RICHARD SINGER

Director of Consulting Services, National Golf Foundation Raleigh-Durham MSA Golf Market Study

RDU MARKET STUDY

Purpose • Study market dynamics and potential • Assess interest in growing the game • Develop an approach for future studies

RDU GOLF MARKET STUDY

Why Raleigh-Durham • “Typical” America • Mid-Sized • Above Average Growth • Good Demographics • Ample & Diverse Supply • 10% Increase Expected

RDU GOLF MARKET STUDY

Thumbnail Supply Value Mid-Fee

Premium

No. of Facilities Total Rounds Played Avg. Rounds/Facility Desired Capacity % Avg. Change in Rounds 99-00 Avg. WE Fee w/Cart 22 644,500 29,000 83% (74) $31.00

17 624,500 36,700 91% (367) $48.50

14 522,500 30,700 93% 1,076 $73.34

RDU MARKET STUDY

Thumbnail Demand • 15.5% participation rate age 12+ (National rate is 11.7%) • Female participation 52% higher • 141,000 golfers age 12+ • Average rounds played per year = 21.4 (same as national average)

RDU MARKET STUDY

Three Key Findings • Abundant latent demand • Un-used golf facility capacity • Operators eager to go after latent demand, but want and need help

RDU MARKET STUDY

Abundant Latent Demand • Estimated at 500,000 rounds – 285k from golfers who want to play more – 150k from former golfers returning to the game – 65k from “never-evers” with high interest

FROM WHICH CONSUMER GROUPS WILL LATENT DEMAND MOST LIKELY COME Raleigh-Durham Golf Consumer Universe in 2000 (368,000) Former Golfers 161,000 (44%) Golfers 141,000 (38%) Interested Non-Golfers 66,000 (18%) • Net, there’s “surveyed” interest out there – – Largest contingency in current golfers wanting to play more Followed by “former golfers” and then “non golfers” in roughly even numbers

RDU MARKET STUDY

Capacity to Accommodate Demand • Definitions – Actual Utilization – Desired Utilization – Capacity • Capacity in market to absorb demand • New development opportunities still exist in certain locations and at certain price points

RDU GOLF SUPPLY & DEMAND

RDU MARKET STUDY

“Town Hall” Meeting • Latent demand estimate confirmed • High female participation estimate confirmed • Operators eager to grow golf, express need for help

RDU MARKET STUDY

Implications • All golf is local • Statistical modeling can predict demand, but we must understand local golf operations • Facilities need help in identifying and achieving capacity