Page 18 - GBC Summer ENG 2021

Labour costs 2020 vs 2019
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Golf Business Canada
Source: 2021 NGCOA Canada Pulse Report, presented by Deluxe Payroll.
available labour pool tightens and golf courses can also expect some challenges with hiring, which has been a concern in recent years.
On a related note, the workplace shift to remote home offices has certainly benefitted golf. With more flexibility in their schedules comes more available time for golf. To whatever extent the past concerns about golf requiring too much time for the busy lifestyles of many Canadians, the pandemic has prompted a solution here to that perceived problem. Remote work is expected to stick beyond COVID-19 for many companies, which should help the long-term retention of some of the heightened demand for golf.
At press time, the S&P/TSX had fully recovered and was hovering around all-time highs near 20,000. The housing market has hit all-time highs in many markets. Interest rates are at all-time lows. Backyard pools, renovations, sales of pleasure vehicles, clothing and accessories have bounced back above pre-pandemic levels. And although some sectors of the economy have certainly been devastated, such as restaurants, entertainment and tourism, these key indicators demonstrate that Canadi- ans overall are intending to spend in 2021. The April 19th federal budget should further propel that economic recovery.
All of this macro-economics nets out to projections for Canadian GDP to grow by approximately 5.5% in 2021. Although not as strong as the USA where 6% is projected, due in large part to an earlier rollout out of their vaccine strategies, 5.5% is still exceptionally strong growth and a recipe for business success.
WILDCARDS: WHAT IF?
Of course, the big wildcard in all of this forecasting remains whatever path COVID-19 and its emerging variants may take over the coming months. If that threat drags on through the summer, lockdowns will likely persist and, as long as golf isn’t shut down for any extended period of time, courses are very likely to be full. If the vaccine strategy speeds up and is effective enough, the general economy will probably re-open and dilute some of golf’s current advantage. In that case, however, the recover- ing economy should then benefit golfer spending, along with the momentum that our industry has already built up.
Weather can be another wildcard, as unpredictable and impactful as it is on Canadian golf. Keeping up with the very favourable golf weather we experienced in 2020 may not be realistic but the “experts” are forecasting
How did your 2020 labour cost compare to 2019?
another pretty good weather season. In fact, the majority of Canadian provinces had an early start to their season, opening 3-4 weeks earlier than normal.
With warmer than usual for most of the country, shorts and beverage sales ought to be prevalent. Apparently, there is also a greater than usual risk of it becoming too hot and humid in Ontario, Quebec and the Atlantic provinces, with the accompanying frequent showers and thunder- storms. The Prairies are expected to have searing temperatures and occasional big storms. British Columbia is forecasted to be a little warmer and drier than normal, ideal for golf.
CONCLUSION: PLAY IT WHERE IT LIES, AND WIN!
Regardless of how accurate all of this forecasting turns out to be, Bobby Jones’ statement will still ring true. Golf course operators will “play it where it lies”, making the most of whatever circumstanc- es they face. And all things consid- ered, Golf Business Canada is optimistic that there will be many more wins than losses in 2021.
Golf Business Canada