Do Golf Courses Make Money? (The Surprising Truth)

Are Golf Courses a Good Investment?

Golf courses are a popular investment, but they can also be a risky one. The cost of building and maintaining a golf course is high, and there’s no guarantee that it will be profitable. In this article, we’ll take a closer look at the financial aspects of owning a golf course, and we’ll discuss the factors that you should consider before making an investment.

We’ll start by looking at the average cost of building and maintaining a golf course. Then, we’ll discuss the different ways that golf courses generate revenue, and we’ll examine the factors that affect a golf course’s profitability. Finally, we’ll provide some tips for investors who are considering buying a golf course.

As you’ll see, there are a number of factors to consider before making this type of investment. But if you’re willing to do your homework, there’s a good chance that you can make a successful investment in a golf course.

| Column | Data |
|—|—|
| 1 | Course Type |
| 2 | Average Annual Revenue |
| 3 | Number of Golf Courses |

| Course Type | Average Annual Revenue | Number of Golf Courses |
|—|—|—|
| Public | $4.5 million | 14,500 |
| Private | $10.2 million | 4,500 |
| Resort | $15.7 million | 2,000 |

Source: [National Golf Foundation](https://www.ngf.org/industry-information/golf-industry-facts-and-figures/)

Golf is a popular sport enjoyed by people of all ages. In the United States, there are over 15,000 golf courses, and the industry generates over $8 billion in revenue each year. But do golf courses make money?

The answer to this question is not straightforward. The profitability of a golf course depends on a number of factors, including the location of the course, the size of the course, the amenities offered, and the cost of maintenance.

In this article, we will explore the economics of golf courses in more detail. We will discuss the cost of building and maintaining a golf course, the revenue generated by golf courses, and the profitability of golf courses. We will also provide an overview of the golf industry in the United States.

The Economics of Golf Courses

The cost of building and maintaining a golf course varies significantly depending on the size of the course, the type of terrain, and the amenities that are offered. According to the National Golf Foundation, the average cost of building a new golf course is between $2 million and $5 million. The cost of maintaining a golf course is also significant, and can range from $500,000 to $1 million per year.

The revenue generated by golf courses comes from a variety of sources, including green fees, food and beverage sales, and merchandise sales. Green fees are the fees charged to golfers for playing a round of golf. The average green fee in the United States is around $50, but can range from $20 to $200 or more. Food and beverage sales are another important source of revenue for golf courses. Golf courses typically have restaurants, bars, and snack shops that sell food and drinks to golfers and their guests. Merchandise sales are also a significant source of revenue for golf courses. Golf courses sell a variety of items, including golf equipment, clothing, and souvenirs.

The profitability of a golf course depends on a number of factors, including the location of the course, the size of the course, the amenities offered, and the cost of maintenance. Golf courses that are located in desirable areas, such as near major cities or tourist destinations, are typically more profitable than golf courses that are located in less desirable areas. Golf courses that are larger and offer more amenities are also typically more profitable than smaller golf courses that offer fewer amenities. And golf courses that have lower costs of maintenance are typically more profitable than golf courses that have higher costs of maintenance.

The Golf Industry in the United States

The golf industry in the United States is a major economic force. In 2019, the golf industry generated over $8 billion in revenue. The industry employs over 2 million people, and supports over $100 billion in economic activity.

The number of golf courses in the United States has declined in recent years. In 2006, there were over 16,000 golf courses in the United States. By 2019, the number of golf courses had declined to just over 15,000. The decline in the number of golf courses is due to a number of factors, including the rising cost of land, the increasing cost of maintenance, and the declining popularity of golf.

Despite the decline in the number of golf courses, the golf industry in the United States is still a major economic force. The industry generates billions of dollars in revenue and employs millions of people. The golf industry is also a major contributor to the economy of the United States.

Golf courses can be a profitable business, but the profitability of a golf course depends on a number of factors, including the location of the course, the size of the course, the amenities offered, and the cost of maintenance. The golf industry in the United States is a major economic force, and generates billions of dollars in revenue each year. The industry employs millions of people and supports over $100 billion in economic activity.

The Golf Industry in the World

The golf industry is a global one, with courses located in all parts of the world. The number of golf courses in the world has increased significantly in recent years, from around 35,000 in 1990 to over 50,000 in 2023. This growth has been driven by a number of factors, including the increasing popularity of golf, the development of new courses, and the expansion of golf tourism.

The revenue generated by the golf industry in the world is also significant. In 2023, the global golf industry was worth an estimated \$100 billion. This revenue is generated from a variety of sources, including green fees, equipment sales, and food and beverage sales.

The growth of the golf industry in the world is expected to continue in the coming years. The International Golf Federation (IGF) predicts that the number of golf courses in the world will reach 60,000 by 2030. The IGF also predicts that the global golf industry will be worth \$150 billion by 2030.

The Number of Golf Courses in the World

The number of golf courses in the world has increased significantly in recent years. In 1990, there were around 35,000 golf courses in the world. By 2023, this number had increased to over 50,000. This growth has been driven by a number of factors, including the increasing popularity of golf, the development of new courses, and the expansion of golf tourism.

The majority of golf courses in the world are located in the United States. In 2023, there were over 20,000 golf courses in the United States. Other countries with a large number of golf courses include Canada, China, Japan, and the United Kingdom.

The number of golf courses in a particular country is often influenced by a number of factors, including the climate, the geography, and the population density. For example, countries with warm climates and large land areas, such as the United States and Canada, are more likely to have a large number of golf courses. Similarly, countries with a high population density, such as Japan and China, are more likely to have a smaller number of golf courses.

The Revenue Generated by the Golf Industry in the World

The revenue generated by the golf industry in the world is also significant. In 2023, the global golf industry was worth an estimated \$100 billion. This revenue is generated from a variety of sources, including green fees, equipment sales, and food and beverage sales.

Green fees are the most significant source of revenue for golf courses. Green fees are the fees that golfers pay to play a round of golf on a particular course. The average green fee in the United States is around \$50. However, green fees can vary significantly from course to course. For example, the green fee at a top-tier course in Pebble Beach, California, can be over \$500.

Equipment sales are another significant source of revenue for the golf industry. Golf equipment includes clubs, balls, bags, and other accessories. The average golfer spends around \$1,000 on golf equipment each year. However, this figure can vary significantly depending on the golfer’s skill level and the type of equipment they use.

Food and beverage sales are also a significant source of revenue for golf courses. Golf courses typically have restaurants, bars, and snack shops that sell food and drinks to golfers. The average golfer spends around \$20 on food and beverages each round of golf.

The Growth of the Golf Industry in the World

The growth of the golf industry in the world is expected to continue in the coming years. The International Golf Federation (IGF) predicts that the number of golf courses in the world will reach 60,000 by 2030. The IGF also predicts that the global golf industry will be worth \$150 billion by 2030.

The growth of the golf industry is being driven by a number of factors, including the increasing popularity of golf, the development of new courses, and the expansion of golf tourism.

The increasing popularity of golf is being driven by a number of factors, including the growing number of young golfers, the increasing popularity of fitness and wellness, and the increasing number of women playing golf.

The development of new courses is also contributing to the growth of the golf industry. In recent years, there has been a significant increase in the number of new golf courses being built around the world. This growth is being driven by a number

Do golf courses make money?

The answer to this question is not straightforward. Golf courses can be a profitable business, but there are a number of factors that can affect their profitability. These include:

• The location of the course: Golf courses that are located in desirable areas with a high population of golfers are more likely to be profitable.
• The size of the course: Larger courses with more holes can generate more revenue from green fees.
• The amenities offered at the course: Golf courses that offer a variety of amenities, such as a driving range, a clubhouse, and a pro shop, are more likely to attract golfers and generate revenue.
• The cost of running the course: The cost of maintaining a golf course can be significant, including the cost of water, fertilizer, and labor.

Overall, golf courses can be a profitable business, but there are a number of factors that can affect their profitability.

What are the average costs of running a golf course?

The average cost of running a golf course varies depending on the size of the course, the amenities offered, and the location. However, a general rule of thumb is that it costs between $500,000 and $1 million per year to operate a golf course.

The largest costs associated with running a golf course are typically the cost of water, fertilizer, and labor. The cost of water can vary significantly depending on the location of the course, but it is typically the largest single expense. The cost of fertilizer and labor can also be significant, especially for larger courses.

In addition to these costs, golf courses also need to factor in the cost of maintenance, insurance, and taxes. The total cost of running a golf course can vary significantly, but it is important to have a realistic understanding of the costs involved before starting a golf course business.

**What are the benefits of owning a golf course?

There are a number of benefits to owning a golf course, including:

• The potential for profit: Golf courses can be a profitable business, especially if they are located in desirable areas with a high population of golfers.
• The opportunity to create a community: Golf courses can be a great place for people to socialize and enjoy themselves.
• The potential for environmental benefits: Golf courses can provide a number of environmental benefits, such as habitat for wildlife and water conservation.

Of course, there are also some challenges associated with owning a golf course, such as the high cost of maintenance and the risk of weather-related damage. However, for those who are willing to take on the challenges, owning a golf course can be a rewarding experience.

**What are the risks of owning a golf course?

There are a number of risks associated with owning a golf course, including:

• The high cost of maintenance: Golf courses require a significant amount of maintenance, including mowing the grass, watering the greens, and fertilizing the plants. The cost of maintenance can be a significant expense, especially for larger courses.
• The risk of weather-related damage: Golf courses are susceptible to damage from weather events, such as floods, hurricanes, and tornadoes. This damage can be costly to repair and can even force a golf course to close temporarily or permanently.
• The competition from other golf courses: The golf industry is competitive, and there are a number of other golf courses that golfers can choose from. This competition can make it difficult to attract golfers and generate revenue.

Before investing in a golf course, it is important to carefully consider the risks involved.

**How do I start a golf course?

Starting a golf course can be a complex and challenging process. However, if you are prepared for the challenges, it can be a rewarding experience. Here are the steps involved in starting a golf course:

1. Choose a location: The location of your golf course is one of the most important factors in its success. You need to choose a location that is desirable to golfers and that has the potential to be profitable.
2. Get the necessary permits and approvals: Before you can start construction on your golf course, you will need to get the necessary permits and approvals from the local government. This process can take several months, so it is important to start early.
3. Design the course: The design of your golf course is critical to its success. You need to design a course that is challenging and enjoyable to play, but that is also feasible to maintain.
4. Build the course: The construction of a golf course can be a complex and expensive process. You will need to hire contractors to build the course, and you will need to make sure that the course meets all of the necessary safety

the answer to the question of whether or not golf courses make money is a complex one. There are a number of factors to consider, including the size of the course, the location, the amenities offered, and the cost of running the course. However, it is clear that golf courses can be a profitable business, as evidenced by the fact that there are over 15,000 golf courses in the United States alone.

For those who are considering opening a golf course, it is important to do your research and make sure that you have a sound business plan in place. There are a number of resources available to help you get started, such as the National Golf Course Owners Association (NGCOA).

If you are a golfer, you can rest assured knowing that there are plenty of golf courses out there that are making money and will continue to do so for years to come.