The Future Of Golf - Reports Into The State of The Game

http://worldgolfreport.blogspot.com/2012/02/talking-points-dana-garmany-on-golfs.html

http://www.golfindustrycentral.com.au/news__/view-news.php?cat=21&url=http://www.golfincmagazine.com/blog/talking-points-kpmg-golf-development%E2%80%99s-future

A couple of decent reads, which flag up some big talking points about the slow down in growth around Europe and the USA. 46,000 fewer UK members which is believeble as we all know people who havn't renewed because of finances etc. Middle East slow down, Turkey marketing golf differently. Private members clubs having to change the rules to ensure they get younger members.

Doc - second link doesn't work; comes up with "page not found"!

LadyPutt wrote:Doc - second link doesn't work; comes up with "page not found"!

I don't think the website has their 1's and 0's in the proper order.

1. Click on the link and go to the page which says "page not found."
2. Then type in the name: Dana Garmany in the search box and click "search."
3. Then click on the top article in the searched articles: "talking points Dana Garmany on Golf’s Future."
4. This is an article by "Robert J. Vasilak."
5. Within the article click the link: "a recent conservation with KPMG’s Golf Business Community," and the article appears as: "International operator: how Dana Garmany took Troon Golf global."

LP and venice: A cut and paste below

Europe’s economic struggles are having an impact on the state of golf, according to a new report by KPMG’s Golf Advisory practice.

The number of registered golfers declined in 2011 by 46,000, the first year that the continent has seen a decline. At the same time, the number of courses increased by .7 percent to 6,740.

“While the growth of golf started to slow down after 2005, last year was the first time there was an actual decrease in registered golfers,” said Andrea Sartori, head of KPMG’s Golf Advisory Practice. “The decline can be attributed to two factors: the reduction in the number of golfers in some of Europe’s largest golf markets, especially the UK and Ireland, and the lack of dynamic growth in Europe’s emerging markets, specifically Eastern Europe and the South-East Mediterranean.”

There was a loss of 42,700 registered golfers in the UK & Ireland (3.1%), followed by Sweden (loss of 21,000) and Spain (loss of 9,700).

Meanwhile, golf course development has been slowed due to a lack of financing and confidence.

“The increasing equity requirements of financial institutions, the growing cost of debt and the increasing expectations of investors in terms of returns, means the market for golf resorts with real estate will continue to suffer for quite some time,” Sartori said.

Sartori said the first markets to bounce back will be the ones with “potentially strong domestic demand, which are also appealing to the international market from a tourism perspective.” He said cited Italy, France and Turkey as possible areas that could rebound first.

Turkey has aggressively marketed to children, to help build domestic demand.

“While much of the golf market stagnation in Europe may be attributed to the overall economic climate, continued support and investment in new programs will be needed to sustain demand and generate further growth in the game, especially in mature and developed golf markets,” Sartori said.

The downturn in golf participation follows a 25-year period of growth – the number of golf courses more than tripled since the 1980s, while the number of golf courses doubled.

Sartori said most countries are not investing into growing the domestic game.

“Rather than introducing youth and family programs, and promotional packages, approximately 30 to 40 percent of Europe’s operators and club managers actually increased prices in 2011,” Sartori said. “More than half of clubs have not invested in enhanced marketing – and many have not yet capitalized on the opportunities provided by online marketing and social media.”

I want to know how I can join KPMG’s Golf Advisory Practice!

raycastleunited wrote:I want to know how I can join KPMG’s Golf Advisory Practice!

Me too!

Thanks for the "copy and paste" Doc. That was the link that wouldn't open but thanks to Venice for telling me how to open a link that I could.

LP you can't kick off with Venice (I had to have a double take too) He's been very busy keeping all us punters happy, with his excellent organisation of the fantasy league. He's tired and a bit emotional now

I enjoyed the bit about private clubs having to change policy about mobile phones etc, just to attract and be able to keep the well heeled young exectutives .....

But 46,000 fewer members over here shows how many players are opting for pay and play clubs now. Have heard stories about many club members sharing the anual charge between them, having one of them as a member and siging the other in as a guest and splitting that charge ...... Heard about a couple of mates who live in the same flat actaully got away with family membership ....

1GG/Venice: what is membership like over in the States now, is it in decline? I appreciate that club development as declines and especially the resort type complexes ...

Doc - I've not been a member of a club now for at least 18months for various reasons and don't see I'm likely to join another one for at least 4 years. One of my reasons is (and this has been a beef of mine for years) that ladies' sections of clubs are stuck in the dark ages and still think that "ladies" sit at home enjoying coffee mornings and going to the gym in between playing golf and taking the kids to school and picking them up because they have a husband who goes out to work and provides for them. They forget we are in the 21st century now and a large proportion of us have to work and so can't play during the week. We then miss out on matches, opens and awaydays - unless we are prepared to use precious leave (which I'm not). I'll have to wait until I retire and then perhaps I'll join somewhere. Same goes for LordPutt who is currently enjoying playing every week at a local 9-hole pay and play where he can play for £7 as a senior (and he gets a free round in every 8 as well).

And I'm not having a go at Venice - he knows I him really!

LP I know what you're saying about some clubs, but I suppose it depends where you are and what's around you. Mrs Doc took up golf 3-years ago (Because I convinced her to move to a new house on our course) I got her to take the game up and meet some mates etc. She's now on the main committee and was part of a group of ladies who formed the ladies section. She was vice captain and declined the captaincy for personal reasons, but the ladies have a great time. They got ladies comps split into 2 so working ladies played Saturdays and the rest on Tuesdays, although seperate comps because conditions and pin positions are different etc. ladies can now enter some of the club comps, can be part of team events and of course we have mixed informals etc. Many of the ladies are also part of the seniors section and can play with them and go on their away days, as well as having their own away days, which are usually alcohol fueled with nice food somewhere.

We got new owners last year, and the owner has installed his PA as general manager of the club, and she takes no prisoners, so ladies are looked after, because she sees the ladies section as something to grow, and has also got mums to bring their kids in for a new junior section with coaching etc.

LP - it's such a shame you don't live in the Thames Valley - my club looks after the ladies very well and they get a great choice of midweek and weekend comps - sometimes it feels like they get more than the men!

It almost seems the opposite of what you experience - most of the midweek lady golfers are seniors also and they get plenty of chance to play seniors matches against other clubs and individual comps - but those that play at the weekend get lots of chances to play comps and matches at the weekend

Davie
Same applies at my club, if you are female or a retired senior you got it made, the rest of us just have ti fit in around them.

Doc wrote:1GG/Venice: what is membership like over in the States now, is it in decline? I appreciate that club development as declines and especially the resort type complexes ...

Not sure about what 1GG's understanding and knowledge of the situation as he's in the North East part of the U.S. but in SoCal the membership numbers are also down but probably not as noticeable as many other areas of the country as the courses still seem full especially on the weekends. Since the weather here is conducive to playing golf year round, the number of golfers never seems to wane. I do know for a fact that the private clubs are not doing as well as the public clubs especially in the more remote or rural areas. But the local tournaments are always popular and draw just as well as before the global financial crunch. If I had to give an estimate, I would say that the number of total rounds played yearly in Southern California is down by 12% - 15%.

I belong to a Los Angeles public city golf course club (Rancho Park Golf Club) and our membership dues are only US$150 per year. Many of the semi-private clubs average around $2,000 - $5,000 per year and the private clubs... well. Most of our tournaments or competitions (of which there are many, including team comps in the L.A. City League) are relatively inexpensive at about $50 - $60 per tournament except for the majors. The women have their own club but they are also allowed to belong to the "mens" club if they so choose but there aren't too many takers. We usually have about 600 - 700 members who keep their dues up to date. Here's a link to the RPGC:

http://rancho.lagolfclubs.com/clubs/NewHome.cfm/ClubID/29/Section/Home

When I first moved to NE Pennsylvania we had a bunch of courses and clubs around us. On route 209 in less than 10 miles there are 5 courses, 4 who did membership. The other was attached to a timeshare type resort so was after daily fee play. Nearby there were 5 other clubs.

Five years later it is a very different picture. Pretty much all of those clubs are in trouble of one form or another.

My club is now owned by the Township (council) after being opened as a private members club asking $5k to join at first with later members being charged $10k. That never came to fruition and they gradually opened up the membership options before being donated to the Townshil to avoid a tax bill.

It was taken on as a politicians pet project before he lost a primary for reelection and the club took the blame. It was more a result of him pairing up with one of the other voting members to vote through as a majority. The strip club was the downfall but that's another story. As a result of his childish behaviour the club had the bar closed then was closed to outside play an then closed early. It has taken a concerted effort to persuade it to reopen this year. Time will tell whether it remains open.

Other clubs last year closed early as they ran out of money. Several of them have gone up for sale and it is unclear as to whether they will be open this year. Another private members club was closed, taken over by the members in an attempt to keep it going but ultimately they too ran out of money.

Other clubs have been hit by the poor summer, heavy rains and flooding. One is supposedly up for sale and the other is well established but needs some hefty investment to build a permanent bridge across the Delaware river.

I think the number of rounds are down and I know of golfers that are seriously contemplating not being a member anywhere and playing when they feel like it for as cheap as possible. Whether that proves a sustainable model for the golf clubs in our area remains to be seen. I don't think the local clubs will all remain in operation by the end of the season.

I do miss belonging to a proper club as such. We only have one individual comp and that's the club championship. We have sone team scrambles and pairs scramble/better ball/ foursomes but otherwise comps are few and far between. I get looks of amazement when I regale them with stories of a Saturday medal, Sunday medal and midweek medal. Those get doubled with stablefords plus other club comps in various formats throughout the month.

Being a member here is certainly different to what it was in the UK.

So if the game is in decline, if we only consider membership numbers, and courses/clubs struggling. What succesful measures have worked to halt the decline in certain areas/clubs that have increased membership. What did they do to have a point of difference? must be some good initiatives out there?

Joining fees cancelled is one thing, but on the other end there are clubs who have increased joining fees to make it even more exclusive for the social climber.

Davie wrote:LP - it's such a shame you don't live in the Thames Valley - my club looks after the ladies very well and they get a great choice of midweek and weekend comps - sometimes it feels like they get more than the men!

It almost seems the opposite of what you experience - most of the midweek lady golfers are seniors also and they get plenty of chance to play seniors matches against other clubs and individual comps - but those that play at the weekend get lots of chances to play comps and matches at the weekend

The club I used to belong to also had weekend matches and comps for working ladies (that's why I joined) but other clubs' Opens and competitions organised by the County are always midweek and so if you want to progress and play against/with different and better players, then you're stuffed unless you are prepared to take leave from work. The same goes for comps organised by the EWGA and LGU. I often wonder how junior golfers manage to progress unless they have indulgent parents who are happy to sponsor them.

oldparwin wrote:Davie
Same applies at my club, if you are female or a retired senior you got it made, the rest of us just have ti fit in around them.

That's exactly my point, OPW. If you're female and have to work (I don't do it out of choice, but of necessity), then you are exactly the same as the men in the club (eg you can only play at weekends but still have to pay for 7-day membership) but most ladies' comps organised outside the club (county, opens, EWGA etc) are played midweek.