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tourism being directly related, the strong overall tourism trend should benefit those golf operators in that space. More generally, increases on both domestic and international tourism indicates a propensity for higher leisure spending overall.
Furthermore, according to the Bank of Canada’s recent survey of business CEOs, Canadian execu- tives are now more optimistic about investment than at any time since 2010.52%ofthosebusinessesare projecting increases in sales volume for 2017, versus 31% anticipating a decline.
Business success equates to employment and related economic spinoffs that in turn should benefit golf. We have not had enough of those positive economic fundamentals in recent years, so this optimism from the Canadian business community is encouraging news.
Overall, the 2017 economic outlook for Canada should have a modestly favourable impact on the Canadian golf industry.
INtANGIBle fACtORs
The golf industry is also affected by numerous intangible factors that evolve from year to year. The NHL Playoffs, for example, have historically affected rounds played from April to June. The demographics of golfers align well with those of hockey fans and, when Canadian hockey teams do well, there is a noticeable drain on disposable income in those cities.
The negative impact goes beyond the substantial spend on tickets and merchandise to include the simple distraction of TV spectators focusing on their favourite team instead of playing golf. With five out of seven
Canadian NHL teams making the playoffs in 2017, the negative impact on spring golf has been a considerable risk that was absent last golf season when no Canadian teams qualified for the post-season. However, with only two Canadian teams reaching the second round of the playoffs, it shouldn’t be a major factor for most of the country.
Another intangible is the performance of our top Canadian PGAandLPGATourPlayers.As proven by the uptick in golf in Canada after Mike Weir’s 2003 Masters win, and Tiger’s overall impact during his peak years, golf getsagreatboostwhenthestarswin.
If Adam Hadwin’s early season success continues, for example, and he did well at the Masters so it does look good, Canadian golfers will be more motivated to play. Brooke Henderson may offer the greatest hope of all for that impact, but Canada has never had so many rising stars on the professional tours. On a related note, the beneficialprofileofgolfreturning to the Olympics last year should also carry over into 2017 with positive effect.
And then, there is government. There are federal, provincial, and municipal regulations and bureaucracies for small businesses to deal with, not to mention the potential impact from the Trump administration.
The Canadian golf industry has had to defend itself on numerous issues such as property taxes, liquor regulation, environ- mental stewardship, and client entertainment expenses. But, the celebration of Canada’s 150th Anniversary is expected to provide some new and beneficial momentum this year, including the May 28th Get Out and Golf Day with funding support from ParticipACTION.
The media can also influence the perception and demand for golf. In recent years, there has been an excessive amount of negative media publicity. This trend appears to have largely run its course and there are now fewer such media attacks on golf.
Those that do attack seem to have a ‘diminishing returns’ effect, gaining far less traction now. Suzuki’s recent Dad and the Dandelions, for example, was largely ignored or dismissed (see more on page 44).
In fact, a modest new trend of positive publicity for golf may be emerging. Forbes’ winter article entitled Here’s Why We Should Be Bullish About Golf In 2017 reinforces many of the strong virtues of golf and the golf business that were previously missing from much of the media reporting. Positive media generates more golf played.
GOlf COuRse MANAGeMeNt
Of all the key indicators for future business success, the most dominant single variable is likely still the management strength of the golf course operator.
The good news is that the trend in Canada is very clearly toward more sophisticated strategies emerging, including the leveraging of multiple data sources such as the NGCOA Canada Pulse Report, and ongoing professional development through trade publications, golf industry conferences, and peer to peer networking. With the right management strategies executed, 2017 promises to be a successful golf season for good operators.
Golf Business Canada
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Golf Business Canada