The economic recession hit both visitor numbers and their on-site expenditure
Los Angeles, CA (PRWEB) August 10, 2012
Visits to historic sites fell heavily during the recession. As unemployment rose and incomes fell, consumers cut back on discretionary expenses, including those associated with travel. With the economy slowly regaining its footing, consumers have remained unsure about future economic conditions, and have largely chosen to reduce debt, increase savings and hold off on major expenses including travel. Thus, the number of historic site visitors has not made a substantial comeback over the past couple of years. Consequently, over the five years to 2012, revenue for the Historic Sites industry has fallen at an estimated annualized rate of 2.2% to $705.3 million, despite growth of 0.9% in 2012, according to IBISWorld industry analyst Radia Amari.
The Historic Sites industry is largely comprised of not-for-profit firms, many of which receive direct government funding or partner with government agencies. Consequently, the industry is dependent on available government funds to meet costs not covered by operating revenue. “The recession severely cut government tax revenue and many local agencies were forced to cut funding for historic preservation purposes,” Amari said. “Moreover, impending cuts to federal programs may further limit funds for the industry.” In July 2012, the National Parks Conservation Association sent a letter to Congress and the Obama administration requesting they cease plans to cut up to 10.0% of the national park budgets; this plan is set to be implemented in January 2013. Budget cuts during the recession have forced many operators out, while others have raised admission prices or other fees to remain competitive.
One positive factor affecting the industry is the rise in foreign visitors to the United States. The industry, already struggling to compete against other forms of travel and entertainment, benefits from international visitors to historic American landmarks, such as the Statue of Liberty. As the strength of the US dollar relative to other currencies has declined and incomes in quickly growing economies have escalated, foreign visitor rates have increased over the past couple of years. Attracting these visitors, finding other forms of revenue and offering new services will support growth in industry revenue in the future. IBISWorld forecasts that revenue will grow over the five years to 2017. The Historic Sites industry has moderate market share concentration, with the top four players accounting for more than half of industry revenue in 2012. Industry major player the National Park Service manages the majority of historic sites in the United States. Furthermore, the largest, most popular sites in the industry – such as the Colonial Williamsburg Foundation - generate substantial revenue. That said, most industry operators are small and receive relatively few visitors per year. For more information, visit IBISWorld’s Historic Sites in the US industry report page.
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IBISWorld industry Report Key Topics
This industry preserves and exhibits sites, buildings, forts or communities that describe events or persons of particular historical interest. The industry's financial performance includes government funding.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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