Figure 3 - UK household expenditure (one week) by commodity and service, 1995-8
Improved mobility
Most people in UK have access to transport, which means leisure and recreation facilities, products, services and events are easier to access. The UK has benefited from improved mobility due to advances in transport technology. The level of car ownership is a very important in the leisure and recreation industry, as they rely on them being able to attend their facility, event and services.
The graph below shows that over the years the percentage of households owning a car has increased; at the present 76% of the UK have access to a car. Increasing car ownership has been a major factor in the rising popularity of visits to leisure facilities, events and day out trips to visitor attractions. These include theme parks, museums etc…
Figure 4 - Trends in car ownership, 1970-2003
Demographic changes
Demographic factors relating to the size, age structure and distribution of the population have influenced the growth of the leisure and recreation industry. In general, the UK population live healthier and fitter lives than they did in the 1970’s. This means that combined with the increase of healthcare, has means that life expectancy has continued to increase, as shown in figure 1.9 below.
There are an increasing number of retired people with large amounts of free time in which they can take part in leisure activities. This is why many leisure organisations aim their products and services to this large market, sometimes referred to as the ‘grey market’.
Although the population has increased due to longer life expectancy, the falling of birth rate has increased. This means the proportion of children in the UK population has decreased, also shown in figure 1.9.
Changing fashions and trends
Consumer needs and expectations of leisure services and products are continually changing. The UK population are healthier, fitter and wealthier which are seeking new leisure experiences. The more experiences that are provided, the greater our needs and expectations become.
The effect of changing fashions and trends on the UK since the 1960s the leisure and recreation industry is obviously marked if we think about the development of selected leisure activities. These include the:
- Increasing popularity of individual and team sports such as football, cricket, snooker, darts, squash and running.
- Increasing popularity of home-based leisure activities due to home entertainment systems, digital televisions, and computers.
Technological developments
The car and the television have been two key factors that have shaped the UK’s leisure activities. The most popular leisure activity within the UK has to be undoubtedly watching television. With the arrival of satellite, cable and digital television the range of home-based leisure opportunities will be extended in the upcoming future, as consumers want to replace their current equipment for more hi-tech and up to date technology.
Assessment 5
People employed in the industry
It’s estimated that the leisure and recreation industry and related industries employ around 1.7 million people in the UK. This means that approximately 12% of the total UK labours force. (1995 figures, from the Department for Education and Employment). The industries are therefore regarded as major providers of employment opportunities, with around 50,000 new jobs created.
Because the leisure and related tourism industries are so diverse it is often difficult to obtain an accurate breakdown of numbers employed. The table below shows employment in selected leisure and tourism-related industries in 1998. The data should only be used as guidelines, as they exclude some of the components which make up the leisure and recreation industry, such as commercial sport.
Figure 5 - Employment in leisure and tourism-related
Industries in Great Britain (as of June 1998)
Consumer spending
The leisure and recreation industry is a major source of income for the UK economy, with the value of consumer spending currently estimated at around £147 billion per year. This is more likely to increase as consumer demands for leisure goods and services continue to increase.
Figure 6 – Consumer spending forecast on selected goods and services, 1999
Source: LRC, Leisure Forecasts 1999-2003
Between 1995 and 1998 households in the UK on average spent 16% of their weekly budget on leisure goods and services (see figure 5). The Leisure Industries Research Centre (LIRC), (figure 6) forecast that the combined UK leisure, recreation, travel and tourism industries would generate over £138 billion in consumer spending in 1999. LIRC estimates that the actual value of this consumer spending to the UK economy is just over £147 billion.
Although the LIRC forecasts provide a useful overview, it is important to note that a high proportion of this spending arises from ‘holidays overseas’, which can not be classified as part of the UK leisure and recreation industry.
Participation trends in popular leisure activities
Figure 7 shows participation rates for selected home-based and away-from-home leisure activities from 1986, based on the percentage of UK adults who took part in the activity in the four weeks prior to the survey. Home-based leisure activities such as socialising with friends and relatives, and watching television are by far the most popular leisure activities. Going out for a drink or meal is the most popular leisure activity outside the home for adults.
Figure 7 – Participation trends
* Indicates change in survey method or definition from earlier years. Figures are derived from the General Household Survey and show the percentage of adults who took part in activity in the four weeks prior to interview in each period. ‘Most popular quarter’ is that with highest participation rate.
Assessment 6
Structure of the UK leisure and recreation industry
The leisure and recreation industry can be divided into two different groups: those which are either publicly or privately owned. We can further divide the concluding into privately-owned organisations operating on a commercial basis (the private sector) and private groups operated largely by volunteers (the voluntary sector);
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Public sector organisations are the publicly-owned part of the and offer goods and services to the public at national and government local levels. These organisations are owned and controlled by the government or local . E.g. Leisure centres arts centres and museums.
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Private sector organisations are owned privately not by the government, and the aim is to make profit. These include theme parks, cinemas and health and fitness clubs.
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Voluntary sector organisations are managed and operated by volunteers. They are regularly non-profit making or charitable. Examples of facilities include local sports clubs, youth clubs and associations and conversation groups.
Public sector
Public sector services are provided for the public and paid by the government. The public sector regards the provision of leisure services as a communal service to the community rather than as a profit-making project. Public sector provision can be at one of two levels: national government or local government. The concluding includes county councils, metropolitan councils, unitary authorities and district councils.
National government has always been the direct provider of leisure facilities in the UK. Its main task is to make the laws which govern their provision and provide assistance to a wide range of organisations representing the leisure and recreation industry. The government has four main functions:
- Planning and control
- Marketing
- Financial provision
- Co-ordination
The majority of these functions above are carried out through the Department of Culture, Media and Sport (DCMS). The DCMS is the central UK government department responsible for government policy on:
- the arts
- the national lottery
- libraries, museums and galleries
- tourism
- the royal estates, parks and places
- sports and recreation
- broadcasting and film
- The built heritage.
Estimated departmental spending in 1999/2000 (excluding National Lottery grants) was £989 million. The main beneficiaries of this expenditure are shown below.
Expenditure by the Department of culture, Media and Sport (£ millions)
Sports councils play an important role in the development of sport and physical recreation. Government responsibilities in sport and recreation are largely channelled through five sport councils:
- The UK sports council, operating as UK sport
- The English sports council, operating as sport England
- The sports council of Wales
- The Scottish sports council, operating as spot Scotland
- The sports council for Northern Ireland
All the sports councils distribute government and lottery funds. UK sports focuses on selected athletes, where as the home country sports councils are more concerned with the development of sport at community level. This involves promoting participation by all sections of the community, giving support and guidance to facility providers, supporting the development of talented sportsman and women, including people with disability.
Private sector
The private sector is made up of a mixture of commercial operators owned by individuals or companies, whose main aim is to make profit from the services and products which they make available for there customers. The main activities of the private sector in the leisure and recreation industry take place in:
- retail sales
- catering and accommodation
- entertainment
- home-based leisure
- health and fitness
Many private sector leisure organisations such as Rank, Ladbroke and Virgin are household names and make a key contribution to the wealth of the UK.
Leisure and recreation facilities provided by private sector organisations usually include golf courses, theme parks, health and fitness clubs, nightclubs, restaurants and pubs. In general, private sector companies are unlikely to get involved in the non-profit making areas of the leisure and recreation industry.
Voluntary sector
There are many thousands of voluntary organisations across the UK, ranging from national bodies to small local groups. It’s estimated that there are more than 200 national voluntary leisure groups, with a combined membership of over 8 million people. These include:
- youth and community groups
- sports clubs and associations
- conservation and heritage groups
- touring groups
- social clubs
- arts associations
There are thousands of small local clubs and other groups that can be found within the UK, this means that the voluntary sector is a major provider of leisure opportunities. Many volunteers are involved in work that improves their local community.
Most amateur sport in the UK, for example, is managed by local voluntary clubs and associations which are supported by their members, local businesses and members of the community.
One of the most important features of the voluntary sector organisations is their ability to influence decision-makers. Larger organisations, such as the National Trust, the central council for physical Recreation (CCPR) and the ramblers Association are able to influence, pressurise and lobby national and local government. E.g., the CCPR has been involved in a long-standing campaign to prevent the sale of school playing fields.
The voluntary sector is funded in many different ways. Large organisations like the National Trust, for example, may operate along similar lines to private sector organisations and run commercial operations but, like all voluntary sector organisations, it also relies on a range of other funding sources, including:
- subscriptions from members, donations, gifts and legacies
- grants from central and local government
- sponsorship and fundraising events
- earnings from commercial activities and investments
If a voluntary sector organisation makes profit from its activities it will either return it to its members in the form of lower prices, or re-incest to improve the service it offers them.
Many voluntary organisations have charitable status. This gives them some financial advantages which may include rate and VAT relief, and relief from income tax on investments, and bank deposits.
Voluntary sector organisations which are registered as charities must satisfy certain conditions. Their objectives must be charitable, non-profit making, and for the advancement of education or for other purposes beneficial to the community.
Here are 3 case studies for each sector;
Public Sector
English Heritage
English heritage is the national body created by parliament in 1984 charged with the prosecution of historic environment and with promoting understanding the enjoyment of it. English Heritage is the government’s official adviser in England on all matters concerning heritage conservation. This includes buildings, monuments, gardens, archaeological remains and even landscapes.
English Heritage’s principle aims are to:
- secure the conversation of England’s historic sites, monuments, buildings and areas;
- promote people’s access to, and enjoyment of, this shared heritage;
- raise the understanding and awareness of the heritage and thereby increase commitment to its protection
English Heritage is financed by the DCMS and also raises money through its making activities. In 1998-9 its received £103.9 million in grant aid from the government. It raised a further £28.3 million from a range of sources, as shown below.
Breakdown of non-government grant aid income 1998-9 (£ m)
Source: www.english–heritage.org.uk
Private sector
Whitbread plc
For many years, Whitbread has been the standard of which other private sector leisure businesses in the UK aspire and it continues to lead the way in terms of its financial performance, new product and site development and the areas in which it has targeted its investment. In 1999, the company made an operating profit of £418 million, a rise of 3% on the previous year. Its main leisure divisions and their contribution to the company’s profits in 1999 are shown in table below
Divisional analysis of Whitbread plc, by operating profit, * 1999
* Includes profit from joint ventures and associates
The table below shows the major branded leisure businesses of Whitbread. In total, there are around 1,600 managed pubs within the Inns division, about 700 of which are unbranded community local pubs. In addition, it has some 1,730 tenanted/leased pubs within its Pub Partnership division.
Major UK leisure businesses of Whitbread plc, July 1999
* 50/50 joint venture with Tricon
** plus 113 delivery units
Voluntary sector
The National Trust
The national trust for places of Historic Interest or Natural Beauty is a charity which holds countryside and buildings in England, Wales and Northern Ireland for the benefit of everyone.
The Trust is independent of government: it depends on the generosity of those who give it properties and the money to maintain them, on more than 2.5 million subscribing members and on its friends and supporters everywhere. The Trust accepts grants from statutory bodies in the same way that other owners of historic properties and other charities may accept them when eligible. It is ‘national’ in the sense that it works on behalf of the nation.
The Trust employs around 3,000 salaried staff, and over 4,000 seasonal staff, and relies on the support of over 38,000 volunteers.
The National Trust income and other receipts 1996-7
Total income: £166.2 million March 1996-Feruary 1997
Source: www.nationaltrust.org.uk
Today the Trust is the country’s largest private landowner. It protects and opens to the public 165 historic houses, 19 castles, 49 industrial monuments and mills, 48 churches and chapels, 9 prehistoric and roman properties, 12 farms, 165 gardens and 76 landscape/ deer parks. It also protects some 271,000 hectares of countryside and 575 miles of coastline.
National trust members are admitted free on production of their membership cards to properties which the public pays to visit (although they can be changed for special events and for additional attractions which are not an integral part of a property).
