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Opinion: Halting golf course chaos
( 2003-12-30 01:40) (China Daily)

The mania for golf courses reflects some local officials' desire to "seek glory by selling land resources," according to an article in China Economic Times. An excerpt follows:

In addition to China's 195 existing golf courses, more than 500 new ones are under construction, a vice-president of the Beijing Golf Association revealed early this month.

But a startling fact is that around 50 per cent of the old courses are running in the red.

High cost is a key reason for the deficits.

The maintenance of a course guzzles 30 million yuan (US$3.6 million) or so each year, aside from initial investment in land purchase, course and clubhouse construction that costs 10 times that figure.

Despite the astronomical costs, however, some local governments blindly foster the development of golf courses hoping to court foreign investors at the expense of land resources -- particularly arable land.

One shocking case recently disclosed by the Ministry of Land Resources (MLR) is that a county government in the eastern province of Shandong has illegally granted the use of 187 hectares of arable land to build golf courses and luxury villas.

Besides sport and relaxation, golf courses in China are often coupled with the development of villas. Many developers opt to recover their investment from sales of expensive villas while trifling with the golf part. Some courses are even deserted inside villa complexes.

The golf mania has caused a terrible waste of land resources in the world's most populous country, not to mention possible damage to the ecological system.

It may be reasonable if deserted land is developed for golf. But sadly, few of the hundreds of golf courses in China -- under construction or in operation -- are not built on arable land.

Worse, land assignment for golf courses has become a key source of revenue in some places.

Some local governments requisition cheap land parcels from farmers and assign them to golf developers at fancy prices. The compensation for farmers is usually several hundred US dollars for one hectare,plus a bale of rice.

The mounting fever for golf courses is driven by local officials' pursuit of easy revenue and greater financial flexibility, as well as a fashionable image.

Although all land resources in the country are theoretically under the uniform administration of the MLR, local authorities often have substantial clout in these cases.

Many randomly planned industrial parks and development zones have proven to be failures. Similarly many golf projects will fall halfway for wrongful decision-making.

Without a comprehensively fine economic climate, does a golf course alone suffice to appeal to investors? Local officials should be clear about that.

 
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