Pre-tax losses up 28% to €7.7m at Doonbeg

THE US owners of the exclusive Doonbeg golf resort said yesterday they remain fully committed to the project in spite of pre-tax losses at the resort increasing by 28% to €7.7 million last year.

Documents filed with the Companies’ Office show Doonbeg Golf Club Ltd incurred the loss after revenues plunged 58% from €19m to €7.8m. The company made a pre-tax loss of €6m in 2008.

Parent company Kiawah Development Partners has to date invested €69.7m in the resort that includes a Greg Norman-designed links.

Its chief operating and finance officer, Townsend Clarkson, said: “We continue to view Doonbeg as both a long-term investment and an opportunity. We believe Doonbeg is poised to prosper in a future economic recovery.”

Mr Clarkson added that bed nights increased 60% last year and has increased again by 30% in 2010.

Asked when he expects Doonbeg to break even, Mr Clarkson said: “Based on the activity growth that Doonbeg has achieved in the past several years and the cost-saving measures implemented, we expect significant movement towards this in the next two years.”

Full membership at the resort costs $75,000 (€55,000) and this year five have been sold following the five that were sold last year.

Average green fees at the club last year were €81 compared to €117 in 2008, while they have risen marginally to €83 this year.