Leisure Industry

Market intelligence provider Key Note valued the market for leisure activities outside the home at £60.4bn in 2009, representing just 7% of total consumer spending. In Leisure Outside the Home, its new Market Review, Key Note's consumer research* provides clear evidence that the recession has had an impact on leisure activities outside the home, with trips involving significant spending, such as eating out or going to the cinema, down in terms of percentage penetration.

These deteriorations are in contrast with previous increases in penetration observed between 2006 and 2008. For example, the penetration of people eating out increased from 50.4% to 53.3% over the period from 2006 to 2008, while the proportion of people going to the cinema rose from 23.5% to 34.8%. Another indication of the recession's impact is that activities which cost very little, such as visiting friends or relatives (VFR), countryside walks and outdoor pursuits, either remained stable or increased between 2008 and 2010. Even in the era of the social-networker and web surfer, 81.2% of adults found time, at least once a week, for VFR, underlining the continuing importance of social leisure.

The popularity of this type of leisure also helps to explain the modern consumer's concern for maintaining a home which is suitable for entertaining guests. Shopping and/or window shopping is well established as a leisure pursuit, but penetration perhaps unsurprisingly dropped slightly to 58.2% in the 2010 survey, probably owing to consumers avoiding the temptation of shopping for items that were not considered essential during the economic crisis. A walk in the country or walking the dog offered a suitable, cost-free alternative for getting out of the house during the recession, with penetration up from 51% in 2008 to 54.9% in 2010. E

ating out was still enjoyed once a week by nearly half the population (45.6%) in 2010, despite the after-effects of the recession. The most significant trend seen in eating out as a leisure activity was that it overtook 'drinking out', which dipped quite severely to 35.4%, having been recorded at 42.5% in 2006. The proliferation of restaurants of all types, as well as the tendency of publicans to turn their saloon bars into restaurant areas, reflects this finding. http://www.keynote.co.uk/media-centre/in-the-news/display/recession-alters-consumers-choice-of-leisure-activities/?articleId=513

Employee rates

The leisure industry employs more than 3m people or 13.5 per cent of all UK employees. It is therefore a major part of the UK economy and has many branches. Some of these are large enough to be described as industries in their own right. A wide range of jobs is available at all levels for school and college leavers.

http://www.guidance-research.org/future-trends/sport/printAll?lang=en In the UK, there are 576,000 people in paid employment in the sector, accounting for almost 2% of the UK workforce. England – 479,900 people, accounting for 83% of UK sector employment Wales – 27,000, accounting for 5%

Scotland – 52,800, accounting for 9% Northern Ireland – 16,300, accounting for 3% In addition, there are over 5 million volunteers in the sector across the UK and much of the sector would find it difficult to operate without the help of unpaid staff. An estimated further 1.3 million volunteers are needed.

There are 230,708 organisations throughout the UK in public, private and voluntary sectors. 82% of the workforce are employed in small and micro businesses. In England, the sector has an estimated gross value added (GVA) output of £7.2 billion, 61% of which was produced by the sport and recreation industry. The outdoors was the smallest industry creating £365 million of output.

Overall the Active Leisure and Learning sector accounts for 0.9% of total output in England. 89% of the workforce in England are employees and 11% self-employed, which is similar to the English workforce as a whole with 13% self-employed. However, this can vary by industry. For example the caravan industry has 16% self-employment.

The sector overall does have a significantly higher proportion of part-time workers – 52% compared to 26% across England as a whole. Over the next 10 years, it is predicted that the sector will grow faster than the economy as a whole. It is forecast that by 2014, employment levels in England will have increased by 100,000, an increase of 21%. The sector will also have to recruit 85,000 annually to cope with replacement demand.

Employment across the North West by industry and sub-region, 2004

Sport and recreation

• The sport and recreation industry as a whole employs around 621,000 people. This is spread across the public, private and voluntary sectors. (SkillsActive, 2009) • There are a huge number of volunteers working in sport and recreation. The latest Active People survey estimates that two million people in the UK commit at least one hour a week to volunteering in sport. Betting and gambling

• There are currently just over 140 casinos, employing 14,000 people in the UK. There are 17,000 employees in the bingo club industry and 57,000 in the betting industry. • The Gambling Act 2005 permitted online casinos to operate from the UK and consequently there are now over 320 online operators of betting and gambling sites employing almost 8,000 people. (The Gambling Commission Annual Report 2008/2009). Health and fitness

• There are 3,000 private health clubs and over 2,500 leisure centres in the UK, which together employ over 45,000 staff. An additional 800 clubs are expected to open over the next few years in this growth industry (Skills Active, 2009).

In 2009, the UK theme parks market grew by 2.4% to £315 million with admissions growing by more than 3% to almost 14 million.

Average spend per head has also increased by almost 13% over the past five years.

[pic] Selected activities performed in free time, by sex, 2006/07, England

[pic] Participation in organisations, clubs or societies for people aged 50 and over by sex, England, 2006 [pic] Selected sports, games and physical activities among adults, by sex, 2006/07, England

[pic] Participation in leisure activity at least once a year by age, England, 2006 [pic]2005 [pic]2005

Kids' Leisure Timeshare [pic] Source: The NPD Group/Kids' Leisure Time II 2005

http://www.npdinsights.com/archives/march2007/cover.story.html