Leisure Industry Forum: Leisure for Profit

• Published in: Institutional Investor Vol. 24; no. 16; p. SS3
• Main Authors: Kelly, John R, Dychtwald, Ken, Doyle, Thomas B, Ellis, Eve, Dye, Robert A, Daniele, Daniel W
• Format: Trade Publication Article
• Language: English
• Published: New York Euromoney Institutional Investor PLC 01.12.1990
• Subjects: Growth industries; Hotels & motels; International; Leisure; Older people; Physical fitness; Recreation; Statistical data; Trends; US
• ISSN: 0020-3580

Leisure is now a major business segment, estimated to generate in excess of $350 billion annually in revenues. This figure does not include the portion of automobiles, residential space, finance, advertising media, food and drink, and clothing that is allocated to leisure-oriented activities. In global terms, leisure labeled as tourism is also a multibillion-dollar industry. Although the opportunities for investment promise both growth and diversification, there are also dangers. For example, the leisure-based markets are very segmented. Furthermore, these markets differ from those for necessary products in that they are based on participation. A good leisure opportunity can be identified using 4 particular concepts: 1. the activity life cycle, 2. market saturation, 3. target markets, and 4. core and peripheral markets. A number of social changes will affect leisure markets and investment opportunities. In a recession, for instance, markets become segmented as consumers become more selective. The aging population will have an effect on the industry as well.