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Philip ShepherdPartner – PwC
Market Overview
1: KEYNOTE: The Future
29 June 2016
UK Attractions Market Outlook
Strictly Private and Confidential29 June 2016
Deals Strategy
Draft
29 June 2016PwC
Strictly private and confidentialDraft
Tourism and Leisure spend fundamentals remain strong…
UK Attractions Market Outlook
2016e
36.7
Tourist arrivals to the UK(Overseas visitors in millions)
Source: Visit Britain, Mintel – Leisure Review 2015
2016e
Value of the UK leisure industry* (GBP in billions)
82.5
1.3%Contribution to GDP
3.3%Recent/projected CAGR 2.8%
4.6%
* Out-of-home leisure, excluding travel and tourism
Total spend £22.9bn
29 June 2016PwC
Strictly private and confidentialDraft
..and the Government has set ambitious tourism targets..
UK Attractions Market Outlook*Out-of-home leisure, excluding travel and tourism Source: Mintel – Leisure Review 2015
2020 Vision
40 million £31.5bnvisitors
per yearin annual receipts
How it will be achieved:
• Rapid hotel growth and development of new peer to peer accommodation
• Expanding transport infrastructure
• Core inbound source markets remaining robust (I.e. France, Germany, Ireland, US)
• Rapid development of emerging inbound markets (I.e. China, Middle East)
29 June 2016PwC
Strictly private and confidentialDraft
Visits to UK attractions are expected to grow c. 16% by 2020
UK Attractions Market Outlook
Total visits to UK attractions (2014)
British adults visiting at least one attraction in 2014
Total expected growth in visits to UK attractions 2015-2020
*Out-of-home leisure, excluding travel and tourismSource: Mintel – Leisure Review 2015
15.8%
297m
2/3
Total visits to English attractions (2014)
208m
29 June 2016PwC
Strictly private and confidentialDraft
Museums, galleries and historic sites account for over half of all visits to English attractions
UK Attractions Market Outlook
Visitor attractions in England by attraction type, 2014(Visits in millions)
2.1%2.2% 3.3% 2.2% 1.0% 3.4%CAGR 2010-14Source: Visitor Attraction Trends in England *Main constituents are gardens, visitor/heritage centres and steam/heritage railways
Museums & art galleries
67.6m49.2m
Historic properties Country
parks
18.8m16.9m
Wildlife attractions/zoos
15.3m
Leisure/theme parks
Other*
40.6m
Total visits = 208.4m
29 June 2016PwC
Strictly private and confidentialDraft
The North has performed well in terms of visitor admissions
UK Attractions Market OutlookSource: Visit England
2
6
2
10
5
3
2
7
6
West Mids
South West
East Mids
London
North East
South East
Yorks/Humber
North West
East
All attractions average
Visitor admission trend 2014 – by region(Percentage increase on previous year)
Change in 2014 visitor admissions by visitor category
+8%
Overseas visitors
Local/ day trippers
+4%
29 June 2016PwC
Strictly private and confidentialDraft
There are big plans to improve the capacity and connectivity of Northern cities via…
UK Attractions Market OutlookSource: Civil Aviation Authority, Manchester Airport website
MANCHESTER INTERNATIONAL AIRPORT
18.6m 22.3m
2014 2009
…Expansion of Northern Airports
£1bn
Manchester Airport Regeneration
…Enhancement of Connectivity
TransNorth & HS2
Large-scale rail infrastructure projects
17.8%
Carries over 60% of all passengers in the North
Fastest growing of the top 10 airports in the
country by size
Passengers handled, Million
29 June 2016PwC
Strictly private and confidentialDraft
Five Northern cities rank in the top 10 of the UK hotel market index
UK Attractions Market Outlook
Net increase in Northern hotel rooms
in the last 15 years
1) Cardiff2) Manchester3) Leeds4) Chester5) Liverpool6) York7) London8) Edinburgh9) Brighton10) Bath
28,000
New Northern hotel openings in the last 15
years
472
Source: Colliers International, Financial Times
Hotel Market Index - Top 10 cities
29 June 2016PwC
Strictly private and confidentialDraft
Branded attractions and Family Entertainment Centres are gathering momentum in the UK..
UK Attractions Market OutlookSource: News articles
Child-Geared Zones Within Leisure Parks
Family Entertainment Centres (FECs)
29 June 2016PwC
Strictly private and confidentialDraft
While a number of other investments and planned projects are occurring across the L&E landscape
UK Attractions Market OutlookSource: Chester Zoo website, Blackpool Pleasure Beach website, Paramount London website
29 June 2016PwC
Strictly private and confidentialDraft
For Leisure and Entertainment growth look to Middle East…
UK Attractions Market Outlook
31.2
16.5
9.4
11.2%
2021F
9.8%
20152009
..but what is going to draw them there?
Tourist arrivals to the UAE (hotel guests in millions)
29 June 2016PwC
Strictly private and confidentialDraft
There are 8 theme parks set to open by the end of 2019
UK Attractions Market OutlookSource: UNCTAD, IMF- World Bank, WTTC and PwC Analysis
IMG Worlds of Adventure 2016
Ferrari World2010 Dubai
Parks and Resorts2016
20th
Century Fox World2018
Six Flags2019
Warner Bros World2018
18 million total theme park visits in UAE by 2021
29 June 2016PwC
Strictly private and confidentialDraft
China is also aggressively developing its theme park sector, with total visits expected to double within 5 years
UK Attractions Market Outlook
China will surpass the US as the biggest theme park
market in the world by 2020
2015
14.2%
2020
120
221
Annual Visits to Chinese Theme Parks (Visits in millions)
Source: AECOM, Bloomberg
China is building theme parks faster than any other country in the world...
29 June 2016PwC
Strictly private and confidentialDraft
It has a big pipeline of planned theme parks
UK Attractions Market Outlook
Key local players
Source: South China Morning Post, ABC News, Company Websites
21Theme parks
opened in 2015
20Theme parks currently
under construction
~300Total supply of theme parks in the country
International brands
29 June 2016
PwC Hospitality & Leisure Partner:
Philip ShepherdPwC Partner
20+ years strategy consulting in the Leisure,
Hospitality and Media sectors
Direct line:: + 44 (0) 20 7804 9366
E-mail:[email protected]
Contact information:
Thank you…
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