Last year, the golf industry contributed €15.1 billion ($20.2 billion) to Europe’s economy, according to a study conducted by Sports Marketing Surveys, Inc. This may sound like a lot, but it’s actually a slight decline from the estimated €15.4 billion ($20.6 billion) that our industry was worth to the Old Country in 2006. SMS attributes the deterioration to “the more difficult economic times, which have seen far less new golf course and property developments and more competitive pricing.”
Is the annual Golf Industry Show a leading economic indicator? If it is, what do you make of the fact that attendance was down significantly this year? The GIS in 2012 attracted 6,018 qualified buyers and 13,192 total attendees, while the 2011 show attracted 7,068 qualified buyers and 14,706 total attendees. Of course, it’s possible that the drop in attendance can be explained, at least in part, by the venues involved. This year’s GIS was held in San Diego, California, while last year’s was held in Las Vegas, Nevada. And if you’re wondering, next year’s will be held in Orlando, Florida.
As expected, 2012 was a very good year for U.S. golf-course owners and operators. The final tally: The number of rounds played was up by 6.4 percent from 2011. According to PGA PerformanceTrak, the boost in play represents “the largest single-year percentage increase in rounds played since 2000.” Even better, revenues from green fees increased by 6.6 percent. Like other observers, PGA PerformanceTrak primarily credits unusually warm weather for these gains, noting that the average U.S. golf venue recorded more days of play.
I’ve collected some facts and figures about the amount of play recorded in several U.S. golf markets during 2012. Here are a few snapshots:
-- The golf business in the mid Atlantic states is “enjoying boom times,” says the Washington Business Journal. Citing figures provided by PGA PerformanceTrak, the Journal reports that the number of rounds played in Washington, DC and Baltimore, Maryland rose by 8.6 percent last year, with rounds in the state of Virginia increasing by 6.7 percent. In addition, the newspaper notes, golf revenues in the region “ticked up between 5 and 10 percent.”
-- Thanks to a recently implemented business plan, in 2012 the five municipal courses in Lexington, Kentucky recorded a 10 percent increase in rounds played and cut their expenses dramatically. The result: The city’s annual subsidy to the courses, which amounted to $1 million in 2011, was nearly cut in half in 2012. “It has been a great year,” a city official told the Lexington Herald-Leader. “We have reduced expenses [and] increased revenue without cheapening the golf experience people expect on our courses.” As a result of the improving financial picture, Lexington no longer desires to close Meadowbrook Golf Course, an 18-hole, par-3 track that’s been on the endangered list in recent years.
-- The number of rounds played at the two municipal courses in Columbus, Nebraska was up by 22.5 percent in 2012, and total revenues were up by 12.3 percent. “It was the best year we’ve had since I’ve been here,” said a golf pro who arrived in 2006. The Columbus Telegram reports that the $453,582 collected by the courses last year represented “their highest level in 10 years.”
-- Three golf properties in northwestern New Mexico brightened their financial prospects. The number of rounds played increased by 5.9 percent at Pinon Hills Golf Course in Farmington, by 14.8 percent at Riverview Golf Course in Kirtland, and by 11.5 percent at Hidden Valley Golf Club in Aztec. In addition, the Farmington Daily-Times reports, the courses “saw similar increases in revenue.”
-- Not so lucky was the Grand Strand in South Carolina, where the number of “paid” rounds played in 2012 “held steady for the third consecutive year,” according to the Myrtle Beach Sun News. To be precise, the number of rounds played fell by 0.73 percent, based on figures provided by a local travel group. To compound the problem, green fees in the Myrtle Beach area are lower than they were in 2008 and 2009, “so golf course profits on average have diminished over the past few years.”
Rounds are also up in London, Ontario, a city that was not long ago thinking about closing one of its three municipal courses. “A situation that appeared dire in 2009,” explains a local newspaper, “now sees city courses running at a surplus and contributing to a revitalization of the sport.” The Canadian city’s courses were expected to ring up 128,000 rounds in 2012 (up from 111,000 in 2011) and to bank profits of nearly $300,000. “Our hopes and dreams turned into reality in 2012,” a city official told the London Community News.
Club golfers in Australia played nearly 12.4 million rounds last year, according to the Australian Golf Industry Council, an increase of 2.4 percent over the number posted in 2011. “Australian golfers are playing more rounds of golf and spending more time at their favorite courses, which is a big positive for everyone in the industry,” the AGIC’s chairman said in a press release. The AGIC’s data indicates that 45 percent of last year’s rounds were played in metropolitan areas and that men and boys accounted for more than 81 percent of the rounds played.
The resident pro at Caesarea Golf Club -- the only 18-hole golf course in Israel -- guesstimates that his nation has between 20,000 and 30,000 true golfers, which he defines as people who play at least twice a year. Speaking to the Baltimore Jewish Times, Andy Santos also issued a challenge to course owners in the United States. “If every golf course in the states would do what we do to develop golf,” he said, “there would not be a decline in the golfing market. We are building golfers every year. Anywhere from 20 to 50 sovereign Israelis become golfers every year.”
What’s the hottest brand in golf equipment today? Hands down, it’s TaylorMade, which controls 47 percent of the market for woods and 25 percent of the market for irons, according to figures provided by Golf Datatech. Callaway is number two in sales of clubs, but the trajectory of the companies’ recent sales figures reveal a chasm that won’t soon be bridged. Since 2007, the Wall Street Journal reports, TaylorMade’s sales have increased by 21 percent while Callaway’s have decreased by 26 percent.
No comments:
Post a Comment