HomeMy WebLinkAboutCSD-10-050 - Golf Enterprise Proposed 2011 Membership Changes -REPORT
REPORT TO:
Community Services Committee
DATE OF MEETING:
September 13, 2010
SUBMITTED BY:
Keith Baulk, Director of Enterprise Division, 2393
PREPARED BY:
Gary Hastings, Manager of Golf Courses, 2635
WARD(S) INVOLVED:
All
DATE OF REPORT: September 8, 2010
REPORT NO.:
CSD-10-050
SUBJECT:
GOLF ENTERPRISE PROPOSED 2011 MEMBERSHIP
CHANGES
RECOMMENDATION:
That the golf membership system as outlined in report CSD-10-050 be adopted for the
2011 golfing season and beyond.
BACKGROUND:
Approximately 12 years ago, the City eliminated unlimited play memberships for the golf
enterprise in favour of the “smaller upfront fee and then pay as you play” style of membership.
There were numerous reasons for switching to this style of membership. Due to significant
demand for golf at the end of the last decade, the primary reason to eliminate unlimited play
memberships was to ensure sufficient tee times available to the general public. The public were
having a challenging time accessing the municipal courses. While the “pay as you play” style
membership was the right system at the right time, the golf industry has changed and there are
now more interests in traditional memberships where you pay one fee and receive unlimited
access. As well, the new inventory resulting from the expansion at Doon Valley has given the
City flexibility in regards to meeting the needs and desires of the golfing public around various
golf membership options.
REPORT:
There has been some thought that the City of Kitchener should consider reintroducing unlimited
play memberships for its golf enterprises. The 3 primary reasons are:
1. The new inventory of golf opportunities at Doon Valley Golf Course has given staff the
impetus to review the overall golf operation with a goal to maximize use of the new
facilities and hence revenues.
2. The golfing public (both current members and potential new members) are asking that
the City consider reintroducing unlimited play memberships in 2011 as many of our
competitors have unlimited play packages.
3. Over the past 2 – 3 years, we are experiencing more unstable weather patterns thereby
affecting “pay as you play” type golf operations. One fee memberships guarantee a base
annual revenue regardless of the weather.
Competing privately operated courses offering unlimited play membership packages have
begun to roll out their 2011 membership program. In some cases, they are also including
incentives for those who register this fall. They have been successful in attracting a relatively
large golfing demographic who are interested in reasonably priced unlimited play memberships.
Given the opportunities presented as a result of the expansion at Doon Valley Golf Course, the
public’s desires for unlimited play golf memberships and the aforementioned weather issues,
staff are recommending that the City reintroduce unlimited play memberships packages for the
2011 golf season and beyond. This recommendation is being brought forward for approval at
this time so the membership packages can be rolled out this fall. This will ensure those golfers
who are interested in unlimited play memberships can compare the City’s new unlimited
membership options with its competitors.
The current “pay as you play” membership system remains as an option but at a slightly higher
up front fee, because there is an attractive bonus of having unlimited access to the 9 hole
course at Doon without additional fees.
You will note the number of memberships available in each category have been capped to
ensure the City continues to offer balanced access for green fee and tournament play as well.
The new membership categories and prices are shown in attached Appendix 1 and Appendix 2.
Staff will also undertake a review of its green fees and bring a report to council at a later date
around revised pricing for 2011.
FINANCIAL IMPLICATIONS:
It is expected that the City will generate approximately $340,000 (approximately 13% of the golf
enterprise overall revenue) in memberships and member fees in 2010.
Under the proposed unlimited play membership system, we would expect to see member play
increase. However, if targeted membership numbers are achieved, revenues associated with
memberships could increase by approximately $33,000 in 2011. This increase is partly the
result of the new inventory that will be available at Doon for the entire season beginning in 2011.
We believe the targets are achievable given there is a great deal of interest in reasonably priced
unlimited play memberships.
COMMUNICATIONS:
Members would receive packages outlining the new membership options this fall. Golf staff will
work with Communications to develop a plan to appropriately market the new membership
packages.
CONCLUSION:
New unlimited play membership packages would be an attractive option to a number of current
members and non members who may be looking at purchasing this type of membership for
2011.
ACKNOWLEDGED BY:
Pauline Houston,
General Manager,
Community Services Department
Appendix 1
2011 Membership Rates & Information