Gulf Harbour, which hosted the New Zealand Golf Open in 2005 and 2006, will close with immediate effect.
1News has obtained a letter sent to members by director Wayne Bailey which says: "after two years of unsuccessfully looking for ways to make the running of the club financially viable the Gulf Harbour Country Club will close with immediate effect".
It goes on to to say the club, situated on the Whangaparaoa Peninsula, continues to lose money and while it’s appreciated many of the members have absorbed the higher fees in recent times, "costs continue to outrun revenue".
Bailey’s letter points out the "failing" clubhouse would most likely need a complete rebuild, the cost of which would be "prohibitive".
The club sits on a significant amount of land and directors had looked at ways to utilise selling some of the "surplus" in order to reinvest in the course.
"The nature of the course layout meant that this was only possible with the acquisition of other neighbouring land as well. Negotiations to date have meant that this is not only unviable but ultimately a worse outcome than the status quo. Thus we have no option but to cease operations."
Gulf Harbour opened in 1997 and, for a while, was one of the country’s leading courses. It hosted back-to-back New Zealand Opens in 2005 and 2006, won by Sweden’s Niclas Fasth and Nathan Green of Australia respectively.
It also hosted the World Cup of Golf in 1998.
The full letter to members is as follows,
Members
After two years of unsuccessfully looking for ways to make the running of the club financially viable the Gulf Harbour Country Club will close with immediate effect.
Unfortunately the club continues to lose money. It is appreciated that many of you have absorbed higher fees in recent times, however notwithstanding this costs continue to outrun revenue.
In addition to this the club requires significant capital investment. As many of you will be aware the club has had very little investment in it since it was built 25 years ago. The lack of investment is directly linked to the lack of return.
In the case of the clubhouse, which is failing, this would most likely result in a complete rebuild and while a new building would be somewhat smaller, the cost is prohibitive.
As stated above we have looked and many ways to make the club even modestly viable.
The course is generous in land area and the most likely route to success was to sell off surplus land in order to be able to reinvest in the course. The nature of the course layout meant that this was only possible with the acquisition of other neighbouring land as well. Negotiations to date have meant that this is not only unviable but ultimately a worse outcome than the status quo. Thus we have no option but to cease operations.
Yours faithfully
Wayne Bailey
Director
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