North Sound Club golf rates drop

The price of golf is going down, but the future of the North Sound Club at Dragon Bay is still up in the air. 

On Monday, Dragon Bay developer Mike Ryan reaffirmed comments he made earlier this month when he said he was doing everything he could to keep the golf course open despite it losing tens of thousands of dollars each month. 

“People said ‘lower the price’, so I did,” he said. “I’m willing to try anything.” 

The new rates have dropped more for residents than nonresidents. The resident rate for 18 holes is now $125, down from $160, an almost 22 per cent reduction. The nonresident rate only drops about 10 per cent, from $195 to $175 for 18 holes of golf. 

“We’re trying to make it affordable,” Mr. Ryan said. “We’re trying to generate enough golfing to make [the golf course] feasible.” 

In addition to lower regular rates, the North Sound Club will also offer golf packages to both residents and nonresidents. For golf between 1 December and 17 February, residents can purchase 10-round packages for $1,125 or 25-round packages for $2,500. Nonresidents can get three-round packages for $475 or five-round packages for $775. 

Junior golfers and college students will get the benefit of even bigger discounts as they will be able to, subject to availability, golf 18 holes for $55 and nine holes for $35. 

Long-term still uncertain 

The North Sound Club sent a letter to its former members on Monday advising them of the new rates. The golf course, which used to accept memberships, advised members earlier this month that it would not renew memberships because of uncertainty as to whether the course would stay open.  

“The good news is, we’re still going to have golf on a pay-to-play basis,” Mr. Ryan said. “The bad news is, there is no certainly the course will stay open.” 

Mr. Ryan reiterated he needs assistance to keep the course open, which he said is losing between $60,000 and $100,000 per month. He’s asked the government for two things: the ability to have Dragon Bay properties – including The Ritz-Carlton, Grand Cayman – produce their own water; and for the title to the property – which is currently held on a 99-year lease – to be converted to freehold ownership. In consideration for these concessions, Mr. Ryan has offered the government a sum of $10 million, plus a 2 per cent stamp duty increase on property transfers in Dragon Bay in perpetuity. With freehold title, Mr. Ryan said the Dragon Bay project – which has been stalled – could move forward within months. He said the project would generate at least $300 million of economic activity and as much as $600 million, depending on how far out the activity is projected. 

Possible divestment 

Mr. Ryan is also pursuing another possible solution: selling all or some of the golf course land. One potential buyer is the Dart Group, which has stated in the past it would like to be able to offer golf as part of the amenities for its properties, which are scheduled to include at least two hotels. 

“There’s only one other guy who has the interest and the money to invest in a golf course, and I’m talking to him,” Mr. Ryan said. “Have we done anything? No. Do I hope we will do something? I hope so. Do I hope the government does something? Absolutely.” 

Because of the high cost in running a golf course and the fact the North Sound Club doesn’t generate enough play to make it profitable at this juncture, Mr. Ryan said it only made sense for him to discuss investment in the golf course with the Dart Group. He said if the Dart Group were to build its own 18-hole golf course, it would just lessen the profitability of both courses. 

Mark VanDevelde, CEO of Dart Enterprises, confirmed his company was in discussions with Mr. Ryan about the golf course. 

“We recognise that golf facilities are very important, if not a necessary amenity to a world class tourism destination, such as Grand Cayman,” Mr. VanDevelde said. “In master planning Camana Bay, we considered and then ruled out a golf course due to the amount of acreage it would require and the economics of golf courses. However, we understand the need to provide our visitors and future home-buyers with access to a golf facility and to that end we have had several discussions with [Michael Ryan] about investing in the golf facilities at Dragon Bay.” 

However, Mr. VanDevelde noted golf courses are difficult investments. 

“The economics of golf courses are daunting,” he said. “They are very expensive to design and build and have high maintenance, operating and utility costs, such as water and electricity. With a small population, even including the visitor population, the revenues rarely cover the costs resulting in repeated annual losses.” 

Mr. VanDevelde also put a recent rumour to rest about the Dart Group buying The Ritz-Carlton, Grand Cayman hotel. 

“We have not discussed and we are not considering an investment or acquisition of the Ritz-Carlton hotel, which is part of the Dragon Bay portfolio of properties,” he said.