RainMaker
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2005 Golf Industry Outlook Survey The 2005 Golf Industry Outlook Survey, conducted
by the Golf and Resort Industry Team of Foley and Lardner LLP, reveals that
despite a positive growth forecast in course development, industry leaders are
concerned about the declining number of golfers and rounds played as well as a
lack of player retention. The findings were released earlier this week at the
firm's Golf Industry Executive Forum at East Lake Golf Club in Atlanta. Three of the most
revealing findings show that 95 percent of industry leaders are concerned about
the declining number of golfers. When asked to rank the top issues most likely
to impact their business in 2005, 71 percent of respondents cited the declining
number of rounds, while 68 percent indicated player retention. "Our survey
clearly indicates the golf industry is undergoing a transition period as it
grapples with various growth and business issues," said Van Tengberg,
co-chair of Foley and Lardner's Golf and Resort Industry Team. "While the
survey findings were in line with what we have been seeing in the industry as a
whole, they also revealed a number of opportunities for maximizing profits,
player development and retention." The Golf Industry Outlook Survey
found 77 percent of respondents selected water management as the predominant
environmental issue impacting the industry, explaining why courses are
increasingly turning to water conservation technologies. As a result of the ongoing
battle for water resources, more than half of respondents have been forced to
make sizable investments in their irrigation systems, install drought-resistant
grass and/or investigate reclaimed water options. The findings show the
majority of respondents are missing profit opportunities by failing to
maximizing their tax incentives. This year, only about one in five respondents
plan to utilize conservation easements, and just one half plan to take
advantage of the depreciation of their greens and tees. These figures highlight
an opportunity to educate the industry about methods to leverage the existing
tax laws. The survey indicates
that although the majority of industry leaders who responded are concerned
about the declining number of golfers, they foresee a 13 percent increase in
the development of golf courses during the next five-year period. Respondents
are also optimistic that course development will continue to expand at an even
higher rate over the next ten-year period. Course owners are also
turning to marketing activities that will help retain their existing players
and attract new golfers. They are increasing their advertising and promotional
budgets, creating player development and customer loyalty programs, enhancing
the customer service experience and lowering fees. Additionally, more than 70
percent of respondents indicated they are planning to target women, and 33
percent are directing their efforts at minorities in 2005. Additional survey findings are available at
http://www.foley.com/golf . Working with Crittenden
Magazines during February 2005, Foley and Lardner conducted a survey of 669
golf course architects, developers, general managers, directors of golf,
financiers, and other industry professionals. The survey was distributed and completed
via an interactive Web site, yielding a total of 80 responses. About Foley and Lardner Foley and Lardner LLP is a
provider of legal counsel to global companies. The firm's experience
encompasses a full range of corporate legal services. Foley and Lardner's nearly
1,000 attorneys understand today's most complex business issues including
corporate governance and compliance, securities, mergers and acquisitions,
litigation, labor and employment, intellectual property and IP litigation, and
tax. The firm offers total solutions in the automotive, life sciences,
financial services, insurance, health care, energy, golf and resort, and sports
industries. The Web site can be found at http://www.foley.com/ . |
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