Golf Courses & Country Clubs
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 9,100 golf courses and country clubs in the US can be broadly classified as public, private, or semi-private facilities. Golf courses typically offer only golf, and related golf services or products, while country clubs usually offer more extensive recreational activities, such as swimming and tennis. Country clubs also tend to be more private facilities, and usually offer more social services, such as a full service restaurant, formal dining room, and banquet/meeting facilities.
Environmental And Government Regulation
Golf courses and country clubs are heavily dependent on fungicides, insecticides and fertilizers to control insects, turf diseases, and to keep the various grasses green and in tip-top playing condition.
Ownership Of Multiple Courses
With so many golf courses across the nation struggling to survive, some opportunistic investors are finding success in acquiring and operating multiple courses in one geographical area as a way to pool resources, reduce maintenance costs, and market attractive combined playing options.
Industry size & Structure
An average golf course generates annual revenue of about $3.5 million and employs about 45 workers.
- Around 9,100 courses generate revenue of $31.5 billion and employ 407,000 people.
- The golf courses and country clubs industry is highly fragmented with the 50 largest firms representing just 18.5% of revenue.
- About 12% of courses closed between 2006 and 2023.
Industry Forecast
Golf Courses & Country Clubs Industry Growth
Recent Developments
Nov 17, 2024 - Inflation, Wages Up
- According to the Bureau of Labor Statistics (BLS), producer inflation for golf courses and country clubs increased 5.7% in September 2024 compared to a year ago. Employment by golf courses and country clubs grew 0.7% in September 2024 compared to a year ago. Average wages for nonsupervisory employees at golf courses and country clubs rose nearly 5% in September 2024 compared to a year ago, reaching $20.55 per hour. Rounds of golf nationwide increased 3.7% in September 2024 year over year, according to data from Golf Datatech and the National Golf Foundation. Year to date, rounds were 1.7% ahead of 2023’s record pace.
- Golf courses in the US spent about $3.1 billion in the past year on significant discretionary capital expenses to enhance their offerings in areas like the clubhouse, infrastructure, technology, and amenities, according to operator survey responses in a report from the National Golf Federation (NGF). The discretionary spending at the 16,000 courses in the US does not include spending that would be deemed necessary like replacing an aging irrigation system. Approximately 35% of responding private clubs and 10% of public courses made discretionary capital investments of $1 million or more in the past year. The report noted the investment is a “noteworthy sign of the health and vitality on golf’s supply side.”
- The US golf courses and country clubs industry is projected to grow at a CAGR of 4.8% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is faster than the overall economy‘s anticipated growth. The report noted that consumer confidence is expected to improve in the forecast period, which bodes well for the arts, entertainment, and recreation industries. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest levels, and elevated price levels. Price growth, however, is diminishing and likely to stabilize soon near intended rates. According to the forecast, the Baby Boom generation’s retirement is expected to drive greater demand for many arts, entertainment, and recreational activities. Golf courses may want to focus on this segment as a potential opportunity for growth.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
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