News

Private sector push underpinned investment levels within leisure reaching £9.4bn

The entertainment and leisure arena continues to be one of the leading sectors with early indications showing that construction output in the division growing by 33% in 2017, to reach £9.4bn.

Researchers predict that entertainment and leisure should continue to support construction growth with a good pipeline of leisure work forecast - a mix of theme park, resort, hotel and sports stadia are said to be planned.

The findings published by AMA Research reveal that despite a dip in 2015, output growth in the sector has remained between 2013 and 2017. Those behind the research say there are a number of projects currently proposed or under discussion for the refurbishment and redevelopment of a number of sporting venues/stadia, with the larger projects likely to make a significant contribution to entertainment output into the medium-term.

Overall, sector output is forecast to see good overall growth to 2022, albeit at lower growth rates of between 3% and 5% when output is forecast to be around £10.9bn. However, these early estimates can always be subject to change due to the diversity of the sector meaning that growth prospects vary considerably between sub-sectors.

The hotel sector is highlighted in particular to provide significant impetus for output growth in the medium-term with the budget hotel sector a key driver of investment activity. The current erosion of the Pound Sterling against other currencies is making the UK an attractive holiday resort, according to analysts.

Keith Taylor, director at AMA Research said: “There is no doubt that the hotel, leisure and entertainment construction sectors have performed very well in 2016 and 2017 compared to many other sectors. However, the 33% increase indicated by the construction output figures was partly caused by a revision of both historical and current ONS figures, and for 2018 we are likely to see more realistic figures for output growth.”

To view AMA Research’s findings in full, click here.

If you would like to contact Ryan Tute about this, or any other story, please email rtute@infrastructure-intelligence.com.