The National Golf Foundation recently surveyed golfers, golf facilities and golf businesses to understand how the industry is faring during the current recessions.
The results are somewhat contradictory, NGF says. On the one hand, rounds played at golf facilities were surprisingly down only 1.3 percent through October 2008 vs. the same period in 2007. Rounds data is somewhat corroborated by operator surveys: 38 percent of operators expect revenues to be up in 2008, 35 percent down and 27 percent the same – in other words, roughly flat overall. On the other hand, half of core golfers are feeling the economic strain and are reining in their spending. While there is still a loyal base, a not-insignificant 25 percent have cut back on playing fees and merchandise.
Why the disconnect? Perhaps these golfers are only decreasing their rounds by a little, or their rounds are being offset by others. Whatever the explanation, their statements about declining participation and spending are a reflection of the general decline in consumer confidence. NGF notes these surveys don’t even reflect the recent evaporation of one-quarter of wealth in the stock market.
Overall Golf Industry Revenues 2008 vs. 2007
(Includes golf facilities and golf-related businesses)
Do you expect your revenues in 2008 to be up, down or the same as in 2007?
Up - 35 percent
Down - 40 percent
Same - 23 percent
Don't know/not applicable - 2 percent
Core Golfers – Effects of Economic Slowdown
Percent of adult core golfers* in August '08
Golf-related activities:
Playing fewer rounds - 23 percent
Delaying equipment purchases - 24 percent
Going on fewer golf trips - 17 percent
None of these - 53 percent
General finances:
Have cut back on spending - 48 percent
Inflation has put strain on budget - 49 percent
Soft housing market causing problems (1) - 13 percent
My job is very/somewhat secure (2) - 92 percent
(1) Mortgage increase, can't sell home, behind on payments, difficulty obtaining loan or delayed buying home.
(2) Excludes those not applicable/not employed.
* Core golfers play eight or more rounds per year