Harper Lin
Golf courses are closing all over the world, from California to Michigan, Hawaii to Texas, and even internationally in places like the UK. The closure of golf courses is a topic of frequent interest and misinterpretation. While some people may assume that golf is losing its popularity, the closure of courses is often due to a variety of reasons, including the lack of housing development, aging infrastructure, government budget shortfalls, and the impact of the COVID-19 pandemic. In some cases, golf courses are sold to developers and repurposed for alternative uses, such as residential or commercial real estate. The loss of a local golf course can be impactful on the community, as it may serve as a focal point for social connections and a source of history and memories.
| 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 |
| Reason for closure | Higher and better use, drought, competition, low participation, water costs, lack of housing development, etc. |
| Impact of closure | Loss of community, elimination of history, 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 market dynamics, economics, and competition
- Investor-owned clubs close when the property has a higher alternative use
- Clubs with poor market positioning and resistance to change often close
- Golf courses are impacted by natural disasters, like droughts
- Golf courses close due to lawsuits and legal issues
Golf courses close due to market dynamics, economics, and competition
Golf courses are closing at an unprecedented rate. According to the National Golf Foundation, nearly 1,200 courses have closed in the past decade, with more than 700 closing in the past five years. This accounts for 7.4% and 4.7% of the total supply, respectively.
Market dynamics, economics, and competition are key factors contributing to this trend. Many golf courses struggle to adapt to changing market demands and fail to reinvest in their facilities. Instead, they focus on maintaining outdated amenities and services, leading to a decline in revenue. Resistance to change, such as adding practice facilities, kids' activities, and fitness centres, can make it challenging for clubs to remain competitive and attract new members.
Competition among golf clubs can also lead to a race to the bottom in pricing. Clubs may choose to compete on price, leading to a decline in dues, fees, and overall quality. This can result in decreasing membership and financial difficulties.
In addition, the recession of 2009 significantly impacted the golf industry, with course owners and operators facing financial hardships. Some courses were forced to close, while others struggled to stay afloat.
Furthermore, golf courses, especially those in growing population centres, are facing pressure due to the high demand for land. Developers view these parcels as opportunities for housing developments or other more economically viable projects. As a result, golf courses are often sold and repurposed, impacting the surrounding communities and leading to concerns about the loss of green spaces.
While the exact reasons for golf course closures vary from club to club, a combination of market dynamics, financial pressures, and competition are significant contributing factors. To avoid closure, golf clubs must adapt to market changes, reinvest in their facilities, and strategically position themselves within the competitive landscape.
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Investor-owned clubs close when the property has a higher alternative use
Golf courses are closing at an alarming rate, with nearly 1,200 courses closing in the past decade, according to the National Golf Foundation. This equates to 7.4% of the supply. There are many reasons for these closures, including the impact of the recession, ageing infrastructure, government budget shortfalls, and competition from other courses.
One significant factor is that investor-owned clubs and courses will close if the property can be used for something more profitable. These for-profit ventures are often driven by economic motives, and if a more lucrative opportunity arises, the club or course will be repurposed. This can have a significant impact on the community, as the social hub is lost, and relationships that formed around the club may dissipate. There may also be increased pressure on public services, such as schools and infrastructure, if the alternative use of the property involves a significant increase in traffic or population density.
An example of this is the closure of the Melreese Golf Course in South Florida. This course was a municipal treasure and home to a First Tee chapter. However, it closed in March 2023 to make way for Miami Freedom Park, which will include a soccer stadium, hotels, retail areas, and an office park.
Another example is the closure of Devil's Ridge in Michigan, which transitioned into a private hunting preserve. The course was scenic and offered a good bargain, but it could not compete with other courses in the area.
Investor-owned clubs may be more dynamic and responsive to market demands, but they also face the constant pressure of needing to be profitable. If a more profitable venture arises, the investors will likely choose to close the club and pursue the alternative option. This is a significant shift from the traditional member-owned clubs, which often perpetuated a culture of exclusivity and secrecy.
The closure of golf courses, especially those that are investor-owned, highlights the complex dynamics of the golf industry and the challenges faced by clubs to remain competitive and financially viable.
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Clubs with poor market positioning and resistance to change often close
Golf courses are closing for a variety of reasons. According to the National Golf Foundation, nearly 1,200 courses have closed in the past decade, with more than 700 closing in the past five years. While the reasons for this are complex and varied, clubs with poor market positioning and resistance to change are often at risk of closure.
Poor market positioning can lead to a decline in membership and revenue, ultimately resulting in closure. For example, a club may choose to compete on price, leading to a decrease in dues, fees, and pricing, as well as a decline in quality. This can result in a loss of members and the club may eventually be sold and closed for development. Proper market positioning is critical for the survival of a golf club. It is important to understand the club's advantages and disadvantages, compare it to other opportunities in the marketplace, and have a thorough understanding of market depth and dynamics.
Resistance to change can also be a significant factor in the closure of golf courses. Member-owned clubs, in particular, may resist change due to a reluctance to spend money on reinvestment and correcting deferred maintenance. However, to remain competitive, reinvestment is necessary. Clubs that fail to reinvest in practice facilities, kids' activities, and fitness facilities may struggle to attract and retain members.
External factors, such as drought, can also contribute to the closure of golf courses. For example, California's drought has led to high water costs and low participation, making it difficult for owners to keep their golf courses open. Additionally, the influence of developers and the aging infrastructure of some courses can lead to their closure and redevelopment.
The closure of a golf course can have a significant impact on the community. It can result in the loss of a social focal point, the dispersal of relationships, and increased pressure on public services due to the development that often follows.
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Golf courses are impacted by natural disasters, like droughts
Golf courses are not immune to the devastating effects of natural disasters. Floods, fires, droughts, hurricanes, and tornadoes can all cause significant disruption to golf courses, as well as the wider communities in which they are situated.
Droughts, in particular, present a unique set of challenges for golf courses. The impact of droughts on golf courses depends on several factors, including the grass type, irrigation system, and water source. When grasses are stressed by a lack of water, they go into a state of drought-induced dormancy, where their growth slows and they lose their colour. This can result in dead grass and lost revenue for golf courses. Courses with poor irrigation coverage may see damage quite rapidly, whereas those with ample water supplies and good irrigation coverage may be able to endure extended periods of dry weather with minimal impact.
Golf courses in California, for example, have been facing increasing challenges due to frequent and severe droughts. In 2021, the state experienced record-breaking droughts, with 100% of California in a drought and 85% in an "extreme drought". The situation has led to concerns about the environmental impact of golf courses, with some courses using up to 2.08 billion gallons or 7.87 billion litres of water every year to maintain their greens.
To mitigate the effects of droughts, some golf courses are exploring alternative methods to reduce water consumption. For instance, 15% of courses in California have used recycled toilet water (with waste removed) to hydrate their greens. Other strategies include developing a water budget and drought emergency plan, upgrading irrigation systems, and utilizing drought-tolerant grass species.
While natural disasters can cause significant disruption to golf courses, the resilience of the golf industry is also evident. In some cases, the dedication of staff and support from the wider golf community have helped to save and restore golf courses following disasters.
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Golf courses close due to lawsuits and legal issues
Golf courses are closing for a variety of reasons, and lawsuits and legal issues are among the most common causes. In recent years, nearly 1,200 golf courses have closed in the United States, with more than 700 closing in the last five years alone.
One of the primary reasons for golf course closures is the financial strain and subsequent sale and repurposing of the land. Investor-owned clubs and courses often close because the property is more valuable when used for something else, usually real estate development. This can have a significant impact on the surrounding community, with increased traffic, the potential need for additional infrastructure, and the loss of green space.
In some cases, golf courses close due to ongoing legal issues, such as lengthy lawsuits. For example, a 27-hole golf course in Las Vegas settled a seven-year-long lawsuit in April, resulting in the closure of the course.
Golf courses can also face legal issues and potential closure due to negligence and safety hazards. Owners can be held liable for negligence if they fail to maintain safe conditions, including unsafe golf cart paths, wet or uneven surfaces, and inadequate maintenance, such as overgrown vegetation. These hazards can lead to slip and fall injuries, golf cart accidents, and other dangerous playing conditions. In such cases, injured parties may seek compensation for medical expenses, lost wages, and pain and suffering.
Additionally, there have been lawsuits regarding the use of pesticides on golf courses and their impact on the health of workers. Several cases have been filed by individuals who worked regularly with pesticides and were later diagnosed with cancer or other health issues. These lawsuits are ongoing, and further investigations into the use of pesticides on golf courses are underway.
The closure of a golf course can be a complex issue, influenced by market dynamics, competition, membership and leadership resistance, and financial constraints. Lawsuits and legal issues are significant factors that can accelerate or seal the fate of a struggling golf course, leading to their closure or repurposing.
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Frequently asked questions
There are many reasons why golf courses close. Some of the most common reasons include the lack of housing development, drought, high water costs, low participation, competition, aging infrastructure, government budget shortfalls, and the impact of the COVID-19 pandemic.
When a golf course closes, it can be repurposed for alternative uses, such as residential or commercial real estate development. The closure of a golf course can impact the community by affecting public services, increasing traffic, and disrupting relationships within the golfing community.
No, golf course closures are not necessarily a reflection of the sport's popularity or health. Golf course closures occur due to various reasons, such as economic factors, supply and demand, and changing customer needs.
Yes, certain areas have been more affected by golf course closures. For example, Michigan, California, Texas, and Florida have all experienced notable golf course closures in recent years.
Yes, several notable golf courses have closed in recent years, including the Melreese Golf Course at International Links in South Florida, Thornapple Creek Golf Club in Kalamazoo, Evergreen Point in Baytown, Texas, and Devil's Ridge in Michigan.
