Executive Voices

Green Growth
Golf Plays a Key Role in the State's Economic Development

By Pat Corso

From the coast through the Sandhills and into the mountains, golf has emerged as one of North Carolina's growth industries. More than 35,000 jobs in the state are golf related, and the state's golf industry adds more than $1.3 billion in spending to the economy each year, with nearly 30 percent by out-of-state visitors.

While the direct economic impact of golf is significant, the role that golf plays as an economic development tool is even more important. Courses throughout North Carolina, along with major events such as the U.S. Men's and U.S. Women's Open championships, are bringing thousands of visitors to North Carolina and providing us with media coverage to audiences worldwide. As golf grows in our state, many other segments of the economy receive direct benefits.

It's no surprise that golf has been successful in North Carolina. Beautiful natural terrain statewide, moderate year-round weather and soils ideal for golf course development have contributed to the creation of outstanding facilities.

Golf is also well suited to North Carolina because the sport's values — respect for history, emphasis on relationship building, recognition for excellence — are a great match for the core values of our state. Golf has also prospered in our state because it is environmentally friendly.

Five years ago, we co-sponsored with Pebble Beach Golf Links an environmental summit of the nation's leading environmental and golf organizations. This conference resulted in the signing of a cooperative statement of environmental principles and practices for golf course development and maintenance.

Pinehurst was recognized for environmental excellence when our No. 8 course was designated a “Signature Sanctuary” in 1998 by Audubon International. As a “Signature Sanctuary,” course No. 8 was also recently included as one of 200 courses in the United States on the Audubon's list of “Best of Environmental Golf.”

In addition, Pinehurst and Pine Needles were the first and second resorts, respectively, to participate in the federal government's Safe Harbor Act, creating what have become prototype agreements for this program. Working with the U.S. Department of Fish and Wildlife, we are committed to providing wildlife habitats for the next 99 years in support of the red-cockaded woodpecker, an endangered species.

Given these factors conducive to the growth of golf in North Carolina, it's no surprise that our industry is having a major impact on the state's economy in addition to direct jobs creation and spending by in- and out-of-state golfers.

According to a study by North Carolina State University, golf is playing an increasingly important role in the development of residential communities. Up until 1990, approximately 30 percent of new courses were associated with residential development. Since 1990, nearly 60 percent of new courses have been associated with residential communities. Golf is an attractive amenity for neighborhoods, preserving green spaces and opening up natural vistas for homeowners.

Perhaps golf's greatest economic contribution to the state, however, is in economic development, particularly in rural North Carolina, including Moore County, Cashiers, Highlands and a number of coastal communities.

The growth of golf creates a multiplier effect for virtually every sector of the economy, not only creating thousands of jobs at courses and associated hotels, but also fueling the growth of financial services, construction and retail.

According to the North Carolina State University study, more than 11 percent of the people who visit our state each year play golf, while four percent play tennis and one percent snow ski.

The economic development role of golf was well demonstrated by the 1999 U.S. Men's Open Championship at Pinehurst. Not only did this event pump $180 million into the state's economy, it brought more than 40,000 daily visitors and 1,200 members of the press to Pinehurst. NBC and ESPN broadcast 24 hours of coverage into 107 countries, and we had volunteers from 42 states and seven countries.

This level of exposure is guaranteed to continue over the next five years. The U.S. Women's Open is coming to North Carolina next year, hosted by the Pine Needles Resort in Moore County, and the United States Golf Association recently announced that the U.S. Men's Open will return to Pinehurst in 2005. Not since 1946 has the U.S. Men's Open returned to a course as quickly as it is returning to Pinehurst.

The USGA made it clear that many factors influenced its decision to return to Pinehurst. The attraction was not only the famous No. 2 course, but also the warm welcome that the players, news media and visitors received during their visit to our state and the outstanding support the event received from business and government leaders.

Businesses from across the state made the Corporate Village at the U.S. Men's Open a vibrant center for networking and business development. State and local governmental agencies played essential roles in assuring that our transportation system worked smoothly throughout the week and that guests felt welcomed.

We look forward to our leaders in business and government continuing to support economic development opportunities, such as the U.S. Open championships. It's important for our state's future that we encourage a greater appreciation for golf — and for the state's entire tourism industry — as essential elements in our economic development program.

North Carolina has so much to offer to the world, and golf and tourism are among the most effective ways of showcasing our state as the ideal place to play, to live and to invest for the future.

Pat Corso is president and COO of Pinehurst Inc., which will host the 2005 U.S. Men's Open Championship. He also is a member of the NCCBI Board of Directors.