Industry Analysis & Industry Trends
The Social Clubs industry has been going through some turbulent times. Before 2008-09, a steady increase in gaming machine numbers and lax smoking laws aided industry prosperity. However, the introduction of caps on the total number of gaming machines allowed in each club by various state governments, and the impact of the global financial crisis, hurt the industry. For an industry that now derives close to 60% of its revenue from gambling, these have been unwelcome developments. Furthermore, the effect of smoking bans introduced in the early 2000s has constrained industry revenue. Industry revenue derived from non-gambling activities is expected to remain mostly flat over the five years through 2013-14... purchase to read more
Industry Report - Industry Investment Chapter
The labour intensity of the industry is determined by the ratio of labour to capital. To calculate this ratio, wage and depreciation costs are used as proxies. The industry has a medium level of capital intensity, due to ownership of buildings and the capital intensive nature of gaming machines. The labour-to-capital ratio of the industry means that for every dollar paid as wages, a further $0.21 is required as capital investment.
The industry, like all in the hospitality sector, is labour intensive in all areas of operation. Many businesses have extended hours of operation, including some that operate 24 hours a day, seven days a week... purchase to read more