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 $2.5 million and employs about 33 workers.

    • Around 9,100 courses generate revenue of $23 billion and employ 300,000 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 2022.
                                  Industry Forecast
                                  Golf Courses & Country Clubs Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Mar 15, 2024 - Fewer Golf Course Closures in 2023
                                  • According to the National Golf Foundation (NGF), there were more golf course openings and fewer closures in 2023 than in previous years. Only about 0.5% of the total number of golf courses in the US closed down this year, with approximately 90 golf courses, as measured in 18-hole equivalents, shutting down in 2023. This is the lowest number of closures since 2004. Meanwhile, 24 new 18-hole equivalent courses opened in 2023, the highest number since 2010. Over the longer term, the US golf course supply saw a net increase of 42% (4,117 18-hole equivalent courses) from 1987 to 2005, but a net decrease of 12% (2,270 courses) from 2006 to 2023. Overall, there are approximately 16,000 golf courses in the US.
                                  • According to a recent ConsumerSignals survey by Deloitte, more discretionary categories, including recreation and entertainment, leisure travel, restaurants, and electronics, represented an estimated 22% share of consumer’s wallets in January, up slightly from a year ago. According to the Spending Intentions index, global total spending intentions remained consistent in January compared to December and were significantly higher than a year ago. Spending intentions have gradually returned to their 2021 levels after inflation stunted global spending confidence. The survey also revealed that over 60% of survey respondents reported their finances had either remained the same or improved in the past year, up from 58% a year ago.
                                  • The 2024 Participation Report from the National Golf Foundation shows that golf’s consumer base is trending younger and more diverse. The report examined three primary participation groups: on-course only (12.1 million in 2023), off-course only (18.5 million), and those who participate in both categories (14.5 million). The number of golfers who play on the course has been growing for six years. The number of women and girls playing golf on a course has risen nearly a quarter since 2018, while the number of Asian, Black, and Hispanic golfers has climbed over 43%. Furthermore, the number of juniors participating on a course has also increased 40% since 2018.
                                  • Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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