This Review defines some of the areas of the leisure and recreation market.
Task 1 Unit 1
Introduction
The universally recognised definition of leisure and recreation is: Leisure - is a period of time and Recreation - an activity that you participate in during leisure time. This Review defines some of the areas of the leisure and recreation market.
Media consumption and reading; listening to music at home
Gardening and do-it-yourself (DIY)
Sports and keeping fit
Catering (eating and drinking outside the home) and gambling
Cinema, theatre, museums and 'the arts'
Tourist attractions and short breaks (although long holidays or any trips abroad have been excluded).
There are many more which could be added to this list. Shown below are things, which are pivotal factors within the leisure and recreation industry. They can either generate large sums of money or cause the industry to lose money, depending on what changes occur in these subsections. For example if there is an increase in disposable income and leisure time the recreation industry will benefit from this as people will want to do something in their spare time and with more of a disposable income they will be able to spend more.
There are many defining factors, which influence trends in the leisure and recreation business, many of which are mentioned below in detail.
Increase in leisure time
The amount of leisure time available to the majority of people in the UK increased steadily up to the early 1970s, but has levelled off since then. It is estimated that by the early 1970s 19% of the year was spent at leisure by the UK population. The main reasons were increasing amounts of paid annual holiday entitlement, and a gradual reduction in the working hours for the majority of workers. Since the 1970s other factors have had a greater influence on the availability of time for leisure pursuits, such as:
· Flexible work patterns and/or shift work for many workers
· Wide spread use of labour-saving devices
· Increasing numbers of unemployed and retired in the population
42% of all free time is now in the hands of adults who spend none of their time in paid employment, these people are either unemployed, part-time workers, retired or children.
There has been a major increase in the time available for leisure for people in full time work since 1971, and it is not predicted to change much between 1996-2001, which it has not the trend has continued. However the percentage of part-time workers inside the UK workforce will have doubled by 2001, this is prediction has occurred as the amount of part time workers within the UK has risen by over 50%. The people in part time work consists of students, people who have to look after children and people with other commitments etc... The trend towards more flexible, part-time employment since the 1970's meant that increasing numbers of the workforce have had more free time in which to pursue leisure activities.
Leisure Time Spent by Activity (1981-2001)
(Hours and minutes per day, weekly average)
981
986
991
996
2001
Leisure Time Spent
5.24
5.47
5.56
6.09
6.26
Sleep
7.57
7.47
7.42
7.44
7.42
Rest and Relaxation
.19
.21
.21
.15
.19
Watching TV, Listening to Radio, ReadingNewspaper or Magazines
2.13
2.18
2.23
2.34
2.34
Hobbies and Amusement
0.33
0.31
0.36
0.35
0.42
Sports
0.10
0.10
0.11
0.11
0.11
(Internet Reference)
These three graphs show the predicted and actual amount of leisure time spent doing certain activities over the years also the amount of time spent doing certain leisure activities during certain hours of the day, and comparing them to different years.
Increase in Disposable income
People now days have a higher standard of living and higher paid jobs. Because of this people have more disposable income, so because they have more spare money they use it on leisure time. Increasingly people are getting higher paid jobs so therefore with a higher standard of living they have more money disposable to them, often spent on leisure.
The amount of money people have to spend on leisure activities is referred to personal disposable income or household disposable income. Disposable income is the money left over after all bills have been paid of immediate necessity e.g. food, house holds bills and mortgage. The trend in the UKis that household and disposable income rise and the trend is set to continue. Although for the unemployed it has fallen. This trend has lead to a huge increase in consumer spending on leisure activities. The average leisure spending per person increased by 89% between 1971 and 1996. Between 1971 and 1997 disposable income almost doubled per person in real terms.
The figure below shows that the average household spends £51.60 per week on leisure services and goods and a total expenditure of £313.70 on average. This is around 16% of their weekly budget. This only slightly trails behind the food budget, which is 18% and is on par with housing and motoring fares.
This graph shows the percentage of household income spent in different areas, by an average household of two parents and two children.
The levels of disposable income and spending on leisure items vary from household to household and region to region within the ...
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The figure below shows that the average household spends £51.60 per week on leisure services and goods and a total expenditure of £313.70 on average. This is around 16% of their weekly budget. This only slightly trails behind the food budget, which is 18% and is on par with housing and motoring fares.
This graph shows the percentage of household income spent in different areas, by an average household of two parents and two children.
The levels of disposable income and spending on leisure items vary from household to household and region to region within the UK. People such as pensioners the unemployed and single parents may be prevented from taking part in such leisure activities. Local authorities in the 1970s developed a range of activities in order to provide subsidised or free leisure activities for these groups.
The figure below shows the predicted increase in consumer spending on leisure activities between 1993 and 2003, these figures where achieved short of 2003 which proved that the prediction was correct. The largest increases are predicted to be on holidays overseas and gambling. Also it's predicted that spending on away from home activities will increase by 69% over this period compared to for home-based activities.
Activity
993
2003
Forecast % increase
Reading
5.34
6.65
25
Home Entertainment
0.85
0.06
66
House and Garden
7.57
3.07
73
Hobbies and Pastimes
5.79
8.76
51
Total Home Based Leisure
29.55
46.53
57
Eating & Drinking
22.25
39.54
78
Local Entertainment
2.95
5.05
71
Gambling
4.40
6.67
16
Active Sport
4.40
6.67
52
Holidays in the UK and Sightseeing
7.34
0.88
48
Holidays Overseas
3.65
29.23
14
Total away from home leisure
78.43
32.59
69
Total all Leisure
07.99
79.12
66
This graph shows the forecast increase in leisure time usage between 1993-2003. the top half been home based leisure and the bottom half away from home leisure.
Improved Mobility
The population of the UK has benefited from improved mobility since the 60s due to technological advancements in transportation. Most people within the UK now have access to efficient transport networks, which have assisted leisure and recreation facilities services products and events much more accessible to every one. The greatest single transport factor promoting an increase in demand in leisure products and services are significant increases in car ownership since the 1970s. Most leisure facilities rely on people from a wide area to be viable, so the level of car owner ship is important for the influence of people using and attending their facilities.
The amount of privately owned vehicles on the road from 1951 to 1970 increased five times over and ten times between 1951 and the mid 1990s. Now in the UK 70% of all households have access to at least one car, which is about 20million privately owned cars. Also 20% of house holds own two cars or more, this means the second car can be used to access leisure activities if the other car is in use. The increase in car ownership is a major factor in the rising visits to leisure facilities and services e.g. theme parks and sports stadium.
The ability to use all modes of transport safely and easily is essential if disabled people are to have access to the same activities, facilities and opportunities as the able-bodied. In recent years there has been increasing recognition of the importance of meeting the mobility needs of disabled people among vehicle designers, manufacturers and service providers. This awareness has been made greater by the Disability Discrimination Act, which will require quite specific improvements in accessibility to the major land-based public transport services. The UK is not alone in this; other countries have comparable legislation and the development of accessible transport is increasingly an international activity.
Demographic Changes
Theme parks
Constant changing rates in the demographic spread of the UK population are a contributing to the health of theme parks. Families with children aged under 15 and between 15-24 according to Mintel's findings are the main target audience for theme parks. Between 1998 and 2002 0-9 yr olds to theme parks are expected to fall significantly, so places like Lego land will have to broaden its target audience to continue to flourish.
The number of children aged between 10-14 will rise by 4% while the number of 19yr olds will increase by 2.2% also 20-24 yr olds will increase by 5%. This is clearly a good thing for theme parks, which offer "white knuckle" rides and other sophisticated high-tech offerings (e.g. incorporating video and computer game based entertainment) that appeal greatly to these age groups.
Over the same 5 years 35-44 year olds, the age group most likely to have young children will increase by 9%. This group that has grown up with theme parks such as Alton Towers are likely to look upon these facilities favourably and want to incorporate visits to them as part of their overall leisure experience.
Theme parks are clearly monitoring demographic changes to plan their business strategy for the coming years. Depending on how it is changing they could chose to build a new attraction for the age group that are increasing the most to try to attract more of this group to their park.
Trends in the age structure of the UK population, 1998 and 2002
Age
998-9
2002
% Change
%
%
998-2002
0-4
3677
6.2
3562
6
-3.1
5-9
3905
6.6
3718
6.2
-4.8
0-14
3795
6.4
3945
6.6
4
5-19
3685
6.2
3767
6.3
2.2
20-24
3510
5.9
3684
6.2
5
25-34
9154
5.5
8130
3.6
-11.2
35-44
8492
4.4
9257
5.5
9
45-54
7755
3.1
7726
3
-0.4
55-64
5871
9.9
6530
1
1.2
65+
9241
5.6
9268
5.6
0.3
Total
59085
00
59587
00
0.8
Walt Disney Co. is counting on a big lift from Mission: Space, the $100 million ride whose grand opening this week is part of a larger campaign to promote Disney's signature resort in Orlando.
The entertainment giant hopes the latest Epcot attraction, along with other new features at the Central Florida parks, will help it recover from a tourism slump that has hobbled the company's overall earnings -- and the fortunes of an industry." We're not sitting back and waiting for the water level to rise and raise the ship," Jay Rasulo, president of Walt Disney Parks and Resorts, said in a recent interview. "I don't expect a giant rebound and we're not planning for that . . . but we are aggressively seizing the moment in any way we can."
That's the message Rasulo will convey today in a conference call with Wall Street analysts, who have been invited to view the new ride and other offerings at Walt Disney World as part of an overview of the company's theme-park strategy.
The official launching of Mission, which had a soft opening in August, will involve Disney's first-ever national television-advertising campaign of a single attraction. The opening comes as Disney and others are investing millions again in new attractions and marketing approaches in the hopes of spurring a recovery of a business that employs more than 65,000 in Central Florida and thousands more around the globe.
Although business has picked up this summer, major theme-park resorts are still weathering the effects of what insiders have come to describe as the "perfect storm" -- an extraordinary confluence of economic slowdown, lingering security concerns after the Sept. 11, 2001, terrorist attacks and the Iraqwar, not to mention high gas prices.
3 trends to face
Compounding the industry's woes are three long-term trends that pose new challenges to those in the business, industry analysts and veteran executives say.
For one thing, the industry has shown signs of reaching a peak in the United States. About 315 million people visit theme parks each year in the United States -- an average of more than one visit per person -- leaving little room for growth. By contrast, only one in three Europeans visits a theme park each year.
"It's the most saturated theme-park market in the world," said Tim O'Brien, editor of trade publication Amusement Business. "Now it's going to start separating the men from the boys out there."
In addition, the industry faces increasing competition for entertainment dollars. On top of that are troubling demographic shifts on the horizon.
There are currently 80.5 million people in the 25- to 44-year-old age group that represents a key demographic for the theme-park industry. That group is expected to shrink by 2.4 percent during the next five years. During the same time period, the 45- to 64-year-old category is estimated to grow 14 percent.
"The growth rate is not going to be what it was in the past because the theme-park market is shrinking in size," said Jim Cammisa, publisher of Travel Industry Indicators, a Miami-based travel industry newsletter.
Some point the blame inward, saying that the major operators have recently focused too much on the bottom line at the expense of investing in major new attractions year after year to keep visitors coming back.
"I don't think the industry's woes are 100 percent 9-11 and the economy," said Ron Bension, former chairman and CEO of the Universal Studios' theme-park group. "Fifty percent of it is a self-inflicted wound." This is from www.orlandosentinel.com.
Changing Fashions and Trends
Consumer needs and expectations of leisure products and services are continually changing and increasing. We are now a healthier fitter and more prosperous society of people, which are constantly seeking new leisure experiences. Changing fashions and trends since the 1960s on have influenced the UK's leisure and recreation industry, which is clear to see, if we consider the development of selected leisure activities. For example the upgrade and development of Man City football ground, which is a purpose built all seated stadium. Here is some information on Man City's new sports stadium. Every one of the 48,000 seats provides a perfect view of the pitch. The City of Manchester Stadium has been formed in a unique bowl shape and proved a spectacular host for the 2002 Commonwealth Games.
When the Games finished the Stadium underwent a dramatic transformation, with a new permanent North Stand replacing the former temporary seating. The running track was removed and re-laid at other sporting venues. What was ground level for the games was then dug out and an extra tier of seating added in to bring supporters closer to the action.
Amongst the Stadiums many superior facilities are the six restaurants and purpose built function rooms that will host all match day and non-match day hospitality. These are available to book on a seasonal basis, ranging from five stars, four course dining, to the relative informality of the Legends' Lounge.
Limited availability remains for seasonal match day hospitality in the restaurants. The hospitality boxes were sold out within weeks of going on sale.
Amongst the benefits the City of Manchester Stadiumbrings is the improved transport access. There are over 2,000 car parking spaces on site, and a further 8,000 accredited car parking spaces in easy reach of the Stadium. The Stadium can also be easily reached by rail and bus, being just a 20-minute walk from Manchester Piccadilly Station and the city centre.
Situated adjacent to the Stadium is Reebok City, home to the new City Superstore, the City Social sports bar, and the Manchester City Experience.
With over 7,000 square foot of space, the City Superstore stocks a range of City souvenirs as well as sports and leisure wear from kit sponsor Reebok.
The City Social is a sports bar, which will be open seven days a week. Seasonal bookings for reserving a table on a match day are available.
Sportcity is unique centre of sporting excellence being home to the Velodrome, National Squash Centre, English Institute of Sport, and athletics facilities. Further development of the complex is already under way with the addition of a hotel, leisure and retail facilities and even better public transport access with the opening of new tram routes in the near future.
Development of traditional cinemas with only one large screen into multiplex cinemas with several screens, a restaurant, bars and other facilities all on one site, for example Xscape. This complex is a large recreation facility with many things to do all on one site. It has many things to do such as the cinema complex bowling skiing snowboarding health & fitness and eating facilities. Here is the Xscape guide of what is on offer at their Castleford complex.
This sort of complex is becoming more popular as what people what to do in their leisure time is changing. In the past people in their spare time for leisure either stayed at home or went to the coast for their recreation time, but now people's wants have changed they like to visit places like this where there is many things to do e.g. shop eat or take part in leisure activities.
Development of new hi-tech holiday centres from the traditional holiday camps of the 1950s and 60s. These new camps offer much more in regards of activities and things to do on your holidays. An example of one of these places is Butlins. Butlins is the new holiday camp experience, you stay on site like a regular camp but there are many activities to do on site such as swimming in their pools visiting their fair attractions and many other activities which they arrange like football matches and activities also their greatly recognised nightly entertainment schedule.
Technological Developments
The two major innovations that have moulded people's leisure activities since the 1960s are the car and television. Any research into leisure time in the UK will most definitely reveal that watching television is the most popular leisure activity. This trend is not set to stop either as new digital services such as satellite TV are introduced and becoming much more popular, with new services introduced.
Development in technology has increased opportunities for home-based technologies and away from home leisure activities. For example advancements in micro-electronics have lead to a whole new range of home based leisure activities, e.g. walkmans, CD players, VCRs and computer systems (playstation) etc...
Technological advancements have also provided the opportunity for away from home leisure activities such as theme parks where they can create a much more surreal experience for their customer. Continuing over the next 25 years technology will continue to deliver new ways of using leisure time. It is believed that the Internet and interactive television will have a major influence on the leisure industry in the next fee decades. Many people and magazine predict this to happen and still be the main source of leisure for many, many people.
Over the years technology have advanced and how we spend are leisure time have changed because of this, in 1899 people mainly went to dance halls public houses and football matches. But in the 20th century we still like to do these things but such as football matches are now in grand stadiums, the dance halls are now large nightclubs there are also other things like restaurants, the cinemas and much, much more.
What we consider to be leisure now in a couple of decades could be completely different to what they do for leisure. As we look back on people in 1988 and consider their recreation to be pretty standard and not fulfilling these new generation of people may have the same view on how we spent are time. David Coffer prophesised that the greatest leisure activity in 2099 will be travel, worldwide and possibly cosmically, fitness and nutrition will be of great importance. Leisure will employ 20% of the UKpopulation.
We can only guess where the next couple of decades will take us with major advancements in technology occurring all the time in different areas.
Conclusion
Different situations and trends affect the leisure and recreation business profoundly. Depending on the situation it can be a good thing or a serious threat to the survival of a company. Advancements in disposable income are the biggest influence on the business. As disposable income increases the living standards increase, also people expect more from their recreational time places and activities. But with this increase in expectations people are prepared to pay more for their leisure experience. This enables the industry to put more money back into the activities and recreational experience, creating more of a valued experience and a higher customer satisfaction.