Page 14 - GBC Winter 2020 ENG

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Golf Business Canada
Provincially, the west does best on revenues. BC courses lead the country with average total revenues at $3.2 million, measured by 18-hole- equivalents, followed by Alberta at $2.6 million despite facing some challenging provincial economic realities. There are also some golf supply and demand balance issues
that vary from province to province and influence price points and individual golf course revenues.
Our core golf services are the real drivers here. 64% of golf operation revenues nationally are derivedfromspecificallysellinggolf. Food and beverage comes next at 25% of total revenues, and then golf shop sales at 8%. Fortunately, margins are usually significantly better on the core golf sales.
The $3.8 billion in total expenditures by Canadian golf course operators also places BC as the highest, followed by Alberta. Wages obviously top the list and average labour cost is 42% nationally. Course operations averaged 20%. Operators also invested $727 million into capital expenditure in 2019. The Study outlines all such expenses in more detail.
#1 FOR EMPLOYMENT
The Canadian golf industry gener- ated a total of 249,900 jobs across all sectors in 2019, representing 149,800 full time equivalents. Once again, this surpasses all other participation sports and drives significant household income for Canadians. This golf employment equates to $10.6 billion on house- hold income, up from $9.3 billion in the 2013 Study (in 2019 dollars).
Of note, 48% of all golf employ- ment is classified as students, an
“Provincially, the west does best on revenues.
BC courses lead the country with average total revenues at $3.2 million, measured by 18-hole- equivalents.”
increased proportion from 2013 at 37%. Tight labour markets in 2019, recent minimum wage increases in some provinces, and improved expense management strategies are all factors affecting these trends.
CHARITY CHALLENGES
Golf has always been a popular and successful channel for charitable fundraising. In 2019, a total of $330 million was raised across all sectors. Although this total remains an impressive and valuable contribution to Canadian society, it is a significant reduction from the 2013 result of $533 million.
Of note, there has been a consis- tent decline across the country in both the number and size of charity supported golf tournaments. However, over 51,000 tournaments were still conducted in 2019 and golf still raises more for charity than any other sport in Canada.
Also noteworthy, is the fact that golf is not eligible for the 50% client entertainment deduction that all competing industries are rightly permitted under the Income Tax Act. This discourages golf tourna- ments and has likely contributed to the negative trend in charity events. The NGCOA Canada is advocating to rectify this disadvantage, which would significantly benefit charities, golf courses, and the general business community.