INVgolf Investment Forum 2005
Location: Antalya / Belek, Southern Turkey
Gloria Golf Resort
Dates: April 22/23, 2005

Picture the turquoise Mediterranean, wide sandy beaches, clear blue skies, dune lagoons, pine forests, surrounded by snow-capped peaks. A fitting venue for the second INVgolf conference and a great setting for a golf and beach resort, with all the raw materials for successful golf related real estate and resort development.

Turkey is in its infancy as a golf and resort destination, and associated real estate development has not really taken off yet. However, as a market it is now emerging as a major property investment opportunity. If the model set by Portugal and Spain is anything to go by Turkey should easily replicate this success.

Golf World Magazine recently featured some of the major golf escapes, with six venues in Turkey, and claiming 'Europe's best-kept secret has ambitious plans to become one of the continent's premier golf destinations'. Development has already taken off in the Antalya region with 34, 4 and 5-star hotels and 6 golf courses. The plan, throughout Turkey, is to develop another 44, 5-star hotel resorts and 100 courses over the next 5 years. Most of these will be on the Mediterranean coast.

Turkey already has a significant tourism industry with over 17.5 million tourists arriving in 2004 with USD 12.1 billion in tourist receipts, and 25 million expected in 2005 with. This is expected to swell to 60 million by 2020.

The Gloria Resort (the conference venue) is a shining example of a well planned and designed product with its immaculate golf course and well manicured gardens, with 2, 5 star hotels and lodges and 27 holes of golf.

The venues so far have been chosen to take place in an emerging property and golf market and the first conference took place two years ago in Greece. There is no doubt that this was the right location to consider the expansion of resorts, golf and real estate development.

Speakers and delegates came from far and wide including Australia and the US and covered a wide range of topics from sustainable development, to investment help from Government agencies.

Ahmet A. Agaoglu, President of the Turkish Golf Federation, put the country's aspirations into perspective. He suggested that 20 new courses would be developed around Istanbul and 3 in Ankara and the rest along the coast, with 12 in Izmir, 20 in the Bodrum area and 22 in Antalya.

Dr. Oktay Varlier, Chairman, Turkish Tourism Investors Association (TYD), gave an incisive review of the tourism market and the importance that golf can play in developing this further. The government will soon make land allocations setting up new tourism cities with an expansive range of facilities including marinas and shopping centres focussed on resort development and golf. It is more likely, because of the size of the projects, that allocations will favour consortia with foreign partners. Incentives are plentiful with an investment allowance up to 40% of the total expenditure leading to a tranche of benefits.

Antalya and specifically Belek has so far avoided the wall to wall development approach, that has led to the meltdown of some well known coastal resorts elsewhere. But with the need and urgency to develop in Turkey, a clear strategic plan needs to be carefully prepared to ensure that Turkey protects its natural and cultural assets and develops them sustainably.

One of the strongest messages came from Jonathon Smith, Chief Executive of the Committed to Green Foundation. He emphasised that all development must be sustainable in order to avoid the debacles of the Costa del Sol and elsewhere. A strategic approach of early environmental assessment and the setting of planning and development parameters and the need to establish an early warning system and provide guidance.

A particularly articulate and poignant presentation came from Chris Panfil, Managing Director of Hart Howerton, London. He described how traditional golf resorts have tended to maximise the real estate exposure onto golf fairways, which has all too often led to generic and fairly non-distinct places. Conversely, some of the most successful resorts place golf as the central organising landscape strategy where real estate is consolidated surrounding a resort centre or golf village. Stunning landscapes have always been critical to establishing a setting and a sense of place for the most successful resorts. Golf can also be a vital component in enhancing the landscape.

Muriel Muirden of Economic Research Associates (ERA) gave a penetrating insight into the 10 key trends (distilled from 100 I am told) that will impact resort development over the next 10 years. One of the most significant factors is the expansion of the 'Over 60s' market and the additional holidays they take over the year. Generally, expectations are higher as people gain more experience, the power of the media, the celebrity lifestyle, and the trend to seek out investment purchases over merely a holiday venue are a few key components of changing trends.

To date, most developments have been undertaken on a piecemeal basis with each operator trying to define their share with little or no relationship between development and infrastructure. Therefore, it was somewhat edifying to hear that development was to focus on two regional cities, as it may be easier to exercise control at this level than on small-scale developments in remoter places.

It is important for Turkey to stand back a little, in the rush to develop the tourism bonanza and ensure that a holistic approach is applied to the planning process with experienced consultancy teams and responsible developers.

Turkey is becoming a favourable investment and development location, which is no doubt assisted by its European club aspirations. Currently property is relatively cheap and the opportunities will no doubt be enhanced by the imminent arrival of the low-cost airlines.