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
Dec 14, 2024 - Sentiment on Golf Improves
- A recent National Golf Foundation (NGF) survey measuring golf sentiment and engagement found significant improvement over the past decade. The percentage of Americans describing golf negatively improved from 57% in 2013 to 31% in 2024. In 2013, respondents used words like boring, stale, pretentious, and intimidating to describe the sport. The percentage of Americans who say they play on or off-course golf has risen from 10% in 2013 to 15% in 2024. Since the pandemic, recreational golf has seen a renaissance with participation, play, and engagement gains. NGF notes that social media has helped to spread positive sentiment about the sport of golf. Non-golfers who have golf in their social media feeds describe the sport of golf as fun, exciting, engaging, and cool, per the NGF. Golf’s overall reach has grown to more than 125 million in recent years, which includes golfers and non-golfers who watch or read about the game.
- Consumer confidence levels increased in November 2024, improving by 2.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 111.7 in November 2024 from 109.6 in October 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “Consumer confidence continued to improve in November and reached the top of the range that has prevailed over the past two years.” Purchasing plans for homes stalled and new cars rose slightly in November 2024 on a six-month average basis.
- 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.
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