Chicago - Sixty percent of industry leaders cited an increase of rounds played in 2005, despite concerns of declining rounds at golf courses throughout the country, according to the 2006 Golf Industry Outlook Survey conducted by the Golf and Resort Industry Team of Foley & Lardner LLP. The survey also reveals environmental, safety and liability issues remain a chief concern among industry executives.
For the first time in five years the majority of respondents cited a boost in overall rounds in 2005 after experiencing declines from 2001 to 2004. The Southeastern United States experienced the steepest rebound in 2005 of any region surveyed, as one in four respondents cited increases of as much as 20 percent.
“Our survey indicates that rounds have begun to rebound across the country and emerge from a four-year decline,” says Fred Ridley, co-chair of Foley’s golf and resort industry team. “More importantly, this broad-based rally has continued among the majority of facilities throughout the country during the first half of 2006.”
Though rounds seem to be on the rise, the survey found that water resources and pesticide contamination are two pressing environmental issues impacting today’s golf course executives. While two-thirds of respondents revealed they are not currently implementing water reduction programs, water resources ranked as the top environmental issue facing golf executives today. The survey results and verbatim comments indicate that respondents are clearly concerned about the future implications of water resources demands and regulation.
An overwhelming 70 percent of respondents claimed that they are concerned or very concerned with the impact of proposed pesticide bans and increased regulation. However, only one in 10 considered themselves actively involved in regulatory issues affecting the industry.
The findings also show the majority of respondents, 94 percent, believe that safety and liability exposures represent a significant concern in today’s increasingly complex legal and business environment. Fueled by this apprehension, 81 percent have reviewed or revised their insurance policies, though 89 percent said they have not yet faced any legal action.
Additional survey findings are available at Foley.com/golf.
Methodology
In April of 2006, Foley distributed a survey to 700 top executives within the golf industry. A total of 112 surveys were returned, representing a 16 percent response rate. The break-out of respondents included general managers (52 percent), Owner/operators (30 percent), and architects/developers (18 percent). Collectively, the respondents represent more than 150 golf courses spread throughout the country with a majority of respondents located in the Southeast (34 percent) and Midwest (27 percent). Because of rounding, not all numbers will add up to 100 percent.