Brian -
I raised this issue on an earlier thread (maybe one about Ballyneal).
Given the overwhelming success of Bandon/Pacific Dunes as a daily fee venue, why aren't any of the Nebraska/South Dakota dunes course pursuing that business model?
Tom Doak gave a pretty good answer to that question:
1) If your private club is successful getting off the ground and you sell 300 memberships (say at $30,000 per) within the first year or two of operation, the developer collects $9,000,000, more or less upfront. This allows the developer to recover most (if not all) of his capital investment in a relatively short time.
2) If you operate as a daily-fee course, you are in the resort business on an ongoing basis. You have to advertise, promote and staff your business accordingly. The payback on your investment could take a decade or two, instead of a year or two.
Could these facilities operate successfully as 'semi-private'
facilities? The question there is whether enough high-rollers, who spring for a large initiation fee, would be willing to do so knowing that they could access the course any time they wanted to on a daily fee basis. My guess is that anyone who joins one of these clubs is paying (through their initiation fee) for the privilege of knowing that the 1st tee will be empty whenever they show up to play. Most of these people are probably not interested in belonging to a semi-private club.
Remember, the availablitiy of golf at private clubs in GB&I to non-members is driven by the revenue it brings in to the clubs, which allows the clubs to keep the cost of initiation/annual dues very modest for their members.
For better or worse, there are plenty of golfers in the US willing to pay for their privacy and with the money to do so. Whether there are enough of these people to join all these new 'sandbelt' clubs in the US remains to be seen.
It will be interesting to see if a golf resort similar to Bandon/Pacific Duners emerges in the Nebraska region. The relatively short golfing season not much more than 6 months) may make it unlikely.
DT