Video #8 - Japanese Golf Slump
Monday, January 09, 2006BACKGROUND INFORMATION
For decades, Japanese golf was primarily for extravagant corporate entertainment (settai) rather than sport. That meant soaring prices and games thrown deliberately to appease important clients. With club memberships worth more than houses and many green fees higher than an average monthly wage, few were able to play for pleasure.
In the late 1980's, membership rights, which are traded like shares and bonds, doubled in value each year. By 1990, it cost 400m yen ($3,000) to join the Kogane country club, the most expensive in Japan. But in recent years, asset prices have dropped sharply, and companies have scaled back on their expense accounts to survive a prolonged economic slump. As a result, the number of players fell by nearly 10% in 1998, according to government figures. Additionally, a record number of firms in the golf industry may go bankrupt this year.
Nevertheless, the number of golf courses is expanding at the rate of 40 a year, which has opened the door to individuals who had only been able to afford indoor putting mats or driving ranges on department store roofs. Also, equipment costs are down, green fees are cheaper and average membership prices have dropped by about 90% from the 1990 peak. "Golf memberships are finally approaching the level where people can afford to buy them not as an investment but because of the playing benefits," said Naohiro Takahashi of Juchi Golf, one of Japan's membership brokerages.
Many new courses are dispensing with the membership system to attract more casual players. One such is La Vista country club, which opened last year in Chiba. By cutting back on luxuries such as caddies, it has kept the price of a weekday round of golf for non-members down. "In the current climate, we felt that this was the way to go," said a spokesman for the club, Koji Matsui.
Interestingly, not being a member can pay for a player who scores a hole-in-one. At traditional clubs, hitting the shot of a lifetime means having to buy presents for hundreds of members. This can prove so expensive that insurance companies offer thousands of dollars worth of "hole-in-one coverage". Fortunately, players who just turn up for the day are less bound by such customs. "We have a very strange golf culture based on corporate entertainment, but it is changing slowly," says Keichi Tsuihiji, a golf journalist. "Everything is cheaper now, and the average age of players is coming down."
Despite a Golf-playing population of more than 11 million people, Japan has never had a Masters or Open winner. However, the chances of producing a champion are improving as the fairway demography shifts from wrinkled executives on business outings to young players interested in competition. "These days, you can complete a course far more quickly, because fewer players are toadying up to their superiors by deliberately fluffing their shots or choosing the wrong club," Hideo Abe, a young golf-lover said. "now there is more golf for golf's sake - and that is a big improvement."
SOURCES:
Watts, Jonathan, "Recession boost for Japan's golfers. Where corporate hospitality once ruled overpriced greens, now genuine fans can play for pleasure." The Guardian, November 1, 1999, Page 1.
LESSON PLAN
GRADE LEVEL/SUBJECT:
10-12/Economics, International Relations, World History, International Bachelaurate Programs (IB), Current Events.
PURPOSE:
To present activities to be used at a variety of classroom situations in order to enhance student understanding of the Japanese economy and its significance globally.
OBJECTIVES:
Students will be able to:
- Explain the use of golf within the corporate culture of Japan.
- Compare and contrast the nature of golf in Japan and the United States.
- Evaluate the changes in the sport of golf in Japan in recent years.
MATERIALS:
- Background information provided.
- Resources on Japan available at your school's Media Center and the Public Library System in your area.
- Background information available through Internet "search engines".
ACTIVITIES:
May be assigned as group activities or as individual tasks. They may also be designed as preparation for related presentations either by individuals or groups.
- Prepare a Venn diagram showing the differences and similarities in the use of golf as part of the corporate culture of Japan and the United States.
- Use charts and graphs to show statistics comparing the characteristics of the sport in Japan with those of the U.S.
- Write an editorial predicting the future of the sport of golf in Japan.
EVALUATION:
Individual assignments should be graded by the teacher using established criteria. Group activities, presentations and projects may be evaluated by teachers and students using the following criteria and scale: Content Creativity Clarity
1 = Superior (A) 2 = Excellent (B) 3 = Good (C) 4 = Fair (D) 5 = Poor (F)
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