Jackson Reid
The COVID-19 pandemic and subsequent lockdowns have impacted the golf industry in various ways. While some golf clubs experienced economic losses due to closures and reduced income, others saw an increase in membership and rounds played as people sought outdoor activities during lockdowns. Golf courses were among the first locations to reopen with modifications, and the industry saw a record-setting boom in 2021. However, with the easing of restrictions, there are concerns about a potential decline in participation. Overall, the impact of COVID-19 on the golf industry has been mixed, with some clubs thriving while others faced significant challenges.
| Characteristics | Values |
|---|---|
| Impact of lockdown on the golf industry | Positive |
| Impact of lockdown on golf clubs | Negative |
| Golf courses during lockdown | Allowed to remain open in some places |
| Golf courses after lockdown | Some of the first locations to reopen |
| Changes to golf activities | Bunker rakes were removed, flagsticks were untouched, and 'hole-liners' were used |
| Changes to hospitality venues at golf clubs | A maximum of six people from two households could meet both indoors and outdoors; staff and customers were required to wear face coverings |
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What You'll Learn
Golf's popularity increased during the pandemic
For example, in Germany, despite the lockdown lasting several weeks, more rounds were completed during the 2020 season than in the previous year, with several new members joining German golf courses. Similarly, in the UK, golf courses were some of the first locations to reopen with modified services as lockdown restrictions eased, and by 2021, the industry had seen a record-setting boom with 50 million rounds played and $388.6 million in sales.
However, it is worth noting that while golf's popularity increased during the pandemic, this may not have translated to significant economic gains for golf clubs. Golf courses are among the most expensive sports facilities to maintain, and with continuous income streams necessary for their operation, the lockdown disrupted the financial stability of many clubs. For instance, in Bavaria, Germany, the COVID-19-related deficit of sports clubs is estimated to be over 200 million euros.
Furthermore, the absence of corporate, society, or international visitors during lockdowns negatively impacted the turnover of many golf clubs. While some clubs offered refunds to visitors who had booked tee times during the lockdown, this affected their cash flow. Nevertheless, the overall impact of the pandemic on golf's popularity has been positive, with many people turning to the sport as a safe and enjoyable outdoor activity during a time of restricted leisure options.
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Golf clubs were economically impacted
In the UK, the lockdown measures implemented in November 2020 forced the shutdown of golf courses and facilities, causing concerns among golf clubs about the economic impact. England Golf's chief executive, Jeremy Tomlinson, challenged the government's decision, citing the health benefits of the sport and the potential harm to the industry.
Prior to the pandemic, around 50% of commercially operated golf clubs in Germany recorded losses. The COVID-19 lockdown exacerbated these financial challenges, with estimates suggesting an economic loss of approximately €1,000 per day for German golf clubs.
However, the impact of the pandemic on golf clubs was mixed. While some clubs struggled financially, others experienced an increase in membership and rounds played during the 2020 season. This was partly due to the nature of golf as an outdoor, solo sport that could be deemed safer during the pandemic.
To mitigate economic losses, some golf clubs took advantage of government support initiatives, such as the Coronavirus Job Retention Scheme, Business Rates Relief, and VAT payment deferrals. Additionally, clubs adapted their operations by retaining key staff, managing financial operations, and maintaining connections with members to preserve their reputation during the lockdown.
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Golf clubs had to adapt to new rules
In the UK, golf courses were forced to shut down during the initial lockdown in 2020, causing a decline in revenue and membership. However, as restrictions eased, golf became a popular choice for people as it was deemed a relatively safe outdoor activity. This resulted in a record-setting boom in the industry, with an increase in the number of rounds played and new memberships.
To adhere to safety guidelines, golf clubs implemented several changes. In Scotland, golf clubs were allowed to continue on-course activities with up to four players from different households. Golf clubs with hospitality venues followed guidelines such as limiting indoor and outdoor gatherings and mandating face coverings for staff and customers moving indoors.
Golf clubs in other countries, like Germany, also experienced similar challenges and adaptations. While the lockdown impacted German golf clubs economically, they also gained new members and promoted nature-loving sports initiatives.
Overall, the COVID-19 pandemic disrupted the operations of golf clubs, but they adapted by following government guidelines, maintaining essential maintenance, and leveraging the increased interest in golf during the pandemic.
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Golf courses were among the first to reopen
Golf courses were among the first locations to reopen with modified services as lockdown restrictions eased. This was because golf was deemed a relatively safe activity as it is played outdoors and usually alone. As a result, the sport saw a record-setting boom in 2021, with 50 million rounds played and $388.6 million in sales.
However, the lockdown did have some negative economic consequences for golf courses. Golf courses are among the most expensive mass sports facilities, with high fixed costs for maintenance, so continuous income streams are essential to their operation. In Bavaria, Germany, the COVID-19-related deficit of sports clubs is over 200 million euros.
Despite the overall positive impact of the pandemic on the golf industry, some individual golf clubs struggled financially. For example, Oakmoor Golf Club in England had just about been holding its own before the lockdown but hoped to maximise its use of government support to get back on track. In contrast, Dunway Golf Club in Scotland had operated very successfully pre-lockdown and intended to expand on that success when golf reopened.
Some golf clubs took advantage of government support schemes, such as the Coronavirus Job Retention Scheme, Business Rates Relief, and VAT payment deferral. Essential maintenance of golf courses was also allowed by the government during the lockdown, which helped to ensure that courses were ready to reopen when restrictions eased.
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Golf clubs utilised government support
Golf clubs, like many other businesses, were significantly impacted by the COVID-19 pandemic. The lockdown restrictions prevented people from visiting golf clubs, leading to a loss of income from visitor fees, clubhouse takings, pro shop sales, and other facilities. This financial strain was exacerbated by the high maintenance and operational costs associated with golf courses.
To survive the pandemic, golf clubs utilised various government support measures. In Germany, the lockdown resulted in economic damage of approximately €1,000 per day for golf clubs. Despite this, the 2020 season saw an increase in the number of rounds played and a successful year for profit-oriented clubs, with many new members joining. The German Golf Association launched two programs, "Golf and Nature" and "Golf and Health", to support the clubs during this challenging period. However, these programs were not seen as creating significant economic value for the clubs.
In the UK, golf clubs also faced financial difficulties during the lockdown. With no visitor income and high fixed costs, there were concerns about the survival of some clubs. The government's furlough scheme was not as effective for the industry due to the prevalence of seasonal and self-employed workers. Golf clubs with membership-focused business models were better positioned, as subscriptions helped retain staff and maintain facilities. Golf clubs in Scotland, in particular, faced challenges in accessing government support. Many were ineligible for business grants due to their high rateable values, resulting in a lack of necessary financial assistance.
To weather the crisis, golf clubs relied on the support of their members. They provided options such as credit facilities, payment deferments, and membership holidays to accommodate members facing financial difficulties. At the same time, they encouraged members with financial means to continue paying their subscriptions to secure the future of the clubs. The pandemic also brought new opportunities for the golf industry. As a solo outdoor sport, golf became a popular choice for people looking for safe leisure activities during lockdown. This newfound interest contributed to a record-setting boom in the industry, with increased rounds played and sales in 2021.
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Frequently asked questions
It depends on the lockdown rules in your area. In the UK, golf courses were forced to shut during the November 2020 lockdown, but reopened in May 2020 with social distancing measures in place.
Golf clubs with hospitality venues had to follow rules such as limiting the number of people allowed to meet indoors and outdoors, and requiring staff and customers to wear face coverings. Other changes included removing bunker rakes and flagsticks, and inserting 'hole-liners' so golfers wouldn't need to touch the ball after it had fallen into the hole.
Yes and no. Golf courses are among the most expensive mass sports facilities to maintain, so the loss of income during lockdown was challenging for many. However, the sport also saw an increase in popularity during lockdown, with courses welcoming new members and recording more rounds played than the previous year.
The lockdown in spring 2020 impacted German golf clubs hard, with clubs in Bavaria alone facing a COVID-19-related deficit of over 200 million euros. However, the 2020 season was still considered successful, with new members joining and more rounds played than the previous year.
Yes, lockdown measures prevented fans from attending tournaments. The PGA Tour and LPGA Tour both held tournaments behind closed doors.
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