Peter Ryan, Ph.D.

1. Peter Ryan, Ph.D. SRI International

2. Golf’s Economic Impact Key Contributors: • GOLF 20/20 • The Virginia Golf Council • Major golf associations and organizations • Government agencies • Related professional associations • SRI International

3. Golf’s Economic Impact Importance of State Golf Alliances: • Define the scope of the golf industry • Identify data sources and validate estimates • Provide context for data interpretation • Use economic impact results, in their own organizations, to improve the golf industry • Serve as enablers/influences for positive use of economic impact results outside of the golf industry • Influence governmental and organizational policy related to the golf industry

4. Golf’s Economic Impact The Challenge—Develop a Framework to: • Illustrate and communicate the full scope of the golf industry • Create a context for golf’s economic impact in a state (relative to other industries and consumers of natural resources) • Employ multiple data sources and measures to capturethe industry from both internal and external perspectives • Enable replication over time, within state, and across states—“compare apples to apples” • Stay cost effective, in part, by evaluating and using datafrom golf and non-golf organizations collected on regular cycles

5. Golf’s Economic Impact The Approach: • Meet and collaborate with state alliance to identify/validate economic estimates • Identify multiple indicators for each industry segment • Use both primary and secondary sources to reach “consensus estimates” • Estimate economic activity directly related to the golf industry

6. The Golf Economy

7. Golf’s Economic Impact Segments of the Golf Economy:

8. Golf’s Economic Impact Economic Impact: • Direct Impact: New economic activity (production, employment) linked to provision of golf products and services • Indirect Impact: Increase in regional production of goods and services that supply golf courses and related industries • Induced Impact: Increase in consumer spending enabled by employment in core and enabled golf industries • Multiplier effects: The idea that the impact of new golf activityon consumer spending will disproportionately exceed the direct impact (witnessed in indirect and induced impacts) • RIMS II: Regional Input-Output Modeling System, U.S. Dept.of Commerce, Bureau of Economic Analysis (Inter-industry linkages)

9. Golf’s Economic Impact The Message: • The golf industry makes a substantial contribution to economic activity in the state • Employment—full- and part-time jobs • Wages—labor income • Taxes • Golf has many benefits—recreational,social, economic • The golf industry is a responsible steward of the environment

10. David Norman Virginia Golf CourseSuperintendents Association

11. Context of Virginia Study 2002 Drought

12. Context of Virginia Study First Virginia Golf Summit Established January 2003 • Resulted in collaboration among 5 golf organizations to study golf’s economic impact

13. Context of Virginia Study • Need to present systematic information about the relevance and impact of the golf industry to policy-makers in Virginia • This type of information is vital to the future success of the golf industry

14. Potential Uses of Study • Build credibility and recognition of industry as significant business sector in the state • Define the range of core and enabled industries associated with golf • Articulate for policymakers golf’s employment and revenue-generating contributions • Create economic context to understand the use of land and water resources

15. Size of Virginia’sGolf Economy

16. Golf’s Economic Impact

17. Golf’s Economic Impact

18. Economic Impact and Useof Natural Resources Virginia golf courses account for only 2.2 percent of total turfgrass acreage in the state Source: National Agricultural Statistics Service, Virginia Agricultural Statistics Service (2000). Virginia’s 2004 Turfgrass Industry, “2004 Turfgrass Acreage” table

19. Economic Impact andUse of Natural Resources Virginia golf courses account for four-tenths of one percent (0.4%) of the ground and surface water consumed in the state Golf courses are included in commercial and accounted for 0.4% of total water consumed. Source: Department of Environmental Quality, Commonwealth of Virginia (2005). Status of Virginia’s Water Resources, http://www.deq.virginia.gov/regulations/documents/StatusofVirginiasWaterResourcesReport2005.pdf

20. Economic Impact andUse of Natural Resources Virginia golf courses generate high economic returns from per acre water use (examples)

21. Economic Impact andUse of Natural Resources The Virginia golf industry supports turfgrass research and improvements in efficient water use and integrated pest management (IPM)

22. Economic Impact and Use of Natural Resources—Summary • Golf courses use significant amounts of water during summer months to support business However: • Scale of water use on a statewide basis is significantly less than other industries • Golf generates greater economic returns • The golf industry continues to be a responsible partner in finding scientific and regulatory solutions to the state’s water challenges

23. Golf’s Economic Impactin Virginia—Summary • Golf is big business in Virginia • Golf makes significant contributions to many segments of the Virginia economy • Collaborating with a state golf alliance enhances the entire industry • Golf is a responsible steward of the Virginia environment and its natural resources • GOLF 20/20 is a key resource for the Virginia Golf Council