What does 2012 hold for Irish Golf?

Kevinmarkham

If anyone's interested in what might lie ahead over the next 11 months, I've written up some thoughts on my blog...

... but some of the figures are fairly scary. The number of golfers (with full GUI membership) between 2007 and end of 2011 has fallen by 17% (over 25,000).

I've broken it down into:
Irish professionals (and the particularly perplexing case of Padraig Harrington)
Golf Clubs
Membership
Tourism
Green Fees

Let's have your thoughts.

L.O.F.T

I think Kevin you will see ever more numbers leaving the game in 2012 regardless of the offers being given by golf clubs. There is as many leaving clubs now as there was joining them during the boom years. The simple fact is that anyone who is on a budget or receiving advise on how to make ends meet will always look to the luxury's and necessaries.
Golf will suffer because of many peoples financial situations and regardless of the abundance of offers available I think the vast majority who took up the game will become green fee players and the golf society will become the new bastion for those that crave the buzz of the club atmosphere that they have lost but can no longer afford. Society's and green fees will now become the staple source of income for most clubs, more so than the past, if they are going to survive. As anyone who loves golf you know that once hooked you are hooked for life and you will need to get your fix regardless whether it be green fee of society golf. The vast majority of members in clubs these days are in my opinion just about paying their subs especially those clubs built around commuter belts. The established clubs will always do well because of location and demand.

golfwallah

Most clubs won’t know their membership numbers for 2012 until March / April .... by which time it will be getting a bit late in the day to do anything about replacing revenue lost from non-renewals (given most clubs financial years end in August or September).
There is evidence (from price reductions, member incentives for signing new members, free draws, sales campaigns – fliers, shopping centre based, etc.) that, apart from cost reduction, some clubs have marketing plans and are implementing them.
Good luck to these clubs, they are making efforts to adapt to the new economic realities.
But many are doing little as regards revenue generation, other than waiting to see how many of their members will renew for 2012 and then figuring out what to do next (reaction management).
Given the downward trend in GUI membership, it will be interesting to see how many will drop out of the GUI numbers in 2012 and how the clubs will deal with revenue shortfalls.
Asking members to stump up levies is no longer a runner, IMO.
It’s a buyers’ market and clubs need to up their game to keep existing members and attract new ones.
“Squeaky bum time”, as Sir Alex says, is fast approaching.

The_Architect

Free golf for juniors is the only way.

That's not €100 or €200... That's FREE.

golfwallah

The_Architect wrote: »

Free golf for juniors is the only way.

That's not €100 or €200... That's FREE.

Free junior golf – agreed this is a good idea that clubs should consider as a way to attract people with families and build future membership.

GUI Booklet “Promoting Golf Club Membership” (published in 2009 – copy attached) recognised falling club membership and put forward lots of recommendations and issues for clubs to consider, such as:

“The financial cost around joining, allied to the benefits of club membership must be such as to create added value when compared with remaining as a casual/nomadic golfer.
Measures being considered and implemented by clubs to reduce the financial burden on members include:
 Reduction or elimination of entrance fees.
 Spreading payment of entrance fees and subscriptions (direct debit).
 Arranging bank finance for entrance fees and subscriptions.
 Reducing the cost of transition from junior to full member. This is very relevant in view of age profile statistics.
 Low annual fees option .....
 Incentives to members who introduce new members.
 Free Clubhouse membership to a spouse/life partner who does not play golf.

Other issues to be considered include:
 Develop a marketing and advertising programme.
 Establish links with local colleges and schools.
 Ensure that entrance to junior categories is not restricted to sons and daughters of existing members”.

Wouldn’t it be great if more clubs took heed of this document and did more to retain and attract members.

Kevinmarkham

A very good point about Juniors - Philip Reid mentioned this as something they do in Turkey (I think), in the Irish Times yesterday, and my home club's Junior section has expanded considerably in recent years as senior members are being far more active (and Paul Dunne started having such success)...

... but the difficulty with that is it's a longer term solution - in terms of financing a club and building loyalty. What about here and now? I met a marketing manager from one of the Leinster clubs recently and he quipped that "Committees are a cul de sac down which great ideas go to be strangled and die." He has a point. When we see some of the stupid, financially inept decisions that Councils and Committees make, is it any wonder!

My uncle plays golf in The Warren GC in Essex, and the club brought Ian Poulter in to run golf clinics for Juniors. It was a huge success and the Junior membership rocketed... until local clubs came along and poached all the best Juniors. I guess if Junior golf was free that wouldn't be an issue.

And as golfwallah points out, clubs with sound marketing plans are at least trying to maintain or build business. It's about exploring new ideas, and far too many clubs wouldn't know what to do with a new idea if it came up and hit them in the head.

And a big thank you for that attachment, golfwallah. Very interesting reading. As has been pointed out, membership will continue to fall in 2012, despite the financially more agreeable terms that clubs have brought in.

golfwallah

There's no shortage of ideas in clubs - problem is that the vast majority of these ideas boil down to spending money and little or none are about making money.
People in clubs can easily spot what needs to be done to improve the course, clubhouse, etc., but have forgotten that these ideas take resources (either voluntary or paid for) to bring them to reality.
In recession, club priorities have to be about survival and growth, in other words generating enough revenues to pay for and improve member facilities. As the old reaction management approach of levying the members will no longer work, this means taking on new ideas like market planning, new membership types, green fee deals, etc.
The current economic downturn is fast teaching us all that old lesson again.

golfwallah

Looks like clubs will have to learn the hard way.

Per KPMG Report “Golf Participation in Europe 2011”:
“Golf clubs need to proactively and effectively face up to the challenging economic climate to retain members or attract new golfers. Based on our survey, rather than introducing youth and family promotional programmes, 30-40% of Europe’s operators and club managers actually increased prices in 2011. On the other hand, more than half of clubs have not enhanced marketing efforts – and (somewhat surprisingly) many have not yet capitalised on the opportunities provided by online marketing and social media”.

For full report click on: https://static.golfbusinesscommunity.com/media/1/8/4/1/1841.pdf

billy3sheets

Wonder if there will be any boost to membership from the thousands of public service members taking retirement this year?
Many of them will be looking for something to do with their spare time (and their money!).

golfwallah

Wonder how many clubs will act on this recent report?:

http://www.golfcoursearchitecture.net/Article/Tailor-courses-for-women-says-study/2386/Default.aspx

stockdam

Many course in the ROI may close but those in NI will hold their own.
Members will continue to leave and join societies.

Irish/NI will have a world No. 1 golfer.

golfwallah

stockdam wrote: »

Many course in the ROI may close but those in NI will hold their own.
Members will continue to leave and join societies.

Irish/NI will have a world No. 1 golfer.

Rory Mc for No. 1? He's 2 ahead of the field in the Honda Classic right now .... let's hope he closes out as a winner!

What makes you say courses in the North will hold their own over those in the Republic?

Of the many you think will close - where will they be ... will most be in Dublin, other city areas or in rural locations, and roughly how many of the +400 courses in R.O.I. are likely to go?

stockdam

golfwallah wrote: »

What makes you say courses in the North will hold their own over those in the Republic?

Less new courses were developed at high cost all trying to attract new members. Lower wages and costs.

golfwallah

stockdam wrote: »

Less new courses were developed at high cost all trying to attract new members. Lower wages and costs.

Hard to compare costs & wages, but have dug out some comparative prices (converted into €).

Looks like you have a point and prices in the Republic need to drop some more to bring them into line with N.I - see attached pdf file.