Leisure Centres and Swimming Pools - UK - April 2008

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• Market may have reached plateau
• Twin pressures
• Energy becoming major cost pressure
• Collapsing infrastructure
• Olympics cause mixed response
• Economy looks shaky
• Positive trends abound
• Consumer trends
• Internal Market Environment
• Key points
• Energy costs still rising but worst is over
  • Figure 1: UK fuel price index (real prices) for the industrial sector, 1980-2006
• VAT problems arise
• Trend towards health and fitness
  • Figure 2: Agreement with selected lifestyle statements, 2003-07
• Participation on the rise
  • Figure 3: Sports/activities played or taken part in regularly, 2003-07
• PPPs key for leisure centres...
• ...but PFIs drying up?
  • Figure 4: PFI equity holders and projects, November 2007
• BSF offers hope
  • Figure 5: BSF funding first three years, 2005-08
• Competing with the private sector
• Lottery funding
  • Figure 6: Lottery funding for sport since 1995, March 2008
• Olympics take priority
  • Figure 7: Sources of funding for London 2012 Olympics, March 2008
• Ageing stock of buildings
  • Figure 8: Leisure centre provision and population growth, October 2001-March 2007
• The 2012 London Olympics
• Broader Market Environment
• Key points
• Long-term economic growth falters
  • Figure 9: Trends in personal disposable income and consumer expenditure, 2003-13
• Demographic trends present a mixed outlook
  • Figure 10: Trends in the age structure of the UK population, by gender, 2003-13
• Getting C2DEs active could be the key
  • Figure 11: Forecast adult population trends, by socio-economic group, 2003-13
• Obesity levels growing
  • Figure 12: Trends in Body Mass Index of adults in England by gender, 2003-06
• Government takes the lead
• A depressing statistic?
• Competitive Context
• Key points
• The battle with the private sector
• Crucial critical mass
• Financial advantages
• Perceptions still a problem
• Competition for the leisure pound
  • Figure 13: Consumer expenditure on selected leisure goods and activities, 2002-07
• Health and fitness memberships low on the list of priorities
  • Figure 14: Expenditure priorities, 2007 and 2008
• Strengths and Weaknesses in the Market
• Strengths
• The 2012 Olympics
• The anti-obesity drive
• Ancillary revenues on the rise
• Weaknesses
• Crumbling building stock
• Funding drying up
• Concerns over the economy
• Market Size and Forecast
• Key points
• A market that has reached maturity?
• Centre numbers in decline
  • Figure 15: UK local authority-owned leisure centres and swimming pools, by type of site, 2001-07
• Market growth cooling
  • Figure 16: UK market for leisure centres and swimming pools, 2003-13
• Back to form in 2009
• Olympic flame lighting the way to a bright future?
• Factors used in the forecast
• Segment Performance
• Key points
• Ancillary offerings continue to improve
  • Figure 17: UK market for leisure centres and swimming pools by broad revenue source, 2003-08
• Participation trends look positive, but rising costs take their toll
• Health and beauty treatments and café culture driving ancillary revenues
• Market Share
• Key points
• Trust-managed centres becoming more common
  • Figure 18: Management of public sports centres, by type of management, 2006-07
• DCL still the leading private operator
  • Figure 19: Market share of leading private operators of local authority leisure centres and swimming pools, 2007
• Companies and Products
• Private operators
• DC Leisure
  • Figure 20: Key financial data for DCL (Holdings) Ltd, 2006/07
• PFI expansion
  • Figure 21: DC Leisure, clients and sites, 2007
• Serco Leisure
  • Figure 22: Serco Leisure Ltd, clients and site numbers, 2007
• Parkwood Leisure
• Organic growth in 2007
  • Figure 23: Parkwood Leisure Ltd, leisure centre and swimming pool clients and site numbers, July 2007
• Leisure Connection
  • Figure 24: Key financial data for Leisure Connection, 2007
• Long-term PFI contracts form the base
  • Figure 25: Leisure Connection, clients and sites, 2007
• Sports and Leisure Management Ltd
  • Figure 26: Sports and Leisure Management Ltd, clients and site numbers, 2007
• Cannons Leisure Management
  • Figure 27: Cannons Health and Fitness, clients and site numbers, 2007
• Non Profit Distributing Organisations (NPDOs)
• Greenwich Leisure Ltd
  • Figure 28: Greenwich Leisure Ltd, clients and site numbers, 2007
• Edinburgh Leisure Ltd
• Aquaterra Leisure
  • Figure 29: Key financial data for Aquaterra to 31st March 2006
  • Figure 30: Aquaterra Leisure, clients and site numbers, 2007
• Wycombe Leisure Ltd
  • Figure 31: Wycombe Leisure, clients and site numbers, 2007
• Consumer Usage of Public Leisure Centres and Swimming Pools
• Key points
• Drifting away?
  • Figure 32: Use of public leisure centres, January 2008
• Polarity of threats
• Competition from the private sector
• Competition from apathy
• The Users and the Drifters
• Key points
• Regular users
  • Figure 33: Weekly use of public leisure centres, by selected demographic sub-group, January 2008
• Infrequent users
  • Figure 34: Users of lesiure centres on a basis of less than once a month in the last 2 months, by selected demographic sub-group, January 2008
• Increasing family usage
• Non-users and lapsed users
• Non-users
  • Figure 35: Non-users of public leisure centres, by selected demographic sub-group, January 2008
• Lapsed users
  • Figure 36: Lapsed users of public leisure centres, by selected demographic sub-group, January 2008
• Older generation rekindling their interest?
  • Figure 37: Those who do some form of sport or exercise at least once a week, by age, 2002 and 2007
• Assessing Consumer Attitudes Towards Public Leisure Centres and Swimming Pools
• Key points
• Staying afloat
  • Figure 38: Attitudes towards public leisure centres, January 2008
• All about the swimming
• Pay as you go
• Low level criticism
• Overcrowded and underpaid
• Poaching the weekly user
• Absence and apathy
• Leisure Centre Targeting Opportunities
• Key points
• Quality Seekers (10% of sample or five million adults aged 16+)
• Who are they?
• Swim-as-you-go (31% of sample or 15.5 million adults aged 16+)
• Who are they?
• Publicly Disgruntled (11% of sample or 5.5 million adults aged 16+)
• Who are they?
• Going Loco (8% of sample or four million adults aged 16+)
• Who are they?
• Apathetic (40% of sample or 20 million adults aged 16+)
• Who are they?
• Appendix -- Consumer Usage of Public Leisure Centres and Swimming Pools
  • Figure 41: Leisure centre usage, February 2006
• Appendix -- The Users and the Drifters
  • Figure 42: Use of public leisure centres, by demographic sub-group, January 2008
• Appendix -- Assessing Consumer Attitudes Towards Public Leisure Centres and Swimming Pools
• Consumer attitudes -- detailed demographics
  • Figure 43: Most popular attitudes towards public leisure centres, by demographic sub-group, January 2008
  • Figure 44: Next most popular attitudes towards public leisure centres, by demographic sub-group, January 2008
• Attitudes to leisure centres, by use of leisure centres
  • Figure 45: Attitudes towards public leisure centres, by use of public leisure centres, January 2008
• Attitudes to leisure centres, by other attitudes
  • Figure 46: Attitudes towards public leisure centres, by most popular other attitudes towards public leisure centres, January 2008
  • Figure 47: Attitudes towards public leisure centres, bynext most popular other attitudes towards public leisure centres, January 2008
• Appendix -- Leisure Centre Targeting Opportunities
• Target groups -- detailed demographics
  • Figure 54: Leisure centre target groups, by demogrpahic sub-group, January 2008
• Usage, by target groups
  • Figure 55: Use of public leisure centres, by leisure centre target groups, January 2008
• Factors that would improve the appeal of leisure centres, by target groups
  • Figure 56: Things that would improve the appeal of public leisure centres, by leisure centre target groups, January 2008