Spoilsport: Strong competition from gyms and fitness centres has constrained revenue

The Sports and Recreation Facilities Operation industry has slightly declined over the past five years, due to strong competition from alternative forms of exercise like gyms, fitness centres, running and cycling. However, government grants and contributions have helped curb the decline in industry revenue. These grants generally go towards constructing or redeveloping stadiums. For example, the Victorian government helped fund the construction of the National Tennis Centre, which opened in 2013. Several new facilities have also been constructed for the Gold Coast 2018 Commonwealth Games, including the Anna Meares Velodrome and the Queensland State Netball Centre, while Perth Stadium was completed in December 2017. Industry revenue is expected to rise by 4.8%...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
-0.9%
Forecast Growth 18-23
x.x%lock
Profit
x.x%lock
Employment
14,694
Businesses
1,495
Market Share of Companies

Industry Threats & Opportunities

  • Government grants and contributions are a key source of revenue for industry operators
  • Industry players have been hosting alternative events to drive further revenue growth
  • Increasing industry saturation is projected to limit new entrants and lead to several exits

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    Industry Report - Industry Key Buyers Chapter

    The Sports and Recreation Facilities Operation industry displays a low market share concentration. In 2017-18, the industry’s four largest players are estimated to account for under 40.0% of total revenue. The industry comprises a small number of large players and a significant number of very small enterprises. The Melbourne Cricket Club, the industry’s largest player, is expected to hold market share of 11.0% in 2017-18. Large players include owners of professional sports stadiums and popular tenpin bowling franchises, while smaller players include operators of local tennis courts, swimming pools and bowling greens. Investment in facilities such as Melbourne Park and the Sydney Cricket Ground typically outweighs investment into small-scale facilities. Ove...purchase to read more.

    Additional Insights for the Sports and Recreation Facilities Operation Industry

    IBISWorld has determined the most important Key Success Factors for the Sports and Recreation Facilities Operation are:

  • Carrying out all necessary maintenance to keep facilities in good condition
  • Having a high profile in the market
  • Easy access for clients

    • IBISWorld analysts also discuss how external factors such as Expenditure on recreation and culture and Spectator sport participation in the Sports and Recreation Facilities Operation industry impact industry performance..

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    Industry Products

    What is the Sports and Recreation Facilities Operation Industry?

    Industry firms primarily operate indoor or outdoor sports and physical recreation venues, grounds and facilities. The industry does not include health centres, fitness centres or gyms.

    Industry Products
  • Oval ground operation
  • Tennis court operation
  • Rectangular field operation
  • Golf course operation
  • Indoor facility operation
  • Other facility operation
    • Industry Activities
  • Athletic field, football field, cricket ground and stadium operation
  • Basketball and netball court and arena operation
  • Bowling alley operation
  • Bowling green operation
  • Golf course and practice range operation
  • Ice-skating and rollerskating rink operation
  • Motor racing track and speedway operation
  • Squash court operation
  • Swimming pool operation
  • Tennis court operation
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Expenditure on recreation and culture
  • Spectator sport participation
  • Sport participation
  • Capital expenditure by state and local government

    • Current Performance
  • Revenue and profitability
  • Infrastructure investment
  • Major events
  • Other events
  • Chart: Revenue Growth

    • Industry Outlook
  • Revenue and profitability
  • Growth opportunities
  • Continued diversification
  • Table: Sports and Recreation Facilities Operation Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sports and Recreation Facilities Operation Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Sports Administrative Services
  • Sports and Physical Recreation Clubs

    • Key Selling Industries
  • Event Promotion and Management Services
  • Garden Supplies Retailing
  • Toy and Sporting Goods Wholesaling

    • Products & Services
  • Oval ground operation
  • Rectangular field operation
  • Golf course operation
  • Indoor facility operation
  • Tennis court operation
  • Other facility operation
  • Chart: Sports and Recreation Facilities Operation Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Sport spectators
  • Sport participants
  • Members
  • Other event spectators
  • Chart: Major Market Segmentation for the Sports and Recreation Facilities Operation Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Sports and Recreation Facilities Operation

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sports and Recreation Facilities Operation Industry

    • Industry Globalization

    Major Companies

    Melbourne Cricket Club, Bowling Centres Australia Pty Limited, Stadiums Queensland, Sydney Olympic Park Authority, Melbourne and Olympic Parks Trust, Sydney Cricket & Sports Ground Trust,
  • Table: Melbourne Cricket Club - financial performance
  • Table: Bowling Centres Australia Pty Limited - financial performance
  • Table: Stadiums Queensland - financial performance
  • Table: Sydney Olympic Park Authority - financial performance
  • Table: Melbourne and Olympic Parks Trust - financial performance
  • Table: Sydney Cricket & Sports Ground Trust - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Sports and Recreation Facilities Operation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Sports and Recreation Facilities Operation Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Asian Football Confederation (Afc)
  • The governing body of Asian football.
    • Australian Football League (Afl)
  • The official rule-making body and professional administrative body for Australian Rules football.
    • International Cricket Council (Icc)
  • The international governing body for cricket.
    • National Rugby League (Nrl)
  • Professional Rugby League teams participate in this competition.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Sports and Recreation Facilities Operation market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Sports and Recreation Facilities Operation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sports and Recreation Facilities Operation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sports and Recreation Facilities Operation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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