Page 18 - GBC summer ENG 2023

Comparing Recent Inflation Rates and Unemployment Rates in Canada
10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
Canada's Inflation Rate
Canada's Unemployment Rate
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Golf Business Canada
Public course operators are leading this marketing trend, now budgeting an average of 4.6% of gross revenues, followed by semi- privates at 3.7% and privates at 1.6%.
GOLFER BEHAVIOURAL TRENDS
There are a number of key indica- tors about golfer tendencies that bode well for the 2023 golf season and beyond.
The proliferation of off-course golf entertainment and technology seems to be boosting new golfer recruitment. The expansion of businesses such as Topgolf and Drive Shack, as well as stand-alone golf simulator businesses and golf clubhouse simulators, are generat- ing fast-growing off-course rounds of golf.
The National Golf Foundation (NGF) now includes these off-course golfers in their golf participation tracking. And that total number of new golfers in 2022 was the highest ever, surpassing the previous high-water mark in the year 2000 when Tiger was at his peak popularity.
The ability to attract those new off-course golfers to your first tee, is a compelling growth opportunity. The golf simulator industry contin- ues to rapidly expand and more of these larger off-course golf enter- tainment complexes are planned for Canada.
Junior participation is tracking at the highest levels since 2006, with girls now comprising 37% of all juniors. The female golfer segment of all ages is now at its highest, representing over 25% of all golfers.
The 18-34 age group is now the largest demographic participation, relieving some of the reliance upon baby boomers. The proportion of non-Caucasian golfers has also reached an all-time high, signifi- cantly broadening the pool of customers.
Latent demand for golf (those non-golfers who express that they are very interested in golf) is now 40% higher than it was 5 years ago, a great opportunity to convert and further grow the game.
59% of adults surveyed indicated that they still have more leisure time available now than they did prior to the pandemic. Home office flexibility and a greater emphasis on work-life balance appear to be settling into permanent societal shifts.
The price elasticity of golf has been getting tested during these high-demand periods, with favour- able indications that many golfers are prepared to accept higher rates without serious objection.
ECONOMIC OUTLOOK
Macro-economic fundamentals do affect golf course operators’ ability to succeed. The following key economic indicators have been compiled from Canada’s leading financial and research institutions.
Inflation was a severe and unexpected factor in 2022, negatively affecting every golf operator’s expenses and most golfers’ disposable income. From its mid-summer peak of 8.1%, infla- tion has been gradually declining and currently sits at 4.3%. The 2023
Comparing Recent Inflation Rates and Unemployment Rates in Canada
*Statistics Canada, March 2023: https://tradingeconomics.com/canada/inflation-cpi and https://tradingeconomics.com/canada/unemployment-rate