Recently, The industry of the Golf course has drastically changed. The number of the golf course has increased sharply. And it is expected that there will be some of golf course firms that go bankrupt. The growing intensity of competition among the go...
Recently, The industry of the Golf course has drastically changed. The number of the golf course has increased sharply. And it is expected that there will be some of golf course firms that go bankrupt. The growing intensity of competition among the golf course implies that the golf course firm must establish the systematic management strategy to survive. Among many elements that make the golf course survivego ahead, there is the ability of forecasting the future demand. The purpose of this paper is to examine the determinants of demand for the golf course. To my acknowledge, there is few literature that examine the demand for golf course in Korea. This is due to two reason. The first comes from the fact that there has been no motivation for this type of research, examining the determinants of demand for golf course, due to the excess demand in this industry until now. The second reason is due to the difficulty getting the data related to this study. This paper use the actual data set in a golf course located near the Busan City to explore the relationship between the demand and the weather conditions and the fee. In addition, this paper examine whether there is the weekend effects. Finally, this paper examine whether the indoor screen golf functions as a substitutes or complements.
The results of the estimation is as follows. Firstly, this paper finds that weekend effect exists and the number of customer is lower on Monday. Secondly, I find that as the temperature rises, the demand for golf course increase. At the same time, the weather condition such rain and snow affects the demand strongly. Third, there is a strong seasonality in the golf demand. This shows that there is much more demands in the fall season than the winter season. Fourth, this study find that the price elasticity of demand is low in absolute and the elasticity in weekday is higher than that of weekend. Finally, this research finds that the indoor screen golf affects the outdoor golf course negatively. This paper's results can have some limitation in that this study is based on the limiting data set. But this paper is the first in examining the determinants of the demand for domestic golf course empirically. And this study can has some implication for establishing the systematic management plan in the golf industry.