The Golf Industry Has Shot Itself in the Foot

Recently I have been reading a research paper by a major university on the state of the golf industry and it seems that a lot of the challenges golf faces today are self-inflicted.

The Factors Contributing to Golf's Problems:

• The over building of golf courses during the boom years of the 1990’s.

• The building of longer, harder and more expensive golf courses.

• The slow play created by longer, harder, real estate development type golf courses.

• The building golf courses on speculation and not on socioeconomic demand.

• The building of golf courses that never had a viable business plan and are now environmentally, economically, and socially unsustainable.

In other words, even without a recession the golf industry would still be in trouble because of the paradigm change that occurred in the 1990’s.

What we have today is a situation where almost 90 percent of the golf courses are public access and roughly 30 percent are financially healthy, about 30 percent are slightly profitable or close to breaking even, and around 30 percent that are likely go out of business.

What we do know:

• We know there are about 4300 golf courses on the market for sale today. 

• We know there are currently about 1600 golf courses operating under bankruptcy protection.

• We know golf courses need to book about 64% of available tee-times to break even. 

• We know 60% of the golf courses are booking 44% of their available tee-times.

The Good News:

Help is on the way.  A book will be released in the near future that will offer a smorgasbord of proven techniques for operating profitably and turning money losers into money makers.  It will also cover golf instruction from a standpoint the will make it of interest to both teaching professionals and golfer alike.  I have only had glimpses at the data but it is extremely impressive.  I can only imagine the time, effort and money that have been poured into this project.