Leisure Centres and Swimming Pools - UK - July 2011

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: UK market for leisure centres and swimming pools, 2006-16
Market factors
Utility headaches
Sports participation higher but dropped off in 2010
Figure 2: Trends in agreement with the statement ‘I do some form of sport or exercise at least once a week’, 2006-10
Investment in public health continues despite cuts
Demographic trends positive but economy still a concern
Companies, brands and innovation
Figure 3: Trends in percentage of total leisure centres and swimming pools operated, by type of operator, 2007-11
Figure 4: Leading management contractor and trust/NPDO operators of leisure centres and swimming pools, by number of sites, July 2011
The consumer
Figure 5: Current usage of public swimming pool and leisure centre complexes, April 2011
Figure 6: Incentives to use public leisure centres/swimming pools, April 2011
What we think
ISSUES IN THE MARKET
How can leisure centres and swimming pools respond to the threat posed by budget gyms?
What specific consumer types can leisure centres and swimming pools target for growth?
What can leisure centres and swimming pools do differently to attract more users?
Are there opportunities for trusts and management contractors to diversify?
FUTURE OPPORTUNITIES
Trend: Prepare for the Worst
Trend: Creative Class
INTERNAL MARKET ENVIRONMENT
Key points
Utility headaches continue
Figure 7: Price of fuels purchased by non-domestic consumers in the United Kingdom (excluding the Climate Change Levy), 2006-10
CRC scheme also creates uncertainty
More than half of adults are active
Figure 8: Trends in agreement with selected lifestyle statements, 2006-10
Sports participation levels dip in 2010
Figure 9: Trends in sports/activities played or taken part in regularly, 2006-10
End of the PFI era…
… and free swimming
Operators and governing body try to take up the slack
Joining up the dots of health strategy
Sunbed regulations tightened up
Outdoor gyms increase coverage
BROADER MARKET ENVIRONMENT
Key points
Tough times in prospect but long-term outlook is better
Figure 10: GDP, PDI, consumer expenditure and savings, at constant 2011 prices, 2006-16
Double-dip avoided but credit crunch 2.0 in prospect?
Figure 11: GDP quarterly percentage change, Q1 2006-Q1 2011
Consumers still nervous
Figure 12: Trends in consumer confidence, January 2008-June 2011
Significant user group set to increase in number
Figure 13: Trends in the age structure of the UK population, 2006-16
AB growth positive for industry
Figure 14: Forecast adult population trends, by socio-economic group, 2006-16
Retired growth unlikely to boost market dramatically
Figure 15: Forecast adult population trends, by lifestage, 2006-16
National Minimum Wage increases pressure on overheads
Figure 16: National Minimum Wage hourly rates, UK, 1999-2011
Online opportunities
Figure 17: Trends in broadband penetration, 2006-10
Digital device ownership creates other opportunities
Figure 18: Electronic devices have at home, April 2009-December 2010
Prevalence of obesity falls
Figure 19: Body mass index (BMI), by survey year and gender, 2004-09
COMPETITIVE CONTEXT
Key points
Activities offering escapism top leisure growth league
Figure 20: Value of the UK leisure business, by segment, at current prices, 2005-10
WHO’S INNOVATING?
Key points
SPORTA members plan national gym chain
Swimming for fitness
Catch ’em young
Tapping into dance popularity
Taking exercise to the people
MARKET SIZE AND FORECAST
Key points
Site numbers recover
Figure 21: Trends in the number of leisure centres and swimming pools in the UK, 2006-11
Admissions growth slightly ahead of revenue
Figure 22: UK market for leisure centres and swimming pools, 2006-16
Forecast
Market volume
Figure 23: Leisure centres and swimming pools market size forecast (volume - admissions), 2006-16
Market value
Figure 24: Leisure centres and swimming pools market size forecast (value), 2006-16
SEGMENT PERFORMANCE
Key points
Majority of centres have no pool
Figure 25: Trends in numbers of leisure centres and swimming pools in the UK, by type, 2009-11
Sport accounts for nearly all of revenues
Figure 26: Estimated revenue breakdown* of leisure centres and swimming pools, 2010
Swimming revenues tread water
Dry-side tuition takes a hit
Health and fitness steps up a gear
Ancillary spend stays flat
MARKET SHARE
Key points
Trusts biggest beneficiaries of move away from in-house provision
Figure 27: Leisure centres and swimming pools, by type of operator, 2007-11
Parkwood closes in on contractor market leadership
Figure 28: Leading management contractor operators of leisure centres and swimming pools, by number of sites, July 2011
Figure 29: Leading management contractor operators of leisure centres and swimming pools, by turnover, July 2011
Greenwich Leisure dominates trust sector
Figure 30: Leading trust/NPDO operators of leisure centres and swimming pools by number of sites, July 2011
COMPANIES AND PRODUCTS
Key points
 MANAGEMENT CONTRACTORS
DCL (Holdings) Ltd
Figure 31: DC Leisure Management, clients and sites, July 2011
Figure 32: DCL Holdings Ltd, key financial data, 2009-10
Parkwood Leisure
Figure 33: Parkwood Leisure contracts won between 2010 and May 2011
Figure 34: Parkwood Leisure contract extensions, 2010
Figure 35: Parkwood Leisure, clients and sites, May 2011
Figure 36: Parkwood Leisure Ltd, key financial data, 2009-10
Sports and Leisure Management Limited (SLM)
Figure 37: SLM investment plans for 2011
Figure 38: Sports and leisure management, clients and sites, May 2011
Figure 39: Sports and Leisure Management Ltd, key financial data, 2009-10
Figure 40: Sports and Leisure Management Ltd, breakdown of total revenue, 2009-10
Serco Leisure
Figure 41: Serco Leisure operating ltd, clients and sites, May 2011
Figure 42: Serco Leisure Ltd, key financial data, 2008-09
Leisure Connection
Figure 43: Leisure Connection Ltd, clients and sites, May 2011
Figure 44: Leisure Connection Ltd, key financial data, 2009-10
 TRUSTS AND NPDOS
Greenwich Leisure Ltd (including Nexus Community Leisure and Nuffield Health)
Figure 45: List of sites transferred to GLL
Figure 46: Greenwich Leisure Ltd clients and sites, May 2011
Edinburgh Leisure Ltd
Figure 47: Edinburgh leisure, clients and site numbers, May 2011
Figure 48: Financial highlights, Edinburgh Leisure, 2009-10
Aquaterra Leisure
Figure 49: Aquaterra Leisure, clients and sites, May 2011
Figure 50: Aquaterra Leisure, key financial data, 2009-10
ATTITUDES TOWARDS EXERCISE AND HEALTHY EATING
Key points
More than a fifth of adults rarely or never exercise
Figure 51: Attitudes towards exercise and healthy eating, April 2011
Clear correlation between eating healthily and exercising
Figure 52: Attitudes towards exercise and healthy eating, by most popular attitudes towards exercise and healthy eating, April 2011
Figure 53: Attitudes towards exercise and healthy eating, by next most popular attitudes towards exercise and healthy eating, April 2011
CURRENT USAGE OF PUBLIC SWIMMING POOL AND LEISURE CENTRE COMPLEXES
Key points
Figure 54: Current usage of public swimming pool and leisure centre complexes, April 2011
Healthiest eaters and most active have less need to use
Figure 55: Current usage of public swimming pool and leisure centre complexes, by most popular attitudes towards exercise and healthy eating, April 2011
Figure 56: Current usage of public swimming pool and leisure centre complexes, by next most popular attitudes towards exercise and healthy eating, April 2011
WHAT ACTIVITIES DO PEOPLE DO?
Key points
Figure 57: Activities done at private health and fitness clubs and public leisure centres and swimming pools in past 12 months, by current usage of public swimming pool and leisure centre complexes, April 2011
INCENTIVES TO USE PUBLIC LEISURE CENTRES/SWIMMING POOLS
Key points
Lower prices biggest incentive
Figure 58: Incentives to use public leisure centres/swimming pools, April 2011
Company and flexible hours more important to lapsed users
Figure 59: Incentives to use public leisure centres/swimming pools, by current usage of public swimming pool and leisure centre complexes, April 2011
LEISURE CENTRES AND SWIMMING POOLS TARGET GROUPS
Key points
Figure 60: Leisure centres and swimming pools target groups, April 2011
Fit
Demographics
Marketing message
Healthy in Mind
Demographics
Marketing message
Inactive
Demographics
Marketing message
Fit most likely to be centre users and members
Figure 61: Current usage of public swimming pool and leisure centre complexes, by target groups, April 2011
APPENDIX – BROADER MARKET ENVIRONMENT
Figure 62: British internet penetration by gender, socio-economic group, age, region and working status, 2006-10
APPENDIX – MARKET SIZE FORECASTS
Figure 63: Leisure centres and swimming pools market size forecast scenarios (value), 2011-16
Figure 64: Leisure centres and swimming pools market size forecast scenarios (volume - admissions), 2011-16
APPENDIX – ATTITUDES TOWARDS EXERCISE AND HEALTHY EATING
Figure 65: Most popular attitudes towards exercise and healthy eating, by demographics, April 2011
Figure 66: Next most popular attitudes towards exercise and healthy eating, by demographics, April 2011
APPENDIX – CURRENT USAGE OF PUBLIC SWIMMING POOL AND LEISURE CENTRE COMPLEXES
Figure 67: Most popular current usage of public swimming pool and leisure centre complexes, by demographics, April 2011
Figure 68: Next most popular current usage of public swimming pool and leisure centre complexes, by demographics, April 2011
APPENDIX – WHAT ACTIVITIES DO PEOPLE DO?
Figure 69: Activities done at private health and fitness clubs and public leisure centres and swimming pools in past 12 months, by demographics, April 2011
APPENDIX – INCENTIVES TO USE PUBLIC LEISURE CENTRES/SWIMMING POOLS
Figure 70: Incentives to use public leisure centres/swimming pools, by demographics, April 2011
APPENDIX - LEISURE CENTRES AND SWIMMING POOLS TARGET GROUPS
Figure 71: Attitudes towards exercise and healthy eating, by target groups, April 2011
Figure 72: Target groups, by demographics, April 2011