Sports participation has declined in Australia
Melbourne, Australia (PRWEB) February 04, 2013
The Sports Instructors industry has experienced moderate growth over the past five years as it faces extensive competition from the general fitness industry. According to IBISWorld Industry analyst Jeremy Edwards, ‘sports participation has declined in Australia and an increasing amount of participants are turning to non-organised sport as time constraints and low discretionary income over the period have provided disincentive for the industry’. Health consciousness declined during the global financial crisis, particularly in 2008-09 as pressing financial constraints took precedence for consumers. The industry benefited from increased capital expenditure from state and local government over the past five years as the government responded to faltering private investment. The industry has grown by a compound annual rate of 1.0% over the five years through 2012-13 and further growth is expected. The 2012 London Olympic Games are expected to promote additional demand in 2012-13, revenue expected to increase by 2.7% to be worth $579.7 million.
The outlook for the industry is relatively similar to the previous period. ‘The industry will likely continue to face hindrances such as competition from substitute activities and stagnant sports participation’, says Edwards. The industry is expected to market to younger generations more than previously, as sport participation is marketed as a preventive measure to many health problems in later life such as obesity. Over the five years through 2017-18, industry revenue is expected to increase marginally. The industry is expected to perform slightly better as the absence of an economic slowdown will result in higher household incomes and discretionary spending. Revenue volatility is therefore also expected to improve over the next five years.
The Sports Instructors industry is extremely fragmented with no major players. Market share concentration is low. Sports instructors work in a highly diversified market in sports choices and level of coaching. Many operators in the industry work only in a part time capacity in addition to other jobs or university studies. Sports instruction is typically considered by participants to be an enjoyable job and therefore workers are often not disinclined to work some coaching jobs in addition to vocational work. The largest and most influential organisations in the industry are the AFL and industry associations such as Swim Australia, PGA Australia, Tennis Australia and the Football Federation Australia. Market share concentration is not expected to increase over the next five years, as the diverse range of sports in Australia is expected to increase and the wide range of population dispersion in the country prevents large businesses from earning significant revenue.
For more information, visit IBISWorld’s Sports Instructors report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry provides non-vocational instruction in sporting and physical recreation activities and physical recreation activities. The industry does not include fitness instructors.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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