The golf industry in Arizona has seen significant growth since the beginning of the decade, with The Walden Group’s $57 million purchase of three local golf courses serving as a recent example of the notable role that golf and golf tourism play in Arizona’s economy.

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The Walden Group’s purchase of Dove Valley Ranch Golf Club in Cave Creek, Longbow Golf Club in Mesa and Power Ranch Golf Club in Gilbert from Thompson Golf Group is a large investment into Arizona’s golf sector. After the transaction, The Walden Group chose Thompson Golf Management to lead operations at each of the facilities.

“I’ve seen the booms in my career, like the Tiger [Woods] boom in the late ’90s when Tiger won The Masters in 1997 and everybody started getting into golf because it was cool,” says Kris Strauss, executive vice president of global sales and marketing for Troon, a golf and club management company. “The difference between then and now was that it was fueled by a lot of corporate spending then. Now, it’s fueled by people’s passion for the game. People are spending their own money.”

As a top destination for golf enthusiasts around the nation, Arizona has benefitted from the golf sector’s surge. 

“Our weather is awesome in the winter months, and the resort landscape we have, from limited-service hotels to the highest end resorts, is great for tourism,” Strauss says. “In the summer months, it’s warm, but it unlocks opportunities for local residents to play more golf.”

Additionally, Strauss believes that the quantity, quality and diversity of golf courses and clubs in Arizona is a strength when comparing the top golf tourism destinations in the U.S. Strauss mentions unique courses like #miniDunes at Southern Dunes and Grass Clippings Rolling Hills, which are both fully lit and allow for players to play deep into the night.

Strauss, who had spent a number of years on the Experience Scottsdale board, says that golf tourism has emerged as one of the more lucrative forms of tourism for the local economy. 

“We found that golf travelers spend 50% more than the average Scottsdale traveler. That means that the golfer spends more in the market and is a better type of tourist to have in the market,” Strauss says. “When you think about it, the golfer that comes to town will likely buy nice dinners, spend money on local businesses, going to art galleries, spas, and doing things in and around golf.”

In addition to tourism, golf in Arizona is seeing growth among local players, with Strauss claiming that the social aspect of golf is driving growth among certain demographics.

“In Arizona, specifically, we’re living in a market that is growing very rapidly, and you can look at the way the city is today versus the way the city was 10 or 20 years ago, so we’ll have an ongoing growth of demand for golf locally for local residents,” he continues. “Nationally, and therefore from a micro standpoint here in Arizona, women and junior golfers are growing in demand at a rate that outpaces others. There’s also a big contingent of non-traditional golfers that are out there, which might be a golfer that’s going to Topgolf or PopStroke, and that’s encouraging for the game as well, too.”

Hazards ahead

Despite the economic expansion Arizona has experienced in recent years, Strauss acknowledges that there still are challenges that the golf sector faces.

“The story that doesn’t get told is the ongoing expense creep that happens at these businesses. For small business owners, rising costs impacts operations, whether it’s for fuel or frying oil,” he says. 

On top of thinner margins, Strauss notes that the golf industry is still battling the perception that the sport requires too much water in a desert environment. But according to the Arizona Golf Alliance, maintaining courses constitutes 2% of the state’s water supplies, which typically come from reclaimed sources. Strauss adds that it is important to dispel myths and misinformation so the public perception of the golf industry is not negatively affected.

As for the future, Strauss believes the Valley will continue to be a golfer’s paradise as demand is projected to keep pace. That said, Strauss doubts that this will result in the development of new courses — reinvestments in existing properties are much more likely.