LAHINCH GOLF Club in Co Clare has sustained an operating loss of more than €1 million over the past two years due to a collapse in green fee income.
In a report presented to members yesterday at the club’s annual general meeting, the club reported an operating loss of €476,580 for 2009, which followed an operating loss of €551,323 in 2008.
The loss follows green fee income almost halving in the space of two years from €1.87 million in 2007 to €944,522 last year, due mainly to fewer visiting US golfers. However, the losses at the club last year were not as bad as initially feared, as it had budgeted for a €710,382 loss in 2009.
In his report to members yesterday, club captain Austin Slattery stated that the club “took specific and decisive action to reduce costs where possible”.
Operating losses were stemmed last year following the club opening up its coveted membership to 27 members.
Last November, the club held an extraordinary general meeting to address its deteriorating finances, resulting in a rise in members’ annual subscriptions of up to €200.
In his report yesterday, Mr Slattery stated: “We are currently operating in a world of total financial uncertainty, and none of us know when this uncertainty will end.” However, the club is anticipating that it will record a surplus of €30,350 in 2010, providing that green fee income stabilises, along with measures implemented, including an increase in subscriptions and cutbacks across the golf club’s operation, including staff reductions.
The decision by the club to open up its membership followed complaints at last year’s agm that the club had turned down 41 applications, forgoing €725,000, in November 2008. Figures in the report show that green fee visitor numbers have fallen from 24,794 in 2002 to 16,679 last year.
In his report, Mr Slattery states that the club “has acted decisively to cope with the ever-changing circumstances in which we found ourselves”.
He confirmed that a reduction in the club’s expenditure last year of €505,428 was achieved by a reduction in staff numbers; the introduction of a three-day week; a change of work practices; and a review of all overheads.
The number of full-time staff at the club was reduced last year from 34 to 28.
