Producer Price Indexes

Producer Price Index Introduced for Golf Courses and Country Clubs — NAICS 713910

To expand coverage of the service sector in the Producer Price Index (PPI), the Bureau of Labor Statistics (BLS) introduced a new price index for golf courses and country clubs—North American Industry Classification System (NAICS) 713910—in July 2006. Data for this index, which date back to December 2005, will appear in table 5 of the PPI Detailed Report and are available online through the BLS Web site.

This industry is part of the subsector for amusement, gambling, and recreation industries—NAICS 713. In this subsector, businesses may operate facilities at which patrons primarily engage in sports, recreation, amusement, or gambling activities. Alternatively, businesses in this subsector may provide other amusement and recreation services, such as supplying and servicing amusement devices in places of business operated by others; operating sports teams, clubs, or leagues that play games for recreational purposes; and guiding tours without using transportation equipment.

NAICS 713910 includes (1) establishments primarily engaged in operating golf courses (except miniature) and (2) establishments known as country clubs that are primarily engaged in operating golf courses, along with dining facilities and other recreational facilities. NAICS 713910 establishments often provide food and beverages, equipment rental, and golf instruction.

Establishments can be classified as private, public, or municipal facilities. Private facilities are golf courses that restrict play to members and their guests. Private facilities can be either for profit or not for profit. Public facilities are golf courses that are open, at least on a limited basis, to the general public. They typically operate on a fee basis, although they sometimes offer memberships or annual passes. They are often referred to as daily-fee facilities. Municipal facilities are golf courses owned by a city or county. Golf courses are included in the PPI if the majority of their funding comes from revenues collected from patrons. If golf courses are primarily funded by government resources, they are not included in the PPI. The operations of any of these courses—public, private, or municipal—may be contracted out to a golf course management company. The operation of driving ranges and of resorts with golf facilities is classified in other industries. For example, a resort with golf facilities is classified in NAICS Industry Group 7211, Traveler Accommodations.

The services for which indexes are available include:

To measure changes in prices for memberships, companies report the current annual or monthly fees paid for access to facilities or services during a specific contract term by a specific type of member. Membership types include adult, family, and corporate. Prices are reported separately for new memberships, which include initiation fees and membership dues, and renewal memberships, which include only membership dues.

To measure changes in prices for greens and guest fees, food and beverage sales, and equipment rentals, companies report current transaction prices or fees. (Explicit quality adjustment will be performed for changes to these services, such as changes in beverage sizes.) Companies may also report current average prices for greens and guest fees. If food, beverage, and merchandise sales are provided by an entity that is leasing space at the golf course or country club, these services are not primary to NAICS 713910, and the changes in lease payments are included in the “other receipts” index for this industry.

Last Modified Date: August 15, 2006

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