Chicago’s Golf Market is Thriving While the U.
S has Entered the Declining
Stages, Where Efficiency and Innovation are Imperative|LEARN MORE BELOW
Chicago, IL
(ZPRYME
NEWS) – market conditions include the following
09/23/08 – characteristics:
“No one does it
better.”
According to
Chicagoland
Golf research, no single market in the U.S.
has opened more golf courses in the last
decade in such a small geographic region
than greater Chicago area.
However this leading position should be
mitigated by the well known fact that the
golf industry’s life cycle in the U.S has
entered the declining stages, where
efficiency and innovation are imperative.
Although the golf industry worldwide is
growing between 5-15% in countries like
Korea, Japan, India, China, Germany, the
U.K., and South Africa, the U.S. golf
industry as a whole finds itself in the
mature or declining stages of its life cycle.2
Not surprisingly, it faces more and more
golf course closures than course openings.
Unlike its counterparts abroad, which
reflects characteristics of a mature market.
However those businesses which remain in
this industry may discover segment niches
where viable opportunities exist to better
serve existing golfers, whether core or
occasional players, who had previously
been underserved, as well as potential
new players. The initial growth spurts the
industry experienced took place in the
How well do you know your consumer?
September
1920s, and then culminated with 16,057
golf courses in 2004.3 The current U.S
 12,000 golf courses generating a
combined annual revenue of about
$18 billion.
 25% growth in golf courses
throughout the U.S. during the 15
years preceding 2004.
 80,000 to 100,000 rounds per year
can be played throughout the year in
warm and dry places like Florida,
Arizona or Southern California, but
the average course in the US hosts an
average of 30,000 rounds per year
due to adverse winter weather.
 In 2007, rounds were relatively flat.
Rounds demand: not going up, but
not going down either; it is remaining
stagnant. Although rounds played
have been increasing since 2003,
growth is relatively flat (about a 1%
annual increase).
 2006 and 2007 were the first years
in history that the industry had a net
reduction in supply. Openings and
closings for 18-Hole Equivalent
Course (EHE) in 2007 balanced out
(0.1% reduction in supply); 2006 –
120
courses opened; 146 closed. 2007 –
113 courses opened; 122 closed.
 About 70% of US courses are open
to the public. Private courses get
revenue mainly from annual
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2008
memberships, public courses mainly
from daily fees.
 Membership dues account for a third
of industry revenue; activity fees
(“green fees”), 25%; food and
drinks, 35%.
 About 3,000 courses, with $7 billion
of revenue, are owned by non-profit
entities such as municipalities and
private clubs. Within the commercial
segment, the 50 largest companies
account for only about 25% of the
market. Large companies include
ClubCorp and American Golf Corp
and maintain an oligarchic market
position. The industry is clearly and
highly fragmented.
 The U.S. golf economy generated
$76 billion worth of goods and
services in the year 2005. This
represents an average annual
growth rate of 4.1% since 2000
($62 billion), and primarily reflects
growth in golf facility revenues, real
estate, and golf-related tourism.
U.S. Golf Courses & Country Club Revenue
(USD Million)
$25,000 $24,394
$24,021
$24,000 $23,603
$23,215
$23,000 $22,439
$22,000
$21,000
2010 2011 2012 2013 2014
Source (Update): IBISWorld, Golf Courses & Country Clubs in the US, 2009
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