The game of golf accounts for an estimated $11.3 billion of Canada’s Gross Domestic Product (GDP), according to a study released last month.
The study, based on a nationwide survey of more than 4,000 golfers and 350 golf courses in 10 provinces and three territories, provides quantitative evidence of the economic significance of golf to the Canadian economy. Strategic Networks Group conducted the study on behalf of Canada’s National Allied Golf Associations.
Other results show the game of golf in Canada accounts for:
• 341,794 jobs;
• $7.6 billion in household income;
• $1.2 billion in property and other indirect taxes; and,
• $1.9 billion in income taxes.
Golf in Canada generates an estimated $29.4 billion in total gross production through direct, indirect and induced spending impacts.
The total direct economic activity (total direct sales) resulting from the Canadian golf industry is estimated at $13.6 billion. Of this total, the revenues generated directly by golf courses and their facilities and stand-alone driving and practice ranges ($4.7 billion) rivals the revenues generated by all other participation sports and recreation facilities combined ($4.8 billion) in Canada. These recreational facilities include skiing, fitness and recreational sports centers, amusement parks and arcades, and all other amusement and recreation industries, except gambling.
Additional key benefits and impact of golf in Canada include:
• Environmental benefits – More than 200,000 hectares of green space managed by golf course operators, including 41,000 hectares of unmanaged wildlife habitat under golf course stewardship.
• Golf participation –SNG estimates that approximately 70 million rounds of golf were played in 2008, a level of play that was as much as 10% lower than the average number of rounds based on prior years. According to IPSOS Reid, there are an estimated 6 million Canadian golfers. According to RCGA sources, Canadian golf participation rates are among the highest in the world.
• Employment opportunities – The Canadian golf industry provides an excellent employment opportunity, with as many as 43% of those employed at Canadian golf courses being students.
• Estimated impact on property values – The location of houses adjacent to golf courses provides benefits to homeowners that stem from higher home values compared to similar homes that are not adjacent to courses. The total incremental impact on home values is estimated at $1.4 billion.
• Charitable activity – Each year there are at least 25,000 charitable events hosted at Canadian courses. Using conservative estimates, these events raise more than $439 million for charitable causes across Canada.
• Golf tourism – Canadian travelers make more than 1 million trips involving golf, spending an estimated $1.9 billion annually on golf-related travel within Canada.
Aside from households, which command more that 25 percent of the gross economic effects of golf, Canada’s manufacturing sector is impacted the most by Canadian golf-related expenditures, commanding 13 percent of golf’s gross economic impacts in Canada. This is followed by the finance, insurance and real estate services and retail trade sectors.
From many perspectives the game of Golf is a significant contributor to the economies of each province and for Canada overall.
Download the full report via NAGA’s Web site.
