2. RICHARD SINGER Director of Consulting Services, National Golf Foundation Raleigh-Durham MSA Golf Market Study Director of Consulting Services, National Golf Foundation Raleigh-Durham MSA Golf Market Study

3. Purpose RDU MARKET STUDY Study market dynamics and potentialStudy market dynamics and potential Assess interest in growing the gameAssess interest in growing the game Develop an approach for future studiesDevelop an approach for future studies

4. Why Raleigh-Durham RDU GOLF MARKET STUDY “Typical” America“Typical” America Mid-SizedMid-Sized Above Average GrowthAbove Average Growth Good DemographicsGood Demographics Ample & Diverse SupplyAmple & Diverse Supply 10% Increase Expected10% Increase Expected

5. ValueMid-Fee Premium No. of Facilities 221714 Total Rounds Played 644,500624,500 522,500 Avg. Rounds/Facility 29,00036,70030,700 Desired Capacity % 83%91%93% Avg. Change in Rounds 99-00 (74)(367)1,076 Avg. WE Fee w/Cart $31.00$48.50$73.34 Thumbnail Supply RDU GOLF MARKET STUDY

6. Thumbnail Demand RDU MARKET STUDY 15.5% participation rate age 12+ (National rate is 11.7%)15.5% participation rate age 12+ (National rate is 11.7%) Female participation 52% higherFemale participation 52% higher 141,000 golfers age 12+141,000 golfers age 12+ Average rounds played per year = 21.4 (same as national average)Average rounds played per year = 21.4 (same as national average)

7. Three Key Findings RDU MARKET STUDY Abundant latent demandAbundant latent demand Un-used golf facility capacityUn-used golf facility capacity Operators eager to go after latent demand, but want and need helpOperators eager to go after latent demand, but want and need help

8. Abundant Latent Demand RDU MARKET STUDY Estimated at 500,000 roundsEstimated at 500,000 rounds –285k from golfers who want to play more –150k from former golfers returning to the game –65k from “never-evers” with high interest

9. FROM WHICH CONSUMER GROUPS WILL LATENT DEMAND MOST LIKELY COME Net, there’s “surveyed” interest out thereNet, there’s “surveyed” interest out there –Largest contingency in current golfers wanting to play more –Followed by “former golfers” and then “non golfers” in roughly even numbers Golfers 141,000 (38%) Former Golfers 161,000 (44%) Interested Non-Golfers 66,000 (18%) Raleigh-Durham Golf Consumer Universe in 2000 (368,000)

10. Capacity to Accommodate Demand RDU MARKET STUDY DefinitionsDefinitions –Actual Utilization –Desired Utilization –Capacity Capacity in market to absorb demandCapacity in market to absorb demand New development opportunities still exist in certain locations and at certain price pointsNew development opportunities still exist in certain locations and at certain price points

11. RDU GOLF SUPPLY & DEMAND

12. “Town Hall” Meeting RDU MARKET STUDY Latent demand estimate confirmedLatent demand estimate confirmed High female participation estimate confirmedHigh female participation estimate confirmed Operators eager to grow golf, express need for helpOperators eager to grow golf, express need for help

13. Implications RDU MARKET STUDY All golf is localAll golf is local Statistical modeling can predict demand, but we must understand local golf operationsStatistical modeling can predict demand, but we must understand local golf operations Facilities need help in identifying and achieving capacityFacilities need help in identifying and achieving capacity