Golf’s Grumpier Than Ever About HST

Four days later, the message delivered in Monday’s blog entitled Golf Gets Grumpy About HST is stronger than ever, a point that is emphasized by Shawn Hunter, regional director of the Eastern Ontario/Outaouais chapter of the National Golf Course Owners Association.

“Following discussions conducted by the NGCOA Canada with its Ontario members, it was determined that the vast majority of the 640 members in the province of Ontario oppose the introduction of the OHST by the Ontario Government,” wrote Hunter in an e-mail.

Discussions with Doug Ferne, the regional director for the NGCOA’s British Columbia chapter, and GNN blogger Kyle German, illustrate that the opinion is no different on Canada’s west coast.

Kyle’s blog HST? How Do I Put This Politely? is currently up on the home page where Kevin Thistle also chips in with an Ontario perspective today in the blog HST May Mean Short-Term Gain, Long-Term Pain.

While the HST may appear to be a regional concern, it’s becoming painfully clear that the tax will become an issue in areas now unaffected by it, most notably on the prairies, where provinces are rumoured to be next in line.

Hunter’s opinion on the overwhelming resistance to the HST is backed by the latest GNN Poll on the home page which illustrates varying degrees of negativity on the part of the golf industry towards the tax.

The strong majority – 48 per cent as of this writing – say the HST will have a negative effect, while another 14 per cent say it will be disastrous for the golf industry. Some are more moderate in their outlook, with 38 per cent saying it won’t be as bad as everybody thinks.

Interestingly, nobody thought the HST would have a positive effect on the industry as of this writing.

So, what does the golf industry do about it?

Fundamentally, golf is a recreation that contributes to overall well-being and health, therefore should not be subject to such a tax in the eyes of many within the industry.

Working against that belief is the perception from those outside of golf that it is a rich man’s game and, as such, deserves no tax breaks. No matter how much you argue that point, the people who believe that are difficult if not impossible to convince.

So, the first course of action for the golf industry is for individuals to make their opinions known with the provincial representatives in their areas, or by contributing through online petitions such as the four mentioned in yesterday’s blog. Putting an online petition on your club website would also help.

If golf should become subject to the HST, we need more information. A good example is whether a person who buys a membership before July 1, when the tax is supposed to kick in, exempt from the HST for the remainder of the term?

Golf course operators also need to emphasize to their members and customers that it is not them jacking up the rates when the HST comes into effect. The trouble is that golf is just going into a long off-season and, in many cases, golfers won’t be back until May.

While most customers understand that the HST is coming, it’s still important for them to understand that the course isn’t gouging. It’s more of a perception thing, but an important one.

Then, what will be the effect on business, especially since the HST hits at a time when the country is just beginning to come out of a recession? Will people cut back on rounds or extra purchases in the pro shop, dining room or 19th hole?

Everybody in the golf business needs to bring this up at association meetings such as one Ferne has planned for just prior to the NGCOA’s Golf Business Canada convention in Vancouver, an information session that is inviting delegates from all provinces to take part.

Information between provinces and even discussion with other industries also against the HST is a good place to start.

It may not lead to defeat of the tax, but worst-case scenario, it will help clear up some of the uncertainty surrounding the HST.

Related Posts:

• How’s Your 2011 Season Going?
• What Took Us So Long To Approach Governments?
• If You Could Do It All Again, Would You?
• Industry’s Government Efforts Will Have Consistent/Varied Messages