U.S. golf course openings remain at historic lows, as NGF recorded only 13.5 openings in 2012, compared to 154.5 golf course closures, measured in 18-hole equivalents (18HEQ). As in recent years, closures were disproportionately lower priced public facilities (68% of total closures).
According to NGF data, since the market correction in golf course supply began in 2006, there has been a cumulative net reduction of 499.5 golf courses (18HEQ), which represents a drop of 3.3% off the peak supply year of 2005. However, the cumulative decline over that period must be considered in context: even with seven consecutive years of net reduction in supply, closures represent only about 500 of 16,000 total facilities. For perspective, we opened 400 courses in a single year during the heart of the building boom. And, over the 20-year period from 1986 to 2005 the U.S. saw more than 4,500 18H-EQ golf courses open.
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NGF projects that golf course openings will remain at 20 or fewer per year for the forseeable future, while annual closures are expected to continue in the 150-180 range. The gradual market correction is expected to continue with annual net reduction of supply in the 130-160 range, helping us inch gradually closer to equilibrium.
In next month’s Dashboard, we will further explore the openings/closures data and golf course supply as we summarize findings from our 2013 Golf Facilities in the U.S. report. We will also review the NGF Golf Course Supply Index, which tracks the ratio of golfers to golf courses.
