Golf's impact on U.S. economy reaches $195 billion in 2005

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St. Augustine, Fla. -- A comprehensive new study, commissioned by the World Golf Foundation's GOLF 20/20 initiative, has determined that golf in the United States generated $76 billion in direct economic impact in 2005, up significantly from $62 billion five years ago. The study, the 2005 Golf Economy Report, was conducted by SRI International. It was designed by the leadership of GOLF 20/20 as an update to a similar SRI study that measured the U.S. golf economy in 2000.

In addition to golf's direct revenues, the 2005 Golf Economy Report presents for the first time the direct, indirect, induced and total economic impact of golf on the U.S. economy. The report indicates that golf generated a total economic impact of $195 billion in 2005, creating approximately 2 million jobs with wage income of $61 billion.

The five-year growth of approximately $14 billion represents an average annual growth rate of 4.1 percent, well ahead of the average annual inflation rate of 2.5 percent during the years 2000-2005. The increase primarily reflects growth in golf facility revenues, real estate and golf-related tourism.

The report also confirmed that, as first determined in the 2002 study, golf remains a very significant segment of the U.S. economy. At $76 billion in 2005 direct revenues, the U.S. golf economy is larger than the motion picture and video industries. At $28 billion, revenues from golf facility operations exceed facility revenues from all professional and semi-professional spectator sports combined.

As it did for 2000, the report identified the financial contributions from the game's core segments, including golf facility operations ($28 billion); golf course capital investment ($3.6 billion); golfer supplies ($6.1 billion); tournaments, golf associations, and endorsements ($1.7 billion); and charities ($3.5 billion). Also included is the impact on "enabled" industries, such as hospitality/tourism ($18 billion) and real estate ($15 billion).

These totals represent increases over the 2000 numbers in each respective category, with the exception of a decline in golf course capital investment, a category that encompasses both existing facility capital investment and new golf course construction. The decline in this category was expected and reflects a slowing rate of golf course construction as part of the market's correction to an oversupply of courses.

"This new report presents an encouraging picture for golf in the United States," said David Fay, Chairman of the World Golf Foundation and Executive Director of the USGA. "Most of the game's major segments continue to show a healthy pattern of steady growth. And, as the data clearly shows, this growth provides a strong underpinning to jobs, commerce, economic development and tax revenues for a large number of U.S. communities and industries."

"This new data provides a roadmap for the continued growth and health of the golf industry in this country," said Steve Mona, CEO of the World Golf Foundation. "One of the most exciting developments of the last several years has been the ability to take the economic impact template for this national report and apply it at the state level. Already, we've seen a number of states begin to produce and publicize their own reports. This offers those states several important benefits, including an improved ability to secure public support for increased golf tourism promotion, as well as positively impacting legislation that can benefit golf facilities. We expect to see a significant increase in this research and reporting activity at the state level in this next five year period, which should certainly be reflected in the next U.S. Golf Economy Report."