Ava Romero
Golf courses close for a variety of reasons, including drought, development, and a lack of demand. In the past decade, nearly 1,200 golf courses have closed in the US, with California, Texas, Michigan, and Florida being particularly affected. While the closure of golf courses can be concerning to the local community, it is important to note that it does not necessarily reflect a decline in the popularity of the sport.
| Characteristics | Values |
|---|---|
| Number of golf courses closed in the past 10 years | 1,200 |
| Number of golf courses closed in the past 5 years | 700 |
| Percentage of golf courses closed in the past 10 years | 7.4% |
| Percentage of golf courses closed in the past 5 years | 4.7% |
| Reason for closure | Higher and better use of property, financial issues, competition, resistance to change, natural disasters, etc. |
| Impact of closure | Loss of community, elimination of history, increase in traffic, impact on public services |
| Examples of closed golf courses | Thornapple Creek Golf Club, Evergreen Point, Devil's Ridge, Elk Ridge, Melreese Golf Course, River Road |
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What You'll Learn
- Golf courses close due to competition, climate, and low participation
- Investor-owned clubs close due to higher economic returns elsewhere
- Resistance to change and lack of amenities can cause member-owned clubs to close
- Golf courses are repurposed for housing, hunting, and commercial use
- Golf course closures can result in the loss of community and history
Golf courses close due to competition, climate, and low participation
Golf courses are closing at an alarming rate, with nearly 1,200 courses ceasing operations in the past decade, according to the National Golf Foundation. This equates to 7.4% of the total supply of golf courses. While there are many reasons for golf course closures, competition, climate, and low participation are key factors.
Competition
Golf clubs and courses often compete for the same market segment, and this can lead to a race to the bottom in terms of pricing. When a club chooses to compete on price, dues, fees, and overall quality can decline. This can lead to a decrease in membership as the club fails to attract new members and retain existing ones. Ultimately, this can result in the club being sold and closed for development.
Climate
Climate change is also impacting golf courses worldwide. Courses are facing challenges due to changes in weather patterns, including wildfires, coastal erosion, and hurricanes. The maintenance required to uphold the aesthetic beauty of a golf course is significant, and climate change is exacerbating these challenges. Additionally, golf's heavy resource needs make it particularly vulnerable to heat and drought stress, lack of water access, erosion, flooding, and pest and disease pressures.
Low Participation
Golf courses, especially member-owned clubs, can close due to resistance to change from membership or leadership. Busy potential members with limited time and new golfers consider practice facilities essential, and the lack of kids' activities can be a dealbreaker. Clubs that do not reinvest in their facilities and choose not to spend money on enhancing their offerings may struggle to remain competitive and avoid closure.
The combination of competition, climate change, and low participation due to a lack of adaptation can lead to golf course closures. With the right strategies, however, some of these closures may be avoidable.
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Investor-owned clubs close due to higher economic returns elsewhere
Golf courses, especially member-owned clubs, often close because of resistance to change from members or club leadership. Many courses in the United States have closed due to a combination of high maintenance costs and declining memberships.
However, investor-owned clubs and courses often close because the property can be used for something more economically viable. For-profit ownership determines a more profitable direction, and the club or course is repurposed. When these clubs and courses close, it can have a significant impact on the community. The social and economic fabric of the community is affected, and the property can become an eyesore if it cannot be developed or there is a considerable time gap between closure and development.
For example, the Melreese Golf Course in South Florida closed in March 2023 for development into Miami Freedom Park, which will include a soccer stadium, hotel rooms, a retail area, an office park, and a public park. Another example is the Thornapple Creek Golf Club in Kalamazoo, which closed to make way for a new course in Augusta as part of the Gull Lake View Golf Club & Resort.
Golf courses, like any business, need to generate revenue to survive. While membership dues and green fees are essential, many clubs rely on hosting tournaments, special events, and weddings to bring in additional income. Sponsorship deals and partnerships with local businesses can also provide a financial boost. However, these revenue streams are often tied to the local economy, which can be unpredictable.
Golf tourism has become a significant revenue source for courses worldwide, with destinations like Scotland, Florida, and the Algarve in Portugal attracting golfers. Still, relying too heavily on tourism can be risky due to factors like global pandemics, economic downturns, or political instability, which can cause a sudden drop in tourist numbers.
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Resistance to change and lack of amenities can cause member-owned clubs to close
Golf courses, especially member-owned clubs, often close due to resistance to change and a lack of amenities. According to the National Golf Foundation, nearly 1,200 courses have closed in the past decade, with various reasons contributing to their decline and eventual closure.
Resistance to change is a significant factor in the closure of member-owned golf clubs. Club leadership and members may resist necessary transformations, such as reinvestment and addressing deferred maintenance. They might be reluctant to spend money on adding or improving amenities, which can lead to a decline in membership and the club's eventual closure. Resistance to change can manifest in various ways, including reduced output, increased employee turnover, quarrels, hostility, and strikes.
The lack of amenities in member-owned golf clubs can also contribute to their closure. In recent years, certain amenities have become essential for attracting and retaining busy potential members with limited time and new golfers. For example, practice facilities, kids' activities, and fitness facilities are now considered must-haves by many golfers. Clubs that do not offer these amenities may struggle to remain competitive and relevant, leading to a decrease in membership and revenue.
Additionally, member-owned golf clubs may face challenges due to market dynamics and competition. If a club fails to understand its position in the market and does not adapt its pricing, dues, and fees accordingly, it may lose members to other clubs or golf opportunities. Proper market positioning is critical for the survival of these clubs.
Furthermore, external factors such as droughts, water costs, and government budget shortfalls can also contribute to the closure of golf courses. These factors can lead to increased operating costs and decreased participation, making it challenging for owners to keep the courses open.
To prevent closure, member-owned golf clubs must address resistance to change and invest in essential amenities. By remaining competitive, adaptable, and responsive to the needs and expectations of their members, these clubs can improve their chances of survival in a dynamic market.
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Golf courses are repurposed for housing, hunting, and commercial use
Golf courses are closing in large numbers. According to the National Golf Foundation, nearly 1,200 courses have closed in the past decade, with over 700 closing in the last five years. This is due to a variety of reasons, including poor market positioning, resistance to change, and the high maintenance costs of running a golf course.
When a golf course closes, the land often has a "higher and better use". In many cases, the land is prime real estate for housing developments. For example, in New Jersey, there were plans to build affordable housing on a golf course, but local residents raised concerns about increased traffic in the area. Similarly, in Denver, a proposal to turn a golf course into affordable housing faced opposition from those who wanted the land to become a park.
In other cases, golf courses are being turned into parks, nature preserves, or public open spaces. In Detroit, the city plans to turn a course into a park with nature trails and stormwater management infrastructure. Near Seattle, the city of Bothell bought an 87-acre golf course to create public open space and restore wildlife habitats. In some cases, these parks were initially slated for housing developments, but neighbors resisted, citing the need for open spaces in urban areas.
The repurposing of golf courses can have a significant impact on the surrounding community. The loss of a golf course can disperse the community that once formed around it, and the development of the land for other uses can increase traffic, impact public services, and change the character of the neighborhood.
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Golf course closures can result in the loss of community and history
Golf courses often serve as a community hub, providing a space for social interaction and the formation of relationships. When a golf course closes, these communities can disperse, and relationships can be lost. This was evident in the closure of the Old York Country Club, which impacted the social lives of its members. The loss of a local golf course can be more significant than the closure of other businesses, such as restaurants or stores, as it often serves as a focal point for the community.
Additionally, golf courses, especially those that have been in operation for many years, can hold historical value. The closure of these courses can result in the loss of this history. For example, the Pioneer Golf Course at Texas Women's University, which opened in 1939, is set to close, taking with it a piece of the university's history. Similarly, the closure of the Thornapple Creek Golf Club in Kalamazoo will result in the loss of a course that has been a part of the community for many years.
The closure of golf courses can also impact the local economy and public services. The development of the land for alternative uses, such as residential or commercial real estate, can increase traffic, impact schools, and require additional infrastructure. This was the case with the closure of the Melreese Golf Course in South Florida, which was redeveloped into Miami Freedom Park, including a soccer stadium, hotel, retail area, and office park.
Furthermore, the closure of golf courses can be a result of resistance to change or a lack of reinvestment. Member-owned clubs may resist adding new facilities or services, such as practice facilities, kids' activities, and fitness centres, which can lead to a decline in membership and eventual closure. Proper market positioning and reinvestment are critical to the survival of golf courses in a competitive market.
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Frequently asked questions
Yes, golf courses are closing. According to the National Golf Foundation, nearly 1,200 courses have closed in the past 10 years.
There are several reasons why golf courses close. Investor-owned clubs often close because the property is more profitable when used for something else, such as housing or retail. Golf courses can also close due to natural disasters, such as droughts, or because of changes in the local area, such as a lack of housing development.
No, golf course closures last year were at their lowest figure in almost two decades. However, there are still more closings than openings.
