RICHARD SINGERRICHARD SINGERDirector of Consulting Services,Director of Consulting Services,

National Golf FoundationNational Golf Foundation

Raleigh-Durham MSARaleigh-Durham MSAGolf Market StudyGolf Market Study

Director of Consulting Services,Director of Consulting Services,National Golf FoundationNational Golf Foundation

Raleigh-Durham MSARaleigh-Durham MSAGolf Market StudyGolf Market Study

PurposePurposeRDU MARKET STUDY RDU MARKET STUDY

• Study market Study market dynamics dynamics and potentialand potential

• Assess interest in Assess interest in growing the gamegrowing the game

• Develop an approach Develop an approach for future studiesfor future studies

Why Raleigh-DurhamWhy Raleigh-DurhamRDU GOLF MARKET STUDY RDU GOLF MARKET STUDY

• ““Typical” AmericaTypical” America

• Mid-SizedMid-Sized

• Above Average GrowthAbove Average Growth

• Good DemographicsGood Demographics

• Ample & Diverse Ample & Diverse SupplySupply

• 10% Increase Expected10% Increase Expected

  

  Value Mid-Fee Premium

No. of Facilities 22 17 14

Total Rounds Played

644,500 624,500 522,500

Avg. Rounds/Facility

29,000 36,700 30,700

Desired Capacity %

83% 91% 93%

Avg. Change in Rounds 99-00

(74) (367) 1,076

Avg. WE Fee w/Cart

$31.00 $48.50 $73.34 

Thumbnail SupplyThumbnail SupplyRDU GOLF MARKET STUDY RDU GOLF MARKET STUDY

Thumbnail DemandThumbnail DemandRDU MARKET STUDY RDU MARKET STUDY

• 15.5% participation rate age 12+ 15.5% participation rate age 12+ (National rate is 11.7%)(National rate is 11.7%)

• Female participation 52% higherFemale participation 52% higher

• 141,000 golfers age 12+141,000 golfers age 12+

• Average rounds played per year = Average rounds played per year = 21.4 (same as national average)21.4 (same as national average)

Three Key FindingsThree Key FindingsRDU MARKET STUDYRDU MARKET STUDY

• Abundant latent demandAbundant latent demand

• Un-used golf facility capacity Un-used golf facility capacity

• Operators eager to go after Operators eager to go after latent demand, but want latent demand, but want and need helpand need help

Abundant Latent DemandAbundant Latent Demand

RDU MARKET STUDY RDU MARKET STUDY

• Estimated at 500,000 roundsEstimated at 500,000 rounds

– 285k from golfers who 285k from golfers who want to play morewant to play more

– 150k from former golfers 150k from former golfers returning to the gamereturning to the game

– 65k from “never-evers” 65k from “never-evers” with high interestwith high interest

FROM WHICH CONSUMER GROUPS WILL LATENT DEMAND MOST LIKELY COME

FROM WHICH CONSUMER GROUPS WILL LATENT DEMAND MOST LIKELY COME

• Net, there’s “surveyed” Net, there’s “surveyed” interest out thereinterest out there

– Largest contingency Largest contingency in current golfers in current golfers wanting to play morewanting to play more

– Followed by “former Followed by “former golfers” and then golfers” and then “non golfers” in “non golfers” in roughly even roughly even numbersnumbers

Golfers141,000 (38%)

Former Former GolfersGolfers

161,000 161,000 (44%)(44%)

Interested Non-Golfers

66,000 (18%)

Raleigh-Durham Golf Consumer Raleigh-Durham Golf Consumer Universe in 2000 (368,000)Universe in 2000 (368,000)

Capacity to Accommodate DemandCapacity to Accommodate Demand

RDU MARKET STUDY RDU MARKET STUDY

• DefinitionsDefinitions

– Actual UtilizationActual Utilization

– Desired UtilizationDesired Utilization

– CapacityCapacity

• Capacity in market to absorb Capacity in market to absorb demanddemand

• New development opportunities still New development opportunities still exist in certain locations and at exist in certain locations and at certain price pointscertain price points

RDU GOLF SUPPLY & DEMANDRDU GOLF SUPPLY & DEMAND

“Town Hall” Meeting“Town Hall” MeetingRDU MARKET STUDY RDU MARKET STUDY

• Latent demand estimate Latent demand estimate confirmed confirmed

• High female participation High female participation estimate confirmedestimate confirmed

• Operators eager to grow Operators eager to grow golf, express need for helpgolf, express need for help

ImplicationsImplicationsRDU MARKET STUDYRDU MARKET STUDY

• All golf is localAll golf is local

• Statistical modeling can Statistical modeling can predict demand, but we must predict demand, but we must understand local golf understand local golf operationsoperations

• Facilities need help in Facilities need help in identifying and achieving identifying and achieving capacitycapacity