This report was commissioned by GOLF 20/20 for the

Golf Alliance of Oregon and prepared by SRI International

THE OREGON GOLF ECONOMY SUMMARY

PUBLISHED JANUARY 2015

Oregon’s  Golf  Economy,  2013  versus  2008  Industry   2008   2013       2013  Total  Impact  

Direct  ($  M)  

Direct  ($  M)  

Indirect  Impact  

Induced  Impact  

Total  Output  ($  M)  

Total  Jobs  

Total  Wage  Income  ($  M)  

Golf  Facility  Operations   $361.7   $336.4       $471.0   8,082   $152.4  Golf  Course  Capital  Investments*   $51.2   $45.0       $39.8   317   $12.5  

Golf-­‐Related  Supplies   $464.7   $581.2       $1,037.6   7,447   $276.8  

Tournaments  &  Associations   $15.6   $6.4       $9.6   102   $3.3  

Real  Estate**   $73.2   $36.5       $58.7   468   $18.4  

Hospitality/Tourism   $223.6   $251.7       $369.4   4,804   $113.1  

TOTAL   $1,190.0   $1,257.1       $1,986.1   21,219   $576.4  

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Home   to   190   golf   facilities   and   some  notable   golf   equipment   and   apparel  manufacturers—Nike   Golf,   Adidas,   and  Columbia  Sportswear)—golf   in  the  “Beaver  State”   is  a  key   industry  contributing  to  the  vitality  of  Oregon’s  economy.      

In   2013,   the   size   of   Oregon’s   direct   golf  economy   was   approximately   $1.3   billion.  This   is   comparable   to   revenues   generated  by  other  key  industries  in  the  state,  such  as  paper   manufacturing   ($3.9),   software  publishing   ($1.5   billion),   and  greenhouses/  nurseries  ($0.8  billion).    

Golf  brings  visitors   to  the  state,   spurs  new  residential   construction,   generates   retail  sales,  and  creates  demand   for  a  myriad  of  goods  and  services.   In  2013,  Oregon’s  golf  

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industry   generated   a   total   economic  impact   of   $2.0   billion,   supporting   over  21,000   jobs   with   $576.4   million   of   wage  income.    

The  major  recession  of  2007-­‐2009  resulted  in   a   sharp   contraction   in   new   golf   course  and   golf   home   construction,   fewer  professional   tournaments   (due   to   declines  in  corporate  sponsorship),  and  a  decline   in  Oregon   golf   facility   revenue   overall.  However,   strong   recovery   by   Oregon   golf-­‐related   manufacturers   counteracted  declines   in   other   sectors.   As   a   result,     the  golf  industry’s  total  direct  economic  impact  in   2013   increased   slightly   relative   to   2008  (date   of   last   study).   The   table   below  compares   the   size   of   Oregon’s   golf  economy  in  2008  and  2013.    

Note:  To  calculate  golf’s  total  economic  impact,  SRI  subtracted  from  the  direct  golf  economy  impact  of  $1,257.1  million  the  portion  of  capital  investment   that   is   investment   in   existing   facilities   ($26.8   million   of   $45.0   million)   and   the   portion   of   real   estate   that   is   the   realized   golf  premium  associated  with  the  sale  of  real  estate  in  existing  developments  ($9.7  million  of  $36.5  million).  This  is  because:    *Golf  course  capital  investments—Only  new  course  construction  has  an  indirect  and  induced  economic  impact.  Other  types  of  facility  capital  investment  are  typically  financed  through  facility  revenues  and,  therefore,  are  omitted  to  avoid  double  counting.  **Real   Estate—Only   golf   residential   construction  has   an   indirect   and   induced   impact.   The   golf   premium  associated  with   golf   real   estate   is  considered  a  transfer  of  assets  rather  than  new  economic  activity.  

Oregon’s  $1.3  billion  golf  industry  generated  a  total  economic  impact  of  $2.0  billion  in  2013,  supporting  over  21,000  jobs  with  wage  income  of  $576.4  million.    

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Core  Industries  Golf   Facility   Operations:   Oregon’s   190  golf  facilities,  12  stand-­‐alone  ranges,  and  5  miniature   golf   facilities   generated   $336.4  million  of  revenues   in  2013.    Golf  revenues  were   comparable   to   the   combined  revenues   of   all   other   spectator   sports—football,   baseball,   basketball,   hockey,   and  soccer,  etc.    

Golf   Course   Capital   Investments:  Oregon’s   golf   facilities  made   $45.0  million  of   capital   investments   in   2013:   $26.8  million   in   existing   facilities   and   $18.2  million  in  the  construction  of  new  courses.  

Golf-­‐Related  Supplies:  Out-­‐of-­‐state  value-­‐added   shipments   of   golf   products   by  Oregon   manufacturers   (e.g.,   Nike,   Adidas,  Columbia   Sportswear,   Seamus   Golf,  

The  golf  economy  begins  with  the  golf  facilities  themselves  and  with  other  core  industries  that  produce  goods  and  services  used  to  operate  facilities  and  to  play  the  game  (e.g.,  equipment  and  apparel,  turf  maintenance,  course  construction,  club  management).  The  game  of  golf  further  enables  other  industries,  including  golf  tourism  and  golf  real  estate  development.  

Enabled  Industries  Golf  Real  Estate:   Golf-­‐related   residential   construction   totaled   $26.8  million   in  2013.  The  “golf  premium”  generated  by  sales  in  Oregon’s  23  golf  communities  was  $9.7  million.  

Hospitality/Tourism:   SRI   estimates   that   golf   drew   day-­‐trippers   and   tourists   to   courses   in  different  parts  of  the  state  spurring  $251.7  million  in  tourism  spending  in  2013.    

 

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Pinemeadow   Golf,   and   others)   were  approximately   $535.6   million   in   2013.   In  addition,   the   margin   made   on   state   retail  sales   of   golf   equipment,   apparel,   and  media  totaled  approximately  $45.5  million.      

Major  Tournaments   and  Associations:   In  2013,   Oregon   hosted   one   major   golf  championship:   the   Safeway   Classic  presented  by  Coca-­‐Cola   (now   the  Portland  Classic),   an   LPGA   Tour   event.   In-­‐state  expenditures  to  host  this  event,  along  with  spending   by   regional,   state,   and   local   golf  associations  to  support  junior  and  amateur  events  and  other  activities,  generated  $6.4  million.   Although   outside   the   study   time  period,   the   Web.com   Tour   returned   to  Oregon  as  the  WinCo  Foods  Portland  Open  in  2014.  

Oregon  Golf  Gives  Back      

• Oregon  golf  course  owners,  club  managers,  and  PGA  professionals  are  happy  to  serve  as  access  points  for  fundraising  by  local  service  organizations.    

• Oregon’s  golf  industry  makes  substantial  contributions  to  a  variety  of  charities.  At  the  championship  level,  the  Safeway  Classic  raises  at  least  $1  million  each  year  for  local  charities.  The  Boys  &  Girls  Club  of  Portland  estimates  that  the  organization  alone  has  received  more  than  $3  million  over  the  past  10  years  from  this  event.  Other  local  children’s  charities  supported  by  the  tournament  include  Easter  Seals  of  Oregon,  the  Evans  Scholars  Foundation,  Trillium  Family  Services,  Police  Activities  League,  the  Children’s  Course  and  Oregon  Junior  Golf.    

• Charitable   golf   events   organized   at   the   local   level   also   generate   significant  contributions   for   organizations   across   Oregon.   Examples   include   the   Bandon   Dunes  Golf  Resort’s  Fight  for  Fish  charitable  golf  event  that  supports  freshwater  conservation,  and   the   Battle   at   Bandon   competitive   golf   tournament   that   supports   the   Harrington  Family   Foundation,   a   foundation   dedicated   to   improving   quality   education  opportunities  for  Oregon  youth.  

 • The   total   amount   of   charitable   giving   attributed   to   the   game   of   golf   in   Oregon   was  

roughly  $31.8  million  in  2013.  

• The  importance  of  golf   in  Oregon  extends  beyond  the  golf   facilities   themselves.  With  $1.3   billion   of   direct   economic   activity   in   2013,   the   sheer   size   of   the   game   of   golf  makes   it   a   major   industry   in   its   own   right   and   a   significant   contributor   to   Oregon’s  economy.    

• Oregon’s  golf  industry  is  comparable  in  size  to  other  important  industries  in  the  state,  including  paper  manufacturing,  software  publishing,  and  greenhouses/nurseries.  

 • In   2013,   golf-­‐related  manufacturing   represented   the   largest   golf   industry   segment   in  

terms  of  revenue,  followed  by  golf  facility  operations  and  golf  hospitality/tourism.      

The  continued  health  and  growth  of  the  golf  industry  has  a  direct  bearing  on  future  jobs,  commerce,  economic  development,  and  tax  revenues  for  a  large  number  of  Oregon’s  communities  and  industries.  

The  full  version  of  The  Oregon  Golf  Economy  report  is  available  at:    http://www.golf2020.com/research/economic-­‐impact-­‐reports.aspx    

Size  of  Oregon’s  Golf  Economy  in  Comparison  to  Other  Industries,  2013  ($  billion)  

Paper  Manufacturing   $3.9  

Software  Publishing   $1.5  

Golf   $1.3  

Greenhouses/Nurseries   $0.8   Source   for  non-­‐golf  data:  U.S.  Census  Bureau,  2007  Economic   Census,  Geographic  Series:  Paper  Manufacturing   (NAICS  322)  and  Software  Publishers  (NAICS  5112).  2007  revenues  adjusted  to  2013  dollars  using  the  GDP  deflator.  U.S.  Department  of  Agriculture,  Economic  Research  Service   (2013),  “Top  Commodities,  Exports,  and  Counties,”  Oregon  State  Fact  Sheet.