Closures have outpaced openings in the first six months of 2006. There were 57.5 openings (in 18-hole equivalents) against 65 verified closures, for a net decrease of 7.5 courses. In recent years, openings have decreased while closures have increased, resulting in ever lower net increases to supply. We expect 130-140 18-hole equivalents to open in 2006. And, although it’s difficult to predict, it’s possible that we will see upwards of 130 closures, or double the number year-to-date. (In 2005, the number of closures at year-end was double the number at mid-year.) If that happens, we’ll be close to a net growth of zero courses (openings minus closures) for 2006.

Openings year-to-date occurred in 31 of 50 states, with the highest number in Florida (8.5), California (5.5) and Georgia (4.0). Thirty-six holes opened at The Villages in Lady Lake, Florida, bringing to 11 the number of 18-hole courses in this massive retirement community. (Another 18 holes is currently under construction there.) Two of the new 9-hole tracks at The Villages are named Bogart and Bacall. (Will the Bogart course be referred to as “Bogey”?)

Daily fee courses accounted for 49% of openings; municipal 10% and private 41%. On a percentage basis, that puts private club development ahead of the norm – private clubs were 32% of openings in 2004 and 2005. Seventy-four percent of projects were entirely new facilities and 26% were additions to existing. Seventy percent were real estate-related. The majority (89%) were regulation length, with 7% executive and 4% par-3 length.

Closures year-to-date occurred in 30 of 50 states, with the most in Florida (9.0), New York (5.5) and South Carolina (5.0). While some high-quality courses do close their doors, closures continue to be primarily older, low-end tracks.

Forty-four percent of closures were “non-traditional” courses – executive, par-3 or stand-alone 9-hole regulation. These included eight 9-hole and six 18-hole executive layouts; 15 9-hole par-3s; and 22 9-hole regulation tracks.