Golf Course Business Overview
A golf course provides players with access to maintained grounds specifically designed for golf. These facilities maintain fairways, greens, and other amenities for golf enthusiasts. They range from basic 9-hole courses to elaborate 18-hole layouts with practice areas.
Golf courses require extensive grounds maintenance, including daily mowing, irrigation system operation, and chemical applications to maintain playing conditions. Most courses employ groundskeepers, pro shop staff, and food service workers. The facilities often feature clubhouses with locker rooms, dining areas, and retail spaces for golf equipment. Depending on the course layout and additional amenities, golf courses need between 120 to 200 acres of land to operate.
The most common business models include:
- Public Golf Courses: These are open to the general public, offering daily fee play where customers pay per round.
- Private Golf Clubs: Membership-based and often include additional amenities such as dining and event spaces.
- Resort Golf Courses: Located within a resort, these cater to guests and often offer package deals that include lodging.
Related: Checklist To Start A Business
How Do Golf Courses Make Money?
The primary source of income for golf courses comes from the fees they charge for playing rounds of golf. This includes charges for course access, which are often differentiated by peak and off-peak times.
Secondary revenue streams for golf courses might include:
- Equipment Rental: Offering clubs, carts, and other golfing essentials for rent.
- Membership Fees: For private clubs, regular membership dues provide a steady income stream.
- Lessons and Clinics: Professional training and golf clinics can attract both new players and those looking to improve their skills.
- Pro Shops: Selling golf-related merchandise such as clubs, balls, and apparel.
- Food and Beverage Services: Restaurants and bars on the premises can significantly boost revenue.
Industry Statistics
Golf courses and country clubs (NAICS 713910) provide recreational facilities with maintained grounds for golfing and related services and amenities. Here are some statistics highlighting the current state of the golf course industry.
Golf Course Industry Size & Growth: With 45 million people playing golf last year (National Golf Foundation), the golf course industry brought in $33.9 billion in revenue. Over the past five years, the industry saw a 3.2% average annual growth rate. Future projections indicate continued expansion of 4.4% through 2030, driven by growing interest among younger players and retirees. (IBISWorld)
Number of Golf Courses: There are 8,828 golf course businesses operating across the country. The industry remains largely fragmented, with most facilities independently owned and operated. The largest operator, ClubCorp Inc., controls just 4.3% of the market with $1.47 billion in revenue, followed by Billy Casper Golf LLC with $465.5 million in revenue. (IBISWorld)
Golf Course Profit Margin
Golf courses typically see a profit of 5.6% of revenue. These margins account for substantial operating costs, including grounds maintenance, labor, and equipment. (IRS)
States with Most Golf Courses: The southeastern region houses the highest concentration of golf courses due to favorable year-round weather conditions. This allows courses to maintain consistent revenue throughout the year with fewer weather-related closures. (U.S. Census Bureau)
Startup Stories
Costs To Start a Golf Course
Starting a golf course costs between $1.5 million and $5 million. The costs vary depending on the location, size, and amenities offered at the facility.
Here are some of the more expensive items needed to open a golf course:
Land: Purchase or lease costs for golf courses range from $500,000 to $2 million for an 18-hole facility. Golf courses require at least 120 acres of suitable terrain with proper drainage and soil conditions.
Course Construction: Building the actual golf course, including irrigation systems, greens, fairways, and hazards, costs between $400,000 and $1 million. This includes earth moving, drainage installation, and establishing grass on fairways and greens.
Equipment and Maintenance: Golf course maintenance equipment, such as mowers, tractors, and specialized tools, costs between $250,000 and $500,000. Most courses need multiple sets of equipment to maintain playing conditions.
Clubhouse and Facilities: A clubhouse with pro shop, locker rooms, and food service areas typically costs between $200,000 and $800,000. The size and quality of finishes influence the total cost.
Golf Carts: A fleet of golf carts for customer use costs between $100,000 and $300,000. Most 18-hole courses maintain 40-60 carts to accommodate peak playing times.
These estimates represent general ranges, and actual costs will vary depending on your location and business plan.
Resources:
American Society of Golf Course Architects
Golf Course Industry
National Golf Foundation
U.S. Golf Association