Incomes in quickly growing economies have escalated, propelling industry growth.
New York, NY (PRWEB) August 26, 2014
Visits to historic sites have been on the rise over the past five years. As unemployment declines and incomes rise, consumers are once again slowly increasing their use of discretionary funds, including those associated with travel. However, with the economy slowly regaining its footing, consumers have remained unsure about future economic conditions, largely choosing to reduce debt, increase savings and limit major expenses including travel. Thus, the number of historic site visitors has not made a substantial comeback over the period. Consequently, over the five years to 2014, revenue is estimated to rise.
The Historic Sites industry is largely composed of not-for-profit operators, many of which receive direct government funding or partner with government agencies. Hence, the industry is dependent on available government funds to meet costs not covered by operating revenue. According to IBISWorld Industry Analyst Sally Lerman, “the recession and subsequent recovery period severely reduced government tax revenue and many local agencies were forced to cut funding for historic preservation purposes.” In 2015, national park budgets are expected to grow; the first increase of the five-year period. Budget cuts during the period have kept profit low and limited the number of new entrants into the industry, while others raised admission prices or other fees to remain competitive. The number of enterprises is also estimated to increase in the five years to 2014.
Nonetheless, one positive factor affecting the industry is the rise of 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,” says Lerman. 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 2019.
For more information, visit IBISWorld’s Historic Sites in the US industry report page.
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IBISWorld industry Report Key Topics
Establishments in the historic sites industry primarily preserve and exhibit sites, buildings, forts or communities that describe events or persons of particular historical interest. These venues include archeological sites, battlefields, historical ships and pioneer villages.
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