NGF: 19 Course Openings V. 157.5 Closings In '11

It's always hard to read these numbers and not think of the National Golf Foundation's assertion that we needed a course opening every day to keep up with the number of players entering the game.

NGF recorded 157.5 golf course closures in 2011 versus 19 openings, measured in 18-hole equivalents (18HEQ).  As in recent years, closures were disproportionately lower priced public facilities, including a large number of 9-hole courses.

According to NGF, since the market correction in golf course supply began in 2006, there has been a cumulative net reduction of 358.5 golf courses (18HEQ), which represents a drop of 2.4% off the peak supply year of 2005.

The net reduction in courses was overdue – growth in the number of golfers and rounds played over the past 20+ years was not nearly sufficient to support all of the courses that were built during the boom that began in the early 90s.   Since 1991, the number of 18HEQ in the U.S. has grown by 30%, outpacing golfer growth of 6.5% over that span.

Meanwhile Bloomberg's Christine Harvey looks at the lending situation in golf and talks to the only person buying courses at the moment, The Donald. Actually, there are signs that others are showing interest in buying distressed properties.

Investors from Donald Trump to luxury homebuilder Toll Brothers Inc. (TOL) are wagering there’s money to be made buying golf courses after a building boom fueled by Tiger Woods’s popularity led to a glut.

“They built too many courses during the Tiger Boom and now they’re closing and disappearing,” said Trump, who announced last month he’s purchasing the Doral Golf Resort & Spa in Miami for $150 million out of bankruptcy. The resort features five courses on 800 acres, including the Blue Monster, and about 700 hotel rooms. “At some point enough will disappear that golf will be a really good business.”