RUFFIN BECKWITHRUFFIN BECKWITHSenior Vice PresidentSenior Vice President

World Golf FoundationWorld Golf Foundation

““80% of success is 80% of success is just showing up.”just showing up.”

- Woody Allen -- Woody Allen -

20/20 INITIATIVES20/20 INITIATIVES

• Adult Player DevelopmentAdult Player Development• Junior GolfJunior Golf• ResearchResearch• CommunicationCommunication• Alternative FacilitiesAlternative Facilities• CollegesColleges

2002 HOST FACILITIES2002 HOST FACILITIES

• Charlotte, NC - 10Charlotte, NC - 10• Denver, CO - 4Denver, CO - 4• Nashville, TN - 7Nashville, TN - 7• Raleigh, NC - 9Raleigh, NC - 9• Toledo, OH - 12Toledo, OH - 12• Ventura County, CA - 10Ventura County, CA - 10• Worcester, MA - 7Worcester, MA - 7• U.S. Air Force Bases - 5U.S. Air Force Bases - 5

PROGRAM COMPONENTSPROGRAM COMPONENTS

• Price: Average $149Price: Average $149• Orientation and Facility TourOrientation and Facility Tour• Six hours of instructionSix hours of instruction• Five free “on-course experiences”Five free “on-course experiences”

JUNIOR GOLFJUNIOR GOLF

COMMUNICATIONSCOMMUNICATIONS

THE GOLF INDUSTRY THE GOLF INDUSTRY REPORT FOR 2001REPORT FOR 2001

INDUSTRY REPORT: SourcesINDUSTRY REPORT: Sources

• ESPN Sports PollESPN Sports Poll

• National Climatic Data CenterNational Climatic Data Center

• National Golf Course Owners AssociationNational Golf Course Owners Association

• National Golf FoundationNational Golf Foundation

• Nielsen Media ResearchNielsen Media Research

• PGA of AmericaPGA of America

• PGA TOURPGA TOUR

• U.S. CensusU.S. Census

INDUSTRY REPORT: RoundsINDUSTRY REPORT: Rounds

• Information from 2,426 facilities of Information from 2,426 facilities of 15,720 (15.4%)15,720 (15.4%)

• One-time adjustment of 8%One-time adjustment of 8%

• 2000 - 518,400,0002000 - 518,400,0002001 - 518,100,0002001 - 518,100,000

INDUSTRY REPORT: INDUSTRY REPORT: ParticipationParticipation

20002000 20012001

ParticipantsParticipants 36M36M 37.1M37.1M

GolfersGolfers 25.4M25.4M 25.8M25.8M

JuniorsJuniors 4.0M4.0M 4.4M4.4M

Alternative UsersAlternative Users 1.7M1.7M 2M2M

Range UsersRange Users 4.9M4.9M 4.9M4.9M

• 20% of people over 12 in U.S.20% of people over 12 in U.S.answer “yes” to the question:answer “yes” to the question:“Do you play golf?”“Do you play golf?”

• That equates to 45 million people. That equates to 45 million people. Our study identified about 35 Our study identified about 35 million.million.

INDUSTRY REPORT: ESPN PollINDUSTRY REPORT: ESPN Poll

OccasionalOccasional CoreCore AvidAvidYearYear (1-7)(1-7) (8-24)(8-24) (25+)(25+)

19971997 10.6M10.6M 7.9M7.9M 5.6M5.6M

20002000 10.9M10.9M 7.3M7.3M 6.2M6.2M

20012001 14.2M14.2M 5.7M5.7M 5.9M5.9M

INDUSTRY REPORT: INDUSTRY REPORT: FrequencyFrequency

• Ratings of all competitive golf are down less Ratings of all competitive golf are down less than 10% since 1996, well below industry norm.than 10% since 1996, well below industry norm.

• PGA TOUR ratings are up 20% in same time PGA TOUR ratings are up 20% in same time period; only other sport that increased was period; only other sport that increased was NASCAR (+5.8%)NASCAR (+5.8%)

• Percentage of respondents claiming to be fans Percentage of respondents claiming to be fans of professional golf is up from 32% to 40% since of professional golf is up from 32% to 40% since 1995, far bigger increase than any other sport.1995, far bigger increase than any other sport.

INDUSTRY REPORT: InterestINDUSTRY REPORT: Interest

• Increase in new courses from high of Increase in new courses from high of 3.2% in 2000 to 2.3% in 2001 to 3.2% in 2000 to 2.3% in 2001 to projected 1.8% this year.projected 1.8% this year.

• Average rounds per course:Average rounds per course:20002000 33,73733,73720012001 33,00033,000

INDUSTRY REPORT: INDUSTRY REPORT: Course Course DevelopmentDevelopment

If new courses increase by 1.5% per If new courses increase by 1.5% per year…year…

Total Courses Total Courses TotalTotal Rounds/Rounds/20202020 RoundsRounds CourseCourse

20,90820,908 690 million690 million 33,00033,000

836 million836 million 40,00040,000

1 billion1 billion 47,80047,800

INDUSTRY REPORT: INDUSTRY REPORT: Course Course DevelopmentDevelopment

RESEARCHRESEARCH

Key Findings

• The annual impact of golf on charitable The annual impact of golf on charitable giving is dramatic!giving is dramatic!

– The majority of facilities averageThe majority of facilities average10+ charitable outings10+ charitable outings

– 140,000+ charitable golf outings140,000+ charitable golf outingsare held in the United Statesare held in the United States

– 15,000,000+ participants play golf15,000,000+ participants play golfin a charitable outingin a charitable outing

Total Revenue Exceeds $2.9 Billion!

THE GOLF ECONOMYTHE GOLF ECONOMYTHE GOLF ECONOMYTHE GOLF ECONOMY

• Who benefits, and to what degree?Who benefits, and to what degree?

• Get perspective on benefits to travel, Get perspective on benefits to travel, tourism and real estate industriestourism and real estate industries

• Improve Wall Street’s perspectiveImprove Wall Street’s perspective

• Elevate golf’s status vis-à-vis other sports Elevate golf’s status vis-à-vis other sports and industriesand industries

• To measure our progressTo measure our progress

• To measure the value of a single golfer to To measure the value of a single golfer to the industry the industry

Core IndustriesCore Industries

Golf Course Capital Investment

Infrastructure Improvements

Course Renovations Clubhouse

Renovations

New Course Construction

Equipment / Golf Car Purchases

IrrigationInstallation

EnabledEnabledIndustriesIndustries

The Golf ClusterThe Golf Cluster

Tournaments

MEDIA, TOURNAMENTS,& ASSOCIATIONS

CharitiesPlayer Endorsements

Television

Player Endorsements

Associations

GOLF COURSECAPITAL INVESTMENT

Infrastructure Improvements

Course Renovations

Clubhouse Renovation

s

New Course Construction

Equipment/Golf Car Purchases

IrrigationInstallation

GOLFER SUPPLIES (on and off course)

Soft GoodsHard Goods

ApparelBooks &

Magazines

HOSPITALITY/TOURISM

Air Travel

Entertainment

LodgingFood &

Beverages

Car Rental

REAL ESTATE

Related ResidentialConstruction

Real Estate “Premiums”

•Green fees, member dues•Food & beverage•Lessons, schools, camps•Rentals

GOLF FACILITY OPERATIONS

Estimate of the Golf EconomyEstimate of the Golf Economy

$62,167 TOTAL

$23,384

$13,480 Hospitality/Tourism

$9,904 Real Estate

Enabled Industries

$38,783

$4,493 Media, Tournaments, Charities, and Associations

$5,982 Golfer Supplies

$7,812 Golf Facility Capital Investment

$20,496 Golf Facility Operations

Core Industries

Overall Size of the Golf Economy in 2000 by Segment ($ millions)