By AAGD STAFF
For business titans looking to gain profits for their portfolios, whether they play golf or not, new data affirms that the game of golf is still big business.
The new study, conducted by GOLF 20/20, indicates that golf directly drove $84.1 billion into the United State’s economically in 2016, according to a study commissioned by the World Golf Foundation. These statistics are a sharp 22% increase from the $68.8 billion that was reported in 2011, which was when the last U.S. Golf Economy Report was released.
When it comes to workforce employment, the golf industry report shows that nearly 1.9 million jobs and $58.7 billion in compensation were directly related to the sport.
NATIONAL GOLF DAY
Steve Mona, CEO of World Golf Foundation, announced the new numbers on April 24 in Washington, D.C. at the National Press Club, just ahead of the 11th annual National Golf Day in Washington D.C. National Golf Day is held in the nation’s capital and its where leaders in many of the sectors of golf gather to officially meet with members of Congress, the Executive Branch and federal agencies to discuss social, economic and charitable benefits of the game. Discussions surround topics such as the more than 15,000 businesses involved with golf, along with the nearly two million jobs impacted and health and fitness benefits of the game.
MONEY TALKS
Leading the money trail are the optations of facilities. There are approximately 15,000 golf facilities in the U.S. and numbers show they generated almost $33.3 billion in operating revenue alone in 2016. The facility funds come from a variety of sources but mostly from fees charged for memberships, cart and greens fees, banquet services, and merchandise sold onsite. Operational revenue was up almost a whopping 12% from $29.8 billion in 2011. A strong number that confirms a financial crisis turnaround after the drop in 2010.
On the scale to the increased growth in golf industry revenue and leading as the second largest revenue driver is Tourism. Tourism drove about $25.8 billion in golf industry revenue and the number is up from $20.6 billion in 2011. Construction of new golf homes, an indicator of national trends, jumped surprisingly to $7.2 billion after sloping down to more than $3.1 billion just seven years ago.
There was over $6 billion of apparel, golf equipment, media and on-course and off-course sales in 2016. Here, the largest growth in sales was lead by the equipment category. New and avid golfers spend here helps them to continue to enjoy and learn the game along with acquiring the latest tools used for playing, socializing and training, etc.
Other areas of spending included professional tournaments, associations and player endorsements. These areas of revenue increased to approximately$2.4 billion. The fundraising and charitable category accounted for roughly $3.94 billion.
The study on this increase in golf industry generated revenue came out less than a month before the National Golf Foundation released its new Golf Industry Report, a comprehensive state-of-the-industry overview that includes NGF research on golf participation and engagement, and golf course supply.
