Golf Club membership is still declining, although revenue per member has increased by two percent, according to the latest Golf Survey by accountants, financial and business advisers HLB Mann Judd Sydney.
The survey is compiled using respondents from a sample of 92 golf courses in the Sydney Metropolitan area.
Author of the survey, HLB Mann Judd Sydney partner Simon James, said that while there were some encouraging financial indicators in the survey results, overall there is a general negative trend.
“Revenue from all classes of member increased by 2.9% and revenue by playing members was up by 5%.
“However revenue from joining fees has decreased by 25% and almost half of the golf clubs (47%) operated in the red for the financial year.”
Mr James said that declining playing membership continues to be a problem for golf clubs, despite efforts to increase overall membership.
“Male member numbers slowed an overall decline of 1.7% and female membership declined by 3.9%.
“The decline of 2.9% in playing membership is offset by an increase in non-playing categories as clubs develop strategies to boost other income streams such as bar and catering.
“To further increase revenue, clubs need to introduce sophisticated methods of using and expanding their data base to profile and target their club community.
“Strategies to arrest the decline in playing members and attract new ones are also essential for golf club success.
“At the moment new members are joining at a slower rate than those who are leaving.
“The more profitable clubs are those that have a higher ratio of playing members,” Mr James said.
“Indeed, the 53% of clubs that returned a financial surplus had a greater percentage of playing members than those that reported a deficit.
“It is demonstrable that golf clubs that focus on golfers tend to be more profitable as it is easier to get a golfer to spend money at a golf club than a non golfer,” Mr James said.
Click here to view the HLB Mann Judd Sydney’s latest Golf Survey.
For more information please contact:
Simon James – Phone: 02 9020 4212
11 September 2014