Golf: Economic Impacts for North Dakota Communities

More North Dakota communities are realizing that the game of golf can have a very positive impact on local economies as construction and operational expenditures and money spent by visiting golfers all add income and jobs to the local economy, says Ron Smith, horticulturist and turfgrass specialist with the North Dakota State University Extension Service.

A recent survey report by the National Golf Foundation (NGF) indicates the number of rounds played annually reached a record high of 564 million in 1999. The NGF also reports there are over 26 million golfers in the U.S. with 6 million labeled as "avid" golfers - those who play 25 or more rounds a year.

These golfers and rounds played are not evenly distributed, so the impacts would vary from not only state to state, but from community to community. But the trend of enhancing existing golf courses as well as building new ones is national, and North Dakota is right in step, Smith says.

"Numerous small communities around the state have or are in the process of improving their courses by adding nine more holes, building a new course from scratch, or converting sand greens to grass," he says.

When a new course is built in a community, the construction phase brings new dollars into the community coffers. The NGF report stated that over 500 courses were opened in 1999, including 13 reconstructed courses. Maintenance of a golf course has a more long-term impact. A recent survey of Oklahoma golf courses reported a per course expenditure of $86,294 annually in non-labor expenses. An additional $77,000 was spent on new equipment and new irrigation expenses.

"These expenses varied by type of course--public or private, nine hole versus 18 and so on. The point is that these courses generated local economic activity through expenditures for fertilizers, herbicides, fuel, equipment repair, topdressings, seed, sod, trees, shrubs, flowers, and other items, says Smith.

The courses also have an impact on employment in the community for accountants, caddies, club managers, golf pros, golf teachers, secretaries, security, food and beverage service, and others. The Oklahoma survey reported an average employment of 18 full time equivalent employees per course in the non-maintenance category.

Other impacts of economic importance come from the golfers themselves. The most positive impact comes from out-of-towners who pay green fees, purchase food, buy golf supplies and souvenirs, at the club or pro shop. They stop at local eateries, purchase gasoline and other supplies while in town, all of which have a positive impact on the local economy.

The NGF survey found that residents also felt there were non-economic impacts from having a quality golf course in their community--improving the quality of life and image.

In Oklahoma, many community groups have requested assistance for establishing a course to enhance the local economy. Building a course alone will not turn a local economy around, but it can help. To succeed, the local community must have an overall plan and sound leadership for promoting the entire community.

"Being a lifelong sport, golf can be enjoyed well into the retirement years. Wise community leaders realize this and adopt a strategy of attracting retirees for part of their economic development," Smith says.

Retirees look for many amenities, including health care and public safety. Accessible golf courses are one part of the equation that retirees may consider.

"Suppose a small North Dakota community golf course expanded to 18 holes with new grass greens, and conservatively expected to have 10,000 rounds played per year. If 60 percent of those rounds were played by visitors, and each visitor spent an average of only $5 at local businesses, that would add another $30,000 to the local economy," says Smith.

Unfortunately, many courses fail to keep track of the number of rounds played each year and where the players are coming from, he says. This information is crucial if the community is going to seek economic development dollars.

"Golf courses can definitely have a positive economic impact on local communities. The golfer--duffer or avid--likes to travel and attempt new challenges in the game," Smith says. North Dakota is already a leader in the percentage of the population that plays golf. With a little more push in the right direction, we can attract outsiders to play our local courses and leave some money behind in the process."

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Source: Ron Smith, (701) 231-8161
Editor: Gary Moran, (701) 231-7865)