I just want to add my two cents to all of those who believe spending money on good driving range and short game facilities to be a waste...I will always remember what a boss of mine said at the first course I worked at, an affordable public muni....
He told me to never, ever neglect the driving range and practice area, and in fact to try and make it the absolute best one in your area. Why? For two reasons. One, there are many, MANY golfers, especially in metropolitan areas, that simply don't have time for a full round of golf on a regular basis, but would LOVE to hit a few balls and work on their game on a lunch break, or on their way home from work. The BEST facility in the area might actually MAKE money for the course. Second, the practice area can often serve as the gateway to your course. For those lunch break practicers, if they come to your facility every day to practice, and see your course everyday, don't you think they might just choose to play their next round their when they finally do get the time? And even for those who do show up to actually play a full round, many start not on the first hole, but on the range, and just like the first hole, first impressions (and last) are always the most memorable. If the practice facility they're warming up on knocks their socks off, then you've already hooked them on the golfing experience at your facility.
All that being said, I know in this era of ever-more-expensive golf, excellent and affordable (even free) short game and practice areas are vital to the survival of the game and to keep drawing those that can't afford to pay for a full round all the time to the course, to remind them how much they love to play and make them want to hurry back to play again.