SLO County Golf, Wine & Real EstateGolf, Wine & Real Estate News and Events Blog
San Luis Obispo County Golf Boom?Sunday, October 30, 2005With another golf course - Monarch Dunes Golf Resort - nearing completion here in San Luis Obispo County, you might think there's a golf boom on the Central Coast. In reality, many of our county courses have struggled in recent years, along the the golf industry as a whole.Not only has overall participation slowed, but expenses have risen significantly with the higher costs of oil and fertilizers. Here in San Luis Obispo County, our privately owned local courses also have the extra challenge of competing with the lower greens fees offered by our three county courses, which are subsidized by local tax dollars. According to an article today in the LA Times, this isn't the scenario that golf's gurus envisioned in the 1990s, when the "Tiger effect" - a surge in interest in the sport inspired by the arrival of Tiger Woods on the pro tour - and dot-com stock options fueled the belief that a course a day could be built for the foreseeable future. That euphoria extended into 2000, when 400 courses opened nationwide. This year, about 150 will open, still far exceeding the 50 or so that will shut down. The build-it-and-they-will-come mentality has been fueled by demand for high-end communities anchored by alluring courses. It comes after a heady half-century of growth; only 3.5 million Americans played golf in 1950, compared with 27.3 million in 2004. But the number of rounds played increased by just 0.7% in 2004 after three years of decline. The ranks of serious golfers - the roughly half of all players who account for the vast majority of rounds - fell by nearly 5% last year. Woods has lured newcomers, including many minorities, to the game. Latinos, Asians and African Americans now account for one-fifth of all players, according to a 2003 National Golf Foundation survey. But many new golfers quickly retire their clubs because of the game's high costs, its inherent difficulty and the time it takes to play 18 holes - or because they come to agree with Mark Twain's observation that golf is a good walk spoiled. That leaves golf's near-term success in the grip of baby boomers, those now in their 40s and 50s with time and money to play, their fascination with the game ingrained after watching Jack Nicklaus and Arnold Palmer turn it into a television staple. "We see 15 to 20 years of terrific business ahead for our company," said Henry Dozier, vice president of golf for Pulte Homes, which owns the Del Webb retirement communities. "If you were born in 1964, that makes you 41 right now, and you'll be hitting the Del Webb sweet spot in 10 years and be in it for another 10 years." What's uncertain, said Steve Mona, chief executive of the Golf Course Superintendents Assn. of America, is whether boomers with a wealth of leisure activities to choose from will hold onto their clubs or trade them for running shoes, bicycles and kayaks. Golf also must hone its marketing game for younger consumers "who've had computer screens in front of them since grade school," said Dana Garmany, chairman of Troon Golf, a Scottsdale, Ariz., company that owns and operates courses. "If golf doesn't understand how to evolve, it's going to end up being like polo." Most new courses in the last decade have been high-end, daily-fee clubs that are open to the public. In most cases, the developer builds the course and surrounding homes and eventually sells out to the homeowners or an operating company. The math can work, if the owners are willing to pay for upgrades over the years, and the course generates enough cash to remain healthy. Golf's new economics have ended the days when club pros could build a career on a solid swing and a winning smile. The emphasis is on luring customers and getting them to play often. Courses are rolling out frequent-golfer cards, wine tastings and barbecues. Some offer day care for toddlers and free rounds to children playing with parents. Others offer deep discounts on second rounds. Operators also are recognizing that golf traditions are not sacrosanct. "These kids are going to be bringing their laptop, their cellphone and BlackBerry, and they're going to be wearing their favorite cool shirt," said Tim Hurja, a PGA pro whose company books golfers onto Palm Springs-area courses. "What's golf going to do? Say, 'No, no, no, you can't have a cellphone, you've got to wear this shirt, and you can't have a mulligan?'" Read entire article here: After Boom, Golf Isn't Out of Woods LA Times, Greg Johnson |
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