Doonbeg Golf Club records loss of €7m last year

DOONBEG GOLF Club Ltd last year recorded a loss of €7 million, resulting in accumulated losses of €28 million at the Co Clare golf resort.

A spokesman for the golf club said yesterday that the losses were "not a source of concern", pointing out that last year was the first full year when all of the facilities at Doonbeg were operational.

He conceded, however, that the loss for 2007 "was more than anticipated as overall tourism in the west of Ireland decreased from previous years".

The exclusive Greg Norman-designed golf course, which opened in July 2002, has a joining fee of €55,861 ($70,000).

According to returns just made to the Companies Office for 2007, the US-owned Doonbeg Golf Club's loss of €7 million represented a 141 per cent increase on the €2.9 million loss in 2006.

The company's turnover decreased by 63 per cent from €39 million to €14 million, while its cost of sales dropped from €27 million in 2006 to €4 million last year.

Doonbeg Golf Club has shareholder funds of €37 million including a capital contribution from its US parent company of €66 million and accumulated losses of €28 million.

A company spokesman said: "It is anticipated that the parent company will continue to fund shortfalls in the short term and then will start to recoup its investment as Doonbeg becomes profitable in the future."

To the end of 2007, the company generated €63 million through the sale of luxury suites at the golf resort.

However, sales of property at the resort have slowed dramatically since the first quarter of 2008. Figures supplied by the club show that six cottages were sold in 2008 for €9.8 million with five sold in the first quarter and one for the remainder of the year to date. Eight remain to be sold with prices averaging €1.7 million.

The company values the golf course at €17 million and buildings at €14 million.

The accounts show the numbers employed last year increased from 119 to 192 with the wage bill increasing by 18 per cent to €4.5 million, while €9 million was spent on local goods and services.