[Viewpoint] Soaring Costs: Give Golfers the Right to Choose

"From today, it is 150,000 won." When I went to a golf course in the Chungcheong-do region with acquaintances on July 1st, the caddie suddenly said this. The caddie fee was 140,000 won until June, but it increased by 10,000 won starting July 1st. When I asked, "Why did it go up like this?" the answer was, "We don't know. Other golf courses all raised their fees."

The average caddie fee, which was 122,700 won in 2019, rose to 131,300 won in 2021, and nowadays it is generally 150,000 won. Expensive places have increased to 170,000 to 180,000 won.

The boom period for golf courses outside the metropolitan area is a thing of the past. Jeju Island, which was overflowing with golfers, is symbolic. According to the "2023 Golf Course Visitor Status" announced by Jeju on the 12th, the number of golfers visiting Jeju from January to April this year decreased by more than 200,000 compared to the same period last year. The industry says the reservation rate for August is only 20%.

Users are increasingly dissatisfied with soaring golf costs. Photo shows a golf course in Jeju-do.

The cart usage fee has risen even more sharply than the caddie fee. Three years ago, it was about 80,000 won for 18 holes, but now there are more places charging 120,000 won. This is excessive even considering depreciation. Originally, golf courses calculated green fees and cart usage fees together. At some point, the green fee and cart usage fee were quietly separated. This is a tactic by golf courses to psychologically reduce the burden felt by consumers. Both prices went up, and as criticism of the green fee intensified, now only the cart usage fee is soaring. The number of visitors to golf courses is decreasing, but costs are rising?an odd situation.

Recently, the introduction of limousine carts has intensified this trend. Limousine carts cost between 160,000 won and 360,000 won per team. It is truly ultra-high-priced. How many golfers at golf courses actually want ultra-high-priced limousine carts? If this continues, the cart usage fee will be more expensive than the green fee at most golf courses. This is not normal.

The green fee has already risen as much as it can. On average, there is even analysis that golf courses in Gangwon-do and Chungcheong-do regions have slightly decreased compared to last year. However, since it rose so much in 2021, it is hard to feel the decrease perceptibly. But it is true that the trend of green fee increases is not what it used to be. The revision of the golf course classification system announced by the Ministry of Culture, Sports and Tourism in May last year, which requires the use of standard terms and conditions created by the Fair Trade Commission to be approved as a ‘public type’ that receives many tax benefits, has had a certain impact. Strong resistance to green fee increases and the end of COVID-19, which has led many to go abroad for cheaper options, are also reasons for the change in trend.

Caddie fees and cart usage fees are indifferent to this trend. The upward trend continues. However, there are no proper means to regulate this. It is also difficult to rely on the goodwill of golf courses at this time. There seem to be some policy considerations worth thinking about. First, golfers’ choice should be guaranteed. This means allowing play without carts or caddies. If full implementation is difficult, gradually expanding this option could be a method. Also, as originally done, it is worth considering making the combined amount of green fee and cart usage fee the basic price display. It is also worth considering imposing taxes on golf courses proportional to golf fees, as in Japan.

According to the Korea Golf Course Management Association, more than 50.58 million people visited golf courses last year. The base has greatly expanded. It is time for golf courses to think in reverse. They should consider no-caddie operations and minimize green fees and cart usage fees. This could be an opportunity to grow their brand and become golf courses loved for a long time.