Whatsup Squad,
Let’s go golfing!
One of the world's oldest sports is seeing a surge in popularity, now generating over $100 billion in annual economic impact.
The pandemic played a role, but modern brands like Topgolf and upstart Eastside Golf have made golf cool.
Eastside Golf Reaches New Heights
Founded by Olajuwon Ajanaku and Earl Cooper, who were once teammates at Morehouse College, Eastside Golf has achieved remarkable success and recognition.
Immediately recognizable is the company’s distinct logo: a golfer with a gold chain swinging in his backswing.
Initially targeting youth and non-golfers, they made history becoming the first golf brand to collaborate with Michael Jordan and the Jumpman.
Their innovative approach has attracted attention from professional golfers and celebrities, enabling them to expand their influence.
Ajanaku and Cooper grew their team from 2 employees to 16, and its revenue from $100,000 in its first year to an estimated $4 million in 2023!
Just last week, Eastside Golf closed a $3.4 million seed round led by EP Golf Ventures, a collaboration between PGA of America and Elysian Park Ventures (EPV).
The founders have bold aspirations, envisioning the creation of brick-and-mortar locations, endowing the Morehouse golf team, and expanding their reach internationally.
Golf’s Global Appeal
Let’s take a step back to look at the sport from a bird’s eye view.
Golf is an incredibly popular recreational activity, with roughly 1 in every 7 Americans participating in 2022.
The sport’s economic footprint comprises multiple subindustries including golf courses, retail, construction, tourism, real estate, and charity.
The game itself is changing and growing as well. Alternative forms of golf like Topgolf have made the game accessible to a larger and more diverse audience, pushing the game’s overall participant base to 41.1 million.
In a National Golf Foundation survey, Topgolf learned that 75% of non-golfers who engage with Topgolf are now interested in playing on a course.
Although the U.S. is the world’s largest golf market, the sport’s popularity is also on the rise globally. According to the 2023 Global Golf Participation Report, total 9 & 18-hole player numbers are up 15% compared to 2020.
Very few sports can boast such extensive global participation, involving individuals of all ages, genders, and backgrounds. Even fewer can claim to have such rapid growth over the past decade.
The Power of Golf Tourism
Golf tourism is a growing trend that is seeing more and more people travel to destinations specifically to play golf.
IAGTO, the International Association of Golf Tour Operators, suggests that 30% of all golfers take annual golf holidays.
Due to the sport’s growing popularity, high-quality golf courses are abundant worldwide, and travel has become more convenient with specialized platforms like Golfbreaks by PGA Tour.
Now, both public and private sectors on national, regional, and local levels try to attract these affluent, high-value-adding tourists who generate above-average per capita revenues for the destination.
New Frontiers in Golf Tourism
Even countries without a strong native golfing tradition, like Morocco, have embraced the sport as part of their overall tourism strategies.
“People are trying to do this because they recognize golf is an amenity that travelers like…It’s just one more thing to bring them there. I get the sense it is working very well in Morocco."
- John Steinbreder, golf author and travel editor at Global Golf Post
Golf tour operators typically book packages that cost around 2.5 times the standard tourism package to the country, according to the Moroccan National Tourist Office.
Golf travelers spend 33% more than other tourists on average, with only 25% spent on golf.
If golf tourism can have success in Morocco, why not in the Caribbean?
In addition to top-notch courses, golfers would be treated to a tropical island setting, sandy beaches, quality service, and luxury all-inclusive resorts.
From the Dominican Republic, which features a third of the region’s 89 courses, to Jamaica’s unforgettable courses in Montego Bay, the Caribbean can offer an exceptional experience unlike anywhere else around the globe.
This will not only help diversify products and improve tourism’s competitiveness, but will also help the industry attract visitors with high net worth for long stays.
The Opportunity for Eastside Golf
Eastside Golf is well on its way to making golf more inclusive and appealing, but operating exclusively in the golf apparel market limits its revenue potential.
As a result, I recommend Eastside Golf venture into the world of tourism.
The vast majority of golfers are in Asia, North America, and Europe, leaving uncharted territory in nascent golf markets like Africa, Latin America, and the Caribbean.
These regions are in a similar position where participation is between 0.02% and 0.04%.
Eastside Golf can continue its mission of changing the perception of golf while opening up new revenue streams and expanding its influence on a global scale.
To test this strategy, they could host “Spring Training” abroad for Morehouse Golf. This would both improve the experience for Morehouse golfers and introduce the brand to new markets. If successful, they could then advertise and offer similar golf getaways to their wider audience.
Given that travel is not their specialty, Eastside Golf can leverage its new relationship with PGA of America to partner with Golfbreaks by PGA Tour, a renowned expert in golf travel with a track record of serving millions of golfers worldwide.
It's an exciting opportunity that aligns seamlessly with their mission and holds the promise of global impact.
Final Thoughts
In an era where the sport of golf is experiencing a transformation, the success of brands like Eastside Golf has reshaped its image.
The undeniable impact of golf tourism is propelling the industry's economic growth, and Eastside Golf is uniquely positioned to seize this opportunity.
As they embark on the next phase of business growth, I believe tourism can be the vehicle to solidify their place in the ever-evolving landscape of the sport.
Until next time ✌🏾