Page 16 - GBC Winter 2020 ENG

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Golf Business Canada
DEATH AND TAXES
Neither are much fun, but both are important realities.
The large scale of the Canadian golf industry and higher degree of business implications than other participation sports does lead to substantial tax revenues, unfort- unately. But in terms of economic impact, this becomes another key talking point to position golf for the credit it deserves.
Total taxes owing in 2019 were $4.5 billion, including $1.88 billion federal and $2.1 billion in provincial tax revenues. These are slight increases since 2013. Ontario generated 38% of that total, followed by Quebec and BC at 19% and Alberta at 13%.
The NGCOA Canada continues to advocate on behalf of golf courses for fair tax treatment on multiple files across the country including property taxes, fuel tax exemptions, and income taxes.
CANADA VS WORLD
Golf has become a very global game and industry, now played in over 200 countries. That popularity and diversity prompted a return to the Olympics in 2016. Emerging golf markets in Asia and Africa are adding to the growth that Europe and North America have already tapped. So, how does Canada’s golf industry compare?
The USA is the obvious place to start. Their GDP was last reported to be $84.1 billion. They have approximately 9 times the population base, about 7 times as many golf courses, but generate roughly 5 times the GDP. The American market is certainly the most closely aligned comparison we can consider, given the similarities in how our golf industries operate and their close geographic proximity. But, how about Great Britain and Europe?
Their last reported combined economicimpactofthe27countries, whenconvertedtoCanadiandollars, was $23.4 billion. That includes Great Britain and Ireland, which account for 41% of that European total.
With a total European population that is 13 times that of Canada, and with about 4 times as many golf courses, their GDP is only 1.3 times that of Canada. Many European countries consist primarily of private clubs and membership models. It is a less commercial marketplace for golf, which limits participation and related financial outputs.
Similarly, Australian golf generates a GDP of $3.3 billion in Canadian dollars, with a population a little smaller than Canada and with about 700 less golf courses. Other countries tend to trail these leading golf nations.
From these high-level compar- isons, it would appear that the Canadian golf industry with its $18.2 billion GDP is “punching above its weight” versus the other leading golf countries when compared proportionally. We must be doing something right!
GOLF VS OTHER SPORTS
Golf has the highest participation rate of all sports in Canada, which leads to much of its economic impact. An estimated 5.7 million Canadians played golf in 2019, attributed to a diverse range of appeal factors. It is a game for all ages, all skill levels, male and female, multicultural, very accessible throughout the country, available at a wide range of price points, a healthy form of exercise, competitive or recreational, public or private club options, great for business, effective charitable fundraising, preservation of greenspace, and catering to Canadians’ love of outdoor activities. We are very fortunate to have so many who are so passionate about our game.
But, being #1 for participation doesn’t automatically equate to 1st place in economic impact. After all, hockey is big in Canada and certainly the highest profile, bolstered by the NHL stage, which is itself a large financial generator.