Business opportunities in the leisure goods and activities industry Essay - 1

Business opportunities in the leisure goods and activities industry - Essay Example Even in the leisure industry, there are two types of recreation: firstly, when an individual participates in a physical activity such as playing football, cricket, hockey, tennis, squash, playing some music through piano, flute etc., doing some sort of gardening or acting. The other type of recreation is where the individual is not physically involved. Rather, it is the mental activity such as watching television, playing games on computer, listening to music, attending concerts, or going to a restaurant. The first type of recreation is very rewarding and motivating. On the other hand, the latter makes people feel good and relaxed. Huge amounts of income are being spent on activities such as eating, drinking, and watching movies in cinema. FACTORS AFFECTING LEISURE INDUSTRY Leisure goods and activities industry is no doubt expanding but, these sectors are greatly influences by the recessionary pressures. The most common factor that affects this sector is the disposable income. Althou gh, everyone pays attention to this sector but the expenditure is highest in those regions where consumers have plenty of time and money. For example, the UK boating industry acts as an area of strength for the UK manufacturing sector. The leisure boating sector is becoming around ?2 billion turnover industry. The industry which makes the greatest turnover and also generates job opportunities is the strength of a country. The growth of this industry has also increased the tourism activity in UK. Tourism activity is interrelated with other businesses, government and also the local residents. Tourism industry attracts a lot of labor and generates high income. Therefore, spending in the tourism industry benefits the economy on the whole. It also buys goods and services from others businesses and pays out salaries to the employees. This further buying of goods and services is known as the secondary sales and creates a secondary economic effect. It creates additional income and job oppor tunities in those sectors which provide to the tourism industry. The tourism industry would generate business for the beverage industry, the snack industry, construction industry and the government also. In UK, the imports of sporting goods, musical instruments and toys were ?6.6 billion in 2005 where as the exports were ?803 million. TRENDS IN LEISURE INDUSTRY Sports goods form a large proportion of the leisure goods industry. Sports are a major part of the entertainment culture. It is not linked to one industry, rather, a range of different industries are involved. Throughout the world, sports form a major part of the sales and purchases of a country. Taking an example of New Zealand, the gross output of sports sector increased by 2.5% per annum from 1996 to 1999, and it became the largest contributor of the sports clothing manufacturer. Real value added was up by 0.4% p.a. of the physical leisure industry. Nominal household expenditure increased by 16.6% p.a. over the period of 1 996-1999 in the coaching services and clubs sector (Goodchild et al. 2000). There is an increasing trend of leisure and entertainment as the technology has improved. Even though the leisure goods industry has been increasing but in 2011, the toys industry of the U.S. market has declined. The major manufacturers of the toys are the Chinese industry where inflation has hit very strongly. This inflation has