Investor confidence drops

Investors continue to view the golf industry favorably, but they aren’t as confident about economic prospects as they were last year, according to a report by Marcus & Millichap’s Leisure Investment Properties Group.

“Despite the overall drop in optimism, investors remain over 1.5 times more confident in their own ability compared to the golf market as a whole,” the report states.

The Golf Investor Sentiment Survey, an annual rendering of investors’ feelings about golf, fell to 57.1, a 10 percent decline from the 63.4 recorded in 2015.

But, the data suggests that investors are positive about U.S. golf operations in 2016. Regarding daily-fee golf, 55 percent of the respondents said the number of rounds played at their facilities will increase, while only 11 percent expect a decrease. And regarding private clubs, there’s also considerable faith: 58 percent of the respondents expect membership numbers to increase, 48 percent expect annual dues to increase, and 36 percent expect initiation fees to increase.

Investors are concerned about the U.S. presidential election, the stock market and other macroeconomic factors that extend beyond golf. 


Interesting and insightful

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