China’s Golf Courses Under Fire
While China’s rising elite have taken to golf in increasing numbers over the last two decades, the industry is under the microscope as the government is taking measures to stamp out corruption.
As reported in the Strait’s Times over 60 golf courses have closed in the past six months and expectations are that the number could top 100 within a year due to financial losses.
From late last year Communist Party members were banned from joining clubs and golf has now joined a number of luxury activities where conspicuous consumption is a no-go.
From an industry growth standpoint the move is jeopardizing the broader sector prospects in the country from an image standpoint and ability to attract a wider playing public.
It’s interesting in Japan where the once premium golf segment benefited from a long-term favorable supply demand curve, on a recent trip to Hokkaido one sign of the times was the conversion of one of the two courses at Niseko Village by Malaysian firm YTL who have re-purposed it to an active sports and zipline attraction.