clear: with nearly 4 million people playing golf once a year and 1.5 million people playing golf every four weeks—a number even larger than those employed in the national health service—the total economic activity of golf exceeds a staggering £10 billion per annum.

Michael Tomlinson Portrait Michael Tomlinson (Mid Dorset and North Poole) (Con)
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I am glad that my hon. Friend has secured this debate. Although I cannot challenge St Andrews, Dorset has many fine golf courses. In terms of economic benefit, golf provides useful employment, especially for younger people living in a rural area. Does he agree that that is vital in our more rural areas?

Karl McCartney Portrait Karl MᶜCartney
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Indeed it is, and I thank my hon. Friend for making the case for Dorset, as one of the many parts of the nation, both urban and rural, where golf is important. I shall come on to some of the statistics later in my speech.

Overall, golf’s positive contribution to the British economy is over £2 billion per annum, not just directly through golf clubs and through our vibrant golf equipment industry and golf shops, but indirectly through the construction and real estate industries.

I am particularly pleased that England Golf is the home of the amateur game in this country. It is based in my county of Lincolnshire in Woodhall Spa in the constituency of my hon. Friend the Member for Louth and Horncastle (Victoria Atkins), so the game’s contribution is well spread across our nation. I doubt that even colleagues who want us to remain in the European Union could come up with a scare story about the damage that leaving might hypothetically do to this great game of ours—the Ryder cup is surely safe, no matter what happens on 23 June.

--- Later in debate ---
David Evennett Portrait The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr David Evennett)
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I congratulate my hon. Friend the Member for Lincoln (Karl MᶜCartney) on securing the debate and on his constructive and interesting speech. I commend all those who have made interventions highlighting the golf courses in their constituency, and my hon. Friend the Member for Colne Valley (Jason McCartney) for giving us some history about the jacket and the tweed involved. It is also good to see my hon. Friend the Member for South Derbyshire (Heather Wheeler) in her seat. Before the debate, she highlighted the fact that I should mention the apprenticeships in her area and the green keepers and professionals in her golf clubs. We have had an interesting tour around the country and its golf courses.

It is particularly timely that we consider the matter in the wake of a hugely successful Masters tournament for British golfers. I add my congratulations to Danny Willett, whose fantastic performance led him to his first Green Jacket—the first for a British golfer in 20 years. I also congratulate Lee Westwood, Paul Casey, Matthew Fitzpatrick and Justin Rose on finishing in the top 10 —quite an achievement and what a result for our country.

I praise my hon. Friend the Member for Lincoln for spearheading the recently formed all-party parliamentary group on golf. Its existence at Westminster is long overdue and I am sure the group will provide a strong voice for the sport in Parliament. The calling of this debate already shows that that voice is being heard, and we commend him. The new APPG is good news indeed for the sport. I wish it all success.

I agree with my hon. Friend that as MPs we should take an interest in the sport, whether we have golf courses in our constituencies, or we have people who are very interested in the sport and play elsewhere. Perhaps some people watch it just when there is an international competition. I thank him for his kind invitation to attend the APPG’s first parliamentary reception in June. It is in the diary and I very much hope to be able to attend.

I should like to highlight the importance of golf to our nation’s economy as well as to the health and wellbeing of all our citizens who participate. Today we have heard in particular about the economic value of golf. Indeed, Sheffield Hallam University’s very helpful report has outlined how important the golfing sector is to our economy, and I commend its publication, which has stimulated considerable debate and interest. Its publication is timely as the Government’s new strategy for sport cites economic development through sport as one of five high-level outcomes. It is important in our strategy for sport to ensure that more people participate at every age. We have heard that people can continue to play golf to a considerable age and that is commendable. We know from the report that the golf market is significant to the health of our economy, accounting for 14% of all consumer spending on sport and employing more than 74,000 people in the UK golf industry. Golfers spent £4.3 billion on their sport in 2014, and golf paid almost £1 billion in tax in that period. That is a really significant contribution to the nation’s coffers.

Britain’s historic association with the game reaps many economic benefits from overseas visitors, as has been mentioned. Many flock to our shores to see the world’s best compete in the Open championship each year, while others come to play throughout the year on our world-famous courses, some of which have been highlighted this evening. Following the success of the 2014 Ryder cup at Gleneagles, the 2019 Solheim cup will also be played there, further cementing Scotland’s reputation as the home of golf. This will also generate further economic benefit for the country, and broadcast and media coverage will highlight Scotland’s natural beauty to the watching world. Speaking also as the Minister with responsibility for tourism, I welcome that opportunity.

I totally agree with my hon. Friend that to stimulate the economic benefits further, we need to increase the number of people playing the sport. Golf is already a highly popular sport, with the latest Sport England survey showing that it is the fifth most played sport in England. It can be enjoyed by people of all ages, and participation has increased in the last year or so, which is welcome news. However, we must do all we can to increase participation further in golf, and in sport as a whole, for many reasons, not just the economic ones that we have already mentioned.

Sport England is investing £13 million in the current spending period on increasing participation through the England Golf Partnership, which is running a national campaign called “Get into Golf” to inspire people of all ages, backgrounds and abilities to try the sport and to enjoy it. The campaign offers low-cost golf taster sessions and a range of courses for beginners and improvers. I have to tell my hon. Friend that I fear I would be an improver. I am pleased to say that more than 18,000 people took part in those sessions between April 2015 and September 2015, helping to take the sport to new participants.

In July 2014, England Golf also launched its new strategic plan, “Raising our Game”, built around the key priorities of more players, stronger clubs, developing talent and putting on outstanding championships, thereby improving the image of the game and ensuring excellent governance. As part of the plan, a new club information pack has been produced to help clubs to market themselves better and bring new people to the game. England Golf has also worked with 50 targeted clubs on demand-led marketing workshops to help clubs to grow, and it has developed a two-year pilot programme in Northamptonshire, Staffordshire and Warwickshire to get more people playing the game in those areas.

A new programme is also working with 100 clubs to increase the number of women golfers. Much is being done to improve the health of the sport, although we should always look to do more. I welcome the Royal and Ancient’s decision last year to allow female members into the club. That has been a really long time coming, but I believe the decision will help the sport to move towards more balanced representation in the governance of the game. It will also be a positive step towards quashing the barriers within the sport. For golf to grow, it is vital that it demonstrates that it is an inclusive sport, open to all people of whatever background, age, race or gender. It is for everyone and, as we have heard this evening, people can participate at all levels.

It is important that we show that we are keen on the sport, and the inclusion of men’s and women’s golf at this summer’s Olympic games in Rio will give golf a unique opportunity to access a global audience, encourage fresh blood into the game and increase economic growth for the sport sector. I was interested to learn that this will be the first time that golf has returned to the Olympics for 112 years, having last been played at the games in 1904, with men’s and women’s tournaments taking place. Golfing authorities believe that the sport’s visibility will be greatly elevated by its inclusion in the Olympics, leading to greater participation. It was also announced earlier this month that gold medal winning golfers at the 2016 Olympics will win exemptions to next year’s majors. The men’s winner this summer will win entry to the Masters, the US Open, the Open, and the PGA Championship, which is really good news. The winning woman will also be given exemptions to the 2016 Evian Championship, the ANA Inspiration, the Women’s PGA Championship, the U.S. Women’s Open and the Women’s British Open. All of that will have a positive, enhancing effect on the game.

Sport England has worked with the England Golf Partnership to achieve a much clearer understanding of the market and to tackle some of the barriers that get in the way of more people playing golf: time, cost, and accessibility. The APPG’s launch of national golf month at the Palace of Westminster on 27 April is a welcome boost, putting the spotlight on the sport and promoting the importance of golf to the UK’s health and economy. We must also never forget the most important thing: golf is fun. Part of the Government strategy on sport is about getting more people involved in sport for health, social and recreational reasons, but also because it is fun. In addition to all those other things, sport can be fun. It is fun even when we lose, because participation is about enjoyment. In today’s society, getting people going and doing things is fun in itself.

As I have mentioned, the economic impact of golf is important, but a 2009 study—it is a little out of date—of 300,000 Scandinavian golfers also estimated that those who play the game lived five years longer than non-players, regardless of age, gender or socioeconomic status.

Michael Tomlinson Portrait Michael Tomlinson
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Or ability.

David Evennett Portrait Mr Evennett
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Absolutely.

A further study found that walking 18 holes equates to moderate-to-high intensity exercise for older people and moderate exercise for the middle-aged—and that is without the added bonus of playing the game. It is good news all round. Golf suits participants of all ages. It is good for communities and for jobs and presents an opportunity for people to do something different. I encourage as many people as possible to participate and to look to golf as an option for their entertainment, enjoyment and sport.

In conclusion, I am delighted to highlight the valuable contribution that golf makes to this country, enriching the lives and wellbeing of those who participate and work in the sector, and contributing to the economic health of the nation. Tonight’s debate has been a welcome addition to the promotion of golf, encouraging participation and highlighting the work being done by so many excellent groups and organisations. Sport matters. It matters to this Government, to this House and to this country. Golf can play an important part in the Government’s new sports strategy, which aims to encourage a more active and participatory nation. I again thank my hon. Friend the Member for Lincoln for securing this debate today and thank those who have intervened and participated, because we want to get more people enjoying golf and working in the industry. I believe that that is the way to a successful sport. We want to see more great British stars winning on the international stage.

Question put and agreed to.