How’s the Golf Industry Faring in this Economy?
A key insurance program we offer is for golf courses, so we make sure to keep up with how the industry is being affected by the economy and what the outlook is. In looking at 2012, it’s a bit of a mixed bag that reflects what various pundits are saying about our economy in general. Some see signs of improvement with layoffs slowing down and job numbers improving in December, along with retail sales climbing, while others warn of another recession. As with any discretionary expense and leisure sport and activity, the golf industry is affected by what is going on at the macro level.
The good news is that those clubs that invest in new programs and lifestyle reap the rewards. An example of this is in the growth of clubs that are tied to residential communities, those that put an emphasis on family, fun and fitness. They have a competitive edge and will continue to do so. The entire family can enjoy a vacation where golf is available along with a myriad of other activities for the children.
On the global market scene, development outside of our country has experienced the same growing pains we have with an oversupply in markets that are unproven. According to online publication Golf Course Industry, “many new project planners and investors have not identified audiences with adequate depth and breadth to sustain start-up and standalone enterprises.”
How about growing the game? In December, Jack Nicklaus, the World Golf Hall of Fame member and golf icon, announced that he will join the PGA of America and industry leaders at the 59th PGA Merchandise Show in Orlando, Florida, to launch Golf 2.0, golf’s new strategic plan to grow participation in the game. The show takes place January 25-28, with the Golf 2.0 presentation on Thursday, the 26th.
Golf 2.0 and its initiatives is aimed at helping all sectors of the industry expand participation, increase revenue, and build the vitality of the game for future generations. According to the PGA Merchandise Show, the goals of Golf 2.0 are to increase participation from 27.1 million golfers generating $33 billion in annual consumer revenues today to 32 million golfers and $35 billion in consumer revenues by 2016. By 2020, the goal is to have 40 million golfers generating $40 billion in annual revenues.
At IPOAUSA, we’ll continue to keep you in the know on the industries we serve to help you when speaking to your insurance clientele.