Golf courses cling on, but hopes are fading
• A third of clubs surveyed say they will fold if lockdown continues for more than a month
This is the second and final part of a feature on why golf courses remain closed during the national Covid-19 lockdown.
On Monday it asked what protocols can be put in place to ensure a safe trading environment for customers and staff at clubs, ranges and retail outlets.
The second question is: what effect do you believe a continuation of the restrictions, to whatever level golf will be allowed to reopen, will have on the golf business and its associated retail trade?
● Jason Rowe (CEO of The Golfers Club): “It is frustrating to stand queuing in the supermarket while observing distancing requirements, when playing golf is not permitted in an environment where you are always multiple metres away from your playing partner.
“It looks increasingly likely that we’ll only be opening at level 2 with the majority of retailers. It is a sad and sombre time for the golf industry. The mood is low and there is simply no specific communication from the government about golf.
“The golf business as a whole in SA employs thousands of workers and the daily knock-on effect is becoming increasingly evident.
Certain golf courses that were struggling financially prior to the crisis will surely close down, while the wealthier clubs are holding on for dear life.
“The stark reality is that the longer the government takes to let us out, the greater the casualties are going to be from the perspective of jobs, clubs and businesses being lost.”
● Chris van der Merwe (GM of Stellenbosch Golf Club and chair of the Club Management Association of SA): “Someone said we are all in the same storm, albeit in different boats.
“We approached the minister because with golf’s ‘boat’ we are confident that we can comply with the regulatory requirements, at least as well as any other sector that is open for business.
“The real concern is that as so many clubs are NPOs (nonprofit organisations), they have quickly become marginal [to use your term] and will close.”
Van der Merwe provided statistics from a recent survey of 180 clubs, which he said made for stark reading:
● 11% of clubs cannot survive under current circumstances.
● 25% of clubs can survive for one month.
● 41% of clubs can survive for two to three months.
● 15% of clubs can survive for four to six months.
● 2% of clubs can survive for seven to 12 months.
● 4% of clubs can survive for longer than 12 months.
One in three of the clubs that participated in the survey fear they will have to close their facilities if the lockdown continues beyond one month, and only 21% of golf clubs in SA indicated they could keep their facilities going if the lockdown continues for longer than four months.
“These are very concerning statistics and represent potentially irreparable harm to the game, especially in terms of the smaller community clubs, the closure of which will leave certain areas and regions with no golf at all,” Van der Merwe said.
Grant Hepburn (CEO of Golf RSA): “The stats from the survey conducted speak for themselves, and the consequences of a continued shutdown for golf will be devastating.
“We are modelling worstcase scenarios within the current situation where already millions of rand of revenue and hundreds of jobs have been lost.
“It is also a scenario in which some clubs have already been closed and others are on the brink of closing down.
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“The situation is evolving and we do not have all the facts to hand, but already we fear that the losses will be incalculable if golf continues to remain closed as a result of the decisions made to help combat the pandemic.”
Jeff Clause (GM of St Francis Links): “The results will be devastating and the travel restrictions, which will potentially be in place long after the local limitations have been eased, will hurt our market sector and the club as a resort destination.
“Financially, the outcomes will not be good for many clubs which are NPOs.
“We are already budgeting for no revenues in 2020 and for only 30% of the originally planned income for 2021.
“Our additional challenge is that as a resort club, we are not member-based in the traditional sense. If those traditional clubs
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with a good and loyal membership can pull through the current restrictions, having the full support of their members thereafter will mean that they should be able to survive.
“We are certainly going to have to be innovative going forward in terms of expenditure. I’d like to believe that we will still offer a warm and world-class welcome, albeit that in housekeeping terms the edges might be a little fuzzier than we would like.”
● Morne Botha (GM of Pecanwood Golf & Country Club): “We have heard this a million times already — the new normal. The effects will be devastating from a financial perspective and in terms of potential club closures.
“However, we might salvage some good from it longer term as we need to learn how to do more with less.
“Overheads need to be minimised for us to survive. If we can figure this out, we will find ourselves in a more efficient and sustainable model.
“We might get the golf industry back to being profitable in the future, but the immediate impact, and at least for the next 12 months, will be very challenging.
“We shall need to be very innovative and create reasons why people should consider going to golf courses, otherwise we shall not make it through the 12-month recovery period.”
This is compelling commentary that supports the belief that there is no logical reason to keep golf courses closed.
These are tough times and decision-making has been fraught with the unknowns associated with this pandemic.
In addition, SA’s government is an ANC one. Given the party’s abysmal track record since 2000, there is a collective responsibility to critique and scrutinise every detail of its pronouncements for veracity, logic and relevance and to hold the government to account for its decisions, especially where they affect our wellbeing, whether at a sport, personal or business level.