Golf course openings down; closures up in 2005
Jupiter, Fla. – National Golf Foundation tracks golf courses from the planning stages through construction to opening day. In 2005, there were 124.5 course openings (in 18-hole equivalents). That’s fewer than the 150.5 that opened in 2004, and well below the recent high-water mark of 398.5 reached in 2000. In fact, one would have to go back to the mid-1980s to find the number of openings as low as what was seen in 2005.
NGF also identified 93.5 closures (in 18-hole equivalents) in 2005, resulting in a net addition to supply of only 31 18-hole courses, or two-tenths of one percent of total supply. The number of closures in 2005 was the highest in the two decades NGF has tracked this statistic.
Eighty-five, or about two-thirds, of 2005 openings were completely new facilities and 39.5, or one-third, were expansions to existing tracks. And, two-thirds were either daily fee or municipal, leaving 40 18-hole equivalents that opened as private clubs. The median rack-rate green fee at new public courses is $50, meaning half are charging below $50 and half above.
Sixty-one percent of 2005 openings (76 18-hole equivalents) were built in conjunction with a real estate development. The high percentage of real estate-related courses continues a recent trend in which the majority of new courses are being built in golf communities. (In the 1990s, only about 35 percent to 40 percent of new courses were real estate-related.)
Looking at the development pipeline, there are 308 courses currently under construction; 373 in the planning stages; and 251.5 that have been proposed (pre-planning stage). Given the number of courses under construction that are expected to open in 2006, NGF estimates there will be 120 to 140 18-hole course openings this year.
Trends in golf course openings
(18-hole equivalents)
2001 284
2002 220
2003 171
2004 150.5
2005 124.5
2006 120-140
Rounds finish year flat
Same-store rounds played in the U.S. finished 2005 at -0.1 percent, or flat, as compared to 2004. Rounds were stable during the high-volume summer months and, not uncommonly, more volatile in the winter months. Private club rounds were down 1 percent, while public courses were ever so slightly positive. (Same-store rounds means, for example, that only facilities reporting rounds for both December 2005 and December 2004 are included in results.)
Rounds played – 2005 vs. 2004
Jan. -4.0 percent
Feb. +3.7 percent
March -10.8 percent
April -0.7 percent
May +1.1 percent
June +0.2 percent
July -0.3 percent
Aug. -0.3 percent
Sept. +1.0 percent
Oct. +0.6 percent
Nov. +13.1 percent
Dec. -8.1 percent
Total U.S. facilities -0.1 percent
Private clubs -1.0 percent
Total public courses +0.1 percent
Public courses
· Premium +0.1 percent
· Standard +0.3 percent
· Value +0.1 percent
