Commentators are now saying that the Federal Reserve’s decision to raise the discount rate is a signal that “the financial crisis is largely over” and that things should normalize. It’s the first rate increase since June 2006.
But in golf, it seems to be a mixed bag. We keep reading stories about foreclosures, bankruptcies and course closings. At the same time, we are told that rounds were only down by .9% in 2009, and revenue at courses was only off by 5%. Of course, a lot of industry insiders don’t think those numbers are accurate.
Private clubs continue to struggle with membership retention, and some think things will never get better for them.
But perhaps the worst is over, if industry shows are any indication. The recent Golf Industry Show saw flat attendance for qualified buyers, and was only off in numbers because 1,000 fewer exhibitors attended. The Golf Inc. Conference at Amelia Island is still six weeks away, but we have seen very strong sign-ups, and expect to see a good increase in non-exhibitor attendance. (Vendors still are very conservative with their marketing dollars).
So, it seems that some courses may be finally leaving the “hunker down” mentality behind. While other courses — those that were poorly managed or poorly strategically positioned to begin with — move forward with bankruptcy, fire sales and shut downs.