While many of us in the golf industry have our eyes on the skies as the golf season approaches, hoping the weather cooperates in our quest for a banner year, there is the potential of stormy economic conditions given the events that are taking place across the globe.
The unrest that is going on in Libya, among other places, has provided a convenient excuse to jack up, among other things, the price of a litre of gas. Whether you think concern by the oil companies over world affairs is legitimate or not is another debate, but the bottom line for consumers is that we’re now paying more at the pumps.
Last week, for example, I saw a couple of overnight price hikes of three cents a litre and predictions are that it could go much higher by the time golf season actually gets here.
That could have several consequences for the golf industry. Consumers could have less discretionary income, not only because of the price they pay at the pumps, but also because the cost of gas is expected to lead to a rise in food prices, etc.
If the price of a litre rockets over $1.50, as some have predicted, it could mean golfers are staying at home, instead of traveling greater distances to play. Vacations could be cancelled or at least scaled back.
All of this comes at a time when the world is recovering from the global recession. Will businesses look at the price of oil and hold off on hiring in order to cut down on expenses? Will they actually lay people off as a result?
At your golf facility, are you concerned with skyrocketing prices and how they may affect your day-to-day operation?
There are several considerations looking ahead, which brings us to this week’s GNN Poll.
Do you see the rising price of gas/oil having a major impact on your golf operation this year?
- YES (67%)
- NO (33%)
As always, feel free to add your personal opinion in the Comments box beneath this blog.