The balancing act
Assessing threats and capitalising on opportunities in destination consulting
A tattoo spotted at a rugby match is an unlikely source of inspiration for musings on leisure trends but that’s our starting point. On a spring day at The Rec, with a rare appearance of winning form from home side Bath, it caught the eye poking out from a t-shirt sleeve.
A yin-yang tattoo
A common symbol, and one quite easily overlooked, but it got the mind thinking and warranted further investigation. The yin-yang is from an ancient Chinese philosophy and religion called Taoism. It represents a matching pair in balance. Two forces like light and dark, order and chaos, or threat and opportunity. The black side of the yin-yang has a little white dot in it. Similarly, the white side has a little black dot in it. Everything has a little of the other within. So all opportunities have some threats within, and all threats have some opportunity – allowing for the cycle to change and balance out so one doesn’t always dominate the other. In considering the forces at play in the leisure and tourism sectors, perhaps the threats and opportunities are not completely binary and have a sense of balance between them.
Given the bumpy ride over recent years, particularly tracing back to the Brexit referendum of 2016, it is tempting to see the leisure and tourism markets through a negative lens, especially from an operator’s perspective. Things have been hard, Brexit laid the way for political and economic uncertainty before the heavy slam of the pandemic moved things to survival mode, and the resultant recovery has been hampered by labour shortages, high inflation – largely triggered by the war in Ukraine – and tight consumer spending. Therefore, if you own, operate or invest in a business or property like a day visitor attraction, a hotel, a venue, or a restaurant, headwinds have been blowing from both directions. Inflation through late 2022 and into early 2023 created very significant overhead cost increases, whilst revenues were also squeezed as consumer disposable income – or sentiment at least – was depressed.
The cost-of-living crisis: impact on leisure and tourism sectors
The cost-of-living crisis has presented the biggest short-term threat to the leisure, tourism, culture, and hospitality sectors, and whilst it is a significant issue, it has perhaps been overplayed in the media. The biggest impact has been to the lowest 15-25 per cent of adult earners, leaving a majority as unaffected or cautious.
Visit England report a sentiment tracker survey from June 2022 to February 2023, with around 70-75 per cent of adults reporting being alright or cautious each month in regard to their feelings on the cost of living.
This can also be coupled with the significant amount of household savings that was accumulated during the pandemic years of 2020-2022. A large portion of this will have been allocated by households to counterbalance cost increases. However, an aspect overlooked in media coverage is the fact that a considerable proportion of individuals are not significantly impacted and possess substantial savings – both of which are encouraging for spend and demand potential.
Leisure trends in the post-pandemic era
Returning to the rugby, it is illustrative of some of the leisure opportunities and trends that are gradually establishing themselves in the aftermath of the pandemic. People have returned in force to socialise in groups at sports events or music concerts, craving an authentic real-life experience that can’t be replicated online, on a phone, or virtually. It provides escapism – the opportunistic side of the hard times coin, and tribalism – people love doing things that provide a sense of togetherness and belonging.
Escapism is also apparent in immersive cultural experiences, excellently displayed by Wake the Tiger in Bristol, which is part experiential art gallery, interactive theme park, and detailed film set.
The immersive world, creativity, playfulness and Instagram-able photo ops are right on point for current market trends.
Other opportunities also exist brought about by adjustments post-pandemic. There has been a big shift in homeworking and flexible working hours, and increased awareness of physical and mental wellbeing. The flexible working evolution has effectively created more leisure time or, at the very least, a shift in how people allocate their leisure time. Fridays are increasingly part of a longer weekend with leisure spending and behaviours starting to match that of weekend days – a great opportunity for leisure businesses who effectively get another peak demand day each week. Hopefully, the work time around this is just as, or more, productive than before!
Striving for balance: a promising approach
On the well-being front, a number of Colliers clients demonstrate the opportunities of a concept that promotes relaxation and alleviates stress. Rocket Padel, an indoor racket sports concept, has recently opened in Bristol – one of three forthcoming padel operators arriving in the city. It blends physical and mental benefits with competitive socialising within a classy Scandi design and atmosphere. The Wave, an inland surf park destination near Bristol, provides a water-based experience that brings both the physical benefits of surfing, but also the mental benefits of being in and around water. A third example is Wildfox Resorts, developing plans for a major new resort destination in south Wales. Wildfox will be a new generation of adventure resort offering short break holidays with the best of mountain biking, climbing, aerial adventures, and a truly best-in-class thermal spa experience set in the great Welsh outdoors.
The wider leisure sector has had a challenging time, with a number of threats still at large. However, the recent changes and turbulence have helped in part to create opportunities. Things are never static and always changing, much like the yin-yang. And the best bit of the Tao symbol is the line between the two sides – known as The Way – it’s here that balance is found.
Perhaps there is a balanced path to tread between the threats and opportunities, it certainly seems like a good intention.
Perhaps we should go so far as to get a tattoo as a permanent reminder!
