Even though real estate-related golf course make up only about 1/5 of America’s golf courses, they are almost half the new courses being built.
According to the National Golf Foundation Golf Facilities in the U.S., 2004 Edition, the proportion of real estate-related golf courses is approximately 19 percent of total. However, 48 percent of openings in 2003 were real estate-related and housing development is expected to continue to lead the way in golf course development.
In 2003, 171 golf courses, measured in 18-hole equivalents, opened, continuing a downward trend. Nearly 400 courses opened in 2000, followed by annual totals of 284, 200 and now 171.
“For the most part, new supply correlates with existing supply,” said Jim Kass, NGF director of research. “For example, about one-fifth of total golf course supply is in the South Atlantic region and about one-fifth of 2003 openings were in that region.”
The majority of new courses that opened in the past year, 73 percent, were new as opposed to expansions, and 74 percent are open to the public. A number of courses were identified as having closed, either in 2003 or earlier. Therefore, the net of new courses is actually 102, or an additional 0.7 percent.
The total number of facilities is 15,899, up from 15,827 at year-end 2002, a net increase of 72 facilities. Sixty-two percent of all facilities have 18 holes and 29 percent have nine holes.
The development pipeline shows 327.5 courses under construction with projected opening dates over the next three years. The NGF expects 175 to open in 2004. Another 379 courses are in planning and 322.5 are proposed.
Closures increased in 2002 and 2003. However, closures only represent 0.3 percent of total supply, a miniscule failure rate compared to small businesses in general.