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NGF Announces Golf Facility Revenues Flat, Two Thirds of U.S. Facilities Report Decrease in Rounds Played in 2002 Contact Beth Gast or Mike Alday (March 21, 2003) - According to the latest NGF research study, conducted with the support of the leading industry associations, total rounds played at U.S. golf facilities dropped 3.0 percent compared to 2001 while total revenues were relatively flat, increasing by only 0.9 percent. The rounds and revenue data come from a survey in January 2003 of 2,191 golf facilities. The sample data was weighted to be nationally representative. "The decrease in rounds was expected," says NGF president Joe Beditz. "Lack of growth in the number of golfers continues to inhibit any material growth in rounds played or facility revenues, making facility owners and operators vulnerable to increased competition and the poor economy." Rounds revenue - the sum of green fees, guest fees, golf car rentals, annual dues and trail fees - increased 0.6 percent, from $13.10 to $13.18 billion. Food and beverage revenue increased 1.8 percent, from $5.74 to $5.84 billion. Meanwhile, merchandise revenue decreased 0.9 percent from $2.19 to $2.17 billion. Still, while decliners led advancers more than two to one in terms of rounds played, clearly there are still golf facilities that are doing well in bad times. According to the Mike Hughes, Executive Director, the National Golf Course Owners Association "Operators who had fewer rounds in 2002 than 2001 cited weather, the economy and competition as the top reasons for the decline. Meanwhile, those who had more rounds in 2002 cited weather, improved course conditions, improved or increased advertising/marketing and improved management as the main reasons for the increase." Regionally, only Central/South Florida and the Gulf Coast posted modest gains in rounds of 0.2 percent and 1.4 percent, respectively. Together, they showed an increase of a half million rounds. Hardest hit regions were the Lower Midwest (including Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska and Ohio) - down 5.5 percent - the Southeast (including Alabama, the Florida panhandle, Georgia, Mississippi, North Carolina, South Carolina and Tennessee) - down 5.1 percent - and the Northeast (including New England and the Mid-Atlantic states) - down 5.0 percent. The difference in the decline of rounds by course access was negligible: public facilities showed a decrease of 3.0 percent vs. 3.2 percent for private. To download your free copy of Rounds Played in the U.S., 2003 edition, log on to www.ngf.org and click on the lower right hand corner of the screen. About the NGF The National Golf Foundation, founded in 1936, is the industry leader in providing accurate information and insights on the business of golf. Based in Jupiter, Fla., the NGF serves many constituencies in the golf industry including equipment manufacturers; builders and developers; facilities and ranges; course architects; retailers; turf maintenance suppliers; golf associations and the media. |