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 $31 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 2023.
Industry Forecast
Golf Courses & Country Clubs Industry Growth
Recent Developments
Apr 15, 2024 - Higher Growth Expected for Industry
- The US golf course and country club industry is projected to grow at a CAGR of 4.5% 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 projected growth. The report noted that consumer confidence levels have improved, which bodes well for the arts, entertainment, and recreation industries. Additionally, consumer sentiment has seen a degree of improvement following sustained lower levels. As noted in the report, many older workers retired in recent years rather than endure pandemic-era employment challenges. The retirement population is expected to continue to rise rapidly as the Baby Boom generation retires. Per the forecast, "Greater opportunity for leisure for this large and growing segment of the population could drive demand for many arts, entertainment, and various recreational activities, particularly those that serve older people."
- Consumer confidence levels were essentially unchanged in March 2024 from February 2024, after a dip in February following three consecutive months of growth, according to data from The Conference Board. The Conference Board’s consumer confidence index was 104.7 in March 2024 from 104.8 in February 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Consumers’ assessment of the present situation improved in March, but they also became more pessimistic about the future.” Peterson added that confidence rose among householders 55 and over but fell for those under 55. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
- 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.
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