11

Golf in the Erie Economy

Dr. James A. KurreThe Economic Research Institute of ErieSam and Irene Black School of Business

Penn State Behrend

For theFor the 6th Annual ERIE Conference6th Annual ERIE Conference

August 14, 2007August 14, 2007

22

Golf Digest’sMetro Golf Rankings

Four Factors:

-Access to Golf (45%)

-Weather (25%)

-Value of Golf (15%)

-Quality of Golf (15%)Based on 2005 data.

33

Results: Overall Ranking

Best: #1 Auburn-Opelika, ALWorst: #330 Jersey City, NJ

Erie: #26!

44

Access to Golf (45%) # of holes per 1,000 people

Erie (#75): 1.24; average: 1.04Best: Jackson MI, 6.64Worst: Jersey City NJ, 0.06

% of public vs. private coursesErie (#100): 76.9% public; avg: 69.2%

Best: Anchorage AK, Cheyenne WY, Santa Cruz-Watsonville, CA, Vineland-Millville-

Bridgeton, NJ, all 100%Worst: Jersey City NJ, 0%

55

Access to Golf (45%)

-# of holes per avid golfer-Rounds played compared to

capacity

Erie’s Ranking: 24 of 330

66

Quality of Golf (15%) Based on Golf Digest’s

Average Star Rating

Erie’s Ranking: 145 of 330

Best: Auburn-Opelika, ALWorst: Jersey City, NJ

77

Value of Golf (15%) Average greens fee:

Erie: $25.61330 Metro areas: $41.74 average

High: $139.60 Las VegasLow: $17.00 Casper, WY

Erie’s Ranking: 16 of 330

88

Weather (25%) Golfable days per year

Erie: 21330 metro areas: 246.7

Erie was 88% of the averageBest: San Diego CA, 353 (63% more than Erie)

Worst: Anchorage AK, 150 (31% less)

Erie’s Ranking: 264 of 330

7

99

The Economics

of Golf in Erie

(Supply and Demand Redux)

1010

Start with Supply

1111Source: Economic Censuses

20022002 Erie U.S.

Establishments 22 12,261

Employment 287 312,812

Emplymt per est.

% of U.S.

13.0

51.1%

25.5

Revenues $15.1 mill $17,534 mill

Revenue per est.

% of U.S.

$685,864

48%

$1,430,039

NAICS 71391Golf Courses & Country Clubs

1212Source: Economic Censuses

ErieErie 1997 2002

Establishments 19 22

Employment 335 287

Emplymt per est.

% of U.S.

17.6

75.1%

13.0

51.1%

Revenues $14.7 mill $15.1 mill

Revenue per est.

% of U.S.

$774,316

64%

$685,864

48%

NAICS 71391Golf Courses & Country Clubs

1313

Golf Digest Data

Access to Golf: #24 of 330

-Holes per 1,000 people: #75 of 330

1.24 vs. 1.04 average

-% Public: #100 of 330

77% vs. 69% average

-# Holes per avid golfer

-Rounds played as % of capacity

1414

Prospects for Future Entry

Key input: land

-Source: Agriculture

-Alternate use: Development

1515

Demand Side

-“Avid golfers” & “rounds as % of capacity” imply relatively low demand

-Income in Erie is below the national average

-Anecdotes about new member campaigns and fees at local country clubs

-Conclusions

1616

Supply & Demand

Conclusion:

Supply is relatively high

-compared to U.S.

-compared to demand

1717

Supply & Demand

P1

Price

Quantity

Demand

Supply

P2

1818

Results

Lower than average prices in Erie.

-Golf Digest: $25.61 vs. $41.74

It’s harder to make a profit here.

1919

Thanks to the Longitudes Group

for sharing the Golf Digest Data.

The Metro Golf Rankings are online at: golfdigest.com/cities.

2020

Erie Golf Info online

Guide to Erie Golf Courses

www.eriegolfcourses.comwww.eriegolfcourses.com

GolfLink.com

http://www.golflink.com

2121