Scottsdale Golf:
A Market Analysis

July 2005
City of Scottsdale
Economic Vitality Department

Scottsdale Golf: A Market Analysis

July 2005

Scottsdale City Council
Mary Manross
Mayor
Betty Drake

Robert Littlefield

Wayne Ecton

Ron McCullagh

W.J. “Jim” Lane

Kevin J. Osterman

Janet M. Dolan
City Manager

An annual publication of:
The City of Scottsdale
Economic Vitality Department
7447 E. Indian School Road, Suite 200
Scottsdale, AZ 85251
(480) 312-7989
(480) 312-2672
www.scottsdaleaz.gov/economics/reports

2

Table of Contents
Introduction

5

Definition of Terms

6

Executive Summary

7

The National Golf Scene

8

Golf in Arizona

10

Golf’s Economic Impact

15

3

Index
Table 1 (United States Golf Numbers)

8

Table 2 (Golf Participation by Type of Golfer)

8

Table 3 (Golf Participants by Age)

9

Table 4 (Golf Participants by Gender)

9

Table 5 (Arizona Golf Courses)

11

Table 6 (Phoenix Metro Area Golf Data)

11

Table 7 (Golf Facility Listings and Fees)

12

Map 1 (Scottsdale Area Golf Courses)

14

Table 8 (Scottsdale Golf Course Tax Collections)

16

Table 9 (Golf Course Gross Receipts)

16

Table 10 (Tax Collections in Golf Related Businesses)

16

4

INTRODUCTION
Beyond its sport and recreational value,
golf is a major industry cluster that
generates jobs, commerce, economic
development, and tax revenues for
communities throughout the United
States. Golf in the U.S. generates
significant economic and fiscal impacts,
accounting for over $24 billion worth of
goods and services in 2004.
The 30.2 million golf participants in the
United States in 2004 indicate golf’s
continued popularity. Several factors
contribute to golf’s growth in the U.S. in
recent years, including an increase in
the number and diversity of players, the
increased value of golf real estate, and
the expansion of the golf tourism
industry.
The City of Scottsdale has been at the
head of these trends. Golf is a
leisure/lifestyle choice many Scottsdale
residents and visitors enjoy. Population
growth in Scottsdale and surrounding
areas has resulted in more golfers,
increased demand for golf courses, and
a greater interest in the game.

Scottsdale Golf: A Market Analysis
includes data on golf courses, market
trends relating to golf both locally and
nationally, and the economic impact of
golf in Scottsdale. Information in this
report was gathered from a variety of
sources, including the National Golf
Foundation, the Arizona Golf
Association, the Arizona Department of
Commerce, the Behavior Research
Center, and the City of Scottsdale.

Troon North golf course

5

DEFINITION OF TERMS
Alternative Golf Facility – a golf
complex that does not include a
traditional golf course, but includes at
least one alternative course (i.e., an
executive course)
Avid Golfer – a golfer who plays 25 or
more regulation rounds of golf in a year
Core Golfer – a golfer who plays 8 to
24 regulation rounds of golf during a
year
Course or Golf Course – generally
refers to one 18-hole golf course, but
when indicated, also refers to a 9-hole
executive golf course
Golf Facility – a property with one or
more golf courses
Golfer – an individual age 18 or above
who has played at least one regulation
round of golf in the past 12 months

Junior Golfer – a golfer, aged 5 to 17,
who has played at least one regulation
round of golf in the past 12 months
Occasional Golfer – a golfer who plays
7 rounds of golf or less in a year
Participant – a person 5 years old or
above who has played at least one
regulation round of golf, or utilized an
alternative golf facility or golf range at
least once in the past 12 months
Private Golf Course – a golf facility
where play is restricted to members and
their guests
Public Access Golf Course – a golf
facility that provides at least limited
access to the public, and which may or
may not offer memberships
Resort or Semi-Private Golf Course –
a golf facility usually affiliated with a
lodging component and membership

Orange Tree golf course

6

EXECUTIVE SUMMARY
◊

Nearly half (47 percent) of the
golfers in the United States are
considered core or avid golfers.

◊

Arizona has an estimated 13.5
percent (787,340 individuals) golf
participation rate, slightly higher than
the national rate. Using the same
rate of participation, Scottsdale has
close to 30,000 golfers.

◊

◊

Scottsdale is home to 42 golf
courses, making up 12 percent of all
golf courses in Arizona, and 21
percent of the Phoenix metro area’s
golf courses.
Scottsdale’s golf courses are 51.5
percent public, 15.2 percent
resort/semi-private, and 33.3
percent private.

◊

There are 26 golf facilities in
Scottsdale that account for an
estimated 1,800 full time jobs and
960 part time jobs.

◊

Tourists account for approximately
40 percent of golf play in Scottsdale,
and accomplish a great deal of that
play during peak season (January
through April). Scottsdale visitors
consistently rank golf as one of the
top five activities they participate in
while visiting Scottsdale.

◊

Golfweek ranked 6 Scottsdale golf
courses among its 2004 list of “Top
10 Public-Access Golf Courses in
Arizona.”

Photo courtesy of the Scottsdale CVB

7

THE NATIONAL GOLF SCENE
Participants
The approximately 30 million golf
participants in the United States in 2004
were responsible for more than 500
million rounds of golf played on more
than 16,000 golf courses.
Nearly half of golfers in the United
States are considered avid or core
golfers. A typical avid golfer plays 25plus rounds of golf each year, and will
spend over $87,000 on golf-related
items and services over the next 20
years. Avid golfers are important
because, although they make up only
42 percent of the adult golfer
population, they account for 87 percent
of total golf spending.
Table 1 provides the number of golf
courses, golfers, and golf rounds
played, and the rate of participation in
golf in the United States over a 19-year
span.
Table 2 shows the number of golf
participants in the United States by
type.

Table 2
Golf Participation by Type of Golfer
United States Totals
Number of
Participants
(millions)
Type of Golfer
Avid/Core
12.8
Moderate/Occasional
10.1
Junior
2.9
Alternative Users
1.3
Range Users
3.1
Total
30.2

% of all
Golfers
42.4%
33.4%
9.6%
4.3%
10.3%
100.0%

Source: National Golf Foundation

Most golfers (nearly 80 percent) play on
public, municipal, or daily fee golf
courses. Public golfers are typically in
their 20’s or 30’s and have a household
income of $50,000 or more.
Less than 20 percent of golfers play at
private courses. In general, these
golfers are between 30 and 50 years
old and have household incomes
exceeding $50,000 (about 25 percent
have incomes exceeding $100,000).

Table 1
United States Golf Numbers

Year
1985
1990
1995
2000
2004

# of
Golfers Rounds Participation
Courses (Millions) (Millions)
Rate
12,384
17.5
415.0
n/a
12,846
24.2
469.0
13.5%
15,390
24.3
496.4
11.6%
15,357
25.4
518.4
12.0%
16,057
30.2
501.4
17.5%

Source: National Golf Foundation, Golf 20/20

8

Participants (continued)
Table 3 gives a breakdown of golf
participants in the United States by age.

Table 3
Golf Participants by Age
United States
Age
5-11
12-17
18-29
30-39
40-49
50-59
60-64
65+
Total

U.S. Total (%)
8%
9%
19%
20%
18%
12%
5%
9%
100%

Source: National Golf Foundation

Table 4
Golf Participants by Gender
United States
Gender
Male
Female
Total

U.S. Total (%)
78%
22%
100%

Source: National Golf Foundation

Golf Courses
The number of golf courses in the
United States continues to grow. Golf
course growth in Arizona, and in
Scottsdale, has mirrored the national
trend, with the number of golf courses
increasing approximately 4 percent
annually.

Female golfers are also an important
part of the golf market. In 2004, there
were approximately 6.5 million female
golfers in the United States, each of
whom played an average of 17 rounds
of golf last year. Core female players
averaged 33 rounds each last year. In
2004, women’s spending on golf-related
products and services lagged men’s
spending by only 7 percent.
Table 4 indicates the percentage of
male and female golfers in the United
States in 2004.

Troon North golf course

9

GOLF IN ARIZONA
Arizona
Arizona is ranked in the top five “most
popular travel destinations for golfers,”
according to the National Golf
Foundation, along with Florida, South
Carolina, North Carolina, and California.
Appr oxim atel y 13.5 pe rce nt of
Arizonans (787,340 individuals) over
the age of 12 participate in the sport of
golf.
In 2004, there were 352 golf courses in
Arizona. An estimated 8 to 10 courses
will be constructed every year for the
next 10 years, according to the Arizona
Golf Association.
Scottsdale and the Phoenix Metro
Area
Of the 352 Arizona golf courses, 205
were located in the Phoenix metro area,
and 42 were located in Scottsdale.
The Phoenix metro area is a prime golf
destination due to its mild weather,
picturesque desert landscapes, and
world-class golf courses. Golf is part of
Phoenix’ lifestyle and economy.

Of the 352 golf courses in Arizona,
205 are located in the Phoenix metro
area, and 42 are located in Scottsdale.

Scottsdale and the Phoenix Metro
Area (continued)
Scottsdale is home to the FBR Open
(formerly the Phoenix Open), a worldclass professional golf tournament that
attracts thousands of people from
around the world to Scottsdale.
Furthermore, the FBR Open receives
exposure through national and
international media coverage. The longterm impact of such coverage on both
the Scottsdale golf industry and the
community is immeasurable.
Scottsdale’s golf courses are 51.5
percent public, 15.1 percent
resort/semi-private, and 33.3 percent
private. Tourists absorb much of the
public and resort/semi-private course
tee times, especially during peak
season.
Table 5 lists the number of golf courses,
broken down by number of holes, in
Arizona, metro Phoenix, and
Scottsdale. Table 6 compares metro
Phoenix golf numbers with Scottsdale’s
golf numbers.
Table 7 lists the names, types, number
of holes, fees, and number of rounds
played at golf courses in Scottsdale in
2004. Map 1 identifies where the
Scottsdale golf courses listed in Table 7
are located.

10

Table 5
Arizona Golf Courses
2004

Arizona
Metro Phoenix
(Incl. Scottsdale)

Scottsdale

18-Hole
Courses
261
157
32

9-Hole 27+-Hole
Courses Courses
77
14
26
3

22
7

Total
352
205
42

Source: GolfServ Course Guide; City of Scottsdale

Table 6
Phoenix Metro Area Golf Data

Year
1985
1990
1995
2000
2004

Phoenix
% of Phoenix
Metro Area Scottsdale Metro Area Scottsdale Scottsdale
Courses
Courses
Courses
Golfers Golf Rounds
86.5
10.5
12.1%
14,156
286,183
99.5
14.5
14.6%
16,965
353,911
139.5
22.0
15.8%
21,650
435,700
201.0
41.0
20.3%
28,000
1,054,385
205.0
42.0
20.4%
29,853
1,748,821

Source: National Golf Foundation, City of Scottsdale, www.azcentral.com

11

12

Map
Key
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

Course Name
Ancala C.C.
Boulders
Camelback Golf Club
Continental Golf Club
Coronado Golf Club
Cypress Golf Club
DC Ranch C.C.
Desert Canyon
Desert Highlands
Desert Forest
Desert Mountain
Dove Valley Ranch
Estancia Golf Club
Eagle Mountain
Firerock C.C.
Gainey Ranch
Golf Club of Scottsdale
Grayhawk Golf Club
Karsten (ASU)
Kierland Golf Club
Legend Trail Golf Club
McCormick Ranch
Mirabel Golf Club
Mountain Shadows
Orange Tree
Paradise Valley C.C.
Pavilion Lakes
The Phoenician
Pinnacle Peak C.C.
Rancho Manana
Rio Salado

Location
Scottsdale
Carefree
Scottsdale
Scottsdale
Scottsdale
Scottsdale
Scottsdale
Fountain Hills
Scottsdale
Carefree
Scottsdale
Cave Creek
Scottsdale
Fountain Hills
Fountain Hills
Scottsdale
Scottsdale
Scottsdale
Tempe
Scottsdale
Scottsdale
Scottsdale
Scottsdale
Scottsdale
Scottsdale
Paradise Valley
Scottsdale
Phoenix
Scottsdale
Cave Creek
Tempe

Holes
18
36
36
18
9 (exec)
9 (exec)
18
18
18
18
36
18
18
18
18
27
18
36
18
27
18
36
18
18
18
18
18
27
18
18
9

Course Type
Private*
Semi-Private
Semi-Private
Public
Public
Public
Private*
Public
Private*
Private*
Private*
Public
Private*
Public
Private*
Private/Resort
Private*
Public
Public
Public
Public
Public/Resort
Private*
Public/Resort
Public/Resort
Private*
Public
Public/Resort
Private*
Semi-private
Public

Par
72
72
72
60
31
30
72
71
72
72
72
72
72
71
72
72
72
72
72
72
72
72
72
56
72
72
71
70
72
70
33

Peak Season Off-Peak Season
Fees**
Fees**
2004 Rounds**
$85
$45
32,000
$290
$75
60,000
$150
$65
65,000
$39
$19
55,000
$13
$8
30,000
$20
$5
61,000
$125
$63
18,000
$100
$35
35,000
$100
$70
27,000
18,000
$160
$80
168,000
$130
$55
39,000
$150
$75
14,000
$165
$60
40,000
$100
$40
17,000
$170
$85
60,000
8,000
$225
$65
$80
$30
$180
$115
60,000
$95
$65
55,000
$150
$55
75,000
$100
$50
10,514
$65
$35
$65
$50
51,510
$50
$30
$180
$90
43,625
$80
$45
30,000
$135
$30
48,000
$30
$8
-

Table 7
Scottsdale Golf Facility Listings and Fees
2004

13

Course Name
Sanctuary at West World
Silverado Golf Club
Silverleaf
Scottsdale C.C. (Starfire)
Stonecreek Golf Club
SunRidge Canyon
Talking Stick Golf Club
Tatum Ranch
Terravita Golf Club
TPC Desert Course
TPC Stadium Course
Troon Golf & C.C.
Troon North Golf Club
We-ko-pa Golf Club
Whisper Rock

Location
Scottsdale
Scottsdale
Scottsdale
Scottsdale
Phoenix
Fountain Hills
Scottsdale
Cave Creek
Scottsdale
Scottsdale
Scottsdale
Scottsdale
Scottsdale
Fountain Hills
Scottsdale

Holes
18
18
18
27
18
18
36
18
18
18
18
18
36
18
18

Course Type
Public
Public
Private*
Semi-private
Semi-private
Public
Public
Private*
Semi-private
Public
Public
Private*
Semi-private
Public
Private*

Par
71
70
72
71
71
71
70
72
72
71
71
72
72
72
72

Peak Season Off-Peak Season
Fees**
Fees**
2004 Rounds**
$125
$40
38,572
$84
$34
54,000
$110
$55
$129
$45
64,000
$110
$40
60,000
$170
$60
33,500
$170
$60
70,000
$75
$40
24,000
$125
$60
36,000
$55
$40
52,100
$200
$75
44,000
$125
$60
30,000
$245
$75
69,000
$195
$65
41,000
$100
$100
12,000

**Numbers are approximate

*Private golf courses not shown on Map 1

Note: Peak and Off-peak rates represent only the high and low seasons, generally corresponding to winter and summer. Many facilities have additional rates for
"shoulder" seasons.

Source: City of Scottsdale, Economic Vitality Department

Map
Key
32
33
34
35
36
37
38
39
40
41
41
42
43
44
45

Table 7 (continued)

30

JOY RANCH

Market Area
Golf Courses

STAGECOACH PASS

CAREFREE HWY.

40

2

21
KEY

DOVE VALLEY

City Limits
Market Area
Existing Properties

LONE MOUNTAIN

39
DIXILETA

DYNAMITE

North

1 mile

JOMAX

43
HAPPY VALLEY

12
PINNACLE PEAK

DEER VALLEY

18

BEARDSLEY

OUTER LOOP
UNION HILLS

BELL/FRANK LLOYD
WRIGHT BLVD.
BLVD.

16
C .A

GREENWAY

CA

32

NA
L

City of
Scottsdale

a ir

p

o

rt

20

.P .

THUNDERBIRD

36
CACTUS

35

25

37

SHEA

8

38

22

27

INDIAN BEND

24

LINCOLN
McDONALD

CHAPARRAL

46

CAMELBACK

O u te r L o o p

33

INDIAN SCHOOL

28
4
5

THOMAS

6
McDOWELL

McKELLIPS

31

19

1 3 6 th S T .

1 3 0 th S T .

1 2 4 th S T .

1 2 0 th S T .

McCORMICK PKWY.

1 1 0 th S T .

1 0 4 th S T .

41

3

14

9 6 th S T .

DOUBLE TREE

44

GOLF’S ECONOMIC IMPACT
Course Revenues and Expenses

Golf Course Taxable Sales

The average annual revenue for a
Scottsdale golf facility is $3 million,
which means the 26 golf facilities in
Scottsdale have a combined annual
revenue of approximately $78 million.

Tables 8 through 10 outline taxable
sales in Scottsdale by golf property
type, course type, and business
category.

The average operating margin of a golf
facility in Scottsdale is 33 percent.
Operating expenses average $1.4
million per facility, and payroll averages
slightly more than $500,000 per facility,
making total expenses approximately
$2 million per facility.
Using the above numbers as a
benchmark, the 26 golf facilities in
Scottsdale had a direct economic
impact (operating expenditures plus
salary and wages) of approximately $49
million in 2004.

Employment and Wages

Tournament Players Club

In accordance with Arizona data, it is
estimated the 26 golf facilities in
Scottsdale account for approximately
1,800 full-time jobs and 960 part-time
jobs. On average, each Scottsdale golf
facility spends over $500,000 on
payroll. This means annual payroll
expenditures alone by Scottsdale golf
facilities exceed $13 million.
It is important to note that since payroll
data is based on a survey that slightly
under-represents the impact of private
facilities in Scottsdale, these figures are
likely overly conservative estimates.
Source: National Golf Foundation)
15

Table 8
Scottsdale Golf Course Tax Collections
Number
Type of Course of Holes
Public
207
Resort/Semi-Private
81
Private
270
Public/Executive
36
Total 594
% Change
-

FY 00/01 FY 01/02
$851,059 $761,805
$72,826
$65,180
$233,650 $191,591
$367,619 $33,511
$1,195,154 $1,052,088
2%
-12%

FY 02/03 FY 03/04
$756,399 $776,919
$68,658
$70,963
$215,970 $239,184
$27,176
$29,532
$1,068,204 $1,116,598
2%
5%

Source: City of Scottsdale, Tax Audit Division

Table 9
Golf Course Gross Receipts Prior to Non-Taxable Deductions

Type of Course
Total
% Change

Number
of Holes FY 00/01
FY 01/02
FY 02/03
FY 03/04
594
$83,245,639 $72,845,203 $75,469,433 $78,846,693
1%
-12%
4%
4%

Source: City of Scottsdale, Tax Audit Division

Table 10
Tax Collections in Golf Related Businesses
Business Category FY 00/01
Misc. Retail Stores &
Other Taxable Activity $188,968
Rentals
$16,529
Total $205,498
% Change 19%

FY 01/02 FY 02/03 FY 03/04
$164,209 $180,969 $212,397
$21,423 $20,675 $29,697
$185,632 $201,644 $242,094
-10%
9%
20%

Source: City of Scottsdale, Tax Audit Division

16

Golf and Tourism

Other Economic Benefits

Tourist golfers have a significant
e c o n om i c i m p a c t o n Ar i zo n a ’ s
economy. The National Golf Foundation
and the Arizona Department of
Commerce determined that golfers from
out-of-state account for approximately
30 percent of the 501 million rounds of
golf played in Arizona in 2004. The
percentage of visiting golfers is higher
in the Scottsdale area (40 percent,
according to the National Golf
Foundation), which translates to
revenues for Scottsdale golf facilities.

Besides direct revenues captured
through greens fees, cart rentals, etc.,
golf has other economic impacts on the
community. When visitors come to
Scottsdale to play golf, they not only
spend money on golf-related products
and services, they also spend money
on food, lodging, shopping,
entertainment, and transportation.
Economic benefits are also derived
through retail golf equipment sales, golf
schools, construction of golf courses,
and housing construction/purchases
near golf courses. Scottsdale also
receives tremendous media exposure
from televised and published
tournament play, which brings more
visitors, and other economic drivers, to
the area—thereby continuing the
economic cycle.

Sancuary at WestWorld

17