The State And Future Of Arizona's Golf Industry

The Arizona Republic's Russ Wiles uses the Waste Management Open as a reason to consider the state of Arizona's $3.9 billion golf industry. The story is lengthy and contains some very good info if you're in the industry (thanks reader John for the link).

The questions and answers posed by Wiles are many of the same you've heard by now: things aren't too bad right now and even encouraging where facilities have made some adjustments, but the industry certainly isn't growing and the all-important M's don't want to participate in something taking four-five hours.

Nearly two-thirds of active players are 40 or older.

Participation among minors "has been declining for several years, as younger generations opt to play other sports or engage in other activities," said IBISWorld.

Also, it takes a lot of time to play golf well — not just in spending what can easily be five-plus hours for a round of 18 holes, but in the years of practice it takes to become reasonably skilled.

"As an industry, we need to find ways to have a one- or two-hour experience," said Gurnow. That's in addition to other ways the industry might appeal to newcomers.

This was interesting and a huge issue on the jobs front if the only answer is another TopGolf (not that there's anything wrong with TopGolf!).

Labor tops the list on the expense side, including for clubhouse/golf-shop staff and course-maintenance workers. Water and other utility costs were next,then course-maintenance supplies/services, general-administrative expenses and food/beverage outlays.

The highest number of Arizona golf-course jobs are in course maintenance — estimated at 5,000 positions in the 2014 report, followed by food/beverage workers (2,300), golf-shop personnel (1,780) and administrative staff (1,040).

Comments

[Bud]

Aging golfer base is a big problem. I Just attended a large local golf show and, judging from the demographics of the attendees, golf will be in big trouble in 10 years. 90% of those attending had to be over 55.

[D. maculata]

So what has changed since the oversold golf bubble burst? The shake out hasn't been completed yet, that's what. And until it does, the competition for every available dollar will be ugly. The serious player will gravitate to private clubs and semi-private facilities. It appears more are banking on social membership income than before. Be advised the menu items better be up to the task or there won't be enough traffic to justify the labor expense, never mind eliminate the hassle of making reservations at a quality restaurant. Resort and destination type courses will have to accept what the market dictates, the lion's share coming from the serious player noted above. I doubt they'll have to go beyond intelligent carts to keep said players feeling like they've been disconnected from the world. Not an entirely bad feeling in my book, business obligations a given. It's the lowly and better public operations that have their hands full. And sadly, the place where most of the growth came from at one time. Now they're socializing at TopGolf. The market always finds a way to fill a void. And in doing so, created a clientele that would expect a carnival atmosphere were they to take the game up seriously.

[BrianS]

So 20 years ago were there a bunch of young golfers ? Or maybe historically golf has always been for late middle age folks with a few extra dollars and some more time on their hands. I know when I was 25 (25 yrs ago btw), I didn't know a bunch of guys that played golf that were my age.

And one thing I would say: Golf is 100% more attractive to school age girls than it has ever been. My daughter's high school has a bigger girls golf team than boys.

[BDF]

Separate the golf industry from the sport. The industry went overboard, and now there is a correction. Historically, the sport has never been one for the masses for many, many reasons - time, difficulty, economics to name a few.

A sport that has survived for over half a millennium will not be lost because the current generation has no attention span. There are, however, quite a few courses and manufacturers that may be in trouble for over speculating.

[Claude]

Mandatory carts. That's what ruined the game.

[ChuckDietzenTNnotIN]

@ BDF +1
Game's good. Industry may be bloated. (And correction may be in the fore.)

[FC]

It's a costly endeavor (time and money), with too much competition for the fun dollar. A $10 bucket of balls suits many for an occasional golf urge.

[JRM]

I joined a 9 hole course. Early tee times then you have the rest of the day to do whatever.
Can use driver on 5 or 6 of the holes. That works for lots of people.

[2.5Pac]

How do you bench Malcolm Butler?

[Colin MacGillivray]

BrianS - when both husband and wife both started working to provide enough money for the family, the husband's expectation to spend Saturday at the golf course disappeared. In addition children require parents to ferry them everywhere at the weekend now. So young men play twice a month often Sundays and don't join clubs. The average age of members of clubs increases by a year each year.
Claude - declining number of players is a problem in New Zealand where carts are very rare - everyone walks with a trolley for their clubs, sometimes electric.

[Steven T.]

Yes golf is a difficult sport to learn and play reasonably well- bogey golf. Yes, golf takes time away from family life.. Yes, golf can be expensive. Public golf courses should not be overly difficult. There are many out there sloped at 115 or lower to accommodate the bogey golfer.Playing 9 holes is a solution. Playing it forward is another solution. Promoting walking may help but the golfing culture in the USA at most public courses ( except for munis) is cart golf and will be difficult to overcome. Blame President Eisenhower for making the golf cart popular in the 1950s. First Tee programs can help. The bottom line is that golf may suffer in the short term. All I know is that prime season in AZ & FL & CA and Mexico & The Caribbean can be be very popular for those who can escape winter weather.

[Ian B]

Think golf's not in trouble? I live 10 minutes from a top 50 course in the world that is now offering 5 day/mid-week memberships at around 3K a year.... Sydney has 90+ courses - only 1 or 2 have a membership waiting list. 10 years ago it was 20+ clubs that were tough to join.

[JDWG]

Time is not the issue, price is the issue. Long Beach and LA area muni's are packed sunup to sundown, price is right, tons of pent up demand that is not being met. Golf is thriving there and clearly time is not an issue, long rounds at those places. Golf also thriving at high end places like Scottsdale National and Bighorn where price doesn't matter and members have time to burn.

The middle is where some are struggling. Price is too high, very often driven by fixed overhead unrelated to the actual golf course itself. In lieu of big clubhouses most of these places would be way better off with a double-wide trailer stocked with a few dozen shirts, some pre-made sandwiches, cold soft-drinks and beer. Many of these places will never dig out of their upside-down position and eventually some other use for the land will emerge.

[LA John]

I'm with JDWG. In metro locations, golf isn't hurting for people on the tee sheet. A lot of courses are close to home, and the green fees are affordable. I think the green fees could actually increase if the conditions and services improved, and the market would bear it.

[Bud]

Simple Economics. The law of supply and demand will prevail. Prices and course supply and demand will balance. The only ones "in trouble" are the companies expecting a never-ending increase in the cost of the game.

[John L. O'Sullivan]

That article is in the running for worst of the millennium. Absolutely horrid. Pitiful. No basis in fact. Has nothing to do with golf.

[Sam]

Egull.golf offers a “Play and Pay by the Hole” technology solution. Ask your Course to consider providing this option. Free to download for course and golfer. Not a discounted option (unless the course wants to make it so)