Commercial Recreation and Leisure Businesses

Commercial Recreation and Leisure Businesses Chapter 13 1 Learning Outcomes Recall advice from professionals working in commercial recreation and leisure businesses Remember key terms, events and people that relate to the past and present in commercial recreation and leisure businesses Recognize and explain concepts and models related to professional practice in commercial recreation and leisure businesses 2

Learning Outcomes cont. Recall facts about the passions, pay and perks, possibilities, preparation related to commercial recreation and leisure business careers in general and the specific career areas of: Campgrounds and camps Water-related businesses Specialty recreation activities Retail and hobbies Summarize future opportunities and challenges facing commercial recreation and leisure business professionals 3 What You Should Know About Commercial Recreation as a Profession Many think of recreation, parks, and leisure services as a public and nonprofit service. The actual consumption of leisure services validates the need for leadership from private, for-profit recreation providers Expenditures for professional athletics, movies, concerts, entertainment, amusement parks, outdoor and adventure recreation and travel, and hundreds of hobbies, crafts, and cultural pursuits easily outspend the public sector. The focus of this chapter is on leisure entrepreneurs, particularly in the outdoor adventure and retail recreation areas. 4

The Background of Leisure Entrepreneurship in America A leisure entrepreneur is a person who is willing to take the change that he or she can generate enough revenue from the leisure activity to sustain financial existence. In a country whose national philosophy is based upon a market economy and free enterprise, as well as individual initiative, it is no surprise that recreational enterprises have flourished here. Enterprises can be described as businesses that generate income from their clients, which is adequate to pay for all expenses and still produce a profit. 5 The Ups and Downs of Commercial Recreation Businesses For-profit segment of the leisure profession one of the fastest growing categories in the field, at the same time one of the most transient and unstable. New business starts in the recreation and leisure area fail more than 60% of the time. A career in commercial recreation can support the lifestyle you choose do what you love, love what you do! 6

The Ups and Downs of Commercial Recreation Businesses Reasons for high rate of failure: Specific activities can peak and slump rather quickly Some leisure activities fall in the category of fads and may produce a great short-term gain, but fade quickly as time goes on (e.g., slot car racing, indoor tennis centers, and drive-in movies). A major ski area has not been built in the US for more than 20 years Tennis peaked in the 1980s as did tent camping Many choose this type of business because they have a personal interest for a particular activity or pastime, but often lack the knowledge and requisite dedication, skills or experience necessary to turn it into a desirable business. If you start a recreation business, remember to diversify 7 The Ups and Downs of Commercial Recreation Businesses Plus side: Individuals can usually start up an activity-based business with a minimum of capital The seasonality of many leisure businesses allows entrepreneurs the opportunity to work another job either part time or seasonally to support the recreation business until it grows enough to support them full time. Your work and business can promote and support the causes important to you 8

Careers in Commercial Recreation and Leisure Businesses Our definition of Commercial Recreation and Leisure Business is restricted to privately funded businesses that offer instruction and participation in outdoor adventure and other recreational activities. Commercial recreation includes: Movie theaters Game arcades Resorts Cruise ships Commercial sports Fitness Cultural activities as commercial recreation 9 Career Areas in Commercial Recreation and Leisure Businesses Commercial recreation and leisure businesses are grouped into four categories: Campgrounds and camps Water-related businesses Specialty recreation activities Recreation retail and hobbies 10

Campgrounds and Camps Campgrounds and camps are separate areas that have overlap and similarities: Both involve an outdoor or wilderness experience Private campgrounds cater to couples and families who occupy tents, tent campers, trailers, and motorized recreational vehicles (RVs), and most private camps offer supervised programs in an outdoor setting primarily for youth. Private camps operate mainly during the summer months. 11 Private Campground Operations A large number of country s more than 20,000 campgrounds are owned and operated by governmental agencies (National parks, forests, Bureau of Land Management, Corp of Engineers, state, county, and municipal government). Over 3,900 campgrounds are operated as private enterprises, including quite a few that are located in public parks but are management by private companies. Privately owned campgrounds located in every state of the nation and range in size from less than 10 campsites to over 1,000 campsites in a single business. Typically they are open when weather and demand permit, which means some are year round, while others operate for only a few peak months. 12

Private Camps Many summer camps may be operated by non-profit organizations like YMCAs or Boy Scouts or Girl Scouts. The majority of resident camps are privately owned and operated as private, for-profit enterprises. Most camps operate in a limited 10- to 12-week period over the summer months, key staff and management have full-time responsibility to recruit campers, maintain and improve facilities, and they recruit and train staff on a year-round basis. ACA lists 2,400 camps now accredited with in operation in the U.S. 13 Campgrounds and Camps Passions Office is in the out-of-doors and the natural environment Abundance of contact with people having fun and children being children Opportunity to educate Create an environment full of fun, learning, and fulfillment Pay & Perks Both camping areas are seasonal in nature Limits ability to provide high compensation Few management level and full-time employees Compensation similar to teaching and social work salaries Real perks are in the lifestyle and low-key off-season 14

Campgrounds and Camps Preparation Degree in Parks and Recreation Management, Leisure Services, Education, or Outdoor Education Courses in Business Management, Child Development, Natural Sciences, and personal skills with youth are helpful Experience camping or serving as a camp counselor Entrepreneurial training if you want to own a camp or campground Possibilities Most campgrounds are family owned, and operate with a small year-round staff. Most summer camps raise their own staff from counselors Little growth in camp and campground industry, staff positions and 15 Water-Related Businesses This job area has a sustained growth pattern, but the boat and motor area is profoundly affected by economic downturns. However, the remainder of the market continues to enjoy good growth, and there are a number of opportunities for expansion. 16

Water-Related Businesses: Boating The boating industry is booming and brings with it loads of opportunities for career employment. There are more than 17 million recreational boats registered in the U.S. Types of companies who need people to assist them in this fast-growing market: Marinas pleasure cruises sailing schools resort rentals charter boats, offering Public sightseeing Naturalist boat tours 17 Water-Related Businesses: Dive and Snorkel Shops Best opportunities in the commercial recreation field is the area of diving and snorkeling recreation under the surface of the ocean. Extensive in-service training is required to instruct this potentially dangerous filed. Most of this training is done through the Professional Association of Diving Instructors (PADI). According to PADI, more than 1,500 certified dive centers are now in operation around North America and the Caribbean. Almost all of these businesses are privately owned and operated. Most resorts and water-based hotels have die and snorkel programs for their guests and the public. Some are larger and more specialized lodging establishments operate their own programs, the vast majority of dive and snorkel programs at resorts and hotels are concessions, owned by individuals. 18

Water-Related Businesses: Canoe & Kayak Liveries & Guided Trips Growth of sea kayaking as a recreational activity has expanded this area of recreation business greatly in recent years. Sales of recreational kayaks has increased fourfold over the last decade. Companies offering instruction in sea kayaking, day trips, and multi-day expeditions. These enterprises supplement the traditional canoe rental and instructional business and make this area one of the fastest growing segments in America. There are canoe, kayak, and paddle sport liveries (rentals) and instructional programs in every state in the U.S. and almost every country in the world. 19 Water-Related Businesses: Canoe & Kayak Liveries & Guided Trips Sport popular with the 40-60 year old group or Baby Boomers and early seniors. Strong growth position due to the age diversity of the population it draws upon. Area of particular interest to entrepreneurs is the overseas kayak expedition business. Kayak owners are older, more affluent, and find the excursion to exotic locations very attractive. 20

Water-Related Businesses Passions Automatic appeal to most people who have a strong desire to be around water Pay & Perks Seasonal, but a growth environment Starting pay ranges from tips only, to minimum wage. Many jobs are seasonal, but this a growth environment. Start your own successful business and the sky s the limit! 21 Water-Related Businesses Preparation Personal participation in water sports is the first introduction to the specific activities in this category. American Canoe Association and PADI offer advanced skills courses. A college degree in recreation management or business administration with courses in public relations, marketing, business, and finance will round out your preparation. Possibilities Water-based activities seem to grow bigger and better from year to year. While economic conditions may temporarily hold down sales of costly equipment (boats, gear, canoes), the demand for learning and participating in water-based recreation moves steadily up. 22

Specialty Commercial Recreation Activities Whether it be retailing items the enthusiast needs to do the job, or offering instruction in how to do it properly, there is money to be made in servicing peoples leisure needs. Horseback Riding and Dude Ranches Fishing, Hunting, and Backpacking Guiding Snow Skiing, Snowmobiling, and Winter Sports Bicycles and Motorcycles 23 Specialty Commercial Recreation Activities Passions Personal interests meld into business success Entrepreneurial spirit Doing a job you love and for which you have a personal passion increases your chances of ultimate success immeasurable. Pay & Perks Depends on you. You make the choices that ultimately determine its success or failure. Working at an existing business to learn may mean minimum wage or slightly more. As you progress, you could become the manager of a local franchise and earn a comfortable living. 24

Specialty Commercial Recreation Activities Preparation Same educational requirements of a BS with an emphasis on recreation and business will set the stage for success. College entrepreneurship programs can help you hone your business senses. Ultimately, the best preparation for these areas is actually work experience, along with programs presented by industry related professional organization. Possibilities Personal interest, strong passion and entrepreneurial spirit make choices diverse and abundant in the specialty commercial recreation activities area. 25 Recreation Retail and Hobbies Hobbies and their associated retail shops provide a fascinating and wideopen area where small business opportunities abound. Those with personal interests can turn those interests into a lifetime vocation. Hobby shops, ceramics and crafts, and such exotic activities as adventure racing, skate parks, go carts, game arcades, and virtually any other leisure activity you can image 26

Recreation Retail and Hobbies Passions There is nothing like doing exactly what you enjoy most, and making a living doing it. Pay & Perks It is as diverse as this country. Perks of owning your own business to support your participation in it and to share it with others is as great a per as you can ever have. Preparation The best preparation is learning by doing. Increase business sense by having basis math, economics, bookkeeping and marketing courses, and learn from experts in your field by doing, but most of the education will be the school of hard knocks. 27 Recreation Retail and Hobbies Possibilities Ceramics shops Shooting galleries and target ranges Per salons and pet training facilities Quality and sewing classes and stores Miniature golf courses and driving ranges Sports instruction clinics Model train, car, and military diorama stores and clubs Video game parlors, competitions, and programming Musical instruction, performance, and sales Travel clubs and organized tours 28

In Review can be described as businesses that generate income from their clients that is adequate to pay for all expenses, and still produce a profit: Enterprises Entrepreneurs Franchises Operations 29 In Review Which is not a reason new business starts in the recreation and leisure area fail? Lack of knowledge and requisite dedication, skills or experience Some leisure activities fall in the category of fads and fade quickly Specific activities can peak and slump rather quickly Outdoor recreation, watershed, timber, range, wildlife and fish values 30

In Review is the amount by which income generated exceeds all expenses of the business. Enterprise Turnover Loss Profit 31 In Review Which organization provides training in the commercial diving and snorkeling field? PADI ACA PIA ACA 32