RICHMOND, Va. – An independent study of the impact of golf upon the Commonwealth of Virginia, which will serve as a model for other state studies, has confirmed that the state’s golf industry generated $3.1 billion of direct, indirect and induced economic impact, along with providing multiple areas of positive environmental impact on the state.
Published in January 2007 by SRI International, the study was commissioned by the Virginia Golf Council (VGC) and was accomplished through a comprehensive, standardized framework that can be replicated nationwide.
The study is an extension of a consensus by Golf 20/20, an industry coalition dedicated to growth of the game initiatives, and serves as a model to be used in the future to measure golf’s economic impact in other states. Golf’s national allied associations which include The PGA of America, Golf Course Superintendents Association of America, Club Managers Association of America, United States Golf Association, the PGA TOUR and the Ladies Professional Golf Association will continue to provide resources to support these studies.
The Virginia Golf Council is comprised of the Middle Atlantic PGA Section, the Virginia Golf Course Superintendents Association, the Virginia State Golf Association, the Virginias Chapter of the Club Managers Association of America and the Virginia Turfgrass Council.
"Our five organizations have come together so that we can better illustrate the tremendous importance that the golf industry has to the Commonwealth and its citizens," said Virginia State Golf Association President Barry F. Shea. "As evidenced by the economic impact study, the golf industry is an important contributor to our economic vitality in Virginia. We hope that the state legislature will work with our organizations when considering legislation and regulatory procedures affecting the golf industry in the Commonwealth so we can maintain and grow this vitally important industry."
Among the findings in the VGC study, the golf industry:
â?¢ Generated 40,189 direct and indirect jobs for its citizens
â?¢ Generated $1.6 billion of direct economic output
â?¢ Generated $984.4 million in direct and indirect salaries and wages in the state economy
â?¢ Generated $678.5 million in hospitality and tourism.
The following measurement indexes are used in the SRI study:
Direct Impact – Determined by the size of the golf industry cluster within the state economy based on revenue. The state golf economy is calculated by adding the size of each of its core and enabled industries.
Indirect Impact – Determined by the purchases of golf course facilities and the companies, which provide goods and services to the golf industry and in turn, purchase goods and services from other companies.
Induced Impact – Employees directly employed within the golf sector spend much of their income in the region, which creates more spending and more jobs in the economy. Together, the "indirect" and "induced" impact forms a multiplier impact on the golf economy.
"This study is a template by which all states may use to work with their respective governments, tourism, and commerce departments for support in sustaining and promoting golf within their borders," said Middle Atlantic PGA President Bob Baldassari, PGA head professional at Cannon Ridge Golf Club in Fredericksburg, Va. "It is truly amazing how substantial golf is in driving Virginia’s economy."
The study also verified the environmental impact that the golf industry has on the Commonwealth of Virginia:
â?¢ Golf courses occupied 2.2 percent of the Commonwealth’s turfgrass area while consuming only 0.4 percent of the ground and surface water used in the state.
â?¢ Golf courses provide a safe habitat for wildlife with numerous courses designated as environmentally-protected areas.
â?¢ Golf courses operate using integrated pest management strategies, making responsible, ecological decisions.
â?¢ Golf turfgrass is a great aquifer and utilizes carbon dioxide waste gas to release oxygen into the atmosphere.
â?¢ The return on investment is far greater than any other agricultural product per acre (golf yields $18,480 per acre vs. $189 per acre for corn and grain).
â?¢ The golf community continues research at Virginia Tech in agricultural and turfgrass sciences.
"Virginia’s turfgrass industry has long believed the contribution of golf to Virginia’s economy was huge," said VTC Executive Director Tom Tracy. "This survey confirms our ‘intuitive belief’ and reveals our thinking was too small – golf’s impact is larger than we imagined."
"By increasing awareness of the significant economic impact golf has in Virginia the CMAA is optimistic that decisions will be made to protect and enhance the game and the club industry," said CMAA Virginias Chapter Representative Richard Cromwell, Executive Director of Golf at The Country Club of Virginia. "Also, by establishing the importance of golf in Virginia, we are hopeful the survey will help attract talented individuals interested in golf and club management to our state."
"Industry representatives have long known the significance of the economic impact of golf in Virginia; however, without a professional study, the true magnitude was never measured," said Virginia Golf Course Superintendents Association Executive Director David Norman. "By collaborating with our Virginia Golf Council partners, the Virginia Golf Course Superintendents Association was able to partner and commission such a study through Golf 20/20 and SRI International. The results of this study will give credibility to the VGCSA’s efforts to protect industry interests and to grow the game in Virginia."
For a copy of the complete study visit the Virginia Golf Course Superintendents Association at www.vgcsa.org.
Contact:
Jon Guhl, MAPGA
540/720-7420
jguhl@pga.com
