Brothel Keeping and Prostitution Services in Australia Industry Market Research Report Now Updated by IBISWorld

Share Article

The Brothel Keeping and Prostitution Services industry has faced tough trading conditions over the past five years, but regulatory reforms are expected to drive growth over the next five years. For this reason, industry research firm IBISWorld has updated its report on the Brothel Keeping and Prostitution Services industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The industry faces increased competition from matchmaking sites

Sexual services have widely been viewed as resistant to economic slowdowns. Despite falling incomes, clients of prostitutes have been regarded as loyal, and will regularly abandon other discretionary spending before their spending on sexual services. In 2008-09, as unemployment began to rise, consumers panicked over their financial futures. The results of the short-term cyclical effects of the global financial crisis have since passed. According to IBISWorld industry analyst Craig Shulman, “since the last major Australian economic downturn in the early 1990s, the industry has faced a markedly different environment.” An increasingly regulated industry has raised fees across the board (excluding illegal providers), while other threats to the Brothel Keeping and Prostitution Services industry have emerged, such as internet matchmaking sites and easy access to online pornography.

“Potential clients now have the capacity, for the minimal cost of registering to a site, of accessing a pool of like-minded individuals looking for sexual meetings without payment or can satisfying their fantasies through easy access to online media,” says Shulman.

The propensity to shift to lower cost workers is also hampering revenue growth. As economic conditions ease after moving out of a perceived economic downturn, the Brothel Keeping and Prostitution Services industry is forecast to grow by 4.8% in 2012-13 to $150.2 million. However, over the past five years, the industry is expected to decline by an annualised 4.0%, as the industry recovers from the strong drop in interest during the global financial crisis. Alternatives such as websites, pornography and other cheaper substitutes are likely to become more popular, preventing the industry from reaching its previous heights. In the longer term, the threat of online meeting sites presents a substantial challenge to growth.

Over the next five years, regulation is expected to be the main driver for growth. Eastern states such as New South Wales and Victoria are attempting to regulate and enforce regulation further, while the WA Government is considering banning the industry's activities entirely. “IBISWorld expects that the industry will benefit from this heightened level of regulation as illegal brothels drop in prominence and legal entities are able to capitalise on reduced competition,” says Shulman.

For more information, visit IBISWorld’s Brothel Keeping and Prostitution Services report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

This industry comprises the sexual services offered by brothels, prostitutes, and escorts. The report measures legal transactions for actual sexual services. This industry does not include stripping, erotic dancing, adult internet services (such as dating, or the display of pornography), telephone sex chat lines, the making and retailing of adult video entertainment, or the manufacture and retailing of sexual aids.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld
310-490-5973
Email >
Visit website