Thursday, July 22, 2010

Suck It And See: The golf course in Muro

Never think that matters in Mallorca draw to a simple conclusion. If you are inclined to think this, then consider the matter of the Muro golf course. Yes, the arguments are of course still going on. What appeared as though it might have been a conclusion, when a bird protection order was made to cover the site of the course, is nothing of the sort, and now the Balearic parliament, thanks to block voting by the centre-right parties (Partido Popular and Unió Mallorquina), has effectively given the development the green light again, the right arguing that the course is in the interest of the island. The left say it is all about private interests, while the enviro lobby group GOB reckons the decision will bring "shame" to the people of Mallorca. The protection order might still hold sway, but if so it will, in all likelihood, need the matter to be booted upstairs, all the way to Brussels. Some 14 years after the project was first talked about, a definitive agreement and indeed conclusion is still to be made.

Something interesting has been happening with the press coverage of the golf development. There have recently been two interviews with the head of the Grupotel hotel chain, one of the main shareholders in the golf course, as well as one with the director of the development company. This has been interesting as the coverage suggests a shift away from what has seemed like press favouritism towards the environmental case. Or perhaps it is just a case of greater balance being applied. The arguments set out by Grupotel and its fellow hotel groups are well known: the course will help to reduce tourism seasonality and to add dynamism to tourism in the area; the development has received favourable environmental reports, and potentially harmful environmental issues have been addressed.

Despite the endless environmental points raised by GOB and the left, the environment is not, for many, the most important issue. What is, is whether the damn course is necessary or can be justified in terms of "adding dynamism". The pronouncements in the interviews have been vague, as has always been the case where the real value of the course is concerned. The PR problem for the developers is two-fold: the environment and a persuasive business argument. They have singularly failed to be persuasive. No assessment is ever made, at least publicly, as to how many additional tourists the course will generate or as to how much value it will bring to the local economy, except in creating a small number of jobs.

There is an inherent lack of logic to the business case. Firstly, the developers cannot count on a return from the sale of real estate, which is often a core feature of golf developments; there will be no residential construction. Secondly, while making his case for the course, the director of the company pointed out that the Muro course will have advantages over other local courses - unlike Pollensa, it will have eighteen holes, and unlike Alcanada, it will not be a luxury course. However, though this hints at a course for everyone, is a "luxury" aspect not part of a course's attraction, especially to hotel groups with four- and five-star hotels in their portfolio? Moreover, whatever might be designed in Muro can surely not benefit from the landscapes of Pollensa and Alcanada or the demanding links-style nature of the latter course. Thirdly, there are several hotel groups represented in Playa de Muro which are involved in the development. How can they all benefit, especially as there is seemingly an unknown, and a very important one - the number of tourists?

The course would add to the intangibility of the "quality" of Playa de Muro as a resort. This shouldn't be underestimated, but it is - once again - a somewhat vague concept, just as the real benefits of the course remain vague. Rather like the so-called "active well-being" branding of the area that is now to be initiated seems like an exercise in sucking it and seeing, with no hard numbers being given and any number of hotels which would be most unlikely to gain any benefit, so it is with the golf course. In business terms, the Muro course has all the feel of being product-led. Here's a course, now here come the tourists. It doesn't work like that.

As ever though, the business case for the course might still be redundant if GOB and the left were to finally have their way, and given the tortuous nature of the arguments and challenges over the years, one really shouldn't rule that out.


Any comments to andrew@thealcudiaguide.com please.

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