Golf resort business takes hit after attacks

Pebble Beach Golf Links is the most famous course in America that anyone can play as long as money is not a problem and tee times are booked months in advance. On a typical day, at least 200 people play golf while taking in the spectacular scenery.

These days are not typical.

"There is availability at Pebble Beach," chief executive officer Bill Perocchi said, a hint of disbelief in his voice. "If someone came in today and wanted to go off tomorrow, they could."

The terrorist attacks on Sept. 11 have taken a toll on air travel and the economy, two keys for the golf resort industry.

Groups that had outings booked for late September and early October have canceled. Occupancy levels at hotels are way down, which means fewer rounds of golf. Some resorts already are considering layoffs.

"What the terrorists have done has quickly impacted our shores," said Gary Planos, vice president of operations at Kapalua, an idyllic resort on the west end of Maui.

The number of rounds played at Myrtle Beach, S.C., had been stagnant for a few years before the attacks because the area has become saturated with courses. Now it is hit with both a severe reduction in travel and a hold on leisure activities.

"Our play is off 50 to 75 percent from what was pre-booked," said Skip Corn, the general manager of the TPC at Myrtle Beach.

Perhaps no other resort is suffering quite like Kapalua, home of the season-opening Mercedes Championships on the PGA Tour.

"We're depending on people being able to fly in here," Planos said. "Our golf courses are very slow. Our hotels are at low occupancies. Hopefully, this is just a short run on the downturn with tourism and golf in Hawaii. It's still very safe and very relaxing out here -- maybe a little too relaxing right now."

Perocchi said several corporate groups canceled outings at Pebble Beach that were scheduled for September or early October. Most of those calls came in the first few days after the World Trade Center was destroyed.

Since then, the number of cancellations has slowed considerably. By late last week, some groups had called to reschedule.

Still, Perocchi cannot forget the day of the attacks and the eerie lack of activity at Pebble Beach. Players gave up tee times to gather in the Tap Room and watch television.

"Everyone was in such a state of shock," he said. "Some people decided to go out and play because they were here, they were helpless, there was nothing they could do. But a lot of people were glued to the TV. I don't recall the Tap Room being so crowded."

While resorts are struggling, golf remains a popular diversion. The segment that could benefit more are local courses.

More than a dozen private clubs and public courses surveyed by Golf World magazine in New York, Connecticut, Illinois, Texas, Florida and California said they either were barely affected or were packed.

How long it takes the resorts to recover remains to be seen.

Champions Gate in Kissimmee, Fla., had a 288-player shotgun on its International and National courses last Wednesday. Golf director Kevin Perkins said the Silicon Valley company that arranged the outing canceled the tournament, nervous about executives flying across the company.

"We saw the impact immediately," Perkins said. "The last two weekends have been busy. We're starting to think that things will turn."

Golf instructors who work at resorts also are affected, such as noted teacher Jim McLean at Doral Golf Resort and Spa in Miami. South Florida gets a lot of its business from the Northeast, and September is not its busiest month.

Still, McLean said, the uncertainty is taking a toll.

"The golf is off because people aren't coming to the resorts," he said. "It's for me to figure out what's going to happen for the remainder of the year."

That's the dilemma facing other resorts.

Perocchi said Pebble Beach gets 60 percent of its business from California, and most of them are within driving distance. That still leaves 40 percent from all over the country, particularly on the East Coast.

He called groups that already had booked golf for October and November, and found 90 percent still plan to come.

"Whether that changes over time, you don't know," Perocchi said.

September generally is a slow month at Kapalua. What concerns Planos is the next three months leading to Christmas. The resort is only 30-40 percent booked, down from its usual 70-80 percent.

He tried to paint a positive picture.

"People who come will have more of the island to themselves," Planos said. "Everyone who comes here will get even more of our attention, and hopefully that will transcend into more people not afraid to fly and not afraid to take vacations, and they'll tell all their friends about what a great place this is."

But Planos said shorter work weeks and smaller wages were inevitable, along with layoffs.

"It's like the airlines," he said. "You can't survive with flight loads that are 30 percent. We can't survive with occupancy at 30 percent. It's a matter of hanging on."