Area golf courses make it despite economy

By Brian Hunsicker

Published: September 27, 2008

In May, a handful of local and statewide golf officials predicting varying results for the coming summer. Back then, the economy merely looked gloomy.
Several shoes have fallen since. The real estate meltdown caught up with Wall Street and swept up several banks and mortgage houses, leading to government bailouts for some companies and a wave goodbye to others. The latest bad news was the Federal Deposit Insurance Corporation’s seizure of Washington Mutual, which the government then sold to JPMorgan Chase late last week.
The golf men said in May that a key indicator for them was the unemployment rate; since May, that rate has risen six-tenths of a percent to 6.1 percent, according to the Bureau of Labor Statistics.
Now that the summer is nearly over, was it as depressed as may have been forecast?
Chip Hierlihy, the golf services manager for the Prince William County Park Authority, said rounds played at the county’s four courses were down slightly - one to two percent - but revenue was up slightly.
Jamie Conkling, the executive director of the Virginia State Golf Association, said his organization had a “solid” year. They were able to make money through the variety of programs they offer: tournaments, championships and a VIP card which offers reduced rates for subscribing golfers.
But both said they have had from others, whose outlook wasn’t as good.
Hierlihy believed the county’s courses were successful - at least compared to others - because families and golfers were more likely to forego vacations to places like North Carolina and Myrtle Beach, S.C. At home, there remained a wealth of golfing options, and players took advantage.
The county’s gain, however, means losses elsewhere. Conkling identified the biggest losers: mid-market private clubs.
“The private clubs, they’re getting slammed right now,“ Hierlihy said.
The most expensive and exclusive clubs, like Robert Trent Jones in Gainesville and Congres-sional in Bethesda, Md., will always be sought out by the wealthy, he said. But the fees at less expensive clubs eat a greater percentage of a less wealthy family’s budget. They’re facing increased competition, too.
“Fifteen years ago, we didn’t have all these public courses,“ Conking said.
The National Golf Foundation said that the number of course closings outpaced openings in 2007, though it said many of the closures were due to factors other than business failure. Earlier this month, The Presidential golf club in Sterling - not far from Redskin Park - closed unexpectedly after four months in business. According to multiple media reports, 25 contractors field liens on the property for as much as $3.4 million against the club since June.
Hierlihy said it’s worst summer he’s had since working for the county, though it doesn’t compare to his worst experience. In 2002, Hierlihy was working at a destination resort as the country was still trying to recover from the Sept. 11, 2001 terrorist attacks.
“The bottom fell out of destination resorts” then, he said.
At the county’s courses and the VSGA, the situation is not nearly as dire. But it’s far from spectacular.
“In this situation,“ Hierlihy said, “this might be the best we can hope for.“