Vital Signs, august 16, 2013

     A warning from the National Golf Foundation: The swelling population of retiring baby boomers isn’t going to give golf operations a significant bump. “Golf courses and golf businesses should curb their expectations,” the NGF advises, “because this generation of retirees may not be golfing as much as their predecessors.” To be sure, the NGF isn’t telling us to turn out the lights because the party is over. But not so long ago, the group believed that advancing armies of baby boomers would lift golf to dreamy heights. Today, the impact of the baby boomers “is expected to be less than we hoped for.” So how can golf courses generate more play? According to the NGF, there’s only one route out of our current predicament. “In order for the industry to sustain success and enjoy future growth,” it says, “it is vital for golf businesses to focus on increasing frequency of play by current golfers and getting new golfers to play the game.” Yes, it’s a message we’ve heard many times previously. And still, it doesn’t seem as if anyone is listening.

     If our business truly seeks growth, it might start by focusing on female golfers. Women are more than half of the U.S. population, but they make up only 19.3 percent of our golfers and they play only 16.6 percent of our rounds. Could it be that the good old boys who run golf can’t see the opportunity right under their noses?

     Although the number of rounds played is falling in this weather-dreary year, the National Golf Foundation has concluded that “most of the signs are positive” for golf equipment manufacturers. Wholesale shipments of golf clubs increased in 2012 and they were up again in the first quarter of 2013 -- units by 1 percent, revenues by 9 percent. “Golfers, like consumers in general, seem to be moving on from the recession,” the NGF believes, “and signs point towards maintained spending in the future.” In fact, the NGF is wondering if it may be time “to lose the recessionary mindset and become more bullish on the prospect for increasing sales.” A year ago, on the heels of a welcome boost in bottom lines throughout the industry, such a suggestion might have been accepted far and wide. This year, with rounds down by double digits and people wondering if 2012 was a mirage, it’s a much harder sell.

     Traveling golfers have become a vital component of Ireland’s tourism business. Research from Fáilte Ireland indicates that 163,000 vacationers played golf in Ireland last year, contributing €202 million ($269.4 million) to the nation’s economy. Since 2009, in fact, Ireland’s golf tourism has grown at an average rate of 6 percent a year while tourism in general has fallen by 3 percent. “Golf is already an important part of the tourism industry,” the nation’s minister of tourism and sport said in a press release, “and there’s room to increase revenue further.” Fáilte Ireland has also determined that golfers spend more than twice the amount of other vacationers and that North Americans are, on average, the biggest spenders, dropping roughly €1,800 ($2,400) during their visits.

     It appears that Nebraska’s golf contractors were plenty busy this summer. The town of Sidney, which had hoped to make improvements to its municipal golf course, received just one response to its request for proposals. “We thought there would be guys who were hungry for work,” Andy Staples, a golf course architect, told the Sidney Sun-Telegraph. “It turns out that not only are these guys not hungry for work, they’re overloaded and could not commit to this project.” The town has set a new construction schedule and plans to reissue its RFP.

     Sometime this year, South Korea’s golf industry is expected to reach a milestone: the opening of its 500th golf course. At the end of last year, according to the Korea Leisure Industry Institute, the nation had 468 courses, up from 440 in 2011 and 369 in 2009. What’s more, the amount of play at South Korea’s courses is increasing. The Korea Times reports that 27.6 million people “visited” public and membership courses in 2012, up from 26.5 million in 2011 and 25.5 million in 2009. Presumably, they played at least one round during their visits.

     Ready to retire? Looking for a great place to live? Have you considered Ecuador? Yes, again this year the land of the Incas checks in as International Living’s top spot for retirees. Although Ecuador may not have any golf courses worth relocating for (it has only seven or eight in total), the next four nations on the magazine’s list -- Panama, Malaysia, Mexico, and Costa Rica -- offer numerous golf opportunities, not to mention a low cost of living and decent medical care.