Hospitality clubs see business dip

Steve Parry is feeling the impact of the economy at The 1018 Club.

The co-owner of the hospitality club at 1018 Azalea Drive said he has seen a drop in corporate clients at this year's Masters Tournament, perhaps as much as half of years past.

"I know the other hospitality house owners are also substantially less. I think the economy plays into it, but the way everything is going on right now, if a company is doing well, this isn't a real good time to be showing off," Mr. Parry said. "Going to the Masters would almost be perceived as showing off."

Companies in attendance are more discreet, not putting their names on their vehicles, for example, he said.

"We probably had 10 to 12 companies that intended to come, but whether they had or didn't have the money, they decided to sit this one out. They figured it's not a good time to be spending money unless it's critical to the company's existence," he said.

Many companies, however, have told Mr. Parry they definitely plan to attend next year.

Kyle Kinnett, a partner at The Lodge on Magnolia at 1006 Magnolia Drive, said he has seen a 30 percent to 40 percent drop in corporate business. Ninety percent of his clients are corporate clients, mostly from Fortune 500 companies.

"A lot of it is cutting back. A lot of it perception. Golf, more than any other sport, is tied to the financial and automobile industries," Mr. Kinnett said.

Many car companies and banks hold their own golf tournaments, so they are "limited on what they can do on other events," he explained.

Mr. Kinnett also attributes the drop in business to currency issues. This year there are fewer foreign clients because the euro has dropped in value.

He has started working with country clubs across the United States to attract their guests.

Michael Loughlin, the director of sales for New York based-American Corporate Events, which coordinates hospitality for The Azalea Club at 1011 Azalea Drive, said business is comparable to last year.

Most of their clients are from Fortune 1,000 companies and come to the Masters for sales incentives or to entertain top clients, he said.

Business might be slower on Saturday and Sunday because of Easter, he said.

Ian Cannell, a manager at Club Magnolia at 1023 Magnolia Drive, said business has remained steady, probably because 80 percent of its clients are people not associated with companies.

Mr. Kinnett is optimistic that next year will be different.

"Three-and-a-half weeks ago it started to loosen up, so I think we've seen the worst of it. We've already got contracts signed for 2010," he said.

Reach LaTina Emerson at (706) 823-3227 or latina.emerson@augustachronicle.com.