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Leisure and Tourism Industry

The leisure and tourism sector is complex and highly segmented and ranges from home pastimes such as reading, gaming, viewing films and gardening to going out to a restaurant, sporting activity as well as visiting tourist attractions. Consumer spending in the leisure market (excluding tourism) accounts for 25% of all consumer spending and as such is a vital sector of the UK economy.

Some aspects of the market are particularly complex with businesses having a number of revenue streams. For example, a sporting venue will receive revenues from ticket sales, sponsorship, corporate hospitality, catering, as well as merchandising, which makes marketing and promoting the venue more challenging.

We have an excellent understanding of the issues facing the leisure and tourism industry after working with some of the industry’s well known names such as Jockey Club Racecourses and Tourism South East.

Drivers for change in the sector include:

• Leisure time will continue to be important to consumers who generally live in a time-poor society.
• Technological advancements will entice consumers to trade up in terms of personal electronics and games as well as expand the use of digital media such as ‘e-books’.
• Current social trends are for people to stay at home more therefore options in home leisure will become more important.
• People are tending to take part in more ’bite sized’ activities (e.g. swift work out, snack meal, low maintenance garden etc).
• There is a shift from recreational sport to ‘keeping fit’ – this is supported by the Government’s agenda to raise the health of the nation.
• Changing demographics and an ageing population will provide opportunities for leisure activities aimed at older people. For example, gardening appeals more to mature adults than it does to young adults.
• Meeting the challenges such as lower consumer spending and corporate sponsorship due to the economic slowdown.