The Georgia Agricultural Experiment Stations
College of Agricultural and Environmental Sciences
The University of Georgia

Research Report 681
April, 2002
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An Economic Profile of Golf Courses in Georgia: Course and Landscape Maintenance
W. J. Florkowski, Associate Professor, Department of Agricultural Applied Economics, Griffin Campus G. Landry, Professor, Department of Crop and Soil Sciences, Griffin Campus

Introduction
Golf Course Facilities in Georgia
Location
Maintenance Expenditures
Water Sources, Water Use and Expenditures on Water
Turfgrass Species and Cultivars
Overseeding
Experience of Superintendents
Concluding Comments
References
Table 1. Use of Turfgrass Type on Five Golf Course Areas in Georgia, 1998
Figure 1. Location of Golf Courses Participating in the Survey, 2000
Figure 2. Location of Private Golf Courses Participating in the Survey, 2000
Figure 3. Location of Semi-Private Golf Courses Participating in the Survey, 2000
Figure 4. Location of Public Golf Courses Participating in the Survey, 2000
Figure 5. Approximate Total Maintenance Expenditures by Golf Courses in 1998
Figure 6. Source of Irrigation Water
Figure 7. Age of Golf Course Superintendent

Introduction

Golf is very popular in America with more than 26.4 million Americans playing at least one of the 529 million golf rounds in 1998 (U.S. Census Bureau, 2000). Likewise, golf in Georgia has grown rapidly with population growth. From 1972 to 1998, the number of golf courses in Georgia increased 118 percent to 430 (LaPlante, 1972; National Golf Foundation, 2000). The National Golf Foundation (NGF) places Georgia among the top 10 states in the country in new golf course development during the 1990s. The NGF also reports that the average number of golfers per course is 1,970 and that the combination of natural population growth and favorable demographic changes almost ensures the number of golfers and rounds will continue to grow at rates of 1 to 2 percent annually. Thus, in 1998 there were around 847,000 golfers in Georgia.

Nationally, public golf courses reported $ 4.62 billion in receipts in 1998 (U.S. Census Bureau, 2000). Another $3.64 billion was spent on golf equipment by golf enthusiasts. The economic impact extends beyond the use of golf course facilities to the game itself. More than 2.1 million people attend one or more golf events a month. Most facilities offer other amenities including tennis, swimming or dining. Golf course facilities provide jobs for people with different skills ranging from golf club managers, club professionals, and golf course superintendents to waiters and manual laborers.

The popularity of golf influences suburban development. The number of golf course facilities grew by 8 percent from 12,846 in 1990 to 14,900 in 1998 (U.S. Census Bureau, 2000) and a significant number of new golf courses were constructed as a part of housing developments. The combination of upscale housing and golf facility has been popular during the last decade and has been stimulated by rising incomes and changing demographics.

There is a general lack of information about the structure of the golf industry in Georgia and its economic importance to local communities and the state. To improve knowledge regarding this fast growing industry, a survey of golf course superintendents was conducted in 1999. The objectives of the survey were (i) to collect data needed to establish an economic profile of golf courses in Georgia with emphasis on issues related to the maintenance of the course and the surrounding landscape, and (ii) the profile of a golf course superintendent was also considered important because of future needs for continuing education and extension advisory services. The only previous work of this nature was reported by LaPlante in 1972.

The survey was conducted among members of the Georgia Golf Course Superintendents Association (GGCSA). The survey instrument was mailed to 352 addresses and resulted in 208 responses. Respondents were encouraged to participate in the survey by verbal reminders at GGCSA meetings. The gross return rate was an excellent 59 percent. This report provides a summary of responses regarding general characteristics of golf course facilities including location, ownership type, and maintenance expenditures. A profile of respondents was also developed describing superintendents age, formal educational level, and experience in the industry. The importance of water use has increased recently due to prolonged dry conditions and rapid population and industry growth. Therefore, water sources, water use and irrigation practices were also evaluated.

Golf Course Facilities in Georgia

The number of golf courses in Georgia has steadily increased to the present number of 430 in 1998 (National Golf Foundation, 2000). Among golf courses that participated in the survey about 20 percent were established before 1949, while another 27 percent were built between 1950 and 1969. The 1970s brought the accelerated population growth in the state that influenced the demand for recreation stimulating the construction of new golf courses. Twenty-four percent of golf courses were opened between 1970 and 1989 and nearly 29 percent between 1990 and 1999. The golf course industry registered very dynamic growth in recent decades and if population growth continues, additional facilities should be constructed.

The number of holes per golf course has increased dramatically since 1972. Nine-hole courses now account for only 12 percent of courses compared to 56 percent in 1972 (LaPlante, 1972). Nearly 70 percent of golf courses had 18 holes. The construction of short golf courses has been significantly reduced as only 2.5 percent of the facilities reported par to be less than 35. About 10 percent of golf courses had more than 18 holes.

Location

Figures 1 through 4 illustrate the type of ownership and the location of the 208 golf courses. The location of facilities closely resembles the concentration of the population in Georgia. The metropolitan Atlanta area has a particularly large number of golf courses. Outside of metropolitan Atlanta, clusters of golf courses are located along the Atlantic coast, where a number of resorts and retirement communities are located, and in major urban areas of the state. Private facilities located outside the Atlanta metropolitan area were predominantly located in the southwestern part of the state, whereas the public facilities were located in eastern and coastal Georgia.

There has been a significant increase in the number of public courses. In 1972, 60 percent of courses were private (LaPlante) while this survey had only 43 percent. About one quarter were semi-private or resort type golf courses.

Maintenance Expenditures

Golf course management is rather expensive because of the demand for so many skills to develop, prepare, and maintain the playing surface (Beard, 1982). The survey collected detailed expenditures incurred by the golf courses in 1998. Of the 208 facilities, 131 provided total maintenance expenditures. The largest group of golf courses (37.4 percent) spent between $100,001 and $250,000 on maintenance (Figure 5). Nearly 22 percent of the courses reported spending between $250,000 and $500,000, while nearly 12 percent spent more than one half million dollars on maintenance. Thus, nearly 33 percent spent $250,001 or more on maintenance. The average maintenance budget was $417,042, seven times greater than the average expenditures of $61,000 in 1972 for a 18-hole golf course (LaPlante).

Competition from plants other than the desired turfgrass requires application of herbicides, while disease and insect damage is alleviated by applications of fungicides and insecticides. In addition to being unsightly, weeds compete for light, nutrients, water, and physical space (McCarty, 2001). Weeds are often the result of weakened turf, not the cause of it. In Georgia, weeds are the major problem in turfgrass maintenance because they grow year-round. To control their presence, pre-emergence and post-emergence herbicides may be used throughout the year. About 84 percent of the courses incurred costs associated with pesticides in 1998. Just over 48 percent of golf courses spent anywhere from $10,001 to $25,000 on herbicides, but only 5 percent spent in excess of $50,000. The average herbicide expenditures in this survey were $11,158. According to a national study (GCSAA, 2000), annual expenditures for herbicides on golf courses averaged $6,146 in 1999, but were higher in the Southeast ($11,689). It appears that Georgia golf courses spent within the same range as all golf course facilities in the region, excluding Florida. The latter, has natural environmental conditions more conducive to greater weed pressure.

Fungal diseases frequently attack turf in the southeastern United States because the climatic conditions of high temperatures, high relative humidity and periodic drought stress favor the growth of various fungi and many are indigenous to the region. Some type of disease is present at almost any given time and has the potential to develop into epidemics that can cause unacceptable damage. There are many interacting factors that determine severity of disease development. Expenditures on fungicides were considerably smaller than expenditures on herbicides. In 1998, a golf course in the Southeast spent on average $16,174 on fungicides (less than the national average of $19,476) (GCSAA, 2000). According to results from our survey, the average amount spent on fungicides in Georgia of $9,692 was significantly less than the national and regional averages reported in the GCSAA survey.

Insects can cause considerable damage on golf courses. For example, fall armyworms and cutworms feed on leaves, while white grubs and mole crickets are root feeders (McCarty, 2001). Expenditures on insecticides were even smaller than those on fungicides. In southern Georgia, mole crickets are major insect pest on golf courses. The damage from other insects is sporadic and localized. Treatments are applied on "as needed" basis after establishing the amount of the damage and identifying the insect.

The average annual insecticide expenditures in the Southeast equaled $4,103 in 1998 (GCSAA, 2000). This figure is less than the average of $7,171 in Georgia. Although more was spent on average in Georgia than in the region, the average amount spent in Florida is more than three times higher.

Most soils in Georgia are naturally acidic. To maintain the optimal pH (5.5 to 6.5) needed for healthy growth of turfgrasses applications of lime are often necessary. In 1998, 130 golf courses reported purchases of lime or gypsum. In general, the expenditures were small compared to spending on pesticides or fertilizers. Nearly 44 percent of reporting facilities spent no more than $1,000, while 25 percent spent anywhere between $1,001 and $2,500. Some, however, needed major amounts of lime or gypsum. More than 5 percent purchased lime worth between $7,501 and $10,000 and another 4 percent spent between $10,001 and $15,000. Two golf courses spent more than $15,000 on lime and gypsum in 1998. The average expense on lime and gypsum was $3,047.

The pattern of wetting agent purchases was similar to purchases of lime and gypsum. Nearly one-half (47 percent) spent no more than $1,000 on wetting agents, while another 32 percent reported spending from $1,001 to $2,500. Almost 5 percent of golf courses reported expenditures between $7,001-$10,000 and fewer than 2 percent spent more than $10,000. On average, a golf course in Georgia spent $2,118 on wetting agents in 1998. The average in the Southeast was $1,663, while the national average was $2,077 (GCSAA, 2000).

Plant growth regulators (PGR's) are used to suppress seedheads and vegetative growth of desirable turfgrasses, enhance turfgrass quality, and manage annual bluegrass growth and development (McCarty, 2001). Plant growth regulators were purchased by 55 percent of golf courses. The largest number, about 30 percent, spent between $2,501 and $5,000 on PGR's in 1998. One-half of all facilities spent $5,000 or less on PGR's, but more than 12 percent purchased PGR's valued from $7,501 to $15,000. The average PGR expenditure in Georgia was $3,687 in 1998. The expenditures reported for Georgia closely correspond to the average in the Southeast of $3,156 (GCSAA, 2000).

Water Sources, Water Use, and Expenditures on Water

Water is the primary requirement for growth and survival of turfgrasses (McCarty, 2001). In addition to being essential for turf growth, the seasonal droughts common in Georgia and the demands created by poor soils, warm weather, and player demands for quality playing surfaces make irrigation an important part of golf course maintenance.

Water sources. Figure 6 shows the sources of water used to irrigate surveyed facilities. Public water sources accounted for only 4 percent of irrigation water. By far the most common source of irrigation water (67 percent) was from surface water obtained from lakes and, to a smaller extent, from streams. About 17 percent operated on wells, while another 2 percent used other private wells.

Although potable water is the preferred irrigation source, it is not very commonly used. Most golf courses try to use lakes and other natural water features as an important aspect of course design. Lakes often are a natural source of water since rainfall runoff is common from the gentle rolling hills of central Georgia to the steeper areas of north Georgia. In addition to natural topography, soils in these parts of Georgia have low infiltration rates and high rates of runoff thus are not very effective at capturing and storing water for turf use. Thus golf courses seem to do a good job of capturing natural water sources (water harvesting) for irrigation. However, the dependence on lake water is of importance in recent years because of the prolonged drought conditions. All lakes in Georgia are man-made and heavily depend on being recharged by precipitation. Since golf courses are located in densely populated areas they may compete for water with industrial and residential users.

Water use. About 55 percent of golf courses participating in the survey reported using in excess of 20 million gallons of water in 1998. About 19 percent of facilities used more than 50 million gallons for irrigation. The average annual water usage was 53.3 million gallons. Irrigation systems are used only during a portion of the year corresponding to the growing season making the demand for water highly seasonal. Uncertainty associated with water availability and the potentially high losses resulting from damage inflicted on turf by inadequate moisture creates incentives to search for immediate and long term solutions. Potential remedies include drilling wells and breeding for drought resistant traits in turfgrasses.

Expenditures on irrigation water. About 19 percent reported maintenance expenditures on water at $2,500 or less, while another 21 percent spent between $2,501 and $5,000. The largest group of 25 percent spent $5,001 to $10,000 on water in 1998. Still, some facilities spent a large amount of funds on water: 16 percent paid $15,001-$25,000 and nearly 6 percent spent more than $25,000.

An average water budget in the Southeast was $12,650 (GCSAA, 2000) in 1999. This is higher than the average expenditures of $9,914 in Georgia. Water expenditures are highly dependent on the source of water used for irrigation and the water fee structure in the region. According to our results, the majority of golf courses used water from sources other than municipal water systems, which likely kept the water bill low.

Expenditures on irrigation equipment and repairs. In 1998, about 51 percent of golf courses spent no more than $5,000 on new irrigation equipment. However, more than 8 percent spent between $100,000 and $250,000 and seven percent between $250,001 and $500,000. Nearly 6 percent of golf courses spent more than $500,000 on new irrigation equipment in 1998. The average expenses on new irrigation systems amounted to $103,000.

Eighty percent of golf courses reported expenses for irrigation equipment repairs. About 31 percent spent no more than $2,500 in 1998, while 25 percent spent between $2,501 and $5,000. Only about 18 percent of facilities spent in excess of $10,000. The average expense was $6,742. Irrigation repair expenses were less than those on fuel, oil and lubricants or equipment repair. The installation of the irrigation equipment is usually a major expense, specially for some facilities. All new golf courses install irrigation systems during construction in order to establish and maintain the turfgrass.

Turfgrass Species and Cultivars

Georgia has variable geographic areas and climates. Warm season grasses such as bermudagrass can be grown throughout the state while cool season grasses may be grown generally north of line from Columbus to Macon to Augusta. There were four different species of turfgrasses used with significant frequency on golf courses because of these varying environmental conditions. This represents a significant change from 1970 (LaPlante, 1972) when bermudagrass was the only specie used. The other species being used include bent-grass on golf greens, zoysiagrass on tees and roughs, and fescues in roughs. This suggests the adaptation of new technology, including improved turfgrass species, has occurred over the last 30 years. Additionally, the game of golf requires different grasses in different areas of a course. Table 1 shows the use of turfgrass species and cultivars used on greens, tees, fairways and roughs. The choice of turfgrass on putting greens changed dramatically since 1970 (LaPlante, 1972) when only 7 percent of golf courses used bentgrass to over 51 percent in 1998. The variety of bermudagrass on putting greens also changed dramatically from 68 percent using 'Tifgreen' in 1970 (LaPlante, 1972) to 37 percent using 'Tifdwarf' and 25 percent using 'Tifgreen' in 1998. 'Tifdwarf' bermudagrass and bentgrasses were just being introduced into Georgia in 1970 and these newer grasses developed by the USDA/ARS and University of Georgia have obviously been well accepted by the industry. Bentgrasses were used significantly on greens in the northern part of the state and 17 percent of courses used fescue, another cool season grass, in the roughs. The two most popular bentgrass cultivars were 'Penncross' (31 percent) and 'Crenshaw' (25 percent). 'Penncross' represents the old industry standard and 'Crenshaw' represents one of the newer bentgrass cultivars. Another warm season grass, zoysiagrass, has become more popular because of its enhanced shade tolerance over bermudagrass. Zoysiagrasses were used on 10 percent of tees and 5 percent of golf course roughs.

Changes in cultivar use also occurred on tees. In 1970 common bermudagrass was the most popular cultivar being used by one-third of the courses. Common bermuda was followed by the newer bermudas, 'Tifgreen' and 'Tifway,' each being used on about 20 percent of the courses. In 1998, 'Tifway' was used on 54 percent of the courses, while 'Tifgreen' was used on 13 percent and common bermuda on only 2 percent of courses. This provides another good example of the change in the industry to newer, better performing turf-grasses.

Changes on golf course fairways were even more dramatic than on tees. In 1970 (LaPlante, 1972), common bermuda was used on 59 percent of fairways and 'Tifway' was used only on 11 percent. By 1998, 'Tifway' was used on 63 percent of fairways and common bermuda on five percent.

Overseeding

Some golf courses overseed in the fall because the warm season grasses stop growing and become brown and dormant under cooler temperatures. Overseeding improves the playing conditions during this time and provides a more desirable color. Overseeding is an important economic factor particularly on resort courses that receive significant play during the fall, winter and spring. The main areas of golf courses overseeded were tees (18%) and fairways (12%). Field observations also indicate that more than 90 percent of courses with bermudagrass greens overseed. However, the survey results do not support this, thus respondents may have misunderstood the question.

Experience of Superintendents

Superintendents have the primary responsibility for golf course maintenance. Figure 7 shows the age distribution of superintendents. Golf course superintendents tend to be relatively young, probably because of the long hours required to maintain high quality playing surfaces. The largest group was 30-39 years old (37 percent). Nearly one third were 40-49 years old and those 50-59 years old represented 14 percent of superintendents.

Experience in working on a golf course is important just as it is for most managerial professions. The multitude of problems related to environmental conditions and the options of cultural practices are substantial and range from turf selection to nutrition and pest identification, and personnel management. Ten percent of superintendents reported less than five years experience. The largest group (25 percent) had from 11 to 15 years of experience, and 22 percent had 6 to 10 years of experience. Only 13 percent had more than 25 years experience, but the average was 16 years.

The substantial number of superintendents with less than 16 years experience working at a golf course suggests opportunities for training. New technology, including turfgrass species and cultivars, chemicals, and equipment are steadily released into the market. This means superintendents constantly have to evaluate new options for all aspects of golf course management. The land grant system is particularly qualified to support and provide training through its multidisciplinary expert base.

Concluding Comments

The growth of golf courses in Georgia has accompanied the state's population growth. In fact, from 1972 to 1998 there has been a 118 percent increase to 430 courses, and nearly 30 percent of these were built in the 1990s. The National Golf Foundation also estimates that the number of golfers and rounds played will continue in increase at 1 to 2 percent annually. Golf courses generate significant revenues and maintenance expenses, and provide employment for various skill levels from manual laborers to golf superintendents, golf professional and club managers.

The majority of new golf courses have been developed in the urban areas of Georgia, with Atlanta being the area of greatest growth. Golf courses are developed and maintained under a significant range of budgets. More than 71 percent of courses spent more than $100,001 in annual course maintenance and almost 33 percent spent more than $250,000. The average maintenance budget was more than $417,000 or seven times more than in 1970.

Pest management is an integral part of golf course maintenance throughout the country. In Georgia, the average golf course expense for disease, insect and weed problems was only seven percent ($27,800) of the average budget. The data also suggest that golf course superintendents in Georgia may be more efficient in the area of pest management than others in the southeastern United States since they spent 13 percent less in this area.

Water is a primary requirement for turfgrass growth and maintenance of a high quality golf course playing surface. In Georgia, golf courses do an excellent job of avoiding potable water use since only 4 percent use this source while 67 percent use surface water from lakes and streams. The average annual water use was 53.3 million gallons. The average expenses for irrigation water in Georgia is just less than $10,000 or 28 percent less than the average for the Southeast. One of the reasons for this lower expense may be because of more updated irrigation equipment, since the average spent in this area was $103,000.

Finally, the use of new turfgrass species and cultivars has changed significantly since 1970. 'Common' bermudagrass was used on 59 percent of fairways then, whereas only 5 percent used it in 1998. In 1970, only 11 percent used 'Tifway' and by 1998 it was used on 61 percent of fairways. Similar changes have occurred on other parts of the golf course. On greens, 'Tifgreen' use has dropped from 68 percent in 1970 to 25 percent in 1998. In 1970, bentgrasses were just beginning to find use on golf greens and by 1998, 51 percent of courses used this species.

"Change" is also a major factor when analyzing the golf course superintendent. Thirty-seven percent of superintendents were between 30 and 39 years old followed by one-third being between 40 and 49, and only 14 percent being between 50 and 59.

As is the case in most "growing" industries, the need for the latest information on new technology to maintain high quality playing surfaces under sound environmental management principles is very demanding. This requires a sound background in science and the ability to manage and communicate with people of many different levels of expertise.

References

Beard, J. B. 1982. Turf Management for Golf Courses. Burgess Publishing. Minneapolis, MN.

GCSAA. 2000. 2000 Golf Course Superintendent Report. A Survey of Research Conducted by GCSAA. Lawrence, Kansas.

LaPlante, M. G. 1972. A Comparative Cost Analysis of Golf Course Turf Maintenance in Georgia. Univ. of Georgia. Research Bulletin 108. June, 1972.

McCarty, L. B. 2001. Best Golf Course Management Practices. Prentice Hall. Upper Saddle River, NJ.

National Golf Foundation. 2000. Golf Facilities in the U. S.: 2000 Edition. www.ngf.org.

National Golf Foundation. 2001. Golf Facilities in the U. S.: 2001 Edition. www.ngf.org.

U. S. Census Bureau. 2000. Statistical Abstract of the United States. U.S. Department of Commerce, Washington D.C.

Table 1. Use of Turfgrass Type on Five Golf Course Areas in Georgia, 1998

Figure 1. Location of Golf Courses Partipating in the Survey, 2000

Figure 2. Location of Private Golf Courses Participating in the Survey, 2000

Figure 3. Location of Semi-Private Golf Courses Participating in the Survey, 2000

Figure 4. Location of Public Golf Courses Participating in the Survey, 2000

Figure 5. Approximate Total Maintenance Expenditures by Golf Courses in 1998

Figure 6. Source of Irrigation Water

Figure 7. Age of Golf Course Superintendent

Gale Buchanan, Dean and Director Gerald F. Arkin, Associate Director, Northern Region Jerry A. Cherry, Associate Dean and Senior Associate Director

ISSN 0072-128X

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