Socio-economic aspects of golf courses in Czechia

In 2018/2019, there were more than 53,000 members and more than 112 golf courses associated with the Czech Golf Federation. However, golf courses are not private territories completely isolated from the rest of the (non-member) world, but, surprisingly, areas that interact substantially with their surroundings and can have a high impact, not only on the healthy and social lifestyle of the golf community but also on the local economy and prices of neighbourhood real estate and land. Based on several existing publications and expert estimates, golf tournaments, their associated business, and foreign tourists (mainly from Germany, Austria, and Poland) bring several million CZK each year to the local economy. The construction of the courses, their management, and sustainability is influenced by the socio-economic situation of the adjacent territory.

The researchers updated a database of golf courses created previously and, for the purpose of this study, added other characteristics of the courses, primarily socio-economic ones. They then analysed membership base data of the Czech Golf Federation and demographic data provided by the Czech Statistical Office (e.g., population, economically active population in areas close to the golf courses). A methodology commonly employed by the Ministry of Regional Development was used to define the socio-economic characteristics of the area (e.g., size of population, business, rate of unemployment, accessibility by routes and private/public transport, changes in these aspects in the last 10 years, and so on). The researchers then examined whether the golf course owners also owned the land where their course was constructed, or whether they rented it from another owner. Finally, they analysed the portfolio of services provided by the golf courses (e.g., rental possibilities, restaurants, accommodation).

In some instances, the golf course was built during revitalisation of a compound landscape, as seen here in Golf Club Kynžvart, which was built in the historical English park of the Kynžvart castle. Photo: Dana Fialová.

The research team found that the construction and development of the golf courses was related to the socio-economic status of the area, as most of the existing 112 courses were built in areas with high development potential (65) or which were stabilised (44), while only three were in peripheral places. The largest boom in the construction of golf courses was in the 1990s, whereas now the golf market and economy are stagnating. More than half of the golf courses are not profitable, as the owners invest more than they gain, with a loss per hectare (ha) of up to −0.5 million CZK. Even courses that are profitable only accrue up to several tens of thousands CZK/ha. When it comes to services, the golf courses offer a wide range of types and levels - from standard to luxurious.

The results thus suggest that the owners of golf courses are not motivated solely by financial considerations; golf courses also serve as a symbol of prestige, a place for depositing money, a hobby, or as support for sporting activities. The authors assume that similar situations may exist in other countries, as their golf market is likely to have encountered similar problems (i.e., saturation, stagnating membership base, low profitability, issues with sustainability).

And how has the situation changed over the last months, namely after the completion and publication of the study? According to the authors, the nature of golf courses and the rules of the game – namely moving around freely in groups of up to 4 players – means it has been possible to perform this activity with only minimal restrictions during the COVID-19 pandemic. However, a big loss for the golf clubs has been incurred by the ban on spectators during tournaments and, above all, travel restrictions, as foreign tourists have been absent. In normal conditions, playing golf is a popular and economically lucrative form of sport tourism.

Sláma J, Stejskalová I, Kincl T, Bystřický V, Kvítek T, Fialová D, Štych P, 2020: Golf courses in the Czech Republic: Analysis of the development and socio-economic characteristics. Land use policy, 99: 104976.

Darina Koubínová