Despite the decline in average rounds played, the industry saw a slight increase in three of the four revenue metrics.

 

There’s no denying the economy stinks, and more than a few clubs are hurting. But the state of golf is not exactly as dire as some may think. That’s important to keep in mind, as many of us gear up for the start of another season on the course and in and around club and resort facilities.

The PGA of America and the National Golf Course Owners Association (NGCOA) have issued their year-end 2008 Rounds Played and Revenue report, generated from the PGA Performance Trak program, in cooperation with the NGCOA. Based on data supplied throughout the year by about 2,500 facilities, these were among the chief findings:

• Rounds played were down -0.8% for 2008 on a nationwide basis, with a similar decline in year-to-date days open, at -0.7%.
• Average rounds played per course were 27,966 in 2008, compared to 28,202 in 2007.

Not exactly what one might describe as crisis conditions. The report went on to state that despite the decline in average rounds played, the industry saw a slight increase in three of the four revenue metrics collected and reported by PGA Performance Trak:

• Median golf-fee revenue per round was up 1.7%
• Median food and beverage revenue per round was up 1.6%
• Median total revenue per round was up 1.5%
• Median merchandise revenue per round declined 2.4% for the year.

Not huge growth, but up is up—and who is going to argue with growth of any size in this economy?

Golf remains king in the world of clubs and resorts; however, my guess is that rounds played will decline slightly more than .8% in 2009, compared to last year. Golf is an enduring game, and as noted in our “Golf’s Future” feature last month, the industry, led by the PGA and other groups, is starting to take a more proactive approach to promoting play. These efforts will bear fruit, but reality suggests the economy will remain an obstacle for some time yet this year.

More importantly, the Performance Trak results confirm it’s important to recognize that we can’t just expect golf to carry the club on its own anymore. The reality is that F&B, spa, fitness, catering, and other recreational activities and events have to take more of the lead.

We are hearing about some clubs that have closed for the first time in this off-season, or for longer than they usually do, because they haven’t positioned themselves well for either the changes in the industry or the economic downturn. Many other clubs, however, are actually doing better in the off-season, because they have.

This month’s cover feature on Stowe Mountain Resort (pg. 14) provides a great example of the year-round approach that we advocate for all clubs and resorts—even if you don’t have a ski mountain in your back yard.

The “New Year” for many clubs is about to begin, and it won’t be doom and gloom for the clubs that excel beyond the first tee box and the 18th green.