Coronavirus impact on the golf industry

As everyone is well aware, the world is on alert with many regions and countries on lock-down with regards to the Novel Coronavirus COVID-19. Fears surrounding the global outbreak have prompted unprecedented cancellations and closures with businesses constantly evaluating all aspects of their business and making decisions in the best interests of staff, customers, guests health and well-being.

For the golf business and the 2020 golf schedule, events and local corporate tournaments are being thrown into a state of flux with tournaments being postponed and leaving the other events with hard choices to make in the coming weeks.

The global position and seriousness of the outbreak is inciting panic and evolving daily. The Canadian border is now closed and many people working from home.

Pro Shop Magazine and the golfindustrynetwork.ca discussed the impact on the golf industry with clients and found there is concern from manufacturers, distributors and event/tournament organizers. Many golf products are manufactured in China and in particular the city of Wuhan, the capital of Hubei province, where it all began.

With the situation constantly evolving, companies are concerned about supplies and if they will have enough product to sell this summer and maintain an inventory. Production of a variety of golf products has been stopped while other merchandise sits in containers in China waiting to be shipped. If the supply chain is impacted, some Canadians are concerned that when the outbreak is over and everyone gets back to normal business practices, the US will be the first to get product followed by other countries.

A few companies we spoke with do not want to go on record but said they are closely monitoring the situation. On Fox Business they state “Shares of Callaway Golf Company took a tumble after the business predicted a $25 million revenue hit because of China’s coronavirus outbreak.  “We have adjusted our forecast down over the last week or so by approximately $25 million in revenue,” Callaway CEO Chip Brewer said in Tuesday’s earnings call. “This estimate assumes our suppliers’ factories get up and running slower than normal but ramp up to some sense of normalcy by the end of the month and the consumer demand in China returns to some set or normalcy by the end of March.”

Brewer said the coronavirus outbreak will impact Callaway’s supply chain, near-term demand for products in China and demand in neighboring markets. The high-end golf equipment and club maker is based in California.

Golf Canada released the following statement “With heightened uncertainty and global concern related to COVID-19, Golf Canada is evaluating all aspects of our business to operate and make decisions within the best interests of our staff, volunteers, athletes, partners and other stakeholder’s health and well-being.

We are monitoring Health Canada, the World Health Organization and other expert governmental/regional health experts to follow developments and receive guidance.

We are also consulting with key partners including the PGA TOUR, LPGA Tour, Canadian Olympic Committee and other national/international sport and entertainment properties to make informed and responsible decisions.”

The RBC Canadian Open is scheduled to be held June 8-14 at St. George’s Golf & Country Club in Toronto with nearby Islington Golf Club hosting the tournament’s official practice facility.  The CP Women’s open will run from August 31 – September 6, 2020 at Shaughnessy Golf and Country Club in Vancouver.

For the RBC Canadian Open, setting up the event with grandstands, tents and fencing must start mid to late April. This means Golf Canada must make a go -no go decision within the next month. That is very unfortunate as Golf Canada is coming off a very successful event at the Hamilton Golf and Country Club that allowed Golf Canada to post a positive financial report at their annual AGM this past month.

On the resort side of the golf business, Blue Mountain in Collingwood ON.  have suspended operations starting the morning of Sunday, March 15, until further notice. The owner of Whistler Blackcomb — Vail Resorts — will close all 37 of its resorts around the world for eight days starting Sunday to reassess its approach to guest and employee safety amid coronavirus. Horseshoe Valley in Barrie ON. has made the difficult decision to suspend all operations. As the Coronavirus COVID-19 continues to spread across Canada we are sure there will be more closures and operations suspended.

If there is any positive news, golf clubs we have spoken with over the past few weeks want to encourage golfers to get ready to start the season. Everyone is aware that the situation can change from week to week but right now golf clubs are optimistic courses will open. For golfers starting the season and to be safe, clubs are asking golfers to give themselves a few strokes during the first few holes. Just skip the driving range and practice tee and other warm-up areas. Keep your distance from other players. Those 1st- and 18th-hole handshakes? Try an elbow bump or a foot bump. Or, since it’s golf, a club tap.

That extra space in your golf bag next to your tees or balls? Put your hand sanitizer there. And use it. Frequently. Being in a wide-open, outdoor space is the least at-risk scenario.  Precaution is the name of the game, play smart and follow the proper guidance.

Golfers should also be aware that what is true today may be different in a day, a week or a month, given the fluidity of how cities — and golf courses — cope with the outbreak. Clubs must follow the guidelines established by health officials for preventing the spread of the virus and implement increased sanitation measures throughout the golf club to ensure that you provide the highest level of service and cleanliness for your guests.  Most importantly do not golf if you are sick or think you have symptom. Don’t spread the infection and put someone else at risk to just play the game.  

There is a lot of uncertainty these days and decisions will have to be made day by day.  The Canadian government said at this time, the public health risk associated with COVID-19 is low for the general population in Canada but this could change rapidly. There is an increased risk of more severe outcomes for Canadians:

aged 65 and over

with compromised immune systems

with underlying medical conditions

There are also increased health risks for Canadian travelers abroad. Because of these risks, the Government of Canada advises you to avoid non-essential travel outside of Canada until further notice.

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