High end, but is it worth the price?

The unrelenting negative news of the past few weeks has painted a picture of an economy that fell further and recovered less than we had thought.

There is, of course, no assurance that a new recession has begun or will do so soon. My question is - has the economic doom and gloom permeated its way down to the high-end golf clubs? How are we faring in the local golf industry?

While golf is not entirely recession-proof, the golf industry does appear to be one of the last to fall during a recession and one of the first to rise after a recession.

More than ever, perhaps, industry executives are clinging to a long-held notion that golf is immune to an economic downturn. But is it really?

Let's face the facts. Golf is not inexpensive and in times of recession many people are forced to sacrifice. The golf industry tends to be buoyed, in all likelihood, by consumers at the upper end of income brackets.

Not an elitist game

This does not mean that golf is an elitist game like it was 100 years ago. It does mean that because many wealthy people play golf, it helps the golf courses and their vendors survive a downturn in the economy better than some industries. In advance of that, what should golf courses be doing to attract golfers during rough economic times?

Success will hinge on golf clubs maintaining a higher level of customer service, quality of the facilities and the prices charged. If golfers are satisfied with their experience at the golf facility, they will keep coming back and they will bring their friends.

To accomplish this successfully, golf clubs will need to get creative and maybe even reduce pricing to establish a wider base of interest in their market.

The recession had an influence on club membership, and that affected the social aspect. It's definitely connected to the economic conditions and the ability of potential club members to pay the fairly significant fees.

Many members who have had their individual problems with the recession quit the clubs for financial reasons or sought less expensive ways to get on the links. Is this a time of concern for the game of golf, and all of the businesses associated with the game?

Lack of public courses

Unfortunately for golfers in the UAE, there are no public courses to turn to when the going gets tough financially and they are faced with resigning from their club membership or ‘pay-and-play' when they can, often at a very high guest rate.

Family dynamics have also changed, and some clubs have become more family-friendly as a result. A study showed that the popularity of golf has been declining for years as the traditional adult male player base increasingly spend their leisure time in family activities.

Meanwhile, the recession continues to create opportunities for those in the midst of transition and, personally, I think we are going to see a steady growth in the golf business.

Many times the importance of customer loyalty is lost because the focus turns to generating revenue.

Golf is a sport of long-term investors - both those who buy the expensive equipment and those who build the princely estates on which it is played - and has always seemed to exist in a world above the fray of shifting demographics.