Caddy Fees Rising Too Much... Could Catch Up with Green Fees
Average Individual Cost Nears 150,000 KRW as of May
Rapid Increase in Domestic Golf Population... Caddy Fees Also Rising
The caddie fees (costs for golf game assistants) at domestic golf courses are rising rapidly. Some predict that caddie fees could surpass green fees (course usage fees).
According to data from the Korea Leisure Industry Research Institute, the annual expenditure on caddie fees, which first exceeded 1 trillion won in 2018 with 1.076 trillion won, increased to 1.7188 trillion won last year. This represents about a 60% increase over five years.
The caddie fee burden per consumer using golf courses is also soaring. According to the Leisure Industry Research Institute, the average caddie fee at nationwide membership golf courses was 148,800 won in May. The average caddie fee, which was 122,700 won in 2019, rose 7% in two years to 131,300 won in 2021, and increased by 13% this year.
Considering the current rate of cost increase, there is a possibility that caddie fees will soon catch up to green fees on a per-person basis. The average green fee for 197 courses likely to be designated as public golf courses this year was 166,300 won on weekdays. The difference is less than 20,000 won.
The increase in caddie fees is closely related to the growth of the domestic golf industry. According to the Leisure Research Institute, the domestic golf population reached 5.64 million in 2021, surpassing Japan's 5.6 million. In particular, the domestic golf population experienced rapid growth over four years from 3.86 million in 2017 to 2021.
Due to the surge in the golf population, the balance of power between market suppliers (golf courses) and customers shifted, and the smooth supply of caddies was disrupted, leading to an increase in the 'value' of caddies.
Additionally, caddies are special-type workers who are not directly employed by golf courses but operate as individual business operators. To prevent caddies from moving to other workplaces, golf courses must actively improve caddies' wages and working conditions, which further increases caddie costs.
Some in the golf industry are hopeful that allowing overseas Korean caddies to work could be a solution to the caddie supply shortage. The Ministry of Employment and Labor has improved employment regulations for visiting employment Koreans (H-2) starting this year, expanding the industries where they are allowed to work, including caddying.
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To reduce the burden of caddie fees, the number of golf courses offering a 'caddie selection system' option, allowing players to golf without a caddie, is also increasing. According to the Leisure Industry Research Institute, there were only 60 golf courses with a caddie selection system in 2016, but this number rose to 201 last year.
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