Page 12 - Summer eng 2017

Average total Credit
Card and debit Card Revenues per facility
Average single transaction size
2015 2016
Regional
%
National
-1.77%
British Alberta Prairies Columbia
5.88% -11.13% -1.66%
Ontario Quebec
Atlantic
National YOY
2.95% from 2015
-11.25% -2.61%
n/a
Based upon 544 golf facilities reporting total visa, MasterCard, and debit revenues over 12 months of 2015 and 2016. All provinces were well represented in this sample of 544 golf facilities.
0.00%
12
Golf Business Canada
Within those results, there were significant provincial variances as usual. Generally speaking, the year over year comparisons improved the further east we looked. BC was down the most (-3.94%) and the Atlantic Provinces were up the most (+9.21%), with each province in between following the pattern of incremental improvement eastward.
South of the border, similar trends in rounds played were reported. 2016 was ‘flat’ (+0.6%), sustaining their modest growth from 2014 to 2015 (+1.8%). So, the North American trend on rounds played has generally been positive news in 2015 and 2016 relative to the previous several years of softer demand. This is consistent with the cautious optimism expressed by golf industry stakeholders at golf business events across the continent.
“At the Golf Business Canada Conference & Trade Show, PGA Merchandise Show, Golf Industry Show, NGCOA Canada Multi Course Owners Summit, Spring Warm Ups, Consumer Golf Shows, and NGCOA Canada Member Surveys, the overall feedback from owners and operators has been that we have now moved past the low point of the golf industry correction, with modest gains these past two years and anticipated modest growth ahead,” states Jeff Calderwood, CEO of the NGCOA Canada.
This is encouraging news, given the challenges of such a slow economic recovery in Canada since the recession and the coincidental timing of a golf industry correction.
GOlf COuRse suPPly
Canadian numbers on total golf inventory have not yet been released but are expected to show a slight decline in 2016. American numbers were released much earlier and supply contracted by 190 courses, which is 1.25%, continuing the rebalancing trend that has seen a 5.6% reduction since 2006. This rebalancing is a healthy correction and is expected to continue for a few more years. Most course closures in major markets are prompted by real estate development opportunities but some properties were simply unsustainable if in an oversupplied market.
The trend of very few new courses being built is also forecasted to continue for some time, allowing the rebalancing of supply and demand to continue its momentum. This dynamic is very important for existing course operators. 2016 had the fewest new openings on record.
Renovations at existing facilities are now seeing more action than capital investment applied to new builds. And, those new golf courses that do emerge will need to be very well positioned in the market to compete and justify those long term investments.
Recent examples such as Cabot Links and Cabot Cliffs demonstrate that new properties can still succeed if a compelling and unique value proposition is offered to golfers, but these examples are now rare.
ReveNue tReNds
Rounds played and supply of golf courses are good high level indicators, but actual revenues do carry more weight. Therefore, the NGCOA Canada Pulse Report includes a summary of 2016 revenue trending.
On an ongoing basis, the NGCOA Canada will publish a monthly Revenue Tracker to complement its Rounds Played Reports, based on the aggregate data of 975 Canadian golf operator merchant accounts from Moneris (see infographic above).
This Report tracks all Visa, MasterCard, and Debit trans- actions, representing the majority of all golf operation revenues, with statistical ratio of cash transactions also factored in. Annually, the NGCOA Canada Pulse Report will be able to capture the yearend revenue results, segmented regionally and nationally, with year over year comparisons.