Golf-related real estate valued at $155 million in Washington for 2007
Golf generated a direct economic impact of $1.2 billion in the State of Washington during 2007, according to a recently released report. Of that total, researchers attributed nearly $155 million to golf-related residential real estate.
When factoring in direct, indirect and induced (multiplier) effects of golf-related activities, the industry accounts for an estimated $2.5 billion in economic activity, including $116 million in tax revenue and more than 29,000 jobs whose workers earned $796.3 million in wages.
The report notes the $1.2 billion in direct annual revenue positions golf alongside several other important industries in the state, notably ship and boat building ($0.9 billion), wheat production ($1.8 billion) and seafood preparation and packaging ($1.6 billion).
Analysts also compared income from golf facility operations with other revenue-generating sports. "Washington's golf facilities generate revenues which approach the total for all other spectator sports in the state combined—including football, baseball, and basketball. These other spectator sports generated revenues of $474.3 million in 2002, or $545.4 million in 2007 inflation‐adjusted dollars," the study noted.
"Golf brings visitors to the state, drives new construction and residential development, generates retail sales, and creates demand for a myriad of goods and services," the report's authors wrote.
Real estate and hospitality/tourism are valued as "enabled industries" in the golf impact study. "Golf is a key amenity in many areas of Washington State," the report stated, while noting estate developers use such amenities to attract new home buyers.
Researchers estimated new golf-related real estate construction generated $137.1 million in 2007, despite the market slowdown. In addition, they estimate the "golf" premium associated with the sale of real in the 46 golf communities in Washington to be $17.6 million. This premium is the additional amount a buyer is willing to pay for a home or property located on a golf course or within a golf community.
Real estate ranked as the third largest component in the economic impact study:
Golf's Impact on Washington's Economy (2007)
Industry
Direct
($ M)
Indirect
Induced
Total Output
($ M)
Total Jobs
Total Wage Income
($ M)
Golf Facility Operations
$451.1
→
$946.5
12.644
$316.4
Golf Course Capital Investments*
$102.3
→
$127.6
1,018
$40.5
Golfer Supplies
$114.8
→
$234.9
2,012
$71.5
Tournaments & Associations
$11.3
→
$26.5
296
$9.2
Real Estate**
$154.7
→
$327.0
2,610
$103.8
Hospitality /
Tourism
$361.2
→
$796.6
10,739
$255.0
TOTAL
$1,195.4
→
$2,459.1
29,318
$796.3
* Golf course capital investments: Only new course construction as 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 sale of existing homes is considered a transfer of assets rather than new economic output, so the golf premium that is realized in the sale of an existing home is not included in the economic impact analysis.
"The importance of golf in Washington extends beyond the golf facilities themselves," the report emphasized in a section summarizing the industry's substantial contributions to a variety of charities. The combination of fundraising by local service organizations, events hosted at courses each year to benefit numerous organizations, and other charitable activities was estimated to generate more than $36 million in 2007.
Washington is home to 280 golf courses, 10 golf resorts, 29 stand-alone ranges and 28 miniature golf facilities.
The economic impact report – the first such analysis prepared for Washington state – was commissioned by GOLF 20/20 and prepared by SRI International for the Washington Golf Alliance, a collaboration of 10 industry associations. Additional support came from several national allied organizations.
Representatives of the Golf Alliance said the report will have many uses, including:
Defining the range of core and enabled industries associated with the game of golf;
Clearly articulating, for policymakers and regulatory agencies, the employment and revenue‐generating contributions of the golf industry to the state economy; and
Building credibility and recognition of the golf industry as a significant business sector and a driver of economic activity in the state.
Photo: P1010443 (The Golf Course at Echo Falls) courtesy of Oki Golf
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NWREporter September 2010
Golf generated a direct economic impact of $1.2 billion in the State of Washington during 2007, according to a recently released report. Of that total, researchers attributed nearly $155 million to golf-related residential real estate.