One of south Dublin's most prestigious golf clubs, Dun Laoghaire golf club, is considering increasing fees and membership in an attempt to reduce an operating deficit expected to reach about €1.7m this year. It says the economic recession has created difficulties and investment income cannot be relied on indefinitely to keep it out of financial trouble.

In a financial statement for the first quarter of 2009 published in the club's March newsletter, the board said the club was "coming under pressure". Members appear to be cutting back on their golfing with subscriptions coming in at a lower than expected €98,336 and green-fee income falling to €123,835.

Visiting the club bar also appears to be losing some of its appeal, with "bar and catering" operating at a trading loss of €54,378 following a dip in sales from last year. Cost savings are estimated at €239,392; however, this year's operating deficit is still expected to increase by €30,000 to €1.73m.

The club will be able to offset most of the deficit through investment income of €1.08m and entrance fees of €525,000 for the year, leaving a net operating loss of €132,487.

The substantial investment income is likely to stem from the club's sale of a 78-acre site to Cosgrave Developments in 2002 for €20m. The deal also involved a 27-hole golf course and new clubhouse at Ballyman Glen, near Enniskerry.

The Dun Laoghaire land was rezoned for residential use in 2004 and last year, despite local objections, An Bord Pleanála gave the go-ahead for an 856-unit development and eight-acre park with a lake. A "strategic review" is underway to find ways to reduce the club's dependency on investment income by achieving significant reductions in the annual deficit.

Measures being considered include the admittance of 50 extra full members generating €75,000 in annual income; a 5% increase in subscription rates resulting in an additional €70,000; and a 5% reduction in costs saving €130,000.

The club is also considering further opening its doors to non-members – a 10% increase in visitor numbers would boost revenue by €40,000.