In recent years, the Chinese golf industry has been booming. In fact, it has been seen as the primary factor why the global golf market has yet to collapse. The truth is that the world needs Chinese golf if it is to survive. That is why we at Sports Overnight have decided to examine it and give you a few reasons to care.
1. The American golf market is on its knees
In 2016, the American golf market experienced one of its most significant loses. 400,000 marks the reduced number of active golf players in the United States. Besides that, over 160 golf courses were shut down because of lack of revenue. Thus, if you would like to invest in the golf sector, the US may not be the place to do it. You would probably be better served to look at the Chinese golfing industry.
2. Golf is still banned in China
The Chinese government has a moratorium that went into effect in 2004. The moratorium was intended to protect peasant lands being used to develop golf courses. Besides that, the government wanted to reign in the real estate market. That does not mean the local authorities will not allow you to construct a golf course. However, you should be aware you are walking into a legal minefield.
3. China the biggest population on earth
When you invest in the golf industry in China, the opportunities are endless. Not only will you have access to a booming market, but you will also have access to a thriving market. As the government works to improve the economy, it means you will have endless opportunity to grow your investment.
4. Building a golf course is relatively cheap
Unlike in the US, the cost of land and labor in China is quite low. That means you can make the same quality of a course at a fraction of the price. An excellent opportunity with a reduced cost of investment.
5. It is still a taboo topic in China
This subject of golf in China first came about during the era of Mao, the first ruler of Communist China. He banned golf and denounced it as a rich man’s sport. Thus, you need to keep this in mind when trying to get high-ranking government officials to play the game.
6. Many youths are developing an interest in China
In the US, golf is still mainly a past time of the older generation. However, there is a genuine interest among many young Chinese citizens. That makes sense regarding a long-term investment.
7. Many Chinese pro golfers are succeeding globally
Golf is one of the sports in which Chines golfers have experienced a lot of success. With more megastars on the world stage, others back home will no doubt want to emulate them. Thus a vast market of opportunity is created.
8. China is opening up to the world
The Chines government has been stepping up its efforts to open up its economy to global trade. Ignoring luxury sports like golf is one of the ways they are doing this. If you get in now, you could make a substantial profit when the government officially recognizes it.
9. China will have the most extensive concentration of millionaires in coming years
China is one of the biggest economies in the world, and the right thing about it is that it is still growing. That means many millionaires are being created in the country. Golf is a game that is quite attractive to millionaires, and they will no doubt flock to golf courses.
10. The physical infrastructure is quite well developed
Although China is classified as a developing nation, its physical infrastructure is quite well-developed. That should make access to any golf course developed easily accessible.
11. Many foreigners are moving to China
As China grows, many foreigners are moving there. Some of these people will miss things like golf. You could reach out with ease to them. It might be much easier for you to get them to play golf at your golf courses with a cunning marketing strategy.
12. The Chinese economy was not affected by the global recession
In the west, most individuals and companies lost a lot when the economies of the west came to their knees a few years ago. Whoever, China was mostly spared from that. The result is that most of the people living there have no idea how bad a global crash can be. They are thus not worried and are not interested in saving excessively for a rainy day. This concept means you will have access to a market of people who are not only able to spend but also willing to pay.
13. The entire world is turning to China
In a few years, China is probably going to be the center of global finance and trade. That will mean a majority of the world’s wealthiest people will live in Hong Kong and China. These are also people who have a huge interest in golf.