As with many economic sectors, the recession has hit the $76 billion golf industry hard.
Dependent on discretionary spending, the sport is vulnerable to major economic swings as equipment prices and daily fees for a round of golf rose dramatically during the decade. Also, at the golf course level it’s a business that depends on good weather to turn a profit. According to the PGA of America, the 16,000 golf courses in the country employ some two million workers who generate some $61 billion in wages. A majority of golf courses around the country have cut back on labor and maintenance costs and private clubs have taken the drastic step of decreasing their membership fees in an attempt to draw players. Devito estimates player rounds could be down by around five percent when his fiscal year ends June 30 — in FY 2008, Pease handled 38,500 player rounds — and he said that’s a good number given the sinking economy and the rainy weather last fall that hurt revenues. Devito said he had cut back on salaries and salaried positions and is working with a leaner work force than in previous years. Daily greens fees were raised by a few dollars. But what’s been promising, along with relatively good weather, is that a growing number of value-conscious members have switched from full-week memberships that cost $1,400 annually to mid-week memberships that run $1,000 for play from Monday through Friday — and keeps open more traffic for weekend play for daily fee players. “We have 120 of those memberships, which is the largest number we’ve seen. This shows the price consciousness that’s out there,” he said. The more upscale Breakfast Hill Golf Course in Greenland has offered a $1,600 weekday membership plan (full week membership is $2,500) which general manager Thomas E. Conlin believes will provide a niche to golfers looking for value. “It’s good for retired golfers or teachers on their summer break. We think this will lead to more play as their friends join them,” he said.
Conlin said Breakfast Hill began enacting cost-cutting measures last year, including hours for seasonal labor, in an effort to be as strong as possible.