A period of rapid growth appears to be coming to an end for the leisure centres and swimming pools market, as a number of external pressures come to bear on the sector. These include rising energy costs, a reduction in funding from PFI schemes and the lottery, a crumbling infrastructure and the possibility of trouble ahead for the UK economy.

Indeed, growth in the sector was slower in 2007 than it has been for a number of years, a situation that is expected to continue into 2008. Meanwhile, the number of local authority leisure facilities fell in 2007 for the first time in six years, as a process of rationalisation sets in. However, much potential still remains if these obstacles can be overcome. The growing popularity of health and fitness remains an important trend and the coming years will see even greater numbers taking part in sports and other leisure activities, especially with the government’s active encouragement in this area.

Consequently, the hypothesis examined for this report is that: “Although local authority leisure centres are facing pressure over energy costs, falling levels of funding and the possibility of an economic downturn, an increasing trend towards health and fitness, partly driven by the 2012 Olympic games, should ensure that the sector increases its share of the UK consumer base in the future.”

Main themes of the report:

Has the impressive growth seen in the first half of the decade continued?

What developments have there been in terms of funding?

Has the success of London’s 2012 Olympics bid had an effect?

How have operators addressed the problem of ageing building stock? What is likely to be the effect of this and when will it hit?

How will they cope with soaring energy costs?

What impact will the change in VAT law have on operators? What will be the knock-on effect for consumers?

What are operators doing to combat the threat of private health and fitness clubs?

Will the market be hit by the economic slowdown and, if so, what can operators do to counteract its negative effects?

How are consumer attitudes to health and fitness changing and how is this affecting the market?

How often do consumers use leisure centres and swimming pools?

How are leisure centres perceived by consumers – particularly in comparison to private health clubs?

How important are ancillary facilities (eg catering, health and beauty treatments etc)?

What can operators do to attract more users or increase frequency amongst the current user base?