How Golf Has Driven Development in Portugal

07 Sep How Golf Has Driven Development in Portugal

Every day flights leave the London airports, taking holiday makers and commuters outside of the capital to spend money. Common sense dictates that offering a local alternative would result in less need to travel, and crucially the money instead going into the economy.

Some things we can’t replicate, like playing Golf in Portugal’s stunning landscapes in the the warm weather. But if this can be circumnavigated, can golf tourism be kept local?

Portugal has emerged as a world-class golfing destination, offering both local and international visitors high-quality courses, luxury resorts, and investment opportunities. The sport has not only elevated Portugal’s global profile but also catalysed significant economic, social, and infrastructural development.

This case study explores how golf has shaped various sectors of the country, contributing to the growth of tourism, real estate, and sustainability initiatives, and building an environment for long-term development.

The Growth of Golf Tourism

Portugal’s Position as a Golf Destination

Portugal consistently ranks as one of the top golfing destinations in the world, frequently winning awards such as the “World’s Best Golf Destination” at the World Golf Awards. The Algarve, Lisbon, and Porto regions are known for hosting world-class courses like the Oitavos Dunes and Quinta do Lago. The influx of golf tourists contributes significantly to the country’s tourism sector, with an estimated 2 million golf rounds played annually in the Algarve alone.

In 2023, tourism in Portugal hit a record-breaking €25 billion in revenue, with statistics showing that golf tourism contributes between €700 million and €1 billion annually to Portugal’s economy, supporting both the hospitality and service sectors.

The Algarve alone plays host to around 2 million golf rounds per year, largely from international visitors. Key source markets include the UK, Germany, and Scandinavian countries, with golf tourists generally spending more per trip compared to other visitors.

Golfing is a growing part of Madeira’s tourism industry, with the island becoming a popular destination for golfers from around the world.

Impact on Year-Round Tourism

While Portugal has long been a summer destination, golf has extended its tourism season. The country’s mild climate, especially in autumn and winter, makes it an ideal place for golf all year round. As a result, Portugal has successfully reduced its dependence on summer tourism, bringing in a steady stream of golfers outside peak vacation periods.

Economic Contributions of Golf

Direct Economic Benefits

Golf contributes directly to Portugal’s economy through various channels: green fees, golf packages, equipment sales, and accommodation. Golf tourists, particularly from the UK, Germany, and the Nordic countries, tend to spend more per trip than average visitors.

Indirect Economic Benefits

Beyond tourism, golf fuels growth in related industries. Local restaurants, transport services, and retail outlets in golf-heavy regions benefit from increased footfall. Golf resorts have also created thousands of jobs in hospitality, caddying, course management, and tour operations. The Portuguese Golf Federation estimates that around 16,000 jobs are directly linked to the sport, with indirect employment adding significantly to this figure.

Golf and Real Estate Development

High-End Real Estate Projects

Golf resorts have spurred luxury real estate developments across Portugal. In areas like the Algarve’s Vale do Lobo and Quinta do Lago, high-end villas and apartments offer premium amenities, many designed around or near golf courses. These developments attract both foreign buyers and local investors, boosting the property market.

Foreign Investment in Portuguese Properties

Golf has played a crucial role in increasing foreign investment in Portuguese real estate. Buyers from the UK, Germany, and the US have been attracted by Portugal’s Golden Visa scheme, which grants residency to individuals investing in Portuguese property, with many favouring homes within golf resorts. This has resulted in a notable rise in property values in regions with prominent golf courses, contributing to the overall health of the real estate sector.

The Golden Visa scheme, which allowed investors to gain residency by purchasing properties worth €500,000 or more, has been instrumental in driving foreign investments in luxury golf resorts like Quinta do Lago and Vale do Lobo in the Algarve.

Although the real estate pathway for the Golden Visa has been discontinued in popular coastal areas like the Algarve from January 2022, earlier investments contributed greatly to property market growth. The rise in foreign buyers, especially from countries like the UK, Germany, and China, has led to a notable increase in property values in golf resorts

Infrastructure Improvements

Development of Tourist Facilities

The influx of golf tourists has led to the development of upscale hotels, resorts, and transport facilities in golfing regions. Luxury accommodation options like Conrad Algarve and Anantara Vilamoura Algarve Resort have been established to cater to golf tourists. Enhanced transportation networks, including road and airport expansions, particularly in Faro and Lisbon, have made these areas more accessible.

Improvements in Local Services

Golf-related development has improved local infrastructure, from road upgrades to better public transport in the Algarve and Lisbon areas. The need to accommodate wealthy international visitors has led to improvements in amenities, contributing to the overall quality of life for local residents.

Real Case Studies

Quinta do Lago and Vale do Lobo, both located in Portugal’s Algarve region, have undergone significant transformations due to golf development. These once-sleepy coastal towns have evolved into premier luxury destinations, attracting affluent tourists, investors, and golf enthusiasts from around the world.

Quinta do Lago

Initial Development and Growth

Quinta do Lago, founded in 1971 by André Jordan, was originally an untouched stretch of land within the Ria Formosa Natural Park. Jordan’s vision was to create a luxury resort that harmonised with the environment, combining high-end living with recreational facilities, particularly golf. Golf was seen as a core driver to attract international visitors, which led to the construction of the resort’s first course, designed by American architect William Mitchell. The success of the golf courses attracted wealthy buyers from the UK and Europe, transforming the area into one of the most prestigious residential developments in Europe.

Impact of Golf

• Real Estate Boom: The development of Quinta do Lago’s golf courses has been instrumental in driving real estate values in the region. The resort now spans over 2,000 acres, featuring luxury villas, hotels, and five championship golf courses. Property prices have surged, with some villas selling for several million euros, making Quinta do Lago one of the most expensive areas in Portugal.
• Luxury Lifestyle: Beyond golf, the resort now offers high-end amenities such as Michelin-starred restaurants, wellness centres, and luxury shopping. Golf continues to attract an elite clientele, which has sustained the area’s reputation as a luxury lifestyle destination.
• International Recognition: Quinta do Lago has been repeatedly recognised for its world-class golf facilities, hosting prestigious events such as the Portugal Open and being ranked among Europe’s top golf destinations. This international acclaim further elevates the area’s appeal and cements its status as a global luxury hotspot.

Vale do Lobo

Early Development

Vale do Lobo is even older, having been founded in 1962 by Trust House Forte and Costain Group. Initially a small, remote fishing village, Vale do Lobo capitalised on the growing trend of luxury tourism by developing a golf resort designed to attract British and Northern European visitors. The first 18-hole course, designed by Sir Henry Cotton, drew international attention and helped to kick-start the town’s transformation into a luxury enclave.

Golf as a Catalyst for Development

• Luxury Infrastructure: Like Quinta do Lago, Vale do Lobo used golf as a cornerstone for luxury real estate development. The resort’s expansion into high-end residential communities was largely driven by its two golf courses (Royal and Ocean), which became central to its appeal. These courses now attract thousands of golf tourists annually, contributing significantly to the local economy.
• Tourism and Real Estate: The success of Vale do Lobo’s golf courses has spurred luxury villa and apartment developments, increasing property values substantially. The resort has grown into one of the largest luxury developments in Portugal, offering more than 1,500 residential properties. High-end real estate here is sought after by international buyers, including wealthy expatriates and investors looking for vacation homes or rental income.
• Wider Economic Impact: Golf tourism has had a broader economic impact on Vale do Lobo and the surrounding areas, generating employment in hospitality, retail, and property management. The area’s transformation has been so significant that Vale do Lobo is now one of Portugal’s most prominent luxury tourist destinations.

Broader Economic and Social Effects

The development of these two resorts illustrates how golf has acted as a major driver of economic growth in the Algarve. The establishment of world-class golf courses has attracted high-net-worth individuals, increasing property values and transforming local economies from seasonal tourism to year-round luxury markets. Both Quinta do Lago and Vale do Lobo have become integral to Portugal’s appeal as a top golfing destination, driving investment in infrastructure, real estate, and hospitality.

In summary, Quinta do Lago and Vale do Lobo’s transformation from coastal villages to luxury destinations highlights the significant economic and social impact of golf in Portugal. The success of these resorts has made the Algarve a focal point for international tourism and investment, and their growth shows no signs of slowing down.

Sustainability and Environmental Initiatives

Challenges of Golf Development

While golf has contributed significantly to economic growth, it has also raised environmental concerns, particularly around water usage in drought-prone areas like the Algarve. Managing these challenges is crucial for ensuring the sustainability of golf tourism in Portugal.

Sustainable Practices Adopted by Golf Courses

Many Portuguese golf courses have adopted eco-friendly practices to mitigate their environmental impact. For example, courses like Troia Golf and Penina Golf Resort have implemented water-saving techniques such as greywater recycling and drought-resistant turf. Solar-powered facilities and reduced chemical use are also becoming common, making Portugal a leader in sustainable golf tourism.

Golf courses in Portugal are actively aligning with global sustainability efforts, particularly the Sustainable Development Goals (SDGs). These efforts focus on preserving biodiversity, reducing water consumption, and supporting eco-friendly tourism. Initiatives such as Golf Course 2030 contribute to broader goals like climate action (SDG 13) and life on land (SDG 15).

Several Portuguese golf courses have earned notable certifications such as GEO Certified®, which emphasizes their commitment to sustainability. This certification focuses on three main areas: golf facility operations, development and renovation, and golf tournaments, all of which aim to minimize environmental impact and foster sustainable growth in the sport.

One example is Troia Golf in Portugal, which is recognized for its comprehensive sustainability practices. These include advanced water-saving techniques, reducing water consumption by millions of litres through better irrigation management, and efforts to preserve local biodiversity. The course is located within the Sado Estuary Nature Reserve and actively promotes environmental stewardship, with initiatives like using recycled materials and maintaining habitats for local wildlife.

The GEO Certified® recognition aligns with international sustainability goals, particularly UN Sustainable Development Goals (SDGs) focused on life on land, climate action, and responsible consumption and production. These courses also play a role in promoting sustainable tourism by implementing eco-friendly practices that appeal to environmentally conscious visitors.

The Role of International Golf Events

Portugal Masters and Global Recognition

International events such as the Portugal Masters have positioned the country on the global golf map, drawing attention from media outlets and golf enthusiasts worldwide. Held at the Dom Pedro Victoria Golf Course, the Portugal Masters not only promotes the sport but also boosts tourism by attracting fans from across the globe, generating further economic activity in the host regions.

Cultural and Economic Impact of Major Events

Hosting international tournaments brings more than just golfers to Portugal. These events draw sponsors, media coverage, and ancillary business opportunities, creating a vibrant, thriving ecosystem that stretches beyond the sport itself. Local economies see a boost in hotel occupancy, restaurant bookings, and transportation services during these tournaments.

Challenges and Future Outlook

Balancing Growth and Sustainability

The key challenge moving forward is balancing growth with environmental sustainability. As golf continues to attract more tourists and investment, Portugal must ensure that it manages resources responsibly, particularly in regions facing water shortages.

Future Developments

With the steady growth of Portugal’s golf tourism industry, future projects include the expansion of existing courses, the development of new resorts, and further investment in sustainable practices. These efforts aim to maintain Portugal’s status as a premier golf destination while preserving its natural beauty.

Conclusion

Golf has undeniably played a significant role in Portugal’s development, driving growth in tourism, real estate, and infrastructure, while providing employment and foreign investment opportunities. As Portugal continues to position itself as a top golfing destination, the focus must remain on ensuring sustainable practices and balancing the needs of both the environment and local communities. Golf has become a defining element in Portugal’s global appeal, cementing its position as a dynamic, multifaceted destination for both sport and luxury.

And London can clearly learn a lot from this case study, with more local high quality golf courses proven to have positive impacts.