What effect has the economic downturn had on the golf business?
While the banking industry faced collapse, share prices tumbled and many national economies went into recession, the golf industry has been left wondering whether it is still driving forward, or wandering towards a bunker from which it may be difficult to escape.
There are numerous stories of golf courses facing financial woes, others being sold at knockdown prices, while some have closed completely.
KPMG’s Golf Advisory Practice decided to assess the state of the golf business and performed this survey on the performance of golf courses throughout Europe, the Middle East and Africa regions. Specifically, we wanted to know how golf courses have been effected by the credit crunch – and what actions they are taking to counteract the downturn.
The results are fascinating. For example, our survey found that:
- Nearly 50 percent of the courses surveyed have seen revenues and profitability fall;
- Resort courses and golf courses linked to a residential community appear to have been hit harder than traditional, stand-alone golf courses;
- Half of the golf courses surveyed have made redundancies or cut staff costs;
- However, 54 percent of golf course businesses have a positive outlook for 2010.
Download our report to find out more.