Is golf recession-proof?
As the Northeast”™s golf season buds, there are questions about the effects the ailing economy is going to have on the industry and if the private clubs will be as buffered as they expect from the riptides of the market.
“I”™d say the economy has definitely affected the sales in this coming year,” said Vincent Rohloff, club supervisor of Golfsmith in Norwalk. “Last year at this time it was pretty strong and this year it”™s a little slower. There”™s been more sales going on to encourage spending on new clubs The golf companies haven”™t made anything new, but have simply updated their previous clubs. Part of that is the economy, but part of it is that the USGA has maxed out what can be done.”
Rather than sets of clubs, Rohloff has seen increasing amounts of smaller purchases, though since stores are taking part in their trade-in periods, people are willing to spend more than they otherwise would.
“I would say that the economy is going to effect the retail markets more,” said Stuart Waack, golf professional for Silvermine Golf Club in Norwalk. “I”™m hoping the private clubs are in a bubble.”
Golf is widely known as a luxury game that can be hard to find time or money for.
Â
“The economy is down and this is a luxury game and people aren”™t spending as much money on things they don”™t need,” said Peter Hartong, sales associate for Darien Golf Center L.L.C. “People are definitely more money conscious. They ask more questions regarding the price and are looking for the cheapest deal.”
Acording to Stephen Shmanske, professor of economics at California State University and author of “Golfonomics,” the golf course industry went through a growth boom in the 1990s and first several years in this century in anticipation of a huge demand that so far has yet to occur.
Shmanske says that courses around the country are less crowded than developers expected and that any courses will probably continue to run their promotions, free lunch, free cart and so on through the spring and summer.
“I don’t have a real strong feeling for the business cycle effects,” said Shmanske. “During boom times, people can afford to play but have no time because of the demands of work.
Â
During lean times people may have to cut down on their discretionary entertainment expenses. With the weak dollar and high gasoline prices, perhaps people will stay closer to home on vacations and even play more golf, but I don’t think these are big effects.”