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”
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
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)