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
Aug 12, 2024 - Declines in Inflation, Wages
- Producer inflation for golf courses and country clubs rose in the first three months of 2024 before falling in April and May month over month, according to data from the Bureau of Labor Statistics (BLS). Employment at golf courses and country clubs grew year to date through May, while wages mostly declined during the same period. Average wages for non-supervisory employees reached $20.30 per hour in May 2024. According to a recently released study from the BLS, median long-term productivity in golf courses and country clubs declined 2.6% per year from 1987 to 2022. In addition, consumer spending levels grew during the first five months of 2024, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- Consumer confidence levels rose in July 2024, after a decrease in June, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.3 in July 2024 from 97.8 in June 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those 55 and older in July. Those in the income category of over $100,000 were the most confident on a six-month moving average basis. Plans for large appliance and smart phone purchases increased on a six-month basis, while plans for home purchases fell to a 12-year low.
- Rounds of golf nationwide halfway through 2024 were trending 2% ahead of the mid-year total from a year ago, according to data from Golf Datatech and the National Golf Foundation. In 2023, more rounds of golf were played at US courses than any other time in history. According to the report, in the previous 49 months since pandemic-related restrictions only three months failed to outperform their pre-pandemic equivalents. All of the underperforming months were April, which is the most variable month for weather.
- 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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