The document summarizes the outlook for the UK attractions market. It finds that tourism and leisure spending remains strong, with visitor numbers expected to grow 16% by 2020. Museums, galleries, and historic sites currently account for over half of all visits to English attractions. Northern cities are seeing growth in hotel rooms and airport passengers. Large investments are planned in attractions across the UK and in theme parks in the Middle East and China, where the number of annual theme park visits is expected to double within five years.

1. Sponsor:
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Philip Shepherd
Partner – PwC
Market Overview
1: KEYNOTE: The Future

2. 29 June 2016
UK Attractions Market
Outlook
Strictly Private
and Confidential
29 June 2016
Deals Strategy
Draft

3. 29 June 2016
PwC
Strictly private and confidential
Draft
Tourism and Leisure spend fundamentals remain strong…
UK Attractions Market Outlook
2016e
36.7
Tourist arrivals to the UK
(Overseas visitors in millions)
Source: Visit Britain, Mintel – Leisure Review 2015
2016e
Value of the UK leisure industry*
(GBP in billions)
82.5
1.3%
Contribution to
GDP
3.3%
Recent/projected
CAGR
2.8%
4.6%
* Out-of-home leisure, excluding travel and tourism
Total spend
£22.9bn

4. 29 June 2016
PwC
Strictly private and confidential
Draft
..and the Government has set ambitious tourism targets..
UK Attractions Market Outlook
*Out-of-home leisure, excluding travel and tourism Source: Mintel – Leisure Review 2015
2020 Vision
40
million
£31.5bnvisitors
per year
in annual
receipts
How it will be achieved:
• Rapid hotel growth and development of new peer to peer accommodation
• Expanding transport infrastructure
• Core inbound source markets remaining robust (I.e. France, Germany, Ireland, US)
• Rapid development of emerging inbound markets (I.e. China, Middle East)

5. 29 June 2016
PwC
Strictly private and confidential
Draft
Visits to UK attractions are expected to grow c. 16% by 2020
UK Attractions Market Outlook
Total visits to UK
attractions (2014)
British adults
visiting at
least one
attraction in
2014
Total
expected
growth in
visits to UK
attractions
2015-2020
*Out-of-home leisure, excluding travel and tourismSource: Mintel – Leisure Review 2015
15.8%
297m
2/3
Total visits to English
attractions (2014)
208m

6. 29 June 2016
PwC
Strictly private and confidential
Draft
Museums, galleries and historic sites account for over half of all visits to
English attractions
UK Attractions Market Outlook
Visitor attractions in England by attraction type, 2014
(Visits in millions)
2.1%2.2% 3.3% 2.2% 1.0% 3.4%
CAGR
2010-14
Source: Visitor Attraction Trends in England *Main constituents are gardens, visitor/heritage centres and steam/heritage railways
Museums &
art galleries
67.6m
49.2m
Historic
properties Country
parks
18.8m
16.9m
Wildlife
attractions/zoos
15.3m
Leisure/theme
parks
Other*
40.6m
Total visits = 208.4m

7. 29 June 2016
PwC
Strictly private and confidential
Draft
The North has performed well in terms of visitor admissions
UK Attractions Market Outlook
Source: Visit England
2
6
2
10
5
3
2
7
6
West Mids
South West
East Mids
London
North East
South East
Yorks/Humber
North West
East
All attractions average
Visitor admission trend 2014 – by region
(Percentage increase on previous year)
Change in 2014 visitor
admissions by visitor category
+8%
Overseas visitors
Local/ day trippers
+4%

8. 29 June 2016
PwC
Strictly private and confidential
Draft
There are big plans to improve the capacity and connectivity of Northern
cities via…
UK Attractions Market Outlook
Source: Civil Aviation Authority, Manchester Airport website
MANCHESTER INTERNATIONAL AIRPORT
18.6m
22.3m
20142009
…Expansion of Northern Airports
£1bn
Manchester Airport
Regeneration
…Enhancement of Connectivity
TransNorth & HS2
Large-scale rail
infrastructure projects
17.8%
Carries over 60% of all
passengers in the North
Fastest growing of the
top 10 airports in the
country by size
Passengers handled, Million

9. 29 June 2016
PwC
Strictly private and confidential
Draft
Five Northern cities rank in the top 10 of the UK hotel market index
UK Attractions Market Outlook
Net increase in
Northern hotel rooms
in the last 15 years
1) Cardiff
2) Manchester
3) Leeds
4) Chester
5) Liverpool
6) York
7) London
8) Edinburgh
9) Brighton
10) Bath
28,000
New Northern hotel
openings in the last 15
years
472
Source: Colliers International, Financial Times
Hotel Market Index
- Top 10 cities

10. 29 June 2016
PwC
Strictly private and confidential
Draft
Branded attractions and Family Entertainment Centres are gathering
momentum in the UK..
UK Attractions Market Outlook
Source: News articles
Child-Geared Zones Within Leisure Parks
Family Entertainment Centres (FECs)

11. 29 June 2016
PwC
Strictly private and confidential
Draft
While a number of other investments and planned projects are occurring
across the L&E landscape
UK Attractions Market Outlook
Source: Chester Zoo website, Blackpool Pleasure Beach website, Paramount London website

12. 29 June 2016
PwC
Strictly private and confidential
Draft
For Leisure and Entertainment growth look to Middle
East…
UK Attractions Market Outlook
31.2
16.5
9.4
11.2%
2021F
9.8%
20152009
..but what is going to draw them there?
Tourist arrivals to the UAE
(hotel guests in millions)

13. 29 June 2016
PwC
Strictly private and confidential
Draft
There are 8 theme parks set to open by the end of 2019
UK Attractions Market Outlook
Source: UNCTAD, IMF- World Bank, WTTC and PwC Analysis
IMG
Worlds of
Adventure
2016
Ferrari
World
2010
Dubai
Parks and
Resorts
2016
20th
Century
Fox World
2018
Six Flags
2019
Warner
Bros World
2018
18 million total theme
park visits in UAE by 2021

14. 29 June 2016
PwC
Strictly private and confidential
Draft
China is also aggressively developing its theme park
sector, with total visits expected to double within 5 years
UK Attractions Market Outlook
China will
surpass the US
as the biggest
theme park
market in the
world by 2020
2015
14.2%
2020
120
221
Annual Visits to Chinese Theme Parks
(Visits in millions)
Source: AECOM, Bloomberg
China is building theme parks faster than any other country in the world...

15. 29 June 2016
PwC
Strictly private and confidential
Draft
It has a big pipeline of planned theme parks
UK Attractions Market Outlook
Key local players
Source: South China Morning Post, ABC News, Company Websites
21
Theme parks
opened in 2015
20
Theme parks currently
under construction
~300
Total supply of theme
parks in the country
International brands

16. 29 June 2016
PwC Hospitality & Leisure
Partner:
Philip Shepherd
PwC Partner
20+ years strategy
consulting in the Leisure,
Hospitality and Media
sectors
Direct line::
+ 44 (0) 20 7804 9366
E-mail:
philip.a.shepherd@uk.pwc.com
Contact information:
Thank you…

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