A Satellite Account for
GOLF
in the Republic of Ireland
FOREWORD
G
olf plays a positive role in the social and sporting life of Irish society. Golf clubs and members have long known this through their
direct involvement with the game but until now we have been unable to quantify golf’s economic impact in the Republic of Ireland.
In 2016, a report was published in the United Kingdom that detailed the contribution of golf to the UK economy. Following the
publication of that report, the Confederation of Golf in Ireland – in conjunction with The R&A – decided to commission a similar piece
of research that would provide specific measures of the economic impact golf has in the Republic of Ireland. Taken together, these findings
provide a clear economic picture for the island of Ireland.
A Satellite Account for Golf in the Republic of Ireland is the title of today’s report, which is the result of work conducted by the Sport
Industry Research Centre (SIRC) at Sheffield Hallam University. Professor Simon Shibli, Head of SIRC and author of the report, is to be
complimented for his ability to produce such a quality piece of research on this scale.
The figures contained within this report demonstrate how valuable the game of golf is for the Irish economy. Ireland is a home for people
in thrall with the game. As a result, businesses and communities thrive. This study highlights the benefits that accrue when golf is supported
by the public and private sectors. Not only is golf a fun and healthy activity, it provides employment right across the island of Ireland. In this
regard, golf is unique.
As our economy continues its recovery, the Republic of Ireland is ideally placed to take full advantage of the many opportunities golf has to
grow even further. Already, Ireland is renowned for the quality of its golf courses. Combined with our reputation for world class hospitality,
there is no doubt that the golf in Ireland has an exciting future.
In Ireland, golf is much more than just a sport.
REDMOND O’DONOGHUE
Chairperson, Confederation of Golf in Ireland
A Satellite Account for Golf in the Republic of Ireland / 1
ABOUT THE R&A
B
ased in St Andrews, The R&A runs The Open, elite amateur events, international matches and rankings. Together The R&A and
the USGA govern the sport of golf worldwide, operating in separate jurisdictions but sharing a commitment to a single code for
the Rules of Golf, Rules of Amateur Status and Equipment Standards. The R&A governs worldwide, outside of the United States and
Mexico, with the consent of 152 organisations from amateur and professional golf and on behalf of over 30 million golfers in 138
countries.
The R&A is committed to working for golf and supports the growth of the sport internationally and the development and
management of sustainable golf facilities.
For more information about The R&A visit www.RandA.org.
ABOUT CGI
T
he Confederation of Golf in Ireland (CGI) is an organisation, created by the Golfing Union of Ireland (GUI), Irish Ladies Golf
Union (ILGU) and the PGA (Irish Region) to help advance the sport of golf on the island of Ireland, for the future. The CGI
complements the work of the associations as well as providing a necessary combined approach to certain key strategic areas in the
future development of golf in Ireland.
The CGI is a unique response to the current challenges and opportunities confronting golf in Ireland, as it is one organisation that will
represent all golfers on the island of Ireland – be they young or old, male or female, amateur or professional, north or south of the
border.
For more information about the CGI visit www.cgigolf.org.
2 / A Satellite Account for Golf in the Republic of Ireland
TABLE OF
CONTENTS
LIST OF FIGURES & TABLES 4
EXECUTIVE SUMMARY
5
1. INTRODUCTION
8
1.1. The Project
8
1.2. Positioning the Research
8
1.3. Participation in Golf
9
1.4. Research Aims
11
1.5. Report Structure
11
2. METHODS
12
2.1. The Model
12
2.2. Output Impacts
13
3. MAPPING THE GOLF INDUSTRY
4.
CONSUMER SPENDING16
5. GROSS VALUE ADDED
18
6. EMPLOYMENT
20
7. TURNOVER
22
8. SPORTING CONTEXT
23
9. CONCLUSIONS
26
APPENDICES 14
28
A Satellite Account for Golf in the Republic of Ireland / 3
LIST OF FIGURES
& TABLES
TABLE 1.1: Golf Participation
10
TABLE 1.2: Golf Club Membership
10
TABLE 1.3: Sport Participation, RoI, at least once a week 11
TABLE 3.1: Economic Sectors with strong associations with Golf
15
TABLE 4.1: Summary of Consumption
16
TABLE 4.2: Golf Consumption, Republic of Ireland - In Context
17
TABLE 5.1: Summary of GVA
18
TABLE 5.2: Golf GVA, Republic of Ireland - In Context
19
TABLE 6.1: Summary of Golf Employment (FTEs)
20
TABLE 6.2: Golf Employment, RoI - In Context
21
TABLE 7.1: Direct, Indirect and Induced effects on GVA and Turnover 22
TABLE 8.1: The Golf Economy in Context 23
TABLE 8.2: Public Sector Earnings from the Golf Industry
24
FIGURE 8.1: Republic of Ireland GDP at Constant Market Prices (€m)
25
TABLE 8.3: Growth in GDP, constant (2014) market prices, RoI 25
TABLE A.1: Mapping of the Golf Industry through examination of the SIC 2007 codes
28
TABLE A.2: Golf Sector – Consumer Spending, 2014
30
TABLE A.3: Golf Sector – Gross Value Added, 2014
31
TABLE A.4: Golf Sector – Employment, 2014, Full-Time Equivalent
32
TABLE A.5: Golf Sector – Employment, 2014, Number of People
33
TABLE A.6: GVA and Turnover, Enhanced by Indirect (I) and Induced (II) Effects
34
4 / A Satellite Account for Golf in the Republic of Ireland
EXECUTIVE
SUMMARY
Introduction
The R&A together with CGI commissioned the Sport Industry Research Centre (SIRC) at Sheffield Hallam University to produce a study to
evaluate golf’s economic value to the Republic of Ireland for the year 2014.
Developed nations use an internationally standardised framework known as the System of National Accounts (SNA) to report the economic
scale of specific industries. Sport generally and golf specifically, are not recognised as industries within this framework. Consequently, the
economic activity of sport and golf is diluted within the National Accounts, in broadly classified industries such as: recreation; arts and sport;
manufacturing; construction; and hospitality.
In the Republic of Ireland the golf participation rates are: 3.3% on a weekly basis; 4.5% on a 4-weekly basis; and 7.9% on an annual basis.
There are 281,000 adult golfers in the Republic of Ireland, of whom 160,000 participate regularly, at least once in 4 weeks.
Nation
4-weekly
Regular Adult
Participation RatesGolfers
12-monthly
Participation Rates
Occasional
Adult Golfers
Republic of Ireland
4.5%
160,000
7.9%
281,000
Northern Ireland 4.0%
59,000
7.0%
103,000
Ireland
4.4%
219,000
7.6%
384,000
Methods
The method we use to identify golf’s contribution to an economy is the production of a ‘Satellite Account’ for golf. The Satellite Account
technique was developed by the United Nations to measure the size of economic sectors that are not defined as industries in their own
right within the System of National Accounts. Notable examples of where Satellite Accounts have been used previously include tourism and
sport. The approach enables industries to be analysed from four perspectives.
•
•
•
•
Consumer expenditure;
Gross Value Added (GVA);
Employment, as number of employees and full-time equivalent jobs; and
Turnover.
A Satellite Account for Golf in the Republic of Ireland / 5
The analysis is consistent with the Vilnius definition of sport, which articulates the consensus reached at European Union level as to how the
sport industry is defined in statistical and economic terms. Key sources of information include:
•
•
•
•
Annual financial statements of golf businesses and clubs filed with Companies Registration Office;
Analysis of various associations’ finances through annual financial statements;
The Input-Output Tables for the national economy; and
Annual financial statements and existing surveys to inform decisions on consumer spending.
Key Findings
Consumer spending
Consumer spending on golf in the Republic of Ireland was found to be €379 million which is equivalent to €107 per adult, corresponding
to 0.4% of the total economy. Important elements of this spending are €94m (25%) spent on members’ fees and €46m (12%) spent on
food and beverages, mostly within clubs. This is complemented by spending on golf equipment €39m. The pattern of consumer spending
identifies the Republic of Ireland’s network of some 325 affiliated golf clubs as the most important element of its golf economy.
Gross Value Added (GVA)1
The Gross Value Added of the golf industry in the Republic of Ireland was €202 million in 2014 with the largest single area being the
activities of golf clubs, including food and beverage operations and recreational golf at €89m (44%). The GVA analysis also highlights golf’s
important relationships with the retail industry, notably: golf equipment, clothing and footwear (€21m); tourism and accommodation in golf
resorts (€25m); and the construction and real estate industries (€15m). We found that the majority of GVA can be linked to wages and
salaries, illustrating the capacity of the golf economy to generate employment.
Employment
The golf industry provides employment for 5,050 full-time equivalent jobs which are carried out by 6,800 different people when adjusted
for part-time workers. Golf clubs are the most significant employers in the sector (1,740 FTEs, 34% of total). Other notable levels of golfrelated employment can be found in golf equipment and sportswear (640 FTEs); services (470 FTEs); management and administration (410
FTEs); tourism and accommodation (580 FTEs); construction (340 FTEs) and real estate (190 FTEs). To put these figures into context, golf
employment is 0.3% of the total employment in the Republic of Ireland, or the equivalent of 1 in 300 jobs. Employment is reinforced by
relatively strong multipliers in sectors that are important to the golf industry, such as construction (1.59). The part-time nature of some jobs
is linked to the strong ties that the clubs have with local communities and the variety of employment opportunities that are available. Golf is
therefore well positioned to help regenerate local economies in response to new investment.
Turnover
Turnover, or the total economic activity associated with golf is comprised of: direct effects such as the operation of golf clubs; indirect effects
such as supply chain activity; and induced effects which are the increased sales within the economy from household spending of the income
earned in the golf industry. Turnover generated from these effects, together with the associated GVA are as follows:
GVA
(€ million)
Turnover
(€ million)
Direct
202397
Indirect Effects40
82
Induced Effects33
67
Total
275546
1 GVA measures the contribution to the economy of each individual producer, industry or sector in the Republic of Ireland, in this case the golf industry.
6 / A Satellite Account for Golf in the Republic of Ireland
These figures should be treated with a degree of caution as they are in effect measuring a continual recirculation of the same money. The
more robust figures are consumer spending, direct GVA and employment as these measures eliminate any double counting and can be
reconciled to the System of National Accounts via a transparent audit trail.
The sporting context
The value of the golf economy in the Republic of Ireland has been estimated in terms of consumer spending, GVA, and employment.
Golf
Golf as % of the
Measure
(2014)
RoI’s economy
Consumer spending
€ 379 million
0.4%
GVA
€ 202 million
0.1%
Employment
5,050 FTEs
0.3%
The Satellite Account shows that golf is a very effective industry for generating employment. Although the industry generates 0.1% of the
national GVA, it creates 0.4% of employment (in terms of employees) or 0.3% in terms of FTE. This implies that the golf industry can be
used as a device to generate further employment, especially during times of economic downturn.
Golf ’s contribution to taxation
The economic activity associated with golf leads to positive outcomes for Central Government in the form of taxation receipts. The golf
Satellite Account model indicates that taxation in the form of, corporation tax and Value Added Tax, collectively contributes €93 million per
year to Central Government. This corresponds to €331 per adult golfer in the Republic of Ireland.
Conclusion
The Satellite Account for Golf shows the effectiveness of the industry to generate employment and underlines its integration with
the general economy and its ties with the local communities that place it in an ideal position when policies for local regeneration are
implemented. The fact that its share of national employment exceeds its share of GVA, illustrates that the golf economy can be used to
create jobs, especially in times of economic downturn. Following the recent CSO figures of unprecedented economic growth (26% in 2015),
the golf industry is well placed to benefit both in terms of increasing participation and its contribution to the wider economy.
Republic of
Northern Measure
Ireland
Ireland
Ireland
Consumer spending
€ 379m
€ 161m
€ 540m
GVA
€ 202m
€ 76m
€ 278m
Employment
5,050 FTEs
1,630 FTEs
6,680 FTEs
A Satellite Account for Golf in the Republic of Ireland / 7
1 INTRODUCTION
1.1.The Project
Following the publication of the report A Satellite Account for Golf in the UK in March 2016, The R&A together with the Confederation of
Golf in Ireland (CGI) commissioned the Sport Industry Research Centre (SIRC) at Sheffield Hallam University to produce a similar study to
quantify golf’s economic value to the Republic of Ireland.
The primary focus of this study is the contribution of golf to the economy in the Republic of Ireland. However, reference is also made to the
golf economy of Northern Ireland from the earlier UK study. Taken together, the Republic of Ireland study and the Northern Ireland data
from the UK study, enable an estimate to be made of golf’s importance to the island of Ireland. Hence, throughout the report there are
three geographical reference points used:
• the Republic of Ireland (RoI);
• Northern Ireland (NI) as a home nation within the United Kingdom; and
• the island of Ireland, that is RoI and NI, which we refer to hereafter as Ireland.
Developed nations use an internationally standardised framework known as the System of National Accounts (SNA) to report the economic
scale of specific industries. Sport generally, and golf specifically, are not recognised as industries within this framework. Consequently, the
economic activity of sport and golf is diluted within the National Accounts, in broadly classified industries such as: recreation; arts and sport;
manufacturing; construction; and hospitality.
The method we use to identify golf’s contribution to an economy is the production of a ‘Satellite Account’ for golf. The Satellite Account
technique was developed by the United Nations to measure the size of economic sectors that are not defined as industries in their own
right within the System of National Accounts. Notable examples of where Satellite Accounts have been used previously include tourism,
sport, and the environment. The approach enables industries to be analysed from four perspectives.
1. Consumer spending, which is defined as the spending of individuals and households on golf-related goods and services.
2.Gross Value Added (GVA), the building blocks of the National Accounts, which is defined as the profits plus wages within an industry, less
an adjustment for taxation and subsidies. GVA is usually more than 90% of Gross Domestic Product (GDP), which is the most widely
reported measure of the scale of an economy.
3.Employment, which is reported as (a) full-time equivalent jobs (FTEs) where for example two people working half-time is equal to one
FTE, and (b) actual employees, which is the number of different people who occupy those jobs.
4.The fourth, less commonly used measure is turnover, which captures the revenue flows associated with a given level of GVA. For
example, in order to generate €1,000 in wages and profits it might be necessary for a business to have a turnover of around €1,800.
Indirect and induced measures of turnover are estimated by applying a multiplier to the direct measure, as explained in Section 7.
This report presents the results of our Satellite Account for the economic importance of golf in the Republic of Ireland. Where relevant, the
results of our previous research2 are used to provide further context and to aggregate upwards to an island of Ireland basis.
1.2. Positioning the Research
The study of the economic importance of golf is not new. Various previous studies across the world have attempted to measure the scale
and nature of the golf industry at national level. The original of these reports was published in the USA in 2002 entitled The Golf Economy
Report. Subsequent studies have attempted to be consistent with this report by using similar methods, notably The Australian Golf Industry
2 A Satellite Account for Golf in the UK, The R&A/SIRC; March 2016
8 / A Satellite Account for Golf in the Republic of Ireland
Economic Report (2008). However, the robustness of these studies is limited by a disclaimer within the Australian report explicitly stating
that measures which are out of scope include:
• An aggregate industry output – the market value of goods and services produced by an industry, often measured by industry turnover;
•Value added – the market value of goods and services produced by an industry, after deducting the cost of goods and services used (i.e.
based on the summation of wages and profits); and
•Industry employment – the number of people directly employed by the industry, expressed in terms of full-time equivalent employees
and actual ‘heads’.
The only method by which these measures can be quantified with any degree of accuracy is by producing a ‘Satellite Account for Golf’,
which has never been attempted before in the Republic of Ireland.
In Europe we have found three studies similar to the American and Australian reports:
• KPMG: The Value of Golf to Scotland’s Economy (2013);
• SMS: The Economic Value of Sport on the Economy of England (2014); and
• SMS: The Economic Impact of Golf on the Economy of Europe (2013).
None of these studies used the Satellite Account methodology, although the KPMG report on the value of golf in Scotland does include
some of the indicators utilised in this report. Without using the Satellite Account approach, there is a tendency to aggregate revenues in
different industry sectors which leads to double counting. For example, the money that golf clubs spend on construction will appear as
income for the golf clubs from members’ subscriptions and then also as income for the construction industry in the form of payments
for building works. The only satisfactory way to solve the double counting problem is to consider the ‘value added’ associated with the
production process, which is essentially an analysis of profits and salaries.
The only report that successfully negotiates the double counting problem by creating a Satellite Account is The R&A’s ‘A Satellite Account
for Golf in the UK’ (2016). This report measured the scale of the UK Golf industry in terms of Consumer Spending, GVA, Employment and
Turnover. It demonstrated that the economic value of the golf industry is determined primarily by the level of participation in the sport.
Finally, the multiplier effects were estimated using what are known as Type I and Type II multipliers to evaluate the indirect and induced
effects respectively. This report for the Republic of Ireland has been prepared so that it is methodologically consistent with our UK study.
The approach of the current study is transparent and replicable, using both official statistics and the annual reports and financial statements
of companies that operate within the golf industry. We have placed considerable emphasis on the economic activity of recognised golf clubs
to capture accurately the existing patterns of income and expenditure through audited summaries of business transactions. Some of these
were kindly provided by clubs themselves, others were sourced from the Companies Registration Office (CRO).
1.3. Participation in Golf
Golf is consistently shown to be one of the most popular participation sports in Ireland according to three national level surveys:
•the Irish Sports Monitor (ISM) for the Republic of Ireland, providing weekly sport participation rates;
•the Quarterly National Household Survey for the Republic of Ireland, providing 4-weekly and annual sport participation rates; and
• SAPAS for Northern Ireland, providing 4-weekly and annual sport participation rates.
On the basis of all three surveys we can conclude that in the Republic of Ireland the golf participation rates are: 3.3% on a weekly basis; 4.5%
on a 4-weekly basis; and, 7.9% on an annual basis. The latter is not available for 2014, but can be derived from the ratio between the various
measures from previous years. For example, typically the annual participation rate is just below twice the 4-weekly rate. With a measured
4-weekly rate of 4.5% we would expect an annual rate below 9%, and thus our derived figure of 7.9% would pass a test of reasonableness
for being within acceptable bounds.
Table 1.1 presents a comparison of the 4-weekly and annual participation rates and participant numbers in the Republic of Ireland, Northern
Ireland, Ireland overall and the UK. It is clear that the Republic of Ireland has the highest level of regular (4-weekly) participation at 4.5%,
which equates to around 160,000 regular adult golfers. These golfers are a subset of a larger set of 281,000 occasional adult golfers who
play golf at least once a year. As Table 1.1 shows, the population of adult golfers in Ireland is 384,000 adults.
A Satellite Account for Golf in the Republic of Ireland / 9
Table 1.1: Golf Participation
Nation
Adult Population 4-weekly
Regular Adult
Participation Golfers
Rates
12-monthly
Occasional
Participation Adult Golfers
Rates
Republic of Ireland
3,558,000
4.5%
160,000
7.9%
281,000
Northern Ireland 1,468,000
4.0%
59,000
7.0%
103,000
Ireland
5,026,000
4.4%
219,000
7.6%
384,000
UK
52,418,000
3.0%
1,554,000
7.4%
3,883,000
Sources: SIRC, QNHS, SAPAS.
The finding that golf participation rates in the Republic of Ireland are higher than the UK as a whole is important for two key reasons.
First, the economic impact of the golf industry, related directly to participation, will be relatively high. Second, if we compare the Republic
of Ireland with the disaggregated scores for the four UK home nations, we find its participation rates of 4.5% for 4-weekly participation
and 7.9% for annual are second only to the home of golf, Scotland, which has participation rates of 7.0% and 17.5% for these measures
respectively.
Golf participation statistics in the Republic of Ireland can be compared with number of golf-club members, often the source of all associated
golf volunteering. Data from the Golfing Union of Ireland reveals that there are 189,000 club members in Ireland, as categorised in Table 1.2.
This is confirmed further by ISM data, showing that in the Republic of Ireland 7.7% and 2.1% of males and females respectively are golf club
members, which is equivalent to 174,000 adults (including non-affiliated members).
Table 1.2: Golf Club Membership
Men
Women
Total Adults
Boys
Girls
Total Members
130,000 36,500 166,50019,000 3,500 189,000
Source: GUI.
As Table 1.2 shows, a sizeable majority of adult club members are males (78%). The totality of adult GUI club members in the Republic of
Ireland (166,500) is approximately the same as the number of regular golf participants (160,000). Taking into account the ISM findings, we
can conclude that around 60% of the total adult golf participants (281,000) are members of a golf club. The remaining 40% of participants
make use of public golf courses such as Silloge Park and Stepaside Golf Course.
Based on a combination of the participation and club membership data, we can conclude that in the Republic of Ireland, around 4.7% of
the adult population are golf club members. This is nearly one in twenty adults and compares very favourably with England where the
corresponding score is around one in one hundred adults. Analysing golf participation patterns is important because they form the basis of
consumer spending, especially on membership fees, inbound golf-tourism, golf equipment and sportswear, which in turn are known to be the
major economic components of the industry.
Table 1.3 positions golf alongside other sport activities in which people participate in the Republic of Ireland. Information is taken from ISM
and it therefore reflects weekly participation. It can be seen that golf is the fifth most popular sport activity after swimming, running, football
and cycling. As is the case in the UK, golf can be confirmed as the number one ‘partner’ sport in the Republic of Ireland, ahead of tennis,
badminton, table tennis and squash.
10 / A Satellite Account for Golf in the Republic of Ireland
Table 1.3: Sport Participation, RoI, at least once a week
SwimmingRunning
Cycling
Football Golf
Gaelic
Weights
Football
Rugby
Hurling
9.4%
5.9%
5.9%
2.9%
1.4%
1.7%
8.5%
3.3%
2.6%
Sources: SIRC, QNHS, SAPAS.
Participation studies3 have shown that golf has been more affected by the recent global economic downturn in terms of membership and
participation than ‘cheaper’ sports such as jogging and road running. In the case of golf, the major variable by which participation is affected
is free time. Pressure on incomes has caused many people to increase their working hours in order to maintain their standard of living,
which in turn constrained the amount of time available for participation in sport and leisure. Although the issue of free time is relevant to
sport in general, it is more pronounced for golf where it typically takes three to four hours to negotiate an 18-hole course.
1.4. Research Aims
The aim of this research is to quantify the economic importance of golf in the Republic of Ireland by following the Satellite Account
methodology (as developed in the EU) and to map the golf industry against standard economic categories (National Accounts) in order to:
• Outline the economic groupings in the National Accounts in which golf-related economic activity is found;
• Estimate consumer spending on golf (using the Vilnius definition4 categories in sport);
• Estimate the GVA of golf overall and within each relevant industry sector;
• Estimate the employment attributable to golf overall and within each relevant industry sector;
• Estimate turnover for the golf industry based on direct, indirect and induced effects; and
•Contextualise the research relative to the Republic of Ireland’s wider economy and our previous research on the golf industry in the
UK.
1.5. Report Structure
The remainder of this report is structured as follows:
•
•
•
•
•
•
Section 2 outlines the methods;
Section 3 identifies the Standard Economic Categories associated with golf in the Republic of Ireland;
Sections 4 to 6 provide estimates for consumer spending, GVA and employment;
Section 7 presents an estimate of the golf industry’s turnover together with the indirect and induced effects;
Section 8 summarises the economic impact of golf and positions it within the context of the Republic of Ireland’s economy; and
Concluding comments are presented in Section 9.
Finally, the appendices include detailed tables relating to:
• The Standard Industrial Classification mapping of the golf industry;
• Consumer spending;
• Gross Value Added;
• The two definitions of employment; and
• An estimation of the indirect and induced effects on GVA and turnover.
3 https://www.sportengland.org/media/3544/the-effects-of-economic-conditions-on-sports-participation.pdf
4 http://ec.europa.eu/eurostat/documents/6921402/0/Vilnius+Definition+Sport+CPA2008+official+2013_09_19.pdf
A Satellite Account for Golf in the Republic of Ireland / 11
2 METHODS
2.1.The Model
This research uses the SIRC model for assessing the economic importance of sport, which has been used extensively in the UK5 and more
widely in Europe6. It uses as its basic input, where possible, relevant economic variables from official statistics. The model divides the sports
economy into six sectors which are analysed separately to ensure that there is no double counting. A brief overview of the six sectors is
presented below.
1.Consumer spending by individuals or households. This is golf-related expenditure on goods and services such as: clothing; footwear;
equipment; and golf tourism activities.
2.Commercial golf which relates to equipment manufacturers and retailers, golf management companies, real estate and construction.
Also included in this sector are media services such as television, publications and events.
3.Commercial non-golf consists of the suppliers involved in the production of golf-related goods and services. This sector includes
commercial companies that do not provide a direct golf product per se, but which assist production via the supply of inputs or revenue.
For example, energy companies provide inputs that enable the operation of golf facilities; and sponsors enable major golf events to take
place. Golf-related betting also falls within this category.
4.Clubs and the voluntary sector include all affiliated clubs and non-profit making organisations such as governing bodies, other
associations and charities. Identifying the income and expenditure flows of clubs was a particularly important component of this
research. Clubs are also economically important for their provision of food and beverage services either integrated within the
operation, or as a separate entity.
5.Public sector identifies the monetary flows to central and local government in the form of taxes and rates. Central Government
contributes towards golf via the grants distributed through Sport Ireland and it receives funds associated with VAT and company
taxation.
6.Imports and exports adjust the data in order to take account of all transactions with economies outside the Republic of Ireland.
The model is deliberately structured to avoid double counting. The only aggregation which takes place is for profits, wages and jobs per
sector, which in turn generate the Gross Value Added and employment estimates.
Our analysis is consistent with the Vilnius definition of sport, which articulates the consensus reached at European Union level as to how the
sport industry is defined in statistical and economic terms. The research presented in this report uses the seven key sources listed below as
its basic inputs.
5 https://www.gov.uk/government/collections/sport-satellite-account-for-the-uk-statistics
6 http://ec.europa.eu/sport/library/studies/study-contribution-spors-economic-growth-final-rpt.pdf
12 / A Satellite Account for Golf in the Republic of Ireland
1.Examination of the commercial sector through the annual financial statements of golf-related businesses filed with the
Companies Registration Office Ireland (CRO).
2.Analysis of clubs’ finances through their annual financial statements, also filed with CRO.
3.Analysis of various associations’ finances through their annual financial statements (e.g. CGI).
4. The trade of goods as reported by the Central Statistics Office (CSO).
5. Audit Bureau of Circulations (ABC) data for the readership of magazines.
6. Annual financial statements and existing surveys to inform decisions on consumer spending.
7. The Input-Output Tables for the national economy, together with average earnings data provided by the CSO.
As an extension to the initial direct economic impact, the indirect and induced effects on GVA and turnover are also calculated. All
multipliers used, are based on the latest Input-Output Tables provided by CSO.
2.2. Output Impacts
The principal component of the Satellite Account deals with the direct demand for golf in terms of consumer spending, GVA, and
employment. To complete the model, the overall economic impact of golf combines three different types of effect, which reflect the way in
which expenditure filters through an economy.
•Direct impact – the immediate net change in economic activity in the sectors of the economy that service golf, such as tourismrelated provisions.
•Indirect impact – industries that create direct impacts depend on the supply of goods and services by other industries, which have
to change their outputs to meet demand. These inter-industry transactions of intermediate goods and services represent the indirect
impact, or supply chain, and originate mainly from the non-golf commercial sector, for example food and drink supplies to clubhouses.
•Induced impact – employees within industries positively affected by the direct and indirect impacts of golf may see their disposable
incomes increase and as a result spend more on domestically produced goods. This leads to increased local expenditure and final
demand.
Overall, the current methodology provides an evaluation of the golf industry in terms of consumer spending, GVA and employment using an
approach that is transparent and can be reconciled to the National Accounts of the Republic of Ireland.
A Satellite Account for Golf in the Republic of Ireland / 13
3 MAPPING
THE GOLF
INDUSTRY
Constructing a Satellite Account involves a direct search through Standard Industrial Classification (SIC) codes to identify companies that
are in any way associated with golf. This is like a form of forensic accounting and was conducted by using the annual reports, financial
statements, and associated four-digit SIC codes filed with CRO. A full list of the entire four-digit SIC codes found to be directly related to
the golf industry can be found in the Appendices (see Table A.1).
An important observation about this initial analysis is that the golf industry spans numerous industrial sectors and SIC codes as shown in
Table 3.1. Golf-related businesses operate in 49 different SIC codes of the National Accounts. Golf has a particularly strong integration
with:
• Section L: Real Estate Activities, with golf-related businesses found in 63% of the SIC codes in this sector;
• Section I including Accommodation and Food Service Activities (50%); and in
• Section R: Arts, Entertainment and Recreation, golf activity is found in 40% of SIC codes.
14 / A Satellite Account for Golf in the Republic of Ireland
Table 3.1: Economic Sectors with strong associations with Golf
Group
Percentage of SIC codes associated with Golf
Section L: Real Estate Activities
63
Section I: Accommodation and Food Service Activities
50
Section R: Arts Entertainment and Recreation
40
Section N: Administrative and Support Service Activities
26
Section S: Other Service Activities
16
Section M: Professional Scientific and Technical Activities
14
Section J: 12
Information and Communication
Section G: Wholesale & Retail Trade; Repair of Motor Vehicles & Motorcycles
11
Section P: Education
9
Section K: Financial and Insurance Activities 6
Section F: Construction
5
Section C: Manufacturing
1
Golf’s extensive interaction with the economy as a whole suggests that there will be relatively high values for the multipliers used
subsequently to compute indirect and induced effects. This initial analysis provides the basis for the headline indicators of: consumer
spending; Gross Value Added; and employment, which are presented in turn in the next three sections.
In the course of this research all publicly available club accounts were examined. In addition, significant input was provided by other bodies
such as:
• Confederation of Golf in Ireland (CGI);
• Golf Club Business Association of Ireland;
• Golfing Union of Ireland (GUI);
• Irish Ladies Golf Union;
• Golf Course Superintendents (GCSAI); and
• PGA (Irish Region).
A Satellite Account for Golf in the Republic of Ireland / 15
4 CONSUMER
SPENDING
Consumer spending on golf in the Republic of Ireland was found to be €379 million as shown in Table 4.1 which is equivalent to €107 per
adult, a figure which is highly comparable with the equivalent UK average. A more realistic way to contextualise consumer spending is on
the basis of those who play golf. Using this method, each adult golfer in the Republic of Ireland spends an average of €1,350 per annum on
their sport.
Table 4.1: Summary of Consumption
Expenditure Type
Spending (€ million)
Percentage
Members’ Fees
94
25
Food and Beverages in Clubs
4612
Golf Equipment Retail / Hire
39
Green Fees
3810
Accommodation
3710
Tourism (Agents & Overseas)
287
Driving Ranges and Lessons
22
Golf Clothing & Footwear
216
Live Events
13
Golf Betting 113
Other
318
Total
379100
Northern Ireland
161
Ireland
540
16 / A Satellite Account for Golf in the Republic of Ireland
10
6
3
Members’ fees, a category which also includes joining fees, is by some margin the greatest volume of consumer spending at €94 million
or 25% of the total consumer spending on golf. The elements of consumer spending associated with the network of clubs, are strongly
linked to golf participation. Golf participation can be seen to be a catalyst for economic activity in other sectors because of the additional
expenditure golfers make on equipment, clothing, footwear, food and drink, tourism, betting, lessons and events. It is evident that the
golf economy is a function of participation in the form of some 160,000 regular adult golfers (see Table 1.1) and a similar number of club
members (see Table 1.2). Downstream impacts in sectors that benefit from golf participation such as equipment, clothing and footwear are
therefore highly dependent on the sport’s participation levels. In addition to increasing participation in golf for individual physical and mental
health benefits, there are also strong arguments for the wider economic benefits of the sport.
Finally, Table 4.1 shows that Northern Ireland’s consumer spending on golf adds up to €161 million (£129m), bringing the total for the whole
of Ireland to €540m (€107 per adult), with no meaningful variation in the spending patterns of adults in the Republic of Ireland (€107) and
Northern Ireland (€110).
Golf is prominent in the consumer spending figures for sport overall, mainly because of the expense involved in club membership fees and
golf equipment, which tends to be greater than the participation costs of other sports. In the UK, golf was found to be 14% of the UK’s
sport economy; however no study on the economic impact of sport has been commissioned in the Republic of Ireland since 20087 for a
direct comparison with sport in general. As shown in Table 4.2, golf is responsible for 0.4% and 17% of the Republic of Ireland’s total and
sport8 consumer spending respectively9. Other than membership fees, consumer spending on golf is also influenced by the operation of
restaurants and bars, golf equipment and green fees, with each category associated with at least 10% of golf’s consumer spending.
Accommodation in golf resorts and golf-related tourism are also important, contributing 10% and 7% respectively to the sport’s consumer
spending. Spending on food and drink as a share of total spending, is significantly higher in the Republic of Ireland than in the UK, which
suggests greater integration of bars and restaurants within clubs. We have also noticed many restaurants and bars in golf clubs actively
promoting themselves beyond golf to the wider community as locations for Sunday lunches, wedding receptions, and other religious
celebrations such as first holy communions.
Table 4.2: Golf Consumption, Republic of Ireland – In Context
Golf Consumption
€ 379 million
Golf as a percentage of Consumer Spending
0.4%
Golf as a percentage of Sport Spending (est.)
17.0%
7 http://www.getirelandactive.ie/Older-Adults/Resources/Research/ISC-Economic-Impact-of-Sport-2010.pdf
8 The sport percentage is an update of the 2008 figure and should be treated with caution.
9 http://www.cso.ie/indicators/default.aspx?id=5NQQ30A
A Satellite Account for Golf in the Republic of Ireland / 17
5 GROSS
VALUE
ADDED
The Gross Value Added of the golf industry in the Republic of Ireland was €202 million in 2014 with the largest single area being the
activities of golf clubs, including food and beverage operations and recreational golf at €89m (44%) as shown in Table 5.1. The GVA analysis
also highlights golf’s important relationships with the golf equipment and retail industries (€21m), tourism and accommodation in golf
resorts (€25m) and the construction and real estate industries (€15m).
Table 5.1: Summary of GVA
Sector
GVA € million
Percentage
Clubs / Food Services / Recreational Golf
89
44
Accommodation / Tourism (Agents)
2512
Golf Equipment / Sportswear 21
Construction / Real Estate
157
Services (Advertising, Agencies, Insurance, Other)
13
Golf Betting 105
Management and Administration
10
Live Events
63
Wholesales
5
Associations / Charities
32
Other 5
Total
202100
Northern Ireland
76
Ireland
278
18 / A Satellite Account for Golf in the Republic of Ireland
10
7
5
2
3
The economic value of golf clubs is central to the golf economy with considerable benefits in terms of the development of retail business
and tourism. Most food and drink businesses are an integral part of the club network providing significant income and employment.
Around 60%-70% of the GVA generated by golf relates to the activities of golf clubs directly or indirectly, through income generated via
participation and construction. A significant part of golf’s GVA (7%) is associated with construction and golf-related real estate. The routine
nature of ongoing maintenance works (almost 85% of total construction/repairs in clubs), coupled with high indirect demand multipliers
for construction indicates that growth in golf has a positive impact on the economy as a whole. Furthermore, the Republic of Ireland
has a growing service sector (including advertising, and insurance) and management activities linked to golf, which contribute 7% and 5%
respectively to golf’s GVA. Information Technology services associated with golf are increasingly important. Table 5.1 also shows that
Northern Ireland generated €76 million (£61m) of golf related GVA, bringing the total for Ireland as a whole at €278m.
In Table 5.2 below, it is apparent that golf’s GVA corresponds to 0.1% and 9% of the overall and sport GVA respectively for the Republic of
Ireland10. It is noteworthy that a single sport such as golf is actually measurable within the context of an entire nation’s economy given that
all sport tends to be around 2% of the economies of developed nations.
Table 5.2: Golf GVA, Republic of Ireland - In Context
Golf GVA
€ 202 million
Golf GVA as a percentage of Total GVA
0.1%
Golf GVA as a percentage of Sport GVA (est.)
9.0%
When we examine the nature of golf’s GVA, we find that 75% is associated with wages and salaries, which in turn compares favourably with
the economy as a whole (52%). The significance of this finding is that it illustrates the underlying capacity of golf to generate employment
and to stimulate economic growth. If golf participation can be increased, the economic benefits could be substantial within the context of
golf and the economy of the Republic of Ireland more widely.
10 The sport GVA represents an update of the 2008 report and should be treated with caution.
A Satellite Account for Golf in the Republic of Ireland / 19
6 EMPLOYMENT
Expenditure on wages and salaries in golf-related businesses is the basis for deriving the amount of employment in each sector. The headline
figures for full-time equivalents (FTEs) in the key employment sectors are shown in Table 6.1. The golf industry provides employment for
5,050 full-time equivalent employees and these roles are carried out by 6,800 different people when adjusted for part-time workers. Golf
clubs are the most significant employers in the sector (1,740 FTEs, 34% of total) which equates to an average of just over five full-time
employees per club.
Other notable levels of golf-related employment can be found in golf equipment and sportswear (640 FTEs); services (470 FTEs);
management and administration (410 FTEs); tourism and accommodation (580 FTEs); construction (340 FTEs) and real estate (190 FTEs).
To put these figures into context, golf employment is 0.3% of the Republic’s total employment, or the equivalent of 1 in 300 jobs. This figure
compares favourably with the UK (1 in 500 jobs) and in part provides evidence that in relative terms golf is a more important employment
provider in the Republic of Ireland than it is in the UK.
Table 6.1: Summary of Golf Employment (FTEs)
Employment Type
FTEs
%
Employees
%
Clubs / Operations / Recreation
1,740
34.5
2,780
40.8
Golf Equipment / Sportswear
640
12.7
860
12.6
Services
470
9.3
490
7.2
Management and Administration
410
8.2
410
6.1
Tourism Accommodation
580
11.4
820
12.1
Construction
340
6.7
370
5.5
Real Estate
190
3.7
200
3.0
Other
160
3.3
180
2.7
Live Events
150
3.0
250
3.6
Golf Betting
140
2.8
190
2.8
Travelling - Agents
60
1.2
70
1.1
Food Services
80
1.5
90
1.2
Associations / Charities
60
1.1
60
0.9
Magazines / Books / DVDs
30
0.6
30
0.5
Total
5,050
100
6,800
100
Northern Ireland
1,630
2,230
Ireland
6,680
9,030
20 / A Satellite Account for Golf in the Republic of Ireland
Some sectors rely heavily on part-time employment, notably: clubs; tourism; accommodation; food services; retail; and live events. In live
events, for example, employment of 150 FTEs translates into 250 different people working within the sector, which is the equivalent of each
employee working on a 0.6 FTE basis. Similarly clubs rely on considerable part-time resources, with 2,780 employees corresponding to
1,740 FTEs.
Table 6.1 shows that golf in Northern Ireland generates 1,630 FTEs with a head count of 2,230 employees. Taken together, Ireland as a
whole generates 9,030 golf-related jobs, which correspond to 6,680 full-time equivalents. To put golf employment into a wider perspective it
is useful to examine the relationship between GVA and employment as shown in Table 6.2.
Table 6.2: Golf Employment, RoI – In Context
Golf Employment – FTEs
5,050
Golf Employment – Actual
6,800
Golf Employment (FTE) as a percentage of Total Employment
0.3%
Golf Employment (Actual) as a percentage of Total Employment
0.4%
Golf GVA as a percentage of Total GVA
0.1%
Overall, golf accounts for 0.1% of GVA and all things being equal the industry would be expected to account for a similar percentage of jobs.
The fact that the actual figure is much higher, at between 0.3% for FTEs and 0.4% for employees indicates that golf is an effective industry for
job creation. It also means that the golf industry can be used to generate employment when it is needed, especially at times of recession and
austerity. The ability of the Republic of Ireland’s golf economy to generate jobs compares favourably with the UK, where golf corresponds to
0.2% of UK employment.
Employment is reinforced by relatively strong multipliers in some sectors that are important to golf such as the construction industry (1.59).
The part-time nature of some golf-related employment is linked to the strong ties that the clubs have with their local communities. Clubs
are therefore well positioned to help regenerate local economies in response to new investment. Notable examples of such investment
include the proposed plans for Trump Doonbeg in the Republic of Ireland and Lough Erne in Northern Ireland.
A Satellite Account for Golf in the Republic of Ireland / 21
7 TURNOVER
Turnover, or the total economic activity associated with golf is comprised of: direct effects such as the operation of golf clubs; indirect effects
such as supply chain activity; and induced effects which are the increased sales within the economy from household spending of the income
earned in the golf industry.
The indirect effect is of economic importance because it measures the production of inputs required in order to satisfy the direct demand
for golf. These inputs will be sourced from the commercial non-golf sector. For example, a golf club may commission a construction
company for works, which cause it to place orders down the supply chain for the required inputs such as building materials and labour.
When the first direct and indirect cycles of demand are completed, some households will have higher incomes as a result of the increased
economic activity. If these households continue to spend on golf, a further induced effect will be created. The sum total of direct, indirect
and induced effects can be said to be a measure of the economic activity associated with golf.
To measure economic activity, GVA is first translated into turnover by using the latest Input-Output Tables from the Central Statistics Office.
The second stage of the process is to apply multipliers on the basis of the Product-by-Product Matrix in the National Accounts. Although
previous research has often emphasised the strength of sectors like sport to produce significant economic results, it should be noted that in a
relatively small economy such as the Republic of Ireland, the multiplier effects will be less pronounced than in a larger economy such as the UK.
Table 7.1 shows the detailed derivation of the three effects. The direct GVA and turnover are presented at €202 million (see Table 5.1) and
€397m respectively. The multiplier effects are derived for each economic sector and can be seen in Table A6 of the Appendix. These provide
a subsequent stimulus in the supply chain (indirect effects) and in household incomes (induced effects). As the direct economic activity
circulates through the economy, it is possible to make an estimate of the total economic activity associated with an industry. For golf our
estimate for total direct, indirect and induced GVA is €275m and for turnover the corresponding figure is €546m.
Table 7.1: Direct, Indirect and Induced effects on GVA and Turnover
GVA
(€ million)
Turnover
(€ million)
202
397
Indirect Effects
40
82
Induced Effects
33
67
275
546
Direct
Total
The figures in Table 7.1 should be treated with a degree of caution as they are in effect measuring a continual recirculation of the same
money. It is legitimate to say that golf provides a stimulus for some €546 million worth of economic activity. However, the more robust
figures are consumer spending, direct GVA and employment as these measures isolate golf’s specific contribution to the economy without
having to consider the effect of the size of the economy and any leaks that may appear in the circulation process. Furthermore, these
measures eliminate double counting and can be reconciled to the System of National Accounts via a transparent audit trail.
Finally the golf industry incorporates some economic sectors with very high multipliers; among them the construction sector with an
indirect multiplier of 1.59 and membership organisation services with an indirect multiplier of 1.86. The latter is the largest multiplier value
found not just within the subsectors of the golf industry but the economy as a whole, showing the substantial returns that investment in
sport generally, and golf specifically, can yield.
22 / A Satellite Account for Golf in the Republic of Ireland
8 SPORTING
CONTEXT
Thus far the value of the golf economy in the Republic of Ireland has been estimated in terms of consumer spending, GVA, employment and
turnover. These indicators have been compared with the economy as a whole and with the size of the golf economy in Northern Ireland.
An overview of the importance of the golf economy is presented in Table 8.1.
Table 8.1:The Golf Economy in Context
Golf (2014)
Golf as % of the
RoI's economy
Consumer spending
€ 379m
0.4%
GVA
€ 202m
0.1%
5,050 FTEs
0.3%
Measure
Employment
Table 8.1 reveals that golf is a measurable and noteworthy component of the national economy, particularly in terms of consumer spending
and employment. The patterns of consumer spending help to illustrate how golf is linked to high value economic activity such as club
membership, equipment, clothing, and tourism activities. In addition the GVA pattern shows the importance of services that provide
insurance, advertising, and IT services.
The economic activity associated with golf leads to positive outcomes for Central Government in the form of taxation receipts. The golf
Satellite Account model indicates that taxation in the form of corporation tax and Value Added Tax collectively contributes €93 million per
year to Central Government as shown in Table 8.2.
A Satellite Account for Golf in the Republic of Ireland / 23
Table 8.2: Public Sector Earnings from the Golf Industry
Source
Public Sector Income
(€ million)
Clubs
36
Food and Beverages
11
Retail of Golf Equipment and Accessories
10
Accommodation
9
Other Domestic and Overseas Holidays
7
Driving Ranges and Lessons
6
Golf Sportswear
5
Golf Betting
3
Live Events
2
Magazines, Media
1
Services: Advertising, Design, Agencies
1
Construction
1
Other
1
Total
93
Given the size of the golf economy and the level of corporation tax rate in the Republic of Ireland, this is a significant contribution to public
finances. The revenue funding grant paid to CGI and other disbursements to golf via Lotto proceeds will be a tiny fraction of public sector
earnings from golf in both direct and indirect taxation receipts.
The prospects for the golf industry are linked to both sport participation and the scale of economic growth. The recent economic recession
compromised household incomes and affected golf participation rates. However the post 2014 economic growth in the national economy
coupled with a golf club membership rate (4.7%) that exceeds the regular (4-weekly) golf participation rate suggests a positive future for the
golf industry.
CSO figures11 show an accelerated growth in the Republic of Ireland’s economy since 2013. Figure 8.1 below illustrates the post 2005
quarterly changes in the GDP of the Republic of Ireland in constant market prices. Since 2014 the economy has grown rapidly and within a
year had climbed above the pre-recession output level.
11 http://www.cso.ie/px/pxeirestat/statire/SelectVarVal/Define.asp?Maintable=NQQ29&PLanguage=0
24 / A Satellite Account for Golf in the Republic of Ireland
Figure 8.1: Republic of Ireland GDP at Constant Market Prices (€m)
The growth level of the economy is presented in Table 8.3. It shows a five-year recessionary period that lasted from 2008 to 2012 (with the
exception of some growth in 2010 in between)12. Such a protracted recessionary period has affected participation rates in terms of incomes,
but more importantly, in terms of restricting leisure time. It is only since 2013 that the economy has started to grow again, initially very
slowly and then at an accelerated rate. Given that the sport and leisure economy tends to grow at a disproportionately higher rate than the
economy as a whole in conditions of economic growth, it is reasonable to expect the golf industry to expand in the long-term contributing
further to the generation of employment and output.
Table 8.3: Growth in GDP, constant (2014) market prices, RoI
2007 2008 200920102011 2012 201320142015
3.8% -4.4%-4.6%2.0% 0.0% -1.1%1.1% 8.5%26.3%
Source: CSO.
12 http://www.cso.ie/en/releasesandpublications/er/nie/nationalincomeandexpenditureannualresults2015/
A Satellite Account for Golf in the Republic of Ireland / 25
9 CONCLUSIONS
This research is the first instance of a Satellite Account for golf, or indeed any other sport, in the Republic of Ireland. The report presents
the findings from the application of the Satellite Account methodology, as developed at EU level, to estimate the economic value of golf in
the Republic of Ireland in 2014 using three principal outcomes:
• Consumer spending;
• Gross Value Added (GVA), and
• Employment.
In addition, the report calculates the value of golf-related turnover, and estimates the golf industry’s GVA and turnover at direct, indirect
and induced levels. Through an investigation of SIC codes, the report shows that the golf industry is associated with an extensive range of
economic activities as they appear in the National Accounts. Golf-related businesses operated in 49 different SIC codes of the National
Accounts. They show a strong integration with real estate, accommodation and food and services activities. The key findings are listed
below:
•Golf is identified as one of the Republic of Ireland’s most popular sports with the membership rate of 4.7% and the regular 4-weekly
participation rate at 4.5%. This corresponds to 160,000 regular adult participants. The overall number of golfers that participate at
least once a year is 281,000 adults, or 7.9% of the adult population. Golf participation and membership of golf clubs are the principal
components of the golf economy.
•Consumer spending on golf related goods and services is estimated at €379 million, equivalent to 0.4% of the total economy. This
corresponds to €107 per adult. Important elements of this spending include €94m (25%) spent on members’ fees and €46m (12%)
spent on food and beverages, mostly within clubs. This is complemented by spending on golf equipment €39m. The pattern of consumer
spending identifies golf clubs as the most important element of the golf economy.
•The value of golf-related GVA was found to be €202 million, equivalent to 0.1% of the entire Republic of Ireland’s economy. As for
consumer spending, the most significant contributor to this measure is golf clubs (44%) which involve numerous activities over and
above playing, such as catering and retailing. The report found that the majority of golf’s GVA is attributable to wages and salaries,
illustrating the capacity of golf to generate employment.
•Employment associated with the direct demand for golf products and services is estimated at 5,050 FTEs, which are filled in practice by
6,800 full-time and part-time employees. These values correspond to 0.3% and 0.4% respectively of employment levels in the Republic
of Ireland’s entire economy. Golf clubs are the most significant employers in the sector (1,740 FTEs, 34% of golf’s total). Employment
is reinforced by relatively strong multipliers in sectors that are important to the golf industry, such as construction (1.59). The parttime nature of some jobs is linked to the strong ties that the clubs have with their local communities. These clubs are therefore well
positioned to help regenerate local economies in response to new investment.
•The turnover associated with the golf industry is €546 million comprised of direct effects of €397m, indirect effects of €82m, and
induced effects of €66m.
•Golf contributes €93 million to the public sector via direct and indirect taxation on individuals and businesses. Given the size of the
golf economy and the relatively low corporation tax rate, this is a significant contribution to public finances and exceeds the amount of
public money invested in golf many times over.
26 / A Satellite Account for Golf in the Republic of Ireland
The current Satellite Account for Golf in the Republic of Ireland shows that golf is a very effective industry for generating employment.
Although the industry generates 0.1% of the national GVA, it creates 0.4% of employment (in terms of employees) or 0.3% in terms of FTEs.
This implies that the golf industry can be used as a device to generate further employment, especially during times of economic downturn.
The economic growth in the Republic of Ireland since 2013 is one of the strongest observed in recent times and is likely to impact positively
on the golf industry. Evidence from the analysis of sport industries across Europe indicates that as the economy grows, the sport industry
grows at a faster rate. Given that golf has been identified as an important component of the sport industry, it is reasonable to expect it to
follow a similar pattern. As consumer confidence increases it would also be reasonable to expect more favourable outcomes for economic
growth as follows:
• Spending on golf equipment and clothing will increase, as these are easily deferred purchases during uncertain times;
• Spending on luxuries such as golf-related tourism and holidays will increase, and
• Spending on participation will also increase, as people’s leisure time increases in response to higher incomes.
The Satellite Account for golf demonstrates the considerable economic importance of the sport to the Republic of Ireland’s economy. We
provide a replicable baseline of the golf industry which can be reassessed in years to come and can be used as a benchmark against which
the future development of golf can be measured. The end of the recession and the presence of continuous economic growth in the last
three years favour strong growth in the Republic of Ireland’s golf industry with particularly significant impacts on employment.
The Satellite Account for golf is an informative tool which helps to demonstrate the economic significance of golf to the Irish economy. A
similar study undertaken for The R&A (by SIRC) at UK level culminated in an adjournment debate in the House of Commons and extensive
positive media coverage for the sport. The Satellite Account for golf in Ireland represents an advocacy document for the sport given its
ability to generate and sustain employment and to forge and maintain strong links with local communities. In addition, the report may also
be used to identify growth prospects around new memberships from an increased international business presence, culminating in rising
incomes and increased leisure time which the sport should look to capitalise upon.
Although the report provides a comprehensive coverage of golf’s economic value, this is only a partial picture of golf’s overall benefits.
Missing in particular from the analysis is the wider social value of golf in terms of its contribution to physical and mental health; individual
development, for example through volunteering; and societal development such as social capital. These other positive benefits of golf should
be the subject of future research.
A Satellite Account for Golf in the Republic of Ireland / 27
APPENDICES
TABLE A.1: MAPPING OF THE GOLF INDUSTRY THROUGH EXAMINATION OF THE SIC 2007 CODES
28
TABLE A.2: GOLF SECTOR – CONSUMER SPENDING, 2014
30
TABLE A.3: GOLF SECTOR – GROSS VALUE ADDED, 2014
31
TABLE A.4: GOLF SECTOR – EMPLOYMENT, 2014, FULL-TIME EQUIVALENT
32
TABLE A.5: GOLF SECTOR – EMPLOYMENT, 2014, NUMBER OF PEOPLE
33
TABLE A.6: GVA AND TURNOVER, ENHANCED BY INDIRECT (I) AND INDUCED (II) EFFECTS
34
Table A.1: Mapping of the Golf Industry through examination of the SIC 2007 codes
SIC 07 codes
Description
SECTION C:
MANUFACTURING
1812
Printing
3230
Manufacture of sports goods
SECTION F:
CONSTRUCTION
4120
Construction of residential and non-residential buildings
SECTION G:
WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES & MOTORCYCLES
4511
Sale of new cars and light motor vehicles
4614
Agents involved in the sale of machinery, industrial equipment, ships and aircraft
4618
Agents specialised in the sale of other particular products
4642
Wholesale of clothing and footwear
4647
The organisation of golfing holiday packages.
4690
Non-specialised wholesale trade
4752
Retail sale of hardware in specialised stores
4771
Retail sale of clothing in specialised stores
4772
Retail sale of footwear and leather goods in specialised stores
4778
Other retail sale of new goods in specialised stores
SECTION I:
ACCOMMODATION AND FOOD SERVICE ACTIVITIES
5223
Service activities incidental to air transportation
5229
Other transportation support activities
5510
Hotels and similar accommodation
5621
Event catering activities
5630
Public houses, bars and clubs
28 / A Satellite Account for Golf in the Republic of Ireland
SECTION J:
INFORMATION AND COMMUNICATION
5811
Publishing of books, periodicals and other publishing activities
6202
Information technology consultancy activities
6209
Other information technology service activities
SECTION K:
FINANCIAL AND INSURANCE ACTIVITIES
6512
Non-life insurance
SECTION L:
REAL ESTATE ACTIVITIES
6612Insurance
6810
Buying and selling of own real estate
6831
Real estate agents
6832
Management of real estate on a fee or contract basis
6910
Legal activities
SECTION M: PROFESSIONAL SCIENTIFIC AND TECHNICAL ACTIVITIES
7010
Activities of head offices
7022
Management consultancy activities other than financial management
7311
Advertising agencies
SECTION N: ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES
7739
Renting and leasing of other machinery
7911
Travel agency activities
79901
Activities of tourist guides
79909
Other reservation service activities n.e.c.
81100
Combined facilities support activities
81300
Landscape service activities
82301
Activities of exhibition and fair organisers
8299
Other business support service activities n.e.c.
8412Travel
SECTION P: EDUCATION
8559
Other education n.e.c.
SECTION R: ARTS ENTERTAINMENT AND RECREATION
9200
Gambling and betting activities
9311
Operation of sports facilities
9312
Activities of sport clubs
93130
Fitness facilities
93199
Other sports activities
9329
Other amusement and recreation activities n.e.c.
SECTION S: OTHER SERVICE ACTIVITIES
9499
Activities of other membership organisations n.e.c.
9604
Physical well-being activities
9609
Other service activities n.e.c
A Satellite Account for Golf in the Republic of Ireland / 29
Table A.2: Golf Sector – Consumer Spending, 2014
EXPENDITURE TYPE
€ million
Member Fees and Joining Fee
93.6
Food and Beverages Clubs
45.7
Green Fees (Members and Tourists)
37.9
Accommodation - Tourists
36.8
Golf Equipment - Clubs
22.4
Driving Ranges and Lessons
22.1
Golf Clothing
18.3
Domestic Golf Holidays (including some Events)
14.5
Overseas Golf Holidays
13.5
Live Events
12.7
Golf Related Betting
11.0
Other10.2
TV & Video Rental, Cable & Satellite Subscriptions
6.8
Golf Equipment - Gloves and Bags
6.0
Hire of Equipment
5.6
Golf Equipment - Balls
5.1
Charity4.2
Golf Magazines
3.6
Golf Footwear
3.0
Recreational Golf
2.3
Education
2.2
Coke, Petroleum
1.0
Golf Books and DVDs
0.7
TOTAL379.0
30 / A Satellite Account for Golf in the Republic of Ireland
Table A.3: Golf Sector – Gross Value Added, 2014
SECTOR
GVA € million
Clubs 73
Accommodation17
Golf Equipment Retail
15
Independent Driving Ranges / Green Fees / Operations
13
Golf Construction
11
Golf Related Betting
10
Management and Administration
10
Services: Design, Media, Agencies
9
Live Events
6
Domestic Holidays (mainly through Agents / Travelling)
5
Golf Sportswear
5
Golf Trolleys and Wholesale Operators
5
Other Services
3
Real Estate Selling
3
Overseas Holidays
2
Associations2
Golf Magazines
2
Food And Services
2
Education
2
Recreational Golf
1
Golf Real Estate Management
1
Golf Equipment Manufacturing (Exports) 1
Advertising1
IT Consultancy
1
Charities1
Other1
TOTAL202
A Satellite Account for Golf in the Republic of Ireland / 31
Table A.4: Golf Sector – Employment, 2014, Full-Time Equivalent
EMPLOYMENT TYPE
FTEs
Clubs 1,370
Accommodation580
Golf Equipment Retail
470
Management and Administration
410
Golf Construction
340
Independent Driving Ranges / Green Fees / Operations
320
Services: Design, Media, Agencies
280
Golf Sportswear
160
Real Estate Selling
140
Golf Related Betting
140
Live Events
150
Golf Trolleys and Wholesale Operators
120
Other Services
110
Food and Services
80
Associations / Charities
60
IT Consultancy / Insurance
50
Education
50
Golf Real Estate Management
40
Recreational Golf
40
Domestic Holidays (mainly through Agents / Travelling)
40
Advertising30
Golf Magazines / Books, DVDs
30
Other 40
TOTAL5,050
32 / A Satellite Account for Golf in the Republic of Ireland
Table A.5: Golf Sector – Employment, 2014, Number of People
EMPLOYMENT TYPE
People
Clubs 2,290
Accommodation820
Golf Equipment Retail
630
Independent Driving Ranges / Green Fees / Operations
430
Management and Administration
410
Golf Construction
370
Services: Design, Media, Agencies
280
Live Events
250
Golf Sportswear
210
Golf Related Betting
190
Real Estate Selling
160
Golf Trolleys and Wholesale Operators
140
Other Services
120
Food and Services
90
Associations / Charities
60
Recreational Golf
60
IT Consultancy / Insurance
60
Education
50
Domestic Holidays (mainly through Agents / Travelling)
50
Golf Real Estate Management
40
Advertising40
Golf Magazines / Books DVDs
30
Other20
TOTAL6,800
A Satellite Account for Golf in the Republic of Ireland / 33
Table A.6: GVA and Turnover, Enhanced by Indirect (I) and Induced (II) Effects
GOLF
SECTOR
GVA
INDIRECT GVA
EFFECT
DIRECT +
INDIRECT GVA
INDUCED GVA
EFFECT
Total GVA
All figures are presented in € millions
Clubs
73
5.3
78
3.9
82
Golf Construction
11
6.4
17
3.8
21
Golf Equipment
Retail
15
4.5
19
4.1
23
Accommodation
17
5.1
22
4.7
27
Golf Related
Betting
10
1.0
11
0.8
12
Management and
Administration
10
2.9
13
2.6
15
Golf Equipment
Manufacturing
(Exports)
1
0.1
1
0.1
2
Services: Design,
Media, Agencies
9
2.6
12
2.4
14
Live Events
6
1.4
7
1.3
8
Golf Sportswear
5
1.5
6
1.4
8
Golf Trolleys
& Wholesale
Operators
5
1.4
6
1.2
7
Domestic
Hols. (mainly
through Agents /
Travelling)
5
1.3
6
1.2
7
13
1.0
14
0.7
15
Advertising
1
0.1
1
0.1
1
Golf Magazines
2
0.4
2
0.3
3
Overseas
Holidays
2
0.6
3
0.6
4
Other Services
3
1.0
4
0.9
5
Associations
2
0.2
2
0.1
2
Real Estate Selling
3
0.9
4
0.4
5
Recreational Golf
1
0.1
2
0.1
2
IT Consultancy
1
0.2
1
0.2
1
Charities
1
0.7
1
0.6
2
Golf Real Estate
Management
1
0.4
2
0.2
2
Education
2
0.4
2
0.3
2
Food and Services
2
0.5
2
0.5
3
Other
1
0.0
1
0.1
1
Total
202
40.2
242
32.6
275
Independent
Driving Ranges
/ Green Fees /
Operations
34 / A Satellite Account for Golf in the Republic of Ireland
TURNOVER
INDIRECT TURNOVER
EFFECT
DIRECT + INDIRECT
TURNOVER
INDUCED
TURNOVER EFFECT
TOTAL TURNOVER
All figures are presented in € millions
160
11.6
171
8.6
180
30
17.5
47
10.5
58
24
7.2
31
6.4
37
39
11.6
50
10.7
61
11
1.1
12
0.9
13
13
3.9
17
3.5
20
4
0.4
4
0.4
5
15
4.5
20
4.0
24
9
2.1
11
1.9
13
8
2.4
10
2.1
12
12
3.4
15
2.9
18
7
1.8
9
1.6
10
22
1.6
23
1.2
25
2
0.1
2
0.1
2
4
0.7
4
0.6
5
3
0.9
4
0.8
5
4
1.2
5
1.1
6
6
0.4
6
0.4
7
5
1.6
6
0.7
7
2
0.2
3
0.1
3
5
1.0
6
0.9
7
5
4.0
9
3.6
12
2
0.6
3
0.3
3
2
0.5
3
0.4
3
4
1.2
5
1.1
6
3
0.9
4
0.8
5
397
82.4
480
65.8
546
A Satellite Account for Golf in the Republic of Ireland / 35
Prepared by:
Sport Industry Research Centre
Sheffield Hallam University
A118 Collegiate Hall
Sheffield, S10 2BP
Tel: +44 (0)114 225 5925
Email: [email protected]
October 2016
This research is supported by: