Atlantic City, NJ-Four leaders of the golf industry, speaking at the 18th Annual ING Spring Conference this week, voiced conservative optimism about how the industry will perform in the current economic downturn.
The panel included Libba Galloway, deputy commissioner of the LPGA Tour, Steve Mona, CEO of the World Golf Foundation, Joe Steranka, CEO of the PGA of America and Mike Hughes, CEO of the National Golf Course Owners Association. Adam Schupak, senior writer for Golfweek, moderated the panel.
The International Network of Golf, a non-profit, media-based networking organization founded in 1990, is conducting the conference. Atlantic City Convention and Visitors Authority is the host.
“In the 1990s we caught an economic tailwind that brought unprecedented golf course construction,” said Hughes. “In 2001 there was a recession that lasted through 2003. We saw improvement in 2004 and 2005 while 2008 we just have preliminary results, but the indications are that we will hold our own.”
Hughes went on to say that the best operators will find a way to succeed in a flat environment.
“We could point to the fact that the revenue per round has increased, but all that means is we raised the prices,” said Steranka. “We have to look at the future with a plan. In the near term,” said Steranka referring to possible player retention and growth, “we have to focus on the occasional player and get him or her to play more rounds. A lot of things work into this. They may play as many or even more rounds than before, but they’re playing in different courses due to the cost of fuel. We have to hold on to the revenue per round.”
Steranka also feels that the dropping value of the dollar in international markets will help certain domestic markets.
“The poor exchange rates of the US dollar will bring a lot more tourism to the border states,” he said, “and there’s a good chance that golf resorts will do well in areas with high international tourism.”
Galloway felt that her organization will be more proactive in trying to attract woman to the game.
“Our challenge is to get women into the game,” she said. “To be successful we can’t just add another ladies day during the week. Today’s woman is in the workplace and we have to change the thinking to make golf more attractive not just for the husband or the wife, but for the entire family. It has to be a family activity.”
Mona, whose organization runs Golf 20/20, a conference that like the ING involves each and every aspect of the golf industry, feels this is a crucial year for this event.
“This year, it’s going to be a different conference than ever before,” he said. “It will be held Tuesday November 11th from 8 A.M. to 2 P.M. We will present specific plans with a call to action for everyone.”
All four participants were in agreement that the industry has to start thinking along other than the traditional lines to keep pace and even improve the industry’s success.
“We encourage our members to think in two hour increments,” said Hughes. “We encourage league play and nine – hole rounds. We’re competing for time, not just providing a golf experience. Golf has to reflect society. Women have entered the workplace and the days of the father going off to play golf with his buddies is remote. It is incumbent upon the golf industry to make golf accessible to families.”
The ING Conference, which attracted five dozen members of the golf media and dozens of golf businesses from all corners of the industry, continues through Saturday. For more information, contact 407-328-0500, or visit www.inggolf.com.
Contact:
Mike Jamison
Executive Director, ING
407-328-0500
mike@jamisongolf.com
