category descriptionBC Golf NewsCoursesGear Up

« COOKIE GILCHRIST AT LARGE | Home | Upcoming Symposium For The Future Of Golf In BC »

Bill C-397 : Helping To Fix Golf's Handicap

(March 17, 2012)
golfballandtee200pix.jpgGolfers throughout Canada, including all who are associated with the National Allied Golf Associations (NAGA), will be watching closely in the weeks ahead to the reaction of the Canadian government following the recent introduction by a non-golfer of legislation that has been designed to correct what is being called 'an unfair and outdated tax policy' that has become a thorn in the side of the golf industry.

The bill, known as C-397, was introduced a few months ago by Esquimalt--Juan de Fuca MP Randall Garrison and is entitled "An Act to amend the Income Tax Act (as it relates to golfing expenses)".

garybernardcpga150pix.jpg"For the Canadian golf industry, which is now facing the most competitive marketplace in history, an inequitable tax legislation is not a tolerable disadvantage for the nearly 350,000 Canadians employed in the industry," says Gary Bernard, NAGA Chair. "NAGA and its member organizations have worked hard to reach out to the federal government in efforts to close this loophole and establish tax fairness for Canada's golf industry."

randallgarrisonmp125pix.jpgDuring a luncheon held today at Olympic View Golf Club, Local golf industry professionals and politicians formally recognized and applauded Mr. Garrison, showing their support for his initiative, which is deemed an important step in establishing greater tax fairness for Canada's golf industry.

Elected to the House of Commons in 2011, Mr. Garrison, 53, serves as the NDP critic for lesbian, gay, bisexual, transgender, and transsexual issues.

Due to a 1971 tax reform, the Canada Revenue Agency does not currently allow deductions for expenses incurred by business people entertaining clients at golf courses.

In a media release, NAGA says Canadian golf courses, most of which are small business operators, are forced to compete on an uneven playing field for entertainment dollars. Over time, the unfairness of this discrimination against the golf industry has become more and more significant. Bill C-397, says NAGA, rights this wrong and provides greater tax fairness for Canada's golf industry.

Mr. Garrison, who does not play the sport and does not belong any golf club, has been a member of the Federal Government's All Party Golf Caucus since the fall of 2011, and this bill is a great indicator on the Caucus' dedication to Canada's golf industry.

"C-397 is an important first step that will help to relieve some of the pressure on our members," continued Bernard, CEO of the PGA of Canada. "The golf industry is worth more than $11 billion per year to the Canadian economy, and we are happy to see steps taken towards tax fairness for our industry. It's high time that a golf handicap be on the course, not in the tax code."

NAGA is comprised of seven different Canadian golf associations--the PGA of Canada; Canadian Society of Club Managers; Canadian Superintendents Association; Canadian Tour; Golf Canada National Golf Course Owners Association of Canada and the Canadian Golf Industry Association.

--- --- --- ---

Economic Impact of Golf in Canada

The game of golf accounts for an estimated $11.3 billion of Canada's Gross Domestic Product (GDP), which includes:

• 341,794 jobs;

• $7.6 billion in household income;

• $1.2 billion in property and other indirect taxes; and,

• $1.9 billion in income taxes.

Golf in Canada generates an estimated $29.4 billion in total gross production through direct, indirect, and induced spending impacts.

For more information on our recent economic impact study, please click on the links below.

Economic impact study of golf for Canada (PDF)

1 © Strategic Networks Group, Inc.. 2009
EXECUTIVE SUMMARY
Economic impact study of golf for Canada
A ground-breaking study conducted by NAGA

HIGHLIGHTS
AUGUST 14, 2009 - Based on a nation-wide survey of more than 4,000 golfers1 and 350 golf courses
2 in 10 provinces and three territories, the Economic impact study (EIS) of golf for Canada ("Measuring the game of golf in Canada")
3 provides the first comprehensive and independent assessment of the economic impact of the golf industry in Canada.

This study provides new quantitative evidence of the economic significance of the sport to the Canadian, provincial and territorial economies, through primary research augmented by secondary information sources. The results demonstrate the substantial role golf has in the economy of Canada in terms of: Golf's "Gross Domestic Product" in Canada - including all goods and services that are directly and indirectly related to the game, with analysis of who benefits from golf, and to what extent; and Other spin-off economic impacts such as employment and household income at the national, provincial and territorial scales.

ECONOMIC IMPACT OF GOLF FOR CANADA
The game of golf accounts for an estimated $11.3 billion of Canada's Gross Domestic Product (GDP), which includes:
341,794 jobs;
$7.6 billion in household income;
$1.2 billion in property and other indirect taxes; and, $1.9 billion in income taxes.

1 The golfer survey results are accurate to +/- 1.55 percentage points, 19 times out of 20. Survey data is extrapolated to Canada based on an estimated population of 5.9M golfers.
2 The course survey results are accurate to +/- 4.76 percentage points, 19 times out of 20. Survey data is extrapolated to Canada based on an estimated population of 2,397 courses.
3 RFP issued May 2008
2 © Strategic Networks Group, Inc.. 2009

Golf in Canada generates an estimated $29.4 billion in total gross production through direct, indirect and induced spending impacts.

The total direct economic activity (total direct sales) resulting from the Canadian Golf Industry is estimated at $13.6 billion. Of this total, the revenues generated directly by golf courses and their facilities and stand-alone driving and practice ranges ($4.7 billion) rivals the revenues generated by all other participation sports and recreation facilities combined ($4.8 billion) in Canada4.

Additional key benefits and impact of golf in Canada include:

* Environmental Benefits - Over 200,000 hectares of green space managed by golf course operators, including 41,000 hectares of unmanaged wildlife habitat under golf course stewardship.

* Golf Participation -SNG estimates that approximately 70 million rounds of golf were played in 2008, a level of play that was as much as 10% lower than the average number of rounds based on prior years. 5

According to IPSOS Reid, there are an estimated 6 million Canadian golfers.6 According to RCGA sources, Canadian golf participation rates are among the highest in the world.7

* Employment Opportunities - The Canadian Golf Industry provides an excellent employment opportunity, with as many as 43% of those employed at Canadian golf courses being students.

* Estimated Impact on Property Values - The location of houses adjacent to golf courses provides benefits to homeowners that stem from higher home values compared to similar homes that are not adjacent to courses. The total incremental impact on home values is estimated at $1.4 billion.

* Charitable Activity - Each year there are at least 25,000 charitable events hosted at Canadian courses. Using conservative estimates, these events raise more than $439 million for charitable causes across Canada.

* Golf Tourism - Canadian travellers make more than 1 million trips involving golf, spending an estimated $1.9 billion annually on golf-related travel within Canada.
-- -- --

4 These recreational facilities include skiing, fitness and recreational sports centres, amusement parks and arcades, and all other amusement and recreation industries, except gambling. Source: Statistics Canada. Table 361-0015 - Amusement and recreation, summary statistics, by North American Industry Classification System (NAICS), annual, CANSIM..
5 Based on SNG's survey of courses, the number of rounds played in 2008 was down as much as 10%.
6 In a 2006 Ipsos Reid found determined there were 5,953,000 million golfers (playing one more rounds) in Canada.
7Royal Canadian Golf Association
3 © Strategic Networks Group, Inc.. 2009

-- -- --

Aside from households, which command more that 25% of the gross economic effects of golf, Canada's manufacturing sector is impacted the most by Canadian golf related expenditures, commanding 13% of Golf's gross economic impacts in Canada. This is followed by the finance, insurance and real estate services and retail trade sectors.
From many perspectives the game of Golf is a significant contributor to the economies of each province and for Canada overall.


ABOUT THE STUDY
This ground-breaking study was conducted by Strategic Networks Group, Inc. (SNG), led by Thomas McGuire, VP North America, and was based almost entirely on primary research of the supply (golf courses) and demand (golfers) of golf in Canada. SNG also used a newly built customized inter-regional input-output impact model, developed by noted economists Dr. William Schaffer, Professor Emeritus, Georgia Institute of Technology, and John Jozsa, Jozsa Management & Economics - both are associates of SNG. This I-O model was customized to track golf-industry related economic activity across Canada.

ACKNOWLEDGEMENTS
There are many contributors to this study that must be acknowledged. This includes the NAGA Board of Directors and the NAGA association presidents, as well as the many golfers across Canada who offered their time and completed surveys on their experiences with golf. A special thanks is owed to the Canadian course operators who participated in this study by sharing information about their operations through the survey, in-depth interviews and the pre-testing of earlier versions of the operator survey.

CONTACT INFORMATION

National Allied Golf Associations (NAGA)
Scott Simmons, NAGA Chair, Executive Director, Royal Canadian Golf Association
+1. 800.263.0009 - ssimmons@rcga.org

Strategic Networks Group, Inc. (SNG)
Thomas McGuire, VP North America
mcguire@sngroup.com . . . +1.902.431.6972

Michael Curri, President
mcurri@sngroup.com . . . +1.613.277.2588

© Strategic Networks Group, Inc.. 2009


Economic impact study of golf for Canada - Key Findings Report (PDF)


Additional key benefits and impact of golf in Canada include:

Environmental Benefits - Over 200,000 hectares of green space managed by golf course operators, including 41,000 hectares of unmanaged wildlife habitat under golf course stewardship.
Golf Participation - SNG estimates that approximately 70 million rounds of golf were played in 2008, a level of play that was as much as 10% lower than the average number of rounds based on prior years.
According to IPSOS Reid - there are an estimated 6 million Canadian golfers. According to RCGA sources, Canadian golf participation rates are among the highest in the world.
Employment Opportunities - The Canadian Golf Industry provides an excellent employment opportunity, with as many as 43% of those employed at Canadian golf courses being students.
Estimated Impact on Property Values - The location of houses adjacent to golf courses provides benefits to homeowners that stem from higher home values compared to similar homes that are not adjacent to courses. The total incremental impact on home values is estimated at $1.4 billion.
Charitable Activity - Each year there are at least 25,000 charitable events hosted at Canadian courses. Using conservative estimates, these events raise more than $439 million for charitable causes across Canada.




« COOKIE GILCHRIST AT LARGE | Home | Upcoming Symposium For The Future Of Golf In BC »


back to top