OF FAIRWAYS AND ECONOMIES AVOIDING THE ROUGH

Will Golf Erode Jackson Hole’s Competitive Edge?


By Jonathan Schechter, 11-16-06

Here are two things I know.

First, as an industry, destination recreation is stagnant, if not in slow decline.

Visitation to Grand Teton and Yellowstone national parks peaked in the mid-1990s, and has been in waning ever since. Ditto with skier days at major northern Rockies resorts, especially among destination skiers.

Similarly, nationwide, golf is stagnant. Golfing was in decline before Tiger Woods burst on the scene, but even the vaunted “Tiger bounce” has done nothing more than bring golfing back to its early ’90s levels.

In fact, about the only aspect of big-bucks recreation that’s actually growing is the number of golf courses: Today there are nearly 30 percent more golf courses in America than there were in 1990. But even that statistic is deceptive, for 2006 will be the first year in U.S. history that more golf courses were closed than opened.

What’s happening to all those closed-down golf courses? They’re being converted to housing developments, a more lucrative use of the land.

Speaking of housing developments, here’s the second thing I know. Construction is now more important to the economy of Teton County, Idaho (on the other side of the Tetons from Jackson Hole) than is farming.

Personal income from construction surpassed farming income in 1999. And as of 2004, more Teton Valley, Idaho residents who once were potato growers now work in construction than in agriculture.

This just blows me away. Maybe the “Spud Curtain” should be re-named the “Nailbangers’ Curtain.”

Here’s what I believe.

Assuming that something has intrinsic value, the rarer it is, the more valuable it will be.

Markets are very good at recognizing value. That’s why most things don’t stay rare very long: If at all possible, great ideas are quickly replicated, and inevitably turned into commodities. It doesn’t matter what the product is: high-speed quads at destination ski areas or high-end amenities; outlet malls or starter McMansions; franchise restaurants or movie plots, features in software or consumer products. If something can be ripped off and replicated, it will be.

About the only thing I can think of that can’t be readily replicated is landscape and the environment. Arguably, that’s a large part of why Teton County, Wyo., is perhaps the wealthiest county in America; arguably it’s a large part of why Teton County, Idaho, is the 14th-fastest growing county in America. We’ve got something here that simply can’t be re-created, and people are embracing it with both their wallets and their feet.

Recognizing this and keeping it going is the secret to our long-term economic success.

Here’s what I can’t understand: Like the rest of the nation, the two Teton counties seem obsessed with building golf courses. Twenty years ago, there was one course between us. Ten years ago, there were two. Today, there are at least seven, with another three or four or five or who knows on the drawing boards. This in an era when golfing is stagnant and courses nationwide are closing faster than they are opening. This, to me, is baffling.

Even more baffling is the fact that developers feel the need to build golf courses in the shadow of the Tetons. This puzzles me on three levels.

First, at some point the supply of “golf course estate lots” will far exceed demand. We can all see this coming, so why keep building them?

My second bafflement is based on the fact that a golf course is no more than a high-end commodity: Just like a strip mall, you can build ’em anywhere; just like a strip mall, they serve to make one place seem no different than any other.

With its combination of breathtaking beauty and environmental quality, the Teton area is, arguably, the most remarkable place in the Lower 48. Given this fundamental reality, why do developers need golf courses to sell homes? I can completely understand the need to build a golf course at a development in the middle of nowhere: That’s a no-brainer. But aren’t there enough intrinsic amenities in the Tetons to make a golf course superfluous?

Which leads into the third bafflement. If the only way developers can sell high-end homes in the Tetons is to put them on a golf course, then who is buying those homes? More to the point, do the people buying those homes really have any appreciation for the Tetons? Or are they simply interested in having a nice home near a golf course, something they could have almost anywhere?

This question brings me back to the decline of agriculture in Teton County, Idaho. As reporter Lauren Whaley at the award-winning Jackson Hole News & Guide newspaper ably documented in her recent series of articles about the Teton Valley, long-time residents are very concerned about the decline of their community’s character. This character was formed by generations of people who were attracted to the area in part for the chance to work the land, but also because they appreciated the mountains, the wildlife, and the many recreational and aesthetic opportunities available out their front door. They most assuredly did not come to the Tetons for strip malls or golf courses or the other amenities found in metropolitan areas, for those simply weren’t available in this rugged, remote part of the world.

Currently, both Teton counties seem to be hell-bent-for-leather to make ourselves increasingly like every other place in America. We’re allowing – if not encouraging – the rapid development of those same get-‘em-anywhere amenities that you can, by definition, get anywhere, without really asking ourselves about the consequences. For instance, if we approve a zillion golf courses, can we really claim to be shocked when our community character starts being informed by a country club mentality?

I have nothing against golf – I play once or twice a year, and enjoy it when I do. But it seems to me that, unlike a lot of changes sweeping over our communities, approving a golf course is something we can actually control. And I raise the point not to attack golf or golfers, but because it seems to me that golf is a pretty good metaphor for all the changes going on in our area, particularly those that make us more like every other place.

Put baldly, if the only way someone will buy a house in the Tetons is if it’s on a golf course, are such folks really going to appreciate the unique qualities our region offers? In the answer to that question lies a pretty good indicator of not only where our community character is headed, but whether we’ll be able to keep our economy vibrant over the long haul.

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EDITOR'S NOTE: Jonathan Schechter owns Summit Management Consulting in Jackson, Wyoming, lectures widely on economic trends in the West, and writes a regular column for the Jackson Hole News & Guide newspaper, where this essay originally appeared. He can be contacted at:



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