Golf in Arizona
by the numbers
2 – Percentage of Arizona’s water supply used by golf courses
338 – Estimated number of golf courses
19,481 – Golf course employees
42,555 – Acres dedicated to golf courses in Arizona
776,306 – Arizona residents who play golf
93,500 – Houses in Arizona located on golf courses
Source: Golf Industry Association survey results
Additional findings from the 2004 GIA survey:
*Approximately 11.6 million rounds of golf were played in 2004. That finding, however, only included rounds played by visitors and residents, and did not take into account rounds played at private courses. Of that number, 68 percent of the rounds are played by residents, 29 percent by U.S. visitors and 3 percent by international visitors.
*The golf industry employs 19,481 residents, who earn $291 million.
*Taxes generated directly from Arizona’s golf industry totaled $799,455,853.
*Golf generates $1.1 in direct tourism dollars, $60 million in real estate premiums.
*Over $2 billion in recurring economic impact from enhanced property values of historic golf development that is taxed annually.
Golf is on the upswing in Arizona with an annual impact in excess of $3.4 billion, according to a survey released recently by the Golf Industry Association.
The survey, which was commissioned by the GIA through Arizona State University’s Morrison School of Agribusiness and Resource Management, compiled results from 2004. A survey in 1996-97, which also was released by ASU, placed golf’s impact in the state at just over $1 billion.
That’s good news for the golf industry, in general, but several high-ranking Arizona golf officials connected to the findings, which were prepared by Troy G. Schmitz (PhD.), think the actual financial impact could be even higher.
“The public perception is golf is a sport, and we’re trying to change that, so people see the economic impact it has on the entire state,’’ said Shawn Connors, the president of the GIA. “Obviously, $3.4 billion
is a bit of a shock when compared to the first survey we did nearly 10 years ago. But we didn’t have the chance to include everything, like retail, manufacturing and other related business that golf impacts.’’
But Connors did say that this survey, unlike 1996-97 survey, did include real estate and tourism-related components.
Tom Patrick, the vice president of SunCor Golf and a past president of the GIA, said he thinks the $3.4 billion figure could be low “but this is a start, and we needed to get (the survey) out.’’
“It could be $6.8 billion, but this figure ($3.4 billion) gets the point across,’’ Patrick said. “We needed to let people know that golf is more than a game, it’s big, big business here in Arizona.’’
Kathy Wilkes, the executive director of the Southwest Section of the PGA, also felt the financial impact was more than the most recent survey indicated.
“For instance, there are no hard-good sales in the survey,’’ she said. “You start adding in the money generated by Van’s (Golf Shops), In Celebration of Golf, those types of retail outlets, and businesses like equipment made by PING and accessories by Antigua, and those numbers will grow. But for right now, it’s a good start.’’
One of the survey’s key findings was that $806 million comes in the form of direct revenues, i.e. greens fees, food and beverage receipts, membership fees, etc. At the same time, it costs much more -- $697 million a year – to run Arizona’s estimated 338 public and private golf courses.
Rick Williams, the general manager at Legend Trail Golf Club in Scottsdale and a member of the GIA board, said he questioned the 2004 results for yet another reason.
“That $3.4 billion is a low figure, because 2004 wasn’t that great of a year,’’ Williams pointed out. “In the last two years, everything has rebounded – tourism is up, hotel occupancy is up, rounds of golf are way up, and rate integrity has been maintained.
“And while we’re on that upward slope, we’ll continue to make the climb until at least 2008, when the Super Bowl comes to town.’’
Patrick said there is yet another factor that will keep golf’s impact in full swing.
“This is perhaps the leading retirement area in the country, and it’s just getting started,’’ Patrick noted. “According to the National Golf Foundation, 40 percent of our population has yet to retire, and it’s a proven fact that, the older you get the more golf you play.
“I think what you’ll see is that in the next eight years, or until 2012, is that our business, and the subsequent economic impact, will more than double. Especially when you consider Arizona has enough water to support another five million people.’’
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