Dominated by the private sector, the entertainment and leisure sector has experienced more positive construction output conditions than many other sectors over the past 5 years. Despite a dip in 2015, output in the sector has remained relatively steady since 2013.
Expansion and investment has been largely confined to the budget hotels, health and fitness and more recently the cinema segments, with less buoyant activity in mid-market hotels, beverage-led pubs and the gaming sectors where major operators have so far reigned in capital spending plans. The largest sectors for construction output are similar with restaurants, bars, clubs and also hotels being the largest two sectors in 2017.
The leisure and tourism industry is highly fragmented, with a number of large commercial chains dominating the hotel and pub sectors in particular, and a large number of smaller specialist operators in the restaurant, gaming and hotel and lodging sectors.
Current forecasts for entertainment and leisure sector construction output over the medium-term indicate good overall growth to 2022; however, the diversity of the sector means that growth prospects vary considerably between sub-sectors, with recent growth in the budget and high-end hotel and budget gym and restaurant sectors helping to offset the decline in the pubs and clubs sector.