talking points KPMG Feels Golf's Pain

The researchers at KPMG’s Golf Advisory Practice have published their latest misery index, this one focusing on the financial performance of golf properties in Europe, the Middle East, and Africa during 2010. The bottom line: While dark clouds still hover over much of the golf business in those areas, the forecast calls for brighter days ahead.

To be sure, about 45 percent of the 350 course owners and operators who responded to KPMG’s survey, conducted in early 2011, reported a decline in revenues and the number of rounds played at their facilities. No surprise there. But this isn’t particularly bad news, since it presumably indicates that the remaining facilities were either flat or up during the year.

And yes, though golf facilities in some places remain stuck in financial mud -– in particular, those in Great Britain, Ireland, and the nations of Eastern Europe -– those in Central Europe, the Middle East, and North Africa posted encouraging results.

As for the respondents’ predictions about the future, they mostly reflect past performance. For example, more than half of the respondents in Great Britain, Ireland, and South Africa, where times were especially tough in 2010, don’t expect a recovery to kick in until 2013 or later. (Yikes!) Overall, however, only 10 percent of the respondents believe 2011 will be worse than 2010, and 58 percent believe this year will be at least a little better than last year.

All in all, the impression we take from KPMG’s latest survey is that 2010 was at worst a wash and that 2011 could end up being golf’s bounce-back year. I’ve got my fingers crossed.

To read the survey, go to GolfBenchmark.com.