You’re sure to get many different opinions if you speak to people about golf. For some it is a pastime of a wealthy man, for others it is an boring game.
One thing that you may not know is the fact that it can make a lot of money. This piece was written by David Rycott. It gives you a comprehensive overview of the business of golf stores and courses. We also examine using the United States case study as a reference, the latest figures by SRI international.
According to the report there were 26 million US golfers in 2011, and the total revenue from them was $69 billion. The 2011 figure was slightly lower than the 2005 research ($79billion), but it still outperformed other professional sports revenue such as basketball, hockey and football. The ripple effect of tourism on golf was included in the $177 billion increase in revenue. This is enough for anyone to believe in the economic impact golf has on their economy.
The National Golf Foundation claims that there are approximately 16,000 courses of golf in the United States. Each course was built to high standards and cost large amounts. In terms of construction costs, Trump National Golf Club ranks as the most expensive. Trump International spent $264m on it.
There were more than 75 projects currently underway, contributing $515.8m to US GDP and $1.6b in investment into existing courses.
The Flourish of Golf Stores
David Rycott, a Finance and Golf Expert, spoke with us about golf store’s potential to bring a significant increase in revenues and profits to the country. He said that “the average player or enthusiast golf spends a lot money on merchandise.” In the US, golf merchandise brought in $2.1 trillion last year.
It was also revealed that golf apparels accounted for $1.6billion, with Tuttle Golf and Greg Norman Collection making the largest sales. People also bought golf bags for between $30-10,000.
Golf balls and club clubs
Callaway and Callaway Hex-Chrome balls made $3.5billion in US golf revenue in 2011. Golfers were also fondly interested in the Five Stars package from Honma (a Japanese producer). They sold for $32,000. This luxury 14-set, platinum- and gold-plated golf club was a great buy!
Future of Golf Stores And Courses
These figures make it clear that golf is much more than a pastime. These figures do not include the U.S. but show the extent of the golfing industry worldwide. Even though they are much lower than those in the USA, the financial results for most major golf destinations worldwide will be positive. It’s evident that the golf industry isn’t going anywhere soon.