| Will
Municipal Golf Courses Become a Thing of the Past? A
recent report published by the Golf Research Group - The 2001 UK Municipal Golf
Report - A Benchmark for Best Value - has shown that municipal golf courses are
losing trade to the many new proprietary golf courses being developed. Over
the last ten years, 598 golf courses have been built in the UK, only 5% of which
were municipal courses. The result of this has been that the number of rounds
of golf played on municipal courses has falled by almost 50%. Worrying news when
the number of rounds played over private / proprietary courses has only fallend
very slightly. The
report has also shown an increase in green fees, rising by almost 11% over the
last five years at municipal courses, whereas those at proprietary courses have
only risen by just over 5%. Municipal courses are therefore not reacting to market
forces, tending to raise prices by a fixed amount every year, this is now beginning
to cost. Subsidy
by the taxpayer is a thing of the past for municipal courses and local authorities
are leasing to the private sector at reduced rents to cover large capital investments
required on these properties. Around 35 municipal courses are now fully leased
and this looks to be a growing trend. Many large corporations are also now adding
municipal courses to their portofolios. |