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
Oct 17, 2024 - Rounds Played Rise
- Rounds of golf nationwide increased 2% in August 2024 year over year, according to data from Golf Datatech and the National Golf Foundation. Year to date, rounds were 1.4% ahead of 2023’s record pace. Employment by golf courses and country clubs grew 0.6% in July 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees at golf courses and country clubs rose 3% in July 2024 compared to a year ago, reaching $19.86 per hour. Producer inflation for golf courses and country clubs increased 5.8% in July 2024 compared to a year ago, per the BLS. Consumer spending, a key indicator for the industry, grew 2.6% in June 2024 compared to a year ago and increased 0.2% from the previous month, according to the Bureau of Economic Analysis.
- 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 fell in September 2024, according to data from The Conference Board. The Conference Board’s consumer confidence index was 98.7 in September 2024 compared to 105.6 in August 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under the age of 35 and those in the income category of over $100,000. Plans for laptop/PC and smart phone purchases declined on a six-month average basis. Plans to buy a home or a new car improved slightly on a six-month average basis.
- The number of women and girls who played golf on a course reached 7 million in 2023, the highest participation level since 2006, which was a record high, according to a report by the National Golf Foundation. Female golfers now account for 26% of the on-course golfer population, an increase from 20% in 2011 and the highest proportion on record. The growth in female participation had been gradual before accelerating during the post-pandemic period, per the report. Off-course golf is also seeing growth in female participation. The proportion of female participants is 42% among those who only play off-course golf, at venues like Topgolf or indoor simulator facilities. The report noted that females account for over one-third of "latent demand," non-golfers interested in trying traditional on-course golf.
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