Golf Inc - August 2008 - (Page 27)

On a 1-5 scale, how important you think these critical issues will be to the golf industry in the coming year, with 1 being not important and 5 being very important: 1 Owners/operators Economic slump Rising operations costs Water issues Flat rounds Housing meltdown Labor issues Course overbuilding Environmental issues Pace of play 2.1% 4.3% 5.7% 4.3% 7.1% 8.6% 9.4% 8.6% 12.9% 5.0% 2.1% 9.3% 8.6% 15.7% 23.6% 21.0% 22.9% 26.4% 7.1% 7.1% 32.1% 27.9% 25.0% 32.1% 2 3 4 5 53.6% 58 6% 58.6% 28.6% 28 6% 18.6% 21.4% 12.1% 18.8% 6.4% 8.6% 31.4% 36.4% 27.1% 27 1% 28.6% 28.6% 21.4% 21 4% 24.6% 19.3% 17.9% 34.3% 26.1% 42.9% 34 3% 34.3% Developers/builders Economic slump Rising operations costs Water issues Flat rounds Housing meltdown Labor issues Course overbuilding Environmental issues Pace of play 0.0% 0.0% 0.0% 5.0% 4.8% 14.3% 9.5% 4.8% 0.0% 14.3% 19.0% 15.0% 4.8% 9.5% 23.8% 14.3% 76.2% 76.2% 19.0% 19 0% 19.0% 15.0% 42.9% 28.6% 28 6% 20.0% 33.3% 23.8% 14.3% 19.0% 14.3% 33.9% 33.3% 45.0% 45 0% 45.0% 19.0% 19 0% 23.8% 28.6% 38.1% % 38.1% 0.0% 0 0% 9.5% 19.0% 4.8% 38.1% 38.1% 38.1% 38.1% 23.8% 23 8% 33.3% 33.3% 19.0% 19 0% 33.3% 28.6% 33.3% 2 Product/service vendors Economic slump Rising operations costs Water issues Flat rounds Housing meltdown Labor issues Course overbuilding Environmental issues Pace of play 1.2% 0.0% 1.3% 0.0% 1.2% 5.0% 10.0% 5.0% 19.8% 0.0% 1.2% 7.6% 5.0% 12.2% 31.3% 18.8% 8.8% 7.2% 16.0% 30.4% 37.5% 37.5% % 25.6% 25 6% 24.1% 67.5% 38.3% 38 3% 26.6% 22.5% 26.8% 2.5% 12.5% 8.8% 8.6% 44.4% 44.4% 34.2% 34.2% 35.0% 35 0% 34.1% 34.1% 20.0% 20 0% 20.0% 26.3% 16.0% 41.3% 41.3% 38.8% 3 38.8% 28.8% 28 8% 25.9% 31.3% 31.3% 29.6% 29.6 29.6% 29.6% 29.6% 6 Management co. executives Economic slump Rising operations costs Water issues Flat rounds Housing meltdown Labor issues Course overbuilding Environmental issues Pace of play 0.0% 0.0% 2.7% 0.0% 0.0% 2.6% 5.3% 7.9% 5.3% 2.6% 2.6% 8.1% 2.6% 5.3% 15.8% 18.4% 28.9% 36.8% 7.9% 7.1% 27.0% 28.9% 31.6% 39.5% 39.5% 28.9% 28.9% 36.8% 36.8% 39.5% 39.5% 39 5% 26.3% 23.7% 32.4% 32.4% 36.8% 36.8% 34.2% 34.2% 34.2% 34 2% 26.3% 21.1% 13.2% 63.2% 63.2% 65.8% 65.8% 29.7% 29 7% 31.6% 28.9% 7.9% 21.1% 5.3% 5.3% are increasingly suffering. DeLozier predicted that once the current U.S. eco nomic situation improves, the private club business will be forever changed, in part because of demographic and sociological changes, and in part because developers will be much more reluctant to spend large sums on club and golf course development. He said they will be much more inclined to offload those costs to third-party club or course owner-operators upfront, in part because cautious lenders are increasingly unwilling to front funds for those expenditures. M i k e T i n k e y, d e p u t y chief executive officer of the organ ization, said that for many of the veteran owners at the multi-course owners gathering, the current economic pressures are a case of been there, done that. “We’re dealing with large operators and many have been in the same places for a long time, and do understand business cycles,” Tinkey said. “A lot of these folks have been through the ’70s, ’80s and ’90s. Some may look at this as closer to the downturn of the early ’90s. I think they started planning for the downturn of the economy six months earlier.” Nevertheless, reality has set in, even with the megaoperators of the industry. The NGCOA surveyed attendees on a five-tier rating scale when asking for a rating of their courses’ next year’s performance, ranging from up 6 percent or more to down 6 percent or more. “In 2006, 88 percent said it would be up from zero to 6 percent or greater, and in 2007, 95 percent said it would be up zero to six percent or greater,” Tinkey said. “This year, those predicting zero to six percent or greater were closer to 28 percent, so more of them are looking at this as a slowdown.” Tinkey said he was encouraged to see that many of the multi-course own ers say they plan to continue to invest in capital expenditure to improve their facilities and to reach out to non-traditional customer segments such as women, juniors and minorities. And 49 percent said they plan to add one or more courses to their portfolios in the next 12 months. Perhaps proving Munsch’s point that some golf industry vendors have the ability to pass their increased costs on to customers, industry vendor responders to Golf Inc.’s survey expressed almost rampant optimism for prospects in ’09. More than 60 percent of t hos e vendor sur ve y participants said they see the next year as good to very good for their businesses, and August 2008 www.GolfIncMagazine.com 27 http://www.GolfIncMagazine.com

Table of Contents Feed for the Digital Edition of Golf Inc - August 2008

Golf Inc - August 2008 Contents Editors Column Around the Industry: Big Green in Arizona Data Collectors Combine Forces GPSI Hires Chessler, Files Suit Americas Europe/Africa Asia/Australia Machrihanish Dunes Draws on the Past to Make History Again in Scotland Innovative Superintendent Finds Way to Keep the Nation's First Totally Organic Course Green Latest Clubhouse Designs Reflect Changing Lifestyles: It's All About Casual Camelback Conference Brochure More Operators Embracing Initiatives Aimed at Bringing Families Together on the Golf Course State of the Industry 2008 Muni Maddness? The Last Word

Golf Inc - August 2008

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