A Hybrid Individual—Zonal Travel Cost Model for Estimating the Consumer Surplus of Golfing in Colorado

Although golf is a popular activity and significant industry, there is little known about the price elasticity of demand for golf, nor the benefits received by the golfers themselves. Using a survey of Colorado golfers at 19 golf courses and a relatively novel hybrid individual observation and zonal travel cost model, the authors find the demand for golf is quite price inelastic with respect to transportation costs (−.433) and green fees (−.115). The typical golfer spends $8 on transportation and $49 on green fees/ carts. The price inelastic demands translate into a consumer surplus of $18.44 per round of golf at Colorado golf courses. The annual net economic value to golfers in Colorado for the 7.8 million rounds of golf is $143.8 million. The authors find a ``U'' shaped quadratic relationship between age and golf demand, such that retirement age golfers take about 30% more trips than middle age golfers.