Golf craze as a rare sport unaffected by Covid-19 mitigation measures while travel stayed restricted drove record profit for golf clubs in Korea in the year of pandemic.
According to analysis of local golf courses’ audit reports by Korea Leisure Industry Research Institute Co., the operating margin, or the profit against revenue, of 257 golf clubs in Korea averaged at 31.6 percent last year, refreshing the last 2009 peak of 24.1 percent.
In 2019, the operating income ratio reached 22.5 percent, exceeding the 20 percent milestone for the first time in a decade.
Golf became a fad last year as younger people joined the sport for alternative luxury to overseas travel. It also was a rare leisure activity that stayed untouched by social distancing rules.
Golf clubs have hiked admission and cart fees to capitalize on the boom.
Public golf courses achieved a record operating income ratio of 40.4 percent with sales increasing 21.2 percent on year. Membership clubs also reported 18.1 percent profitability, the highest since 2010. Their sales gained 13.7 percent against a year ago.
The number of loss-making clubs also declined significantly.
Only 13 among 90 private clubs recorded deficit last year, versus 30 in 2019. The number of public courses in deficit also fell to two from seven.
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]