Page 12 - GBC Summer ENG 2021

Gross Revenue 2020 vs 2019
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Golf Business Canada
Source: 2021 NGCOA Canada Pulse Report, presented by Deluxe Payroll.
Once the proper safety protocols were in place and each provincial government understood the unique value that golf provided, golfers filled the tee sheets all day every day. The NGCOA Canada Rounds Played Reports presented by Club Car demonstrated that demand for golf was gaining momentum as the season progres-sed, based on historical tracking for each month. This pattern bodes well for predict- ing a continued uptick in demand through 2021, assuming similar COVID-19 restrictions persist.
Although events were generally cancelled and food service restricted, most golf courses overcame those negatives with substantially increased individual play. The exceptions were a few of the resorts who rely heavily on long haul in-bound tourism.
Revenues also tracked very favourably in 2020. With the high demand prompting less discount- ing, the average rate per round increased at most public facilities. 62% of courses reported their average rate was up over 2019, with only 9% reporting a decrease. 20% of those reporting had average rates up by more than 10%. 85% of all clubs reported that their core business of golf + golf car revenues were up significantly.
How did your gross revenues for the 2020 season compare to 2019?
The private club segment did face some different dynamics, with rounds played increasing similar to public play but the membership model typically not allowing for much increased revenue from those rounds, especially with the loss of events and F&B. Sales of new member- ships, however, did exceed all expectations and many private clubs are now back to the enviable position of waiting lists.
Only 28% of all clubs reported a decrease in total gross revenues, driven down largely by those lost F&B sales.
The increased demand also drove golf equipment sales to impressive results. According to Golf Datatech, total equipment sales were up 14%. That included quite a run on beginner sets, which sold out early and became a very positive indicator for future demand. Consumer surveys show that the vast majority of new players in 2020 intend to play more often in 2021.
Apparel sales actually dropped by 10%. This appears to be attributed largely to the fact that green-grass retail shops were severely restricted and are normally such a strong sales channel for apparel.
Overall, revenues for the Canadian golf industry followed the trajectory of the increased demand and even outperformed the rounds played increases. Of note, total Visa, Mastercard, American Express and Debit card purchases were up by 29% at yearend, as per Moneris reporting to the NGCOA Canada. In addition to the increased demand, online and prepaid greens fees also replaced some of the traditional cash transactions.
It should also be noted that Canadian golf in 2020 did benefit from very favourable weather conditions as well. The NGCOA Canada tracks the monthly impact of weather on golf operations, which recorded that 2020 was the best golf weather in many years, and for virtually all provinces. So, this “tailwind” deserves some of the credit and might not be replicated in 2021, however golfers were still filling the tee sheets even on marginal weather days, which further supports that strong demand is indeed the primary driver.
In terms of expense management, the most notable metric in 2020 was that 57% of all golf courses had significant reductions in total labour cost. This appears to be explained by some courses being closed for parts of the early season and then reductions to restaurant staffing due to those COVID-19 restrictions.