A recent study conducted jointly by Club Benchmarking, the Club Management Association of America (CMAA), and the National Club Association (NCA) found that private golf clubs in the U.S. have a vast economic impact on the economy.
The research found that private golf clubs collectively generated $32.6 billion in direct revenue in 2023, supported a $17.4 billion payroll, and employed 573,000 workers, underscoring private clubs as vital contributors to the national and local U.S. economies.
Private Clubs: Significant Contributors to the National Economy
Across the US, there are approximately 5,659 private clubs, ranging from golf and country clubs to yacht and racquet clubs. The Economic Impact Study focused on 3,887 clubs, each with annual revenues exceeding $1 million. The research quantified the economic influence of private clubs, demonstrating their role as exclusive social hubs and economic engines within communities nationwide.
Local Employment
Private clubs have a significant influence at the local level, where most of their employees also reside. Clubs offer a variety of flexible employment opportunities—seasonal, part-time,and full-time roles—benefiting workers who need adaptable schedules. The study found that private clubs provided a total payroll of $17.4 billion in 2023, with $14.6 billion in wages and $2.8 billion in payroll taxes and benefits. Compared to large corporations, the club industry’s employment numbers are significant. For context, FedEx, UPS, and Marriott have 529,000, 500,000, and 411,000 on their payrolls, respectively—figures that the private golf club industry surpasses.
Indirect and Induced Economic Effects
Beyond direct contributions, the private club industry stimulates additional economic activity through indirect and induced effects. These impacts extend to related sectors, including food service, utilities, sports equipment, insurance, and construction, with clubs purchasing substantial amounts of goods and services. Additionally, spending by club employees in their local communities further amplifies economic benefits, underscoring the value of clubs as “Main Street” businesses that reinforce local economies.
The total impact, including indirect and induced impact, is measured at $157 billion of revenue, $65 billion of total payroll and the creation of 1.5 million jobs across the economy.
Regional Insights
The South boasts the largest concentration of private golf clubs among U.S. regions, driven by Florida, North Carolina, South Carolina, and Georgia. Florida has the highest number of private golf clubs, contributing significantly to regional and national economies.
Methodology: This report, managed by Professor SoJung Lee, Ph.D., of Iowa State University, and Ray Cronin, founder of Club Benchmarking, used data from the Club Benchmarking database. The study covered operations from 2023, with data analysis conducted from November 2023 to April 2024. The project received contributions from Iowa State University, Florida Atlantic University and the University of Florida. The research and collaboration team will provide further insights at an upcoming industry webinar on December 17 at 1:00 p.m. To learn more, go here.
Image courtesy Boca West Country Club
