What is Commercial Recreation & Tourism?

Chapter 1

• Commercial Recreation• Commercialized Public Recreation• Entrepreneurial Recreation• Tourism

Commercial Recreation

“ The provision of recreation-related products or services by private enterprise for a fee, with the long-term intent of being profitable.”

Commercialized Public Recreation

“The provision of selected recreation-related products or services by a governmental or nonprofit organization in a commercial manner, with much or all of the costs covered by fees, charges, or other non-tax revenues.”

Entrepreneurial Recreation

“The actions of a recreation-related organization that searches for trends and changes in its environment, then brings together and manages resources to exploit those changes as an opportunity.”

Tourism

“ The activities of persons traveling to and staying in places outside their usual environment, for leisure, business, or other purposes.”

Types of Commercial Recreation & Tourism

• The Travel Industry• The Hospitality Industry• The Local Commercial Recreation

Industry• The Facilitators

The Travel Industry

Primary function is the movement of people and the provision of travel-related services. Includes airlines, rental cars, bus lines, railroads, cruise lines, travel & tour companies.

The Hospitality Industry

Primary function is the provision of accommodations, food and beverage, and related amenities. This includes hotels, motels, restaurants, resorts, campgrounds, recreation communities, taverns, & night clubs.

The Local Commercial Recreation Industry

Primary function is the provision of retail products and entertainment; including sporting goods, theme/amusement/water parks, movie theaters, sport/fitness/health clubs, golf courses and country clubs.

The Facilitators

Facilitators of many types support the three main industries.

1. travel agencies support hospitality.

2. equipment wholesalers support local commercial recreation. 3. convention/visitors bureaus support hospitality and local commercial recreation.

Participation & Expenditures In The

Recreation/Leisure/TourismIndustry

• Data regarding participation and expenditures in this large and complex industry are important in order to assess the present and to make projections for the future. The following data is used in many ways:

Data used:

• Feasibility studies for new or expanded facilities or programs.

• Operational decisions involving demand estimates, pricing, marketing, employment or seasonal staff, etc.

• Projections by government for sales taxes, hotel occupancy taxes, etc.

Data used cont.

• Policy decisions by governmental agencies, and

• Lobbying efforts of industry/trade associations.

Economic, social, and environmental impacts

• Employment opportunities• Local economy is stimulated• Outside capital is attracted• Property values increase• Tax revenues increase• Recreation opportunities increase• Economic multiplier improves

The Negative Impact!

• High failure rates result in unemployment/low economy

• Local roads, utilities, etc. can become overburdened

• Crime can increase• Natural resources can be overused• Undesirable types of commercial

recreation may appear.

What role does the government play in commercial recreation and tourism?

• A positive or negative effect?• Economic impact?

COMPLEMENTARY RELATIONSHIPS• Provide, maintain, and/or regulate

the roads, sewer, utilities that supports commercial recreation/tourism

• Promote tourism• Provide public facilities• Provide low-cost introductory

program.

COOPERATIVE ARRANGEMENTS

• Public agency programs conducted at commercial facilities

• Co-sponsorship of promotional events/special events

• Loaning or sharing of equipment, supplies, or staff

• Cooperative facility development

PLANNING RELATIONSHIPS

• Long range planning for recreation and tourism is best served when government and private enterprise work together. This does not always happen!

• Becomes territorial

Key Trends in the Recreation and Tourism Industry…..• International, national, regional,

and local economic conditions affect the ability of people to spend for recreation and tourism

• Demographic changes underlie changes in the market for recreation and tourism

Trends cont.• Resource availability will affect

almost all forms of commercial recreation and tourism

• Foreign policy, war, and terrorists activity and violence will alter tourists’ choices

• New technology will be available• Multi-cultural & diverse activities

will increase