NAGA Announces Results of Canadian Golf Economic Impact Study

• Canadian golf industry generates $11.3 billion in economic activity

• Industry employment estimated at more than 341,000 golf related jobs

• $437 million in philanthropic dollars generated by over 25,000 charity golf tournaments

• Golf related travel within Canada generates nearly $1.9 billion in tourism annually

• Estimated 70 million rounds of golf played in Canada in 2008

Oakville, Ont. (NAGA) — The Canadian Golf Industry generated $11.3 billion in economic benefits across our nation, according to a recent economic analysis conducted by Strategic Networks Group, Inc. on behalf of the National Allied Golf Associations (NAGA).

The Canadian Golf industry employs the equivalent of 341,794 people through direct and spin-off effects, generating more than $7.6 billion in household income. The industry also contributes more than $29.4 billion in total gross production through direct and indirect and induced spending; generates more than $1.2 billion in property and other indirect taxes; as well provides an estimated $1.9 billion in income taxes used to support a variety of programs for all Canadians.
“Today is a landmark day for golf in Canada,” said NAGA Chair Steve Carroll, Executive Director of the Canadian PGA. “The study outlines the considerable scope and magnitude of the impact of our sport on the Canadian economy while providing a benchmark for the Canadian golf industry to measure itself against moving forward. I’m especially proud of the tremendous synergies that came together among all the NAGA partners on this monumental study for our industry.”

Based on a nation-wide survey of more than 4,000 golfers and 350 golf courses in 10 provinces and three territories, the Canadian Golf Economic Impact Study provides the first comprehensive and independent assessment of the economic impact of the golf industry in Canada.

The study was conducted on behalf of NAGA by Strategic Networks Group (SNG), a world leader in econometrics of economic development for communities, regions and industries.

"The Canadian golf industry creates a significant economic impact for the nation, which benefits all residents of this country," said Tom McGuire, SNG’s Vice President, North America. "The recreational opportunity and business of golf is a great national driver of economic activity, and every province in Canada offers a different experience for those who enjoy the game and those who benefit from the facilities that golf courses provide this country."

The announcement of the Canadian Golf Economic Impact Study was made during a press conference held at the Canadian Golf Hall of Fame and Museum. Leaders from all of the NAGA partner associations were on hand to take part in the announcement.

HIGHLIGHTS OF THE CANADIAN GOLF ECONOMIC IMPACT STUDY:

The game of golf accounts for an estimated $11.3 billion of Canada’s Gross Domestic Product (GDP), which includes:

• 341,794 jobs
• $7.6 billion in household income
• About $1.2 billion in property and other indirect taxes
• About $1.9 billion in income taxes.

Golf in Canada generates an estimated $29.4 billion in total gross production through direct, indirect and induced spending impacts.

The total direct economic activity (total direct sales) resulting from the Canadian Golf Industry is estimated at $13.6 billion. Of this total, the revenues generated directly by golf courses and their facilities and stand-alone driving and practice ranges ($4.7 billion) rivals the combined revenues generated by all other participation sports and recreation facilities in Canada.

Additional key benefits and impacts of golf in Canada include:

• Environmental Benefits – Over 200,000 hectares of green space managed by golf course operators, including 41,000 hectares of uncultivated wildlife areas under golf course stewardship.

• Golf Participation –SNG estimates that about 70 million rounds of golf were played in 2008, a level of play that was as much as 10% off the average number of rounds based on prior years.

• Employment Opportunities – The Canadian Golf Industry provides an excellent employment opportunity, with as many as 43% of those employed at Canadian golf courses being students.

• Impact on Property Values – The location of houses adjacent to golf courses provides benefits to homeowners that stem from higher home values compared to similar homes that are not adjacent to courses. We estimate the total incremental impact on home values at $1.39 billion.

• Charitable Activity – Each year there are at least 25,000 charitable events hosted at Canadian courses. Conservatively, these events raise more than $437 million for charitable causes across Canada.

• Golf Tourism – Canadian travelers make more than 1 million trips involving golf, spending an estimate $1.9 billion annually on golf-related travel within Canada.

Aside from household that command more that 25% of the gross economic effects, Canada’s manufacturing sector is impacted the most by Canadian golf related expenditures, commanding 13% of the gross economic impacts. This is followed by the finance, insurance and real estate services and retail trade sectors.

The study provides new quantitative evidence of the economic significance of the sport to the Canadian, provincial and territorial economies, through primary research augmented by secondary information sources.

The results demonstrate the substantial role golf has in the economy of Canada in terms of:

• Golf’s “Gross Domestic Product” in Canada – including all goods and services that are directly and indirectly related to the game, with analysis of who benefits from golf, and to what extent;

• Other spin-off economic impacts such as employment and household income at the national, provincial and territorial scales.

An executive summary outlining the results of the Canadian Golf Economic Impact Study and a key findings report is available by clicking on the links provided or by visiting any of the National Allied Golf Association partner websites.


ABOUT THE NATIONAL ALLIED GOLF ASSOCIATIONS (NAGA)
The study was sponsored by National Allied Golf Associations (NAGA), a national golf organization comprised of the Canadian Golf Industry Association, (CGIA) Canadian Golf Superintendents Association (CGSA), Canadian Professional Golfers Association (CPGA), Canadian Society of Club Managers (CSCM), Canadian Professional Golf Tour (CPGT), National Golf Course Owners Association Canada (NGCOA) and the Royal Canadian Golf Association (RCGA), dedicated to improving all sectors of golf in Canada. Formed in 1999, NAGA’s objective is to work cooperatively together as industry leaders ensuring a strong future for golf in Canada.

ABOUT STRATEGIC NETWORKS GROUP
This study was conducted by Strategic Networks Group (SNG). Founded in 1998, SNG is a world leader in the econometrics of economic development for communities, regions and industries. SNG specialists hold decades of accumulated experience providing support in the areas of economic analysis, community development, e-business, e-community strategies / broadband planning, strategic planning for economic growth, and project implementation. SNG's strategic focus is to identify opportunities that stimulate economic growth and community vitality. To find out more, please visit: www.sngroup.com.