Spending Time London’s Leisure Economy Copyright The Mayor of London GLA Economics, the GLA, LDA Greater London Authority established GLA Economics in and TfL will not be liable for November 2003 May 2002 to provide a firm any losses suffered or liabilities statistical, factual and incurred by a party as a result Published by forecasting basis for policy of that party relying in any way Greater London Authority decision-making by the GLA on the information contained City Hall group. GLA Economics is funded in this report. The Queen’s Walk by Transport for London (TfL), London SE1 2AA the London Development www.london.gov.uk Agency (LDA) and the Greater enquiries 020 7983 4000 London Authority (GLA). minicom 020 7983 4458 GLA Economics uses a wide ISBN 1 85261 511 7 range of information and data sourced from third party Design: Appetite suppliers within its analysis and Print: Tradewinds reports. GLA Economics cannot be held responsible for the This publication is printed on accuracy or timeliness of this recycled paper. information and data. Spending Time: London’s Leisure Economy

1 Foreword

2 Executive summary

4 Introduction: The value of London’s leisure economy

6 Chapter 1: London – setting the trends

18 Chapter 2: London’s leisure economy

30 Chapter 3: Dining in London

38 Chapter 4: Drinking in London

46 Chapter 5: Entertaining in London

54 Chapter 6: Sporting in London

62 Chapter 7: Gambling in London

70 Chapter 8: Visiting in London

78 Conclusion

82 Appendix A: Supporting calculations

86 Appendix B: References Foreword Spending Time: London’s Leisure Economy

1

Foreword

We all enjoy our leisure the restaurants, pubs and clubs, time and as London grows entertaining in theatres and in terms both of people and cinemas, sports, gambling and incomes, more people will want visitor attractions. All of these to enjoy a greater range of are key parts of enjoying London. leisure activities. The report estimates that a Some leisure is a solitary quarter of the national leisure evening with a good book. economy is in London and However, much of it is social that it has grown by nearly and involves eating, drinking 30 per cent from 1995 to 2001. and entertainment. These are Leisure activities employ nearly important business activities, 300,000 people. These are creating jobs, opportunities significant figures on any and giving London part of its reading and will become more inimitable buzz. important still.

Leisure, tourism and visitors are London has particular strengths vital components of London’s in dining, theatre and cinema and success. This is easy to see when visitor attractions. Although the we look at the effect on London’s major attractions and the central economy of the recent turndown West End obviously play an in visitor numbers as a result of important role in these activities, the Iraq war and its impact on other centres are also becoming international tourism. My response important – both in central Mayor of London was to launch the Totally London and other boroughs. London campaign to encourage visitors–both Londoners and In addition, the leisure sector other tourists – back into the provides entry level and part-time capital’s attractions. Following on jobs which are vitally important from the success of this in giving the widest possible campaign, further activities are range of job opportunities being planned. to Londoners.

This report provides an economic This report helps us to identify analysis of this part of London’s the opportunities and constraints life, which helps us to understand that face the leisure sector. its importance to the economy This is important to the way we and to Londoners. It brings support the visitor and tourist together previously disparate industries and provide leisure research on the size and scale of services for Londoners. Executive summary

2

Executive summary

London’s leisure economy Leisure activities in London and produce box office revenues of £450 million. The West End London’s population is growing, GLA Economics estimates that makes a significant contribution, the number of jobs is rising and leisure adds £9.5 billion to although theatre attendances disposable incomes are increasing. London’s economy and have been declining. With less time but more spending £38 billion to the national power, the way people choose economy. On these figures, Sporting to spend their time and money London has a quarter of Sport in London – spectating is changing. Increasingly, it is on Britain’s leisure economy, and participating – employs activities away from home – significantly more than its share 29,000 people and generates dining, drinking, theatre and of national GDP,which indicates £700 million in sales. Spectator cinemas, playing and watching a strong competitive advantage sports account for a fifth of sport, gambling and visiting when it comes to leisure. the market, and football has London’s vast numbers of the largest share. In sports attractions. Dining participation, fitness activities Dining out in London employs are becoming more popular with Spending Time: London’s Leisure 121,000 people and generates more people joining private Economy considers how leisure sales of up to £4.7 billion. The health clubs. contributes to London’s economy. market for eating out is being It looks at demographic trends shaped by rising disposable Gambling in London compared with the incomes, demand for convenience Gambling and betting employs UK and how this drives demand food and intense competition 20,000 people in London, and for leisure activities. between restaurants and fast has sales of almost £900 million. food chains. Casinos are particularly significant The report divides the leisure – London has 60 per cent of the sector into six activities: dining, Drinking nation’s casino bets. Gambling drinking, entertaining, sport, London’s bars employ 58,000 is declining in popularity, but gambling and visiting. To people and have sales of up to the market is being changed understand the significance of £2.4 billion. The biggest spenders drastically by developments London’s leisure sector, the in bars are people aged 18-35 in internet gambling. numbers of jobs and the value and London has a higher of the market are compared with percentage of this group than Visiting figures for Britain. This is the Britain as a whole. Rapid growth Fifteen thousand people work in first report to bring together a has been driven by the expansion London’s visitor attractions and range of research on these of branded high street pubs. the market is worth £380 million. activities, using widely available The number of attractions has economic and business data to Entertaining grown rapidly, and additions calculate their importance to London’s reputation as an include the London Eye, Tate London. The retail sector is not entertainment capital is Modern and free entry to major dealt with here, but will be the worldwide. Its theatres employ museums and galleries. However, subject of a separate analysis. 45,000 people, 40 per cent of visits per attraction are falling. the national total in entertaining, Spending Time: London’s Leisure Economy

3

The future Leisure is one of the fastest growing sectors in London. It will provide job opportunities for a growing number of Londoners across many parts of the city. The West End continues to grow, but in theatres and cinemas, dining and pubs and clubs, growth is more rapid outside the West End. Over the longer term, the leisure sector will create more jobs across the whole of London. The jobs are varied and flexible, and cater for a changing workforce with different needs and demands. There are full and part-time positions, and jobs for all skill levels including entry level, managerial and professional. A thriving leisure economy also enhances London’s reputation as a world city and a major tourist destination. Restaurants, entertainment and first-rate visitor attractions draw people from all over the world. The economic benefits of growth in leisure, such as increases in employment and incomes, are also accompanied by social benefits. Leisure activities bring people together and encourage them to go outside or away from their homes. The challenge for governments and businesses will be to balance growth with environmental and social implications. A coordinated policy approach will help to minimise any downsides from a growing leisure economy. For example, careful planning can help to reduce the impact on local neighbourhoods of noise and pollution from drinking and dining activities. This report also provides a picture of London’s leisure sector in light of changing licensing laws and debate about late-night public transport. Spending Time: London’s Leisure Economy is a starting point for discussion about how the Mayor, the GLA group, boroughs and other London organisations and businesses can work in partnership to realise the benefits of a growing leisure economy. Introduction: The value of London’s leisure economy

4

Introduction: The value of London’s leisure economy

Interest in the leisure opportunities across the city. It is local authorities rather than economy also one of the main reasons why through the courts. London is such a vibrant and How people choose to spend exciting place to live and work. Defining the leisure economy their time is changing. It is As London’s finance and business widely acknowledged that there services thrive on face-to-face For the purposes of this report, has been a change in the volume contact, leisure activities also leisure is defined as follows: and nature of economic activity help support its world city status. in leisure. Today’s consumers Restaurants, bars, sports have greater spending power This report considers what stadiums and sports activities, and higher expectations than drives people’s demand for, gambling and betting, and their predecessors. and supply of, leisure activities. museums and visitor attractions. It assesses the implications for The definition of leisure used in London, as a world city, is at the market, businesses, this report closely equates with the forefront of change. Policy- employment and the geography the activities listed in the makers, businesses and the of London. It also considers London Development Agency’s general public have an interest some of the policy implications measure of tourism and leisure in why and how the economy the sector presents. It in A Review of London’s Key is changing, the implications compliments previous work by Sectors. of change, and what is being GLA Economics, especially done to ensure society benefits. Creativity: London’s Core Entertainment activities such Specific aspects and local Business and Spreading Success: as cinemas and theatres are impacts of parts of the leisure How London is Changing. also considered part of the economy are often explored, leisure economy in this report, but little has been done to Furthermore, the recently although they are sometimes illustrate how the changing introduced Licensing Act 2003 categorised as creative leisure economy is shaping will have an impact on London’s industries. The GLA Economics London as a whole. leisure economy. The Act sets report, Creativity: London’s Core out to liberalise licensing laws Business, explores London’s Spending Time: London’s Leisure dating from the first world war creative industries. Economy attempts to understand and will introduce more some of these changes from flexible opening hours with These activities share a common an economics perspective. The the potential for pubs to open theme. Each involves people sector is a major employer. It is 24 hours a day, seven days leaving their homes, moving expected to generate more jobs, a week. There will be a single around the city, and purchasing providing a range of employment scheme for licensing premises the experience of leisure, fun and licenses will be issued by and enjoyment. Spending Time: London’s Leisure Economy

5

A significant part of shopping is The evening and weekend much of the trade is at weekday also seen as a leisure activity – economy lunchtimes. The peak time for in fact, Londoners currently rate many visitor attractions is shopping for leisure as their The evening and weekend atweekends, but attractions are favourite leisure activity. economy, or similar terms such open throughout the week and as the late-night economy, some of London’s galleries and However, retail is complex; it night-time economy, 24-hour museums now have late-night involves both the purchase of city or 24-hour society have openings. Retail also occurs goods and experiences. While generated wide discussion. through the evenings and some aspects can be viewed as weekends. Shopping can be leisure activities, such as buying However, these terms are not done during weekdays, weekends gifts, others may be chores, easy to define. This report avoids or at 3am in an all-night such as the weekly grocery them because they can cause supermarket. Retail cannot be shop. Retail and leisure are statistical and definitional neatly placed as a time specific often interdependent. People confusion. Economic activities activity. Security and policing may shop and then go to café cannot be readily separated into are as much a part of the night or visit a cinema. The scale and ‘when’ they occur. Economic economy as of the day. There breadth of retailing in London is statistics on employment, output are night shifts in hospitals, so large it warrants a study in its and consumption invariably factories, media, transport, early own right, and this is something measure the ‘what’ of goods morning deliveries and cleaning, GLA Economics will return to in and services. and people work late in offices. the future. Pubs are part of the evening There is no simple dichotomy Some leisure activities take and weekend economy, but they between the evening and place in the home – watching are also open during weekdays. weekend economy and the TV, playing monopoly or hosting Restaurants are busiest at economy as a whole. a party. Some leisure activities evenings and weekends but are genuine public goods, such as a stroll through the streets or a run in the park. In this report, leisure is more narrowly defined as activities that happen outside the home. It is what draws people outside their homes and workplaces to spend time and money going out and about in London. London – setting the trends

6 Spending Time: London’s Leisure Economy

7 Chapter 1: London – setting the trends This chapter looks at some of the principal socio-economic drivers of change in London’s leisure economy. It explains how the social and economic trends of a changing population and rising incomes have transformed the way that Londoners live and shaped the importance of leisure.

Social trends In particular, London has a much larger share of people Demographic change: aged 19-24 years, and this group London’s growing population grew much faster in London London’s population is growing than elsewhere in Britain. rapidly. The total population is nearly 7.2 million people, an London is a magnet for younger additional 330,000 people since people who are drawn by work 1995. This is a 4.6 per cent opportunities and lifestyle. increase compared to a Many do not have family or 1.5 per cent increase nationwide. household responsibilities, and There are projections for allocate much of their free time continued population growth and income on leisure. in London with up to 700,000 more people by 2016. Time-poor families There are 1.15 million people Expectations of young in London in the 35-44 age people group (16 per cent) – more London has a high proportion than the national share. The of people in the 25-34 age next age group, 45-54 years, group – 1.4 million people represents a smaller percentage or 19 per cent compared with of the population in London 14 per cent nationally (Chart 1.1). than it does nationally with This age group is increasing in 11.5 per cent or 0.83 million London but declining nationally people. Combined, these age (Chart 1.2). London also has a groups make up 1.7 million larger share of people in the people. The 35-44 age group 15-24 age group, 0.95 million is the fastest growing in London, or 13 per cent of its population. at a rate outpacing the national London – setting the trends

8

Chart 1.1: Population by age

Age

Britain 0-4 London

5-14

15-24

25-34

35-44

45-54

55-64

65-74

75+

0.0 2.5 5.0 7.5 10.0 12.5 15 17.5 20.0 % of population

Source: ONS

Chart 1.2: Population change

Age

Britain 0-4 London

5-14

15-24

25-34

35-44

45-54

55-64

65-74

75+

-25 -20 -15 -10 -5 0 5 10 15 20 25 30 35 % change 1995-2001

Source: ONS Spending Time: London’s Leisure Economy

9

trend. The 45-54 age group Just 1.1 million people or Economic trends: has grown more slowly, but still 15 per cent of the population employment at a faster rate than nationally. are in the 55-74 age group, and 0.4 million or 6 per cent are Growing employment Many people in these age over 75. London’s share of For the last several years, groups are at the height of population in these groups is London has experienced its their incomes, but may have declining and total numbers are most substantial and sustained family and household growing very slowly. As people expansion in employment for responsibilities. They are get older and retire, many make decades. In 1995, there were likely to have very different the lifestyle choice to leave around 3.5 million jobs in requirements of the leisure London for other locations. London. By 2001, there were economy than their younger a little over 4 million jobs. counterparts, and often have Older and retired people are An extra 500,000 people with to take the needs of children an integral part of London. income from employment into account. This is also the Improving health and longer life provides a boost for all of group for whom time is likely expectancies mean they are London’s goods and services. to be scarcest and who will often more active than before. Leisure activities benefit from drive demand for more services Their needs from the leisure this increased demand. outside of traditional hours. economy will differ in many ways from younger age groups. The composition of London’s Longer life and retirement Their demand for leisure is not employment is important (Chart While Britain has an ageing likely to be so restricted to 1.3). Business and financial population, with 19 per cent evenings and weekends, and services account for 1.3 million aged 55-74 years and 8 per cent there may be increased demand jobs. Retail, distribution and over the age of 75, the picture for leisure activities during is different in London. weekdays and nearer to where people live.

London has experienced its most substantial and sustained expansion in employment for decades London – setting the trends

10

Chart 1.3: Jobs in London

Business services

Retail and catering

Public services

Finance

Transport

Other services

Manufacturing

Construction

0.00 0.20 0.40 0.60 0.80 1.00 millions of jobs

Source: ABI 2001

Chart 1.4: Occupations of Londoners

Associate professional

Management

Professional

Admin and secretarial

Elementary

Skilled trades

Sales and customer services Personal services

Operatives

0.00 0.20 0.40 0.60 0.80 1.00 millions of jobs

Source: Labour Force Survey, ONS Spending Time: London’s Leisure Economy

11

catering provide 900,000 jobs. employment. For example, Women hold 47 per cent of jobs Public services provide 800,000 skilled trades and machine in London and are more likely jobs and 300,000 are in other operatives have become less than men to work part time. services including the creative significant. The service sector The picture for London differs and cultural industries. These requires well-remunerated, from the national average. sectors accounted for the high-tech and high-thought Women in employment in majority of employment growth professionals in business and London are more likely to work over 1995 to 2001. financial services, and also full time than they are nationally. many public services, or the London is, overwhelmingly, growth of lower paid, high- This pattern reflects the a service economy. The service touch occupations interacting expansion of services. Service sectors have accounted for the with customers in retail, sector jobs provide more majority of the growth in jobs catering and personal services. employment opportunities since 1995, while sectors like for women and for flexible manufacturing, transport and Part-time employment working. These changing work communications have continued and gender patterns have had important to decline. This shift has The change in the sectoral implications. The main services triggered a cycle of employment and occupational structure of activities draw on a large growth, with a market-led employment has corresponded share of female and part-time requirement for longer and more with increased levels of part-time employees. More people flexible times of business to employment and the number becoming active in employment trade with customers who work of women who are working. leads to a cycle of increasing in similar services. In London, 24 per cent of spending power. This new jobs are part time. Part-time employment means people London’s growth in services- employment increased at a become more cash rich, but led employment shapes the faster rate than total employment increasingly time poor. occupational structure of between 1995 and 2001.

More people becoming active in employment leads to a cycle of increasing spending power London – setting the trends

12

Chart 1.5: Wages

Gross weekly wage, £

550 Britain London

500

450

400

350

300 1999 2000 2001 2002

Source: New Earnings Survey, ONS

Chart 1.6: Incomes

Annual disposable income per person, £

13,000 UK London 12,000

11,000

10,000

9,000

8,000

7,000

6,000

5,000 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source: Regional Accounts, ONS Spending Time: London’s Leisure Economy

13

Economic trends: income Economic trends: £13 per week on leisure goods consumption including televisions and videos, The growth of earnings games and sports equipment, London has the highest average Changes in consumer rising to £19 in 2000, or earnings in Britain, with an spending 5 per cent of total spending. average gross weekly wage of As real incomes rise, consumers In leisure services, spending £510 – 38 per cent higher than have more choice about how more than trebled from the national average (Chart 1.5). to spend their money and have £16 to £50 per week. The share Although the average disguises done so increasingly on leisure, of total household expenditure wide variations in the range of recreation and culture. National on leisure services doubled incomes, earnings in London household expenditure surveys from 6 per cent to 13 per cent. are higher than the national highlight this picture. The A fifth of household spending average, and the wage gap with average British household is now leisure related – more the rest of the country has spent £385 per week in 2000, than the amount spent on the continued to widen. 37 per cent more in real terms essentials of housing or than in 1974 when £280 was food and drink. Households Over the longer term, average spent per week. As average spent less in real terms on household disposable income household sizes diminish, the household fuel and power, per person has persistently change in spend per person is clothing, tobacco, and food been more than 20 per cent even greater (Chart 1.7). and drink in 2000 than they higher in London than nationally did in the 1970s. (Chart 1.6). As the economy has The transformation in consumer grown, the disposable incomes spending between 1974 and of households have continued 2000 is in leisure. In 1974, the to grow. average British household spent

A fifth of household spending is leisure related London – setting the trends

14

Chart 1.7: National household expenditure

£s per week, 2000 prices

450 Leisure services

400 Leisure goods

350 Personal goods and services

300 Travel

250 Household goods and services

200 Clothing and footwear

150 Alcohol and tobacco

100 Food and non-alcoholic drinks

50 Fuel and power

0 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 Housing

Source: Family Expenditure Survey, ONS

Chart 1.8: Household spending

Housing, fuel UK and power London Food and drinks Recreation and culture Motoring

Restaurants and hotels Personal goods and services Household goods and services Clothing and footwear Transport services Communication

Holidays

Alcohol and tobacco Education

Health

0 102030405060

Source: Family Spending, ONS £ per week Spending Time: London’s Leisure Economy

15

Spending patterns in London on recreation and culture, Using these categories to define The new Family Spending although this disguises spending leisure spending, London Survey provides a breakdown patterns. Londoners spend less households spend more than of household expenditure by on recreation such as computer £35 a week on leisure, almost regions, although the categories games, gardening, pets and 9 per cent of weekly differ from the earlier Family open-air recreation but much expenditure. Expenditure Surveys so results more on entertainment and are not directly comparable. sports. Overall household figures for London differ across age London households spend an Demand for leisure groups, social groups and average of almost £500 per London households spend neighbourhoods, but show week, about 25 per cent more more on expenditure categories how significant the spending than the UK average. After that include leisure activities of London residents is in mortgage interest repayments, (Chart 1.9): sustaining the leisure economy. council taxation and licences, • over £15 per week on Household figures for London London households are left restaurant and café meals, do not include additional with around £405 per week, 40 per cent above the spending by people from 20 per cent more than the national average outside the region who come UK average, to spend on • £10 per week on alcohol to London for work or pleasure. consumption. drinking outside of the home, 12 per cent above the Much of the leisure economy average is captured in two household • £6.50 per week on watching expenditure groups: and participating in sports (i) restaurants and hotels, and leisure, 31 per cent more and (ii) recreation and culture. than the national average London households spend • more than £3.30 per week 30 per cent more than the on cinemas, theatres and national average on restaurants other entertainment, and hotels. They spend only 30 per cent more than the 5 per cent more than average national average.

Spending by Londoners is significant in sustaining the leisure economy London – setting the trends

16

Chart 1.9: Household spending on leisure

UK Restaurant London and café meals

Alcoholic drinks (away from home)

Sports admissions, leisure classes

Cinema and theatre

Miscellaneous entertainments

0.00 2.50 5.00 7.50 10.00 12.50 15.00 17.50

£s per week in 2001

Source: Family Spending 2003, ONS

Chart 1.10: Overseas tourism in London

Visits, millions Real expenditure, £ billions

14 3.5

12 3

10 2.5

8 2

6 1.5

4 1

2 0.5

0 0 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001

Visits (000s) Source: International Passenger Survey, ONS Real expenditure (£ billions) Spending Time: London’s Leisure Economy

17

Economic trends: tourism Public policy implications crime and at work with lost Although the rise of the productivity and absenteeism Expenditure by domestic and leisure sector is overwhelmingly (see the NERA report for the overseas tourists is important in positive for London and GLA, Alcohol in London: sustaining the leisure economy. Londoners, nonetheless some A Cost-Benefit Analysis). Tourism spending (including of the activities dealt with in • Casinos and arcades attract domestic and overseas residents this report have social and visitors and bring direct staying at least one night, but economic costs associated with benefits in jobs and income, not daytrippers) was worth them as well as benefits. Public and this is reflected in the £39 billion to the British policy has to address both sides interest shown by many economy in 2000, according to of the balance sheet: towns – particularly seaside Visit Britain. Overseas and resorts – about the domestic visitors who stayed at • Restaurants can be a source regenerative effects of least one night in London spent of noise and pollution that gambling. National gambling £10 billion in 2000. Domestic have an impact on local also contributes £1.4 billion tourism accounts for two-thirds residents. The fast food to government revenues of tourism spending in the culture is one of the factors through taxation, or Britain. However, in London behind the increase in equivalent to 5 per cent of domestic tourists account for obesity, which is a growing bets. However, gambling can only a third of tourist spending, health concern and cause of be addictive, and can lead to while overseas tourists account illnesses with economic debt and financial difficulties. for around two-thirds. In implications arising from London, overseas tourist visits demand for healthcare and There are many other benefits and spending have been growing lost working days. to participating in the leisure over the last two decades. • Taxation on alcoholic drinks economy such as social provides substantial revenue gathering and interaction, In a world of increasing to Government through VAT educational benefits of competition between tourist and, in some cases, excise museums, and pleasure from destinations, London has duties. Up to a third of viewing works of art, all of retained its position as a major money spent on alcohol is which add to the cultural destination. The number of paid in taxation, raising over diversity of London. overseas visitors to London grew £750 million in public by 66 per cent between 1983 revenue from London. At the How London policy makers and 2002, and real spending same time, alcohol misuse has are addressing these issues grew by around 47 per cent. cost implications in terms of is dealt with in the conclusion health costs; alcohol-related of this report. London’s leisure economy

18 Spending Time: London’s Leisure Economy

19 Chapter 2: London’s leisure economy This chapter identifies activities that make up London’s leisure economy. Six broad groupings are used – drinking, dining, entertaining, sporting, gambling and visiting.

The activities are not mutually economy, and the implications exclusive. A visit to the theatre for business, people, places may follow dining in a restaurant. and policy. It sets the context There is also overlap within each by comparing leisure activities activity. Meals may be served based on the numbers of with drinks in a pub; drinks jobs they sustain in London might be served with a meal and the value they add to in a restaurant. Economic London’s economy. statistics do not account for these distinctions, so analysis Jobs in this report is constrained to available data. Numbers of employees Leisure activities in London The starting point for economic employ almost 290,000 people statistics used in this report is (7.2 per cent of total jobs). the Annual Business Inquiry More people are employed in (ABI), conducted by the Office leisure than in manufacturing for National Statistics (ONS). (260,000), education (255,000) The ABI provides data for or healthcare (200,000), but less employee jobs in Britain using than financial services (325,000) standard industrial classifications. and business services (1 million). It does not, however, measure The activities differ widely self-employment, which is by number of employees significant in many of the leisure (Chart 2.1): activities. Table 2.1 shows the ABI classifications used to • Dining provides the estimate the size and value of largest number of jobs, London’s leisure economy. with approximately 122,000. • Drinking employs over This report looks at each activity 58,000 people. in detail. It explores their roles • Entertaining creates jobs for and market value in London’s more than 44,000 people. London’s leisure economy

20

Chart 2.1: Employment in London’s economy

Jobs

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0 Dining Drinking Entertaining Sporting Gambling Visiting

Source: ABI 2001

Chart 2.2: Growth in London’s leisure jobs, 1995 to 2001

Change in jobs

30,000

25,000

20,000

15,000

10,000

5,000

0 Dining Drinking Entertaining Sporting Gambling Visiting

Source: ABI 2001 Spending Time: London’s Leisure Economy

21

• Sport scores 37 per cent growth, although • Up to 40 per cent of 29,000 employees. growth has been high across entertaining jobs are in • Gambling generates all the groups with gambling London, with over 44,000 20,000 jobs. up 31 per cent, dining up of 112,000 national jobs. • Visiting attracts almost 28 per cent and sporting London is overwhelmingly 15,000 employees. up 26 per cent (Chart 2.3). the entertainment centre Overall, the number of leisure of the nation. Changing employment jobs increased by 29 per cent • Similarly, London is the in London between 1995 and 2001, well culinary heartland of Britain, Employment in London’s leisure above the 16 per cent growth with over 23 per cent of economy is growing (Chart 2.2). in employment for London Britain’s dining jobs. The six leisure activities combined as a whole. • London has nearly added a net 65,000 new jobs 23 per cent of the nation’s between 1995 and 2001. Dining Leisure jobs across Britain gambling jobs. Gambling is has seen the largest growth About 16 per cent of all jobs in far more significant in with almost 27,000 new jobs, Britain are in London. This London than the rest of followed by drinking with increases to 18 per cent for the Britain. almost 16,000 additional jobs. whole leisure sector (Chart 2.4). • The high number of visitor However, the relative attractions in London mean In percentage terms, the largest importance to London of the it has more than 17 per cent increase in employment is in activities that make up the of Britain’s employment drinking with more than leisure sector varies greatly: in visiting.

Table 2.1: Leisure sector industrial classifications

Spending Time Description ABI standard industrial classification grouping Dining Eating out in restaurants, cafés Restaurants: 5530 and takeaways Drinking Drinking alcoholic drinks in pubs, Bars: 5540 bars and clubs Entertaining Theatres, concert halls and spaces Motion picture projection: 9213 with live performances or movies Operation of arts facilities: 9232 Artistic and literary creation and interpretation: 9231 Other entertainment activities: 9234 Sporting Participation sports and exercise, Operation of sports arenas and stadiums: 9261 and spectator sports Other sporting activities: 9262 Physical well-being activities: 9304 Gambling Casinos, bingo and bookmakers Gambling and betting activities: 9271 Visiting Touring or viewing an attraction Museum activities and historical sites and buildings: 9252 Botanical and zoological gardens and nature reserves: 9253 Fair and amusement parks: 9233 Other recreational activities: 9272 London’s leisure economy

22

Chart 2.3: Change in London’s leisure jobs, 1995 to 2001

% change

40

35

30

25

20

15

10

5

0 Drinking Gambling Dining Sporting Entertaining Visiting Total Total leisure jobs London jobs

Source: ABI 2001

Chart 2.4: Leisure jobs across Britain

% of Britain’s jobs

45

40

35

30

25

20

15

10

5

0 Entertaining Dining Gambling Visiting Sporting Drinking Total Total leisure jobs national jobs Source: ABI 2001 Spending Time: London’s Leisure Economy

23

• In sporting, London has just • Gambling is an unusual markets are usually made up of 11 per cent of the nation’s market to define as no goods hundreds of different businesses jobs, less than London’s share or services are technically operating in many sectors across of total jobs. exchanged. In total, gambling Britain. • London has less than is worth £28.7 billion in bets 11 per cent of Britain’s placed (2002). From this, The more practical method for drinking jobs. Pubs and bars bets placed in bookmakers, estimating market value is to are less important to casinos and bingo are take the value of the national employment in London than £13.1 billion and the amount market as reported by Keynote nationally. kept by businesses is and derive London’s estimated at £2.2 billion. contribution.1 This method uses The value of the market • Spectator sports box-office the number of business revenues amount to operations in London as a share The size of Britain’s £750 million, but this does of the national total, as leisure markets not include the impact of recorded by business databases The markets for leisure activities media and sponsorship. The such as Yell Data. London’s are hard to define and measure. market value of people market share is then scaled Many markets are inter-linked participating in sports and upwards to account for the and some companies operate in fitness is around £3 billion. higher numbers of people several different markets. To • Visitor attractions have a employed by London businesses ensure a consistent approach, market value of £1.5 billion. and longer working hours than market intelligence from ICC- the national average. The higher Keynote has been used as base The total market value of the cost-base in London, indicated figures for the size of the leisure sector to the national by the capital’s higher wage national market for these leisure economy is £38 billion rates, is also accounted for. (See activities. The figures have been each year. Appendix A for an explanation crosschecked against supporting of the supporting calculations.) market intelligence from Mintel. London’s market share There is a lack of data on London has about 12 to The main features of Britain’s market values for London’s 13 per cent of Britain’s leisure market are: leisure sector. This is not population, 16 per cent of surprising as even measuring its jobs, and around 16 • Dining in restaurants, cafés, London’s share of national to 18 per cent of the value and takeaways is calculated output as a whole is not of national output. The value at £15.5 billion (2002). possible at present. GLA of the six leisure activities to • Drinking in pubs, bars and Economics is reviewing the London is estimated at nightclubs is estimated at availability of London-based £9.4 billion, giving it a £13.8 billion (2002). statistics with the Office of 25 per cent share of the • Entertaining box-office National Statistics. national leisure economy. revenues are estimated to be London’s share of the leisure £394 million from cinemas London-specific figures are economy is greater than and £628 million from collected for some leisure its share of the economy as theatres (totalling around markets. For example, the a whole, and leisure is a major £1.02 billion 2000). Society of London Theatres competitive advantage for monitors the takings of West the capital. End productions. However,

1The value of the markets presented for London should be taken as illustrative rather than definitive. London’s leisure economy

24

Chart 2.5: The value of London’s leisure economy

£ billions

5

4

3

2

1

0 Dining Drinking GamblingSporting Entertaining Visiting

Source: GLA Economics

Chart 2.6: Market share of each leisure activity

% of national sales

50

45

40

35

30

25

20

15

10

5

0 Entertaining Gambling Dining Visiting Sporting Drinking Total leisure sales

Source: GLA Economics Spending Time: London’s Leisure Economy

25

Chart 2.5 shows the value of the theatres and casinos. Over two- Geography market for each activity. Eating fifths of the national market and drinking are three-quarters for entertaining is generated Where is leisure found of London’s leisure activities: within London. Similarly, almost in London? two-fifths of the market for London’s leisure economy is • Dining is the largest gambling is in London. London generally perceived to be with a London market of also has over 30 per cent of the concentrated in the very heart £4.7 billion. national market for dining and of London – the world famous • Drinking in bars has a market over 25 per cent for visiting. and tourist driven West End.2 In of £2.4 billion. fact, around 19 per cent of jobs • Entertaining is valued at In contrast, London’s markets in London’s leisure economy are £440 million. for sporting and drinking are focused in this area, which • Sporting has a value of less developed. London has contributes over 55,000 jobs. £690 million. 18 per cent of sports business The numbers are continuing to • Gambling adds £860 million nationally, in line with its grow, with nearly 8,000 extra to London’s economy. share of the national economy. jobs between 1995 and 2001. • Visiting is £380 million. London has just 17 per cent of the national market for drinks. However, the leisure economy is The composition of London’s London’s leisure sector is not important to all parts of London. leisure economy is unique in as concentrated with bars and The remaining 81 per cent of Britain. London’s competitive alcohol consumption as the jobs are found across Greater advantage lies mostly in its rest of Britain. London, particularly in the

Table 2.2: Leisure employment across London

Totalnumber % of Change in Number Number of of London’s London’s job numbers of jobs new jobs leisure jobs leisure jobs (1995-2001) per ward per ward (2001) High employment/ 161,700 56 +59,200 1,190 +440 high growth High employment/ 36,900 13 +5,200 790 –110 low growth Low employment/ 24,700 9 +12,200 260 +130 high growth Low employment/ 65,100 23 +1,700 130 –5 low growth Total 288,300 100 +64,500 370 +80

2In this report, the West End is taken as the six electoral wards of West End, St James and Cavendish in the City of Westminster (including Covent Garden, Leicester Square and Piccadilly Circus), Bloomsbury and Holborn in Camden, and Bishops Ward on the South Bank in Lambeth. All London wards are based on 1991 ward boundaries used by the ONS. London’s leisure economy

26

Map 2.1: Where London’s leisure jobs are located

high employment/high growth high employment/low growth low employment/high growth low employment/low growth

Source: GLA Economics ©Crown copyright. All rights reserved. Greater London Authority LA100032379 (2003) Spending Time: London’s Leisure Economy

27

central boroughs of Camden, jobs in London. The same Areas without Islington, Kensington and method is used for each activity leisure economies Chelsea, Southwark and discussed in this report. Low employment/low growth Lambeth, and in pockets of wards account for 30 per cent outer London especially to the London’s leisure economies of London’s leisure jobs. Their south west in Wandsworth, High employment/high growth share of leisure employment Richmond and Kingston. Outside wards have 56 per cent declined by less than 3 per cent the West End, jobs in London’s (162,000) of London’s leisure over 1995 to 2001. leisure economy grew by almost jobs. These also account for 57,000 – around 88 per cent of 44 per cent of all employment Analysing London’s leisure London’s additional leisure jobs. in London. Leisure jobs have activities London’s leisure is growing and grown considerably faster (by not just in the centre. 58 per cent) than in London as This report analyses each leisure a whole (which has seen growth activity in London in turn, Employment by ward of 19 per cent). Outside the examining: London’s 783 wards have an West End, high growth areas • the nature of the London average of 368 leisure jobs include northern Westminster market for each activity each. The average ward added around Hyde Park, the riverside • London’s share of the 82 new leisure jobs between areas of Southwark and national market for each 1995 and 2001. Lambeth, and parts of activity Kensington and Chelsea. • the business structure of To show the distribution of each activity employment and dynamics of Emerging areas • the number of jobs and change across London on a Low employment/high growth changing labour practices single map, wards have been wards have 9 per cent (25,000) in each activity grouped into quadrants based of London’s leisure jobs. Leisure • the changing spatial on numbers of jobs and rates of employment in these areas distribution of employment growth: soared by more than 98 per cent in each activity high employment/high growth over 1995 to 2001, compared to • likely demand and supply where job numbers and job 17 per cent across London. The trends for each activity. growth are above the London main emerging clusters for average leisure include Clapham in Table 2.3 summarises the main high employment/low growth Lambeth, north Finchley in findings for each leisure activity. where job numbers are above Barnet, and several areas in the London average but job Hammersmith and Fulham and growth is below the London Richmond upon Thames. average low employment/high growth Areas with weak where job numbers are below leisure clusters the London average but job High employment/low growth growth is above the London wards have 9 per cent of average London’s leisure jobs. Leisure low employment/low growth employment is high, but where job numbers and job contracting. Leisure jobs fell by growth are below the London 12 per cent over 1999 to 2001, average. despite London-wide growth of 13 per cent. Some wards in These groups are shown in Table Brent and Bromley experienced 2.2 and Map 2.1 for all leisure notable declines. London’s leisure economy

28

Table 2.3: London’s leisure economy: a summary

Activity Dining Drinking Entertaining Market Market segments Restaurants, fast food Pubs, high street bars West End theatre, and coffee shops and nightclubs theatres and cinemas National sales £15.5 billion £13.8 billion £1.02 billion London sales £4.7 billion £2.4 billion £0.44 billion Business Structure Independents,corporations Managed multiples, Private or grant-aided and franchises tenancies and free houses Consolidation 32% of the Rapid growth in pubcos Few major cinemas, market is corporations and branded bars with consolidation and franchise in the West End People London employee jobs 121,000 58,000 45,000 London share of Britain’s jobs 23% 11% 40% London growth 1995 to 2001 +28% (+27,000) +37% (+16,000) +25% (+9,000) National growth 1995 to 2001 +27% +20% +26% London pay (hourly) £5.80 (waiters) £5.80 (bar staff) – Full-time/part-time composition 60% full time 50% full time 70% full time Places West End % London jobs 23% 14% 30 % Areas of growth (% jobs) 70% 62% 61 % Areas of decline (% jobs) 30% 38% 39% Policy Policy Liberalisation of licenses, Subsidies of arts taxation on drinks and culture Social benefits Lifestyle, convenience Lifestyle, socialising Lifestyle, culture Social costs Health, obesity Health, crime, workplace Future Demand Long-term growth, High growth, young Vulnerable to but changing tastes population in London tourism changes Supply Saturation, more Continued growth of Much of theatre distinctive styles pubcos and competition is grant dependent Spending Time: London’s Leisure Economy

29

Sporting Gambling Visiting Total (all six)

Fitness centres, sport clubs Bookmakers, casinos Historical sites, museums and spectator sports and bingo and other attractions £3.75 billion £2.2 billion £1.5 billion £37.8 billion £0.7 billion £0.86 billion £0.38 billion £9.2 billion

Private, not-for-profit Private sector provision Mix of government, trusts clubs and public sector and private sector Emerging chains Consolidation across Mostly public sector and in fitness market the markets trusts, some private

29,000 20,000 15,000 288,000

11% 23% 17% 18%

+26% (+6,000) +31% (+5,000) +16% (+2,000) +29% (+64,000)

+32% +18% +5% +23 % ––––

56% full time 67% full time 69% full time 59% full time

5% 17% 13% 19%

75% 72% 73% 58%

25% 28% 27% 42%

Subsidies to promote Liberalisation of licensing, Public subsidies sports and fitness taxation regime and provision Lifestyle, health, social Social, regeneration Educational, heritage Addiction issues

Growth of Impact of licensing change Tourism changes ‘convenient’ sports Growth of private Impact of Possible over-supply business. Olympic bid. licensing change of attractions Dining in London

30 Spending Time: London’s Leisure Economy

31 Chapter 3: Dining in London The popularity of eating out is greater than ever and London offers an extensive choice of places to eat. This chapter covers dining out, when food is bought and generally consumed outside the home. The London market: range has emerged with Restaurants, fast food and more Thai, African and coffee shops South American restaurants. Fast food restaurants London’s market for dining out Licensed and unlicensed is varied, ranging from gourmet restaurants where customers meals in French restaurants to can be seated. Most trade is fast food burgers. The distinction at lunchtimes and weekends, between going out for a meal but evenings can be busy. This and going out for drinks has group includes the large market also become blurred as many for burgers, American food, fast pubs place an increasing pizza and pasta, and traditional emphasis on serving food. British fish and chips. Fast food takeaway The market is grouped in five Around a third of the fast food broad segments: market is takeaway meals eaten Restaurants away from the premises or Traditional restaurants where delivered to people’s homes. customers can be seated and Coffee shops and cafés alcoholic drinks are served. These outlets mainly serve hot Most trade is in the evenings. drinks with snacks or light meals This group includes a variety such as sandwiches, pastries of cuisines and prices, including and cakes. gastro pubs, pub restaurants, roadside restaurants and Drivers of demand western European restaurants. Nationally, 10 per cent of people Ethnic restaurants eat out at least twice a week Restaurants where customers and a further 15 per cent eat out are seated and alcohol is at least once a week. The main served. Some also provide driver of this trend is increasing takeaways. Most trade is in the disposable incomes. Increasingly, evenings. Most restaurants are dining out is seen not as luxury but Chinese or Indian, but a wider as a regular part of consumption. Dining in London

32

Another key driver is time. Drivers of supply is £3 billion and fast food As a result of higher levels Competition among restaurants takeaways a further of employment and travel has increased rapidly, with a £1.75 billion. Ethnic restaurants times between home and growing range of chains and have a value of £3 billion and work, people have less time brands. The market is characterised coffee shops and cafés are to prepare meals at home. by wide variety of products – worth almost £2.7 billion. These time pressures favour burger bars, pubs and gastro more fast food and takeaways. pubs, pizza and pasta, fried These figures hide changes in chicken, roadside meals and the market. Fast food burgers Demand has also led to an ethnic restaurants. London’s are worth 11 per cent of the increased supply of dining large international community total dining market but growth opportunities, with competitive and patterns of in-migration is slow. Growing markets are prices, more choice and a range have produced a variety of restaurant pubs and gastro pubs of established brands that ethnic and European restaurants. with 9 per cent of the market, people trust and visit regularly. and pizza and pasta restaurants The value of London’s with 5 per cent. Other activities, such as visiting dining market the theatre, often include Estimates for Britain show total Market size eating out as part of the leisure sales for dining of £15.5 billion experience. The scale of tourism in 2002. GLA Economics There are 6,128 licensed in London also drives demand calculations show the market restaurants in London, or for dining in many areas. for traditional restaurants is a remarkable 22 per cent £5 billion, fast food restaurants of Britain’s restaurants.

Chart 3.1: Value of dining in London

£ billions

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00 Restaurants Ethnic Fast food Coffee shops Fast food restaurants restaurants and cafes takeaway

Source: GLA Economics Spending Time: London’s Leisure Economy

33

GLA Economics estimates that • independents: privately run Independent operators are being dining was worth £4.67 billion small enterprises squeezed by the growth of to the London economy • corporations: restaurants chains, especially in the mid in 2002. sharing a name, brand market and the coffee shop and and features café market. Brands are growing The largest share derives from • franchises: independently through ownership and franchise. traditional restaurants with a owned restaurants licensed to Large companies and their value of £1.28 billion (Chart trade as part of a larger brand familiar brands dominate fast 3.1). London has a much higher (common in fast food). food. The burger market is led share of ethnic restaurants that by McDonalds which has around the rest of Britain, with an Consolidation and 1,200 outlets in Britain and over estimated market value of small enterprises 200 in London. Burger King has £1.16 billion. While small, privately run 700 outlets nationwide and enterprises make up the almost 100 in London. Other Fast food has a total value majority of the market, large recognisable fast food brands to the London economy of multiple operators are shaping have a large presence in £1.43 billion. Over £0.9 billion the dining culture of Britain. London, such as KFC and Pizza is from eat-in restaurants Hut which each have over and over £0.5 billion is fast Sixty-eight per cent of the 80 outlets in London. Chains food takeaway. Coffee shops dining market consists of are shaping the mid-market for and cafés are worth almost independent operators. restaurants, illustrated by £0.8 billion to London’s economy. Restaurants and cafés are Italian-style outlets such as a market that independent Ask and Pizza Express. Business entrepreneurs can readily enter. Independents are strong at the The visible growth in recent Structure low end of the market in years has been in coffee shop There are over 35,000 licensed sandwich bars and takeaways, chains. There is intense and unlicensed restaurants in and the mid-market of ‘white competition between hundreds Britain owned by 22,000 VAT tablecloth’ restaurants. Ethnic of coffee shops on the high registered companies. restaurants are characterised by streets of central London. Ownership falls into three independents and family Starbucks is the leading chain main groups: businesses, although a few with over 100 outlets in multi-outlet chains have London. Costa Coffee and Pret emerged in London. a Manger have up to 90 outlets.

Table 3.1: Employment in dining

Employees in London 121,600 Share of London jobs % 3.0 Share of Britain’s dining jobs % 23.1 London change 1995-2001 26,900 London change 1995-2001 % 28.3

Source: ABI 2001 Dining in London

34

Map 3.1: Where London’s dining jobs are located

high employment/high growth high employment/low growth low employment/high growth low employment/low growth

Source: ABI 2001, GLA Economics ©Crown copyright. All rights reserved. Greater London Authority LA100032379 (2003) Spending Time: London’s Leisure Economy

35

People Restaurant workplaces in staff may receive tips from London are larger in terms of customers to supplement Jobs and workplaces numbers of employees than the their paid income. Restaurant There are more than 121,000 average for Britain. employees in London are paid employees working in London more than their counterparts restaurants, over 3 per cent of Occupations nationally. Average hourly London’s jobs. Around 525,000 Restaurant employees work wages for chefs are 20 per cent people are employed in largely as waiting staff or in above the national rate for restaurants across Britain. More customer service. Almost chefs and waiting staff in than one in five of the nation’s 50 per cent are in elementary London earn 15 per cent restaurant workers are in personal service or sales more. London’s kitchen porters London. Dining jobs in London assistant occupations. earn 10 per cent more. Chefs increased by 28 per cent over Restaurants also employ chefs, and cooks are a skilled group 1995-2001, one of London’s cooks and kitchen porters, and in high demand and attract best sources of employment 16 per cent work in food a premium wage above that growth. Restaurant employment preparation. Sixteen per cent of other employees. across Britain grew at the same work as managers and rate as London. 5 per cent work in Employment in London cleaning occupations. restaurants differs from the There are 12,000 restaurants in national pattern. Nationally, London, an increase of more Pay and conditions 60 per cent of restaurant jobs than 28 per cent since 1995. Restaurant work is generally are part time but in London the low paid. The average national reverse is true. Women hold hourly wage in restaurants 55 per cent of restaurant jobs is 40 per cent less than the nationally, but men hold national average wage. Waiting 55 per cent in London. Table 3.2: Dining workplaces

Workplaces in London 12,000 Share of Britain’s dining workplaces % 20.5 Average employees per workplace, London 10.2 Average employees per workplace, Britain 9.0

Source: ABI 2001

Table 3.3: Pay and conditions

Wages, hourly London £ Britain £ Waiters, waitresses 5.90 5.12 Chefs, cooks 8.00 6.70 Kitchen porters, kitchen hands 5.60 5.10 Conditions London % Britain % Male full time 36 24 Male part time 20 22 Female full time 22 17 Female part time 22 37

Source: New Earnings Survey 2002, ABI 2001 Dining in London

36

Places in London. They gained 4,300 • Along the Thames: High jobs over 1995 to 2001, more rates of growth exist around London-wide than 18 per cent growth. The London Bridge in Southwark London wards have an average heart of Westminster alone – and Canary Wharf in of 156 dining jobs, and gained West End and St James wards – Tower Hamlets. 34 jobs over 1995 to 2001. generated almost 2,900 new • South London: Clapham Map 3.1 illustrates job trends dining jobs, or 17 per cent in Lambeth and much of in leisure in wards across growth. However, the rate of northern Wandsworth have Greater London. growth for West End dining jobs experienced high growth. is slower than for London as a • Outer London: Restaurants Sixty-one per cent of London’s whole, and the West End’s share are concentrated in pockets restaurant jobs are in high of London’s dining jobs is including north Finchley employment/high growth wards diminishing as other parts of in Barnet, the centre (Table 3.4). These wards gained London grow. of Ealing, and parts of the equivalent of 97 per cent of Hammersmith which all the net increase in jobs in Areas of growth have high rates of growth London’s restaurants. This is a Areas with growing numbers of in restaurants. Parts of high concentration of both dining jobs are: Bromley and Croydon have employment and employment also enjoyed growth. growth and shows that • Parts of north and west restaurants operate in centres central London: Much of Areas of decline where there are large numbers Kensington and Chelsea has Despite large increases in of other restaurants. growing employment in restaurant jobs in some areas, restaurants. Clerkenwell restaurant employment is either The West End in Islington and parts of slow or falling in much of Greater The West End wards have Camden also have growing London. Employment fell in much 27,400 jobs in dining, or restaurant clusters. of east and south London. 22.5 per cent of all dining jobs

Table 3.4: Location analysis of dining employment

Totalnumber % of Change in Number Number of of London’s London’s job numbers of jobs new jobs dining jobs dining jobs (1995-2001) per ward per ward (2001) High employment/high growth 74,600 61 +26,100 590 +210 High employment/low growth 14,500 12 -2,700 340 –60 Low employment/high growth 10,200 8 +6,500 100 +70 Low employment/low growth 22,300 18 -3,000 40 –10 Total 121,600 100 +26,900

Source: ABI 2001, GLA Economics Spending Time: London’s Leisure Economy

37

The future If the trends that are driving increased demand for dining – more employment and higher earnings – change, then people may choose to reduce their spending on eating out. However, the level of dining out in Britain, where up to a third of meals are away from home, is still considerably less than countries such as the United States or France where a half of all meals are consumed outside the home. There may be scope for increasing demand in London as people favour the convenience of dining out. However, growth in the number of establishments – particularly fast food outlets – will be slower than in recent years as the market becomes saturated with outlets. Restaurants with clear and distinctive products are likely to thrive, while many mid-market independents will face increased competition. Drinking in London

38 Spending Time: London’s Leisure Economy

39 Chapter 4: Drinking in London Visiting bars, public houses and clubs is an enduring aspect of society and London has a long history as a centre for nightlife and drinking. This chapter covers the sale and consumption of alcohol on licensed premises. The London market: street bars is also blurred now Public houses, high street high street bars can open for bars and nightclubs longer hours.

The drinking market is Drivers of demand very fragmented. In London, Nationally, half of all adults it can be grouped in three regularly visit pubs at weekends broad segments: and a fifth visit them during the Traditional pubs week. Seventeen per cent of adults Often away from main centres often visit pubs at lunchtimes. and mainly catering for local There are differences by age, customers, many who visit the with 84 per cent of people aged same pub regularly. 18-24 years visiting pubs at High street bars weekends, falling to 73 per cent Found in urban centres and for 25-34 years and 52 per cent on high streets, usually for 35-44 years. This difference branded and sharing a name among age groups has particular and features with other outlets. importance for London. The core Many are ‘chameleon bars’, pre-family age group of 18-24 operating as a restaurant in years is larger in London than the day and early evenings but the rest of Britain. Many are as a pub by night. students who are the focus of Nightclubs and discos midweek trade. Ninety per cent Places where the main feature of 18-24 year olds visit nightclubs, is dancing to music and drinks while less than a third of adults are offered as additional items. visit nightclubs. Eighty per cent Nightclubs are licensed, open until of nightclub sales are generated late and charge admission fees. at weekends.

These groups overlap – many Demand for drinking in bars is pubs are classified as hotels or different from the demand for restaurants. The distinction drinking alcohol which includes between nightclubs and high consumption in the home. Drinking in London

40

People’s decisions to drink The main recent change is growing rapidly. Sales were at home are aided by home the rapid growth in high street estimated at £2 billion in 2000, entertainment, competitively branded bars. Many town centre rising to £2.75 billion in 2002 – priced drinks from supermarkets pubs have changed into modern about a fifth of the total market and relaxed duty free laws. bars, with former high street for pubs. The number of outlets Attitudes to drink driving and shops and banks being converted has grown from 2,300 in 2000 health form a social backdrop into bars. There is intense high to around 2,900 by 2002. that affects the frequency street competition with increasing Six per cent of Britain’s pubs of visiting pubs. choice for drinkers. Many bars can be defined as high street hold late licenses and heavily bars, but that 6 per cent has a Drivers of supply discount drink prices. 20 per cent share of the market, Changing demand results in illustrating the competitive pubs needing to try harder to The value of London’s strength of high street bars. entice people in. The choice drinking market of drinks has expanded, and In Britain, overall market value is The growth of high street bars while beer remains the bestseller static and numbers of pubs have has exposed nightclubs to customers expect to see more declined for several years. There unprecedented competition. wines, branded spirits and soft are 40,700 pubs in Britain and The fall out has affected smaller, drinks. More pubs offer meals total sales in pubs were less specialised venues while and the contribution of food £13.8 billion in 2002. larger nightclubs continue to to turnover is rising. Many offer thrive. There are 1,600 nightclubs televised sport, pub games and However, the market for visiting in Britain and the market is live entertainment. high street bars in Britain is estimated at £1.1 billion.

Chart 4.1: Value of drinking in London

£ billions

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00 Pubs High street bars Nightclubs

Source: GLA Economics Spending Time: London’s Leisure Economy

41

Market size Business JD Wetherspoon, Mitchells and Butlers (All Bar One, O’Neills), London has 3,800 pubs, Structure SFI Group (Bar Med, Slug and 9 per cent of Britain’s The ownership of bars falls into Lettuce), Yates Group (Yates public houses. three categories: Wine Lodge, Bar Ha Ha), and • managed pubs: part of much Regent Inns (Walkabout) have The number of high street bars larger companies strong brand recognition. High is growing, mostly in centres • tenancies: the traditional pub street chains compete with one with young, high-spending which is leased from a another on price, but also in populations. London is the brewery ambience, customer service, natural market for this growth. • free houses: where owners safety and location. Larger A sample of national chains buy drinks from any brewery. companies have the resources shows a fifth of their bars are to invest in these areas that in London. Up to 600, or Competition legislation in the independent pubs lack. 15 per cent, of London’s pubs early 1990s broke the links are high street chains. between brewers and pubs. Three-quarters of the nightclub London brewers remain pub market is dispersed across Nightclubs in London differ operators, with Fullers, Smith hundreds of small operators. from Britain as a whole due to and Turner, and Young and Co New competition is leading the scale of visitors and tourists. running several hundred pubs. to consolidation within core London nightclubs are typically Pub companies (pubcos) have companies. Luminar is the licensed to open much later. emerged in recent years, which largest nightclub operator, There are 233 nightclubs in bring together independent pubs followed by First Leisure, London, or 15 per cent of under management contracts. Springwood and PoNaNa. nightclubs across Britain. Enterprise Inns is the largest pubco and competes with Punch People GLA Economics estimates that Taverns, Pubmaster and Scottish drinking was worth £2.35 billion and Newcastle. Jobs and workplaces to the London economy in 2002. There are 58,400 employees Consolidation and small in London’s bars, 1.5 per cent The largest share derives from enterprises of all of London’s jobs. London pubs with a value of more than Intense competition for high generated an additional 16,000 £1.3 billion, which is likely to street drinkers has enabled bar jobs over 1995 to 2001, an remain stable. The growth market pubcos to expand. However, the increase of 37 per cent. This of high street bars accounts for recent economic slowdown has contrasts with overall job growth £0.8 billion and nightclubs led some leading chains to curtail in London of 16 per cent. Bar generate £0.25 billion. expansion plans. Pubcos such as employment in Britain increased

Table 4.1: Employment in drinking3

Employees in London 58,400 Share of London jobs % 1.5 Share of Britain’s drinking jobs % 11.0 London change 1995-2001 15,900 London change 1995-2001 % 37.4

Source: ABI 2001

3As bar work is often casual and paid in cash, the tax-revenue method of the ABI may underestimate bar work. Drinking in London

42

Map 4.1: Where London’s drinking jobs are located

high employment/high growth high employment/low growth low employment/high growth low employment/low growth

Source: GLA Economics ©Crown copyright. All rights reserved. Greater London Authority LA100032379 (2003) Spending Time: London’s Leisure Economy

43

by 19 per cent, so growth was A further 16 per cent work Nationally, bar employment is higher in London than in catering preparation trades. very much dependent on female nationally. Estimates derived Cleaning occupations account part-time employees, but in from the Beer and Pub for 5 per cent of employees. London the largest group is Association suggest there could Protective occupations are also male full-time employees. be 10,000 self-employed significant because of security licensees in London’s pubs in in high street bars and clubs. Places addition to ABI-listed employees. Pay and conditions London-wide Overall, much bar work is Each London ward has an average There are 5,700 bar workplaces relatively low paid. The average of 75 bar jobs and gained 20 bar in London, about one in ten of hourly wage bar work is almost jobs over 1995 to 2001. Map 4.1 bars nationally. This is an increase 40 per cent below the national illustrates the performance of of more than 12 per cent from average wage. The average wards in Greater London. 1995. Bars are becoming larger, wage for bar staff in London is with more employees in each bar. around £5.80 per hour, around London’s bar jobs are 16 per cent more than bar staff concentrated in certain areas. Occupations nationally (Table 4.3). High employment/high growth Bar employees are largely wards have 54 per cent of bar bar staff working in customer More than half of bar employees jobs. These wards generated over service. Over 40 per cent are in London work part time, but 16,000 additional bar jobs over in personal service or sales this is notably different from 1995 to 2001, more than the assistant occupations. Around the national pattern where more total net gain in bar jobs over 16 per cent are managers. than two-thirds are part time. this time.

Table 4.2: Drinking workplaces

Workplaces in London 5,700 Share of Britain’s drinking workplaces % 9.6 Average employees per workplace, London 10.3 Average employees per workplace, Britain 9.0

Source: ABI 2001

Table 4.3: Pay and conditions

Wages, hourly London £ Britain £ Bar staff 5.80 5.00 Publicans, innkeepers n/a 9.75 Conditions London % Britain % Male full time 29 20 Male part time 24 21 Female full time 19 15 Female part time 29 44

Source: New Earnings Survey 2002, ABI 2001 Drinking in London

44

The West End • Parts of southern Islington, and Hounslow. However, Around 7,900 jobs, or south Camden, and eastern not many chains have opened 14 per cent, of London’s bar Kensington and Chelsea have in east London. The chains’ jobs are in the West End. Six expanded in bar work. geographical movements thousand bar jobs are found in • In south London, areas of reflect the growth areas. two Westminster wards – West Lambeth and Wandsworth, End and St James. The West particularly Clapham and Areas of decline End generated over 1,600 bar Balham, have grown strongly. A question mark hangs over jobs over 1995 to 2001, an • In western and south-western the future of many pubs. increase of 10 per cent but London, Hammersmith and The growth in high street slower than London as a whole. Fulham, Ealing and Richmond chains may put local pubs Growth is spilling beyond the upon Thames have at risk and bar employment West End into less saturated established themselves as has declined in much of areas such as Hyde Park and centres for bars. London. Bar employment Victoria. • Outside these areas, growth has fallen substantially in of bar employment has been Lewisham, Greenwich and Areas of growth scattered. Pockets of growth Newham, and parts of Tower Bar employment is clustering in exist in Croydon, Hackney Hamlets and Southwark. places where there is a critical and Hounslow. In some areas the decline is mass of bars and pubs, most visible with boarded, neglected notably in the following areas: The locations of chain bars pubs. The decline is partly show where the market is economic and partly cultural, • Parts of the City of London, growing. For example, All Bar particularly in areas with large not typically known for One has almost 40 bars in ethnic communities. leisure, have seen growth in London. Many are in the City bars as places of for the after-work market and employment. a similar number are in • Regeneration along the River Westminster. Others are in Thames to the east has regenerated areas of Canary buoyed growth in northern Wharf and Tower Bridge, and All parts of Southwark and Bar One outlets have headed for Canary Wharf in Tower the high streets of Kensington, Hamlets. Wandsworth, Islington, Ealing

Table 4.4: Location analysis of drinking employment

Totalnumber % of Change in Number Number of of London’s London’s job numbers of jobs new jobs drinking jobs drinking jobs (1995-2001) per ward per ward (2001) High employment/high growth 31,600 54 +16,200 230 +120 High employment/low growth 8,600 15 -600 150 -10 Low employment/high growth 4,600 8 +2,700 50 +30 Low employment/low growth 13,600 23 -2,400 30 -5 Total 58,400 100 +15,900

Source: ABI, GLA Economics Spending Time: London’s Leisure Economy

45

The future High employment and growing earnings have propelled the expansion of high street bars. If these conditions change, people may choose to budget their spending on drinking. In the longer-term, London will continue to attract people in the age groups which drive demand for bars, particularly 18-24 and 25-34 year-olds. High street bars are geared towards the young adult market, and demand for bars is falling among older age groups. This may point to unmet demand in London for more family-friendly pubs. Competition in London will continue to be intense. Economic slowdown will put pressure on pubs to compete on the quality of their products as well as price. This will favour larger companies and innovative small enterprises, while older, local pubs will suffer. Entertaining in London

46 Spending Time: London’s Leisure Economy

47 Chapter 5: Entertaining in London This chapter covers London’s wide range of theatres, concert halls and other performance spaces where people go to watch live performances of musicals, plays, comedies, operas, ballets and movies. The London market: National theatre attendances Theatres and cinemas declined during the late 1990s, mainly due to lower admissions The entertainment market in in provincial theatres. West End London can be broken down theatre dominates box-office as follows: revenues, but attendance has Theatres declined since 1999. In the West Venues in which plays or other End, up to a third of attendees live dramatic performances are overseas visitors. are given to an audience. In Britain, there are two aspects About 11 per cent of people to the market: visit cinemas at least once a • Commercial West End theatre: month and a further 27 per cent privately owned theatres, visit up to three times a year. largely in the West End of The 15-24 age group drives central London, performing demand for cinemas, and many without public subsidy. mainstream movies are targeted • Grant-aided theatre: theatres at this audience. Other regular supported or sometimes cinemagoers are under 34 years owned by the public sector. and the frequency of cinema Some West End theatre is visits falls rapidly in older also grant-aided. age groups. Cinemas Venues where a motion picture The market depends on is projected onto a screen for blockbuster films and seasonal an audience. peaks at Christmas and summer. Only a quarter of a movie’s Drivers of demand earnings now come from box- Less than 2 per cent of people office sales. Cinemas and theatres attend theatres at least once a also compete with home month, while up to 15 per cent entertainment such as movies, attend up to three times a year. DVDs and pay television which have eroded cinemas’advantages. Entertaining in London

48

Drivers of supply The value of London’s Market size There is a mixture of grant- entertaining market aided and commercial theatre There are over 1,400 performance GLA Economics estimates the in London. Commercial theatre venues in Britain, including 120 direct value of entertainment to is particularly concentrated in theatres and 100 concert halls. London’s economy is £0.44 billion. London’s West End. There were 25 million admissions into British theatres in 2000, This estimate is based on data The cinema business has grown down from 26 million in collected by the Society of and changed in recent years, 1995. Box office revenues London Theatres, the share of with the decline of independent were £394 million in 2000, Britain’s theatres and cinemas one-screen cinemas in town an 18 per cent increase from found in London, the larger centres and the rise of large out- £335 million in 1995. sizes of London’s theatres and of-town multiplexes. The average cinemas, and the higher costs number of screens per cinema There are 780 cinemas in Britain of being located in London. increased from 3.2 to 4.2 in the with 3,250 screens. The number late 1990s. Two-thirds of cinema of cinema sites increased by In addition to West End box screens are now in multiplexes 4 per cent, the number of screens office revenues of £250 million, compared to a third in 1995. by 36 per cent and the number the Wyndham Report on the of admissions by 12 per cent over economic impact of London’s 1997 to 2001. There were West End theatre states that 143 million admissions in 2000, generating box-office revenues of £628 million.

Chart 5.1: Value of entertaining in London

£ billions

0.25

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0.15

0.10

0.05

0.00 West End Theatre Cinemas Theatre

Source: GLA Economics Spending Time: London’s Leisure Economy

49

entertainment adds a further Business Ambassador Theatre Group £680 million to the London owns 11 London theatres economy from related Structure and several more across Britain. transport, accommodation, Commercial West End theatre Clear Channel Entertainment food and merchandise. and its major productions is an international group with dominate the market. There is four London theatres and There are over 100 theatres in also a diverse range of grant- almost 30 nationally, and London, including 50 in the aided and provincial theatre Cameron Mackintosh operates West End. West End theatre is across Britain. Some theatres seven West End theatres. so dominant that over 45 per cent that are considered part of of theatre admissions and over the West End are grant aided, There are 190 cinema operators 70 per cent of box-office such as the Royal National in Britain, but five major players revenues are in London. Theatre and many ballet dominate the market. Odeon/ABC The market for London theatre and opera productions. is the largest, followed by Warner, audiences is £287 million. The UCI, UGC and Showcase Cinemas. West End contributes at least Cinemas consist of a few These operators have over £220 million in sales, and competitive multinational 75 per cent of the market. theatres outside the West End players that capture three- The number of small operators are worth over £60 million. quarters of the British is particularly significant in market. A number of smaller London, with Mainline Picture’s London has 725 cinema screens, independent cinemas survive, Screen cinemas, City Screen’s over 22 per cent of all cinema many as art houses showing Curzon cinemas and Oasis art screens nationally. London has independent films. house cinemas. 27 per cent of national cinema admissions, or 42 million a year, Consolidation and and an average of 58,000 small enterprises admissions for each cinema Four companies dominate screen. London’s cinema market commercial West End theatre. is worth over £160 million. Really Useful Theatres is the largest, with 13 famous West End theatres and many successful musicals. The

Table 5.1: Employment in entertaining

Employees in London 44,500 Share of London jobs % 1.1 Share of Britain’s entertaining jobs % 39.8 London change 1995-2001 9,000 London change 1995-2001 % 25.2

Source: ABI 2001 Entertaining in London

50

Map 5.1: Where London’s entertaining jobs are located

high employment/high growth high employment/low growth low employment/high growth low employment/low growth

Source: GLA Economics ©Crown copyright. All rights reserved. Greater London Authority LA100032379 (2003) Spending Time: London’s Leisure Economy

51

People national total of cinema jobs, with an hourly wage of £12.30 41 per cent (5,600) of theatre and cultural activities with Jobs and workplaces jobs and 45 per cent (31,000) £8.20. Average wages for actors One per cent of London’s jobs of artistic and performing jobs. and musicians are 20 per cent are in entertainment, or 42,000 more in London than nationally. people. Nationally, around Occupations However, the survey results are 100,000 people are employed Occupations in entertainment based on small samples. in this business, which means vary and official classifications do around 40 per cent of Britain’s not easily apply to jobs in theatres Entertainment jobs are mostly entertainment jobs are in and cinemas. In London, 40,000 full time. In London, 70 per cent London. Entertainment is one people work in artistic and are full time compared to of London’s best sources of literary occupations. However, 60 per cent for Britain. A little employment growth. The rate within entertainment people also less than 50 per cent of employees of job growth is higher in work in management, sales and in entertainment in London are cinemas than theatres. London customer service and technical women while 17 per cent of generated an additional 7,000 occupations. employees are women working entertainment jobs in 1995 to part time. 2001, an increase of around Pay and conditions 22 per cent. Entertainment Theatrical performance work Places employment in Britain increased has high turnover of labour and by 22 per cent between 1995 short-term contracts. The New London-wide and 2001, similar to London. Earnings Survey does not report Each London ward has an Entertainment jobs are a strong wages specifically for theatres average of 57 entertainment advantage for London. London and cinemas. The closest jobs, with an average increase has 24 per cent (4,100) of the classifications are recreation, of 11 jobs over 1995 to 2001.

Table 5.2: Entertaining workplaces

Workplaces in London 420 Share of Britain’s entertaining workplaces % 26.0 Average employees per workplace, London 23.5 Average employees per workplace, Britain 19.2

Source: ABI 2001. Note: ABI Classifications 9213 and 9232 only

Table 5.3: Pay and conditions

Conditions London % Britain % Male full time 39 34 Male part time 13 15 Female full time 31 26 Female part time 17 25

Source: New Earnings Survey 2002, ABI 2001 Entertaining in London

52

Employment is concentrated 12 per cent between 1995 and Areas of decline in certain areas. High 2001, considerably slower than There are large areas where employment/high growth entertainment jobs in London very few people are employed wards account for 54 per cent as a whole. in entertainment, such as outer of London’s entertainment London. Employment is falling jobs and for all of London’s Areas of growth in some central London wards net growth in entertainment The most notable areas of Westminster and parts of employment over 1995 to 2001. of growth are in Camden, Camden, and Kensington and Hammersmith and Fulham, Chelsea. This reflects shifting The West End Kensington and Chelsea, patterns of entertainment Over 13,300 entertainment jobs, Islington, Lambeth and employment in these boroughs. 30 per cent of the London total Wandsworth. The most rapid and 12 per cent of the national growth has been in parts of total, are in the West End. While London where entertainment the West End is the heart of has a low employment base. show business in London and This is particularly notable Britain, employment is growing in Ealing and some north and faster elsewhere. West End east London boroughs such entertainment jobs grew as Haringey and Hackney.

Table 5.4: Location analysis of entertaining employment

Totalnumber % of Change in Number Number of of London’s London’s job numbers of jobs new jobs entertaining entertaining (1995-2001) per ward per ward jobs (2001) jobs High employment/high growth 23,900 54 +10,900 190 +90 High employment/low growth 12,300 28 -3,500 240 -70 Low employment/high growth 3,300 7 +2,100 30 +20 Low employment/low growth 5,000 11 -500 10 0 Total 44,500 100 +9,000

Source: ABI 2001, GLA Economics Spending Time: London’s Leisure Economy

53

The future Spending on theatres remains low compared to many other leisure activities. There is potential to increase theatre audiences and attract younger audiences. However, demand for visiting theatres is vulnerable to changes in tourism. Demand for visiting cinemas is likely to increase as the numbers of young people living in London grows. There is also potential to attract older audiences who do not currently visit cinemas. The success of cinemas will remain dependent upon the production of high profile films that capture a wide audience. London’s West End will continue to be one of the world’s theatre capitals. The consolidation into a few large theatre companies underlines potential to invest and modernise. For example, Cameron Mackintosh has plans to refurbish its theatres. Grant-assisted theatre will always be vulnerable to government funding decisions and competing for resources against the needs of public services. Arts Council England and business sponsorship will continue to play an important role in supporting non-commercial theatre, although it is vulnerable to changes in the popularity of the lottery and the extent of business involvement. Consolidation of cinema businesses may increase, but there will continue to be a role for London’s independent cinemas alongside the multiplexes. Tighter planning regulations on out-of-town developments will favour investment in London’s town centre cinemas. Sporting in London

54 Spending Time: London’s Leisure Economy

55 Chapter 6: Sporting in London Sport is likely to be of particular importance to London over the next few years, following the Government’s endorsement of the 2012 Olympic games bid. Sporting in London includes stadiums and arenas where people go to watch professional sports being played, sports centres and playing fields where people exercise and participate in amateur sports. The London market: or exercise. Over the age of 25, Participation and preferences move to general spectator sports fitness rather than competitive sports. Top activities are walking The market for sporting is and swimming, followed by grouped in two broad segments: keeping fit and aerobics. Participation sports The most popular sports played Amateur competitive games and are snooker, golf, football and games that are not competitive darts. Participation rates for but contribute to fitness. It many sports are low, but people includes facilities for participation who play sports such as rowing but not sports goods such as or cricket may put the activity clothing and equipment. The at the centre of their lives. market can be thought of as Participation varies by gender, fitness centres and health clubs, with men favouring football or and sports clubs and teams. the gym and women favouring Spectator sports swimming or aerobics. Watching sports in stadiums and arenas. This chapter covers By far, the most popular live the market for live viewing sport for spectators is football. of sports, but not coverage Nine per cent of people have through the media. recently attended a professional football match. This is due to Drivers of demand high media profile, frequent Nationally, half the adult matches and the seating population takes part in sport capacity of stadiums. Sporting in London

56

Football accounts for half of • private business: is becoming The value of London’s all spectators at sports events. important with the growth sporting market It is followed by rugby which is of private clubs. The national market for watched live by 3 per cent of participating in sports is people, and cricket which is The public sector contributes to £3 billion. This consists of watched live by 2 per cent. new infrastructure for participation admissions, memberships and Sports such as tennis, golf and spectator sports. Through charges. About £1.5 billion and snooker attract large Sport England, the National is from sports clubs and the television audiences but are Lottery has provided almost remaining £1.5 billion is less suitable for mass spectators £1 billion in grants since 2000. memberships of private health or have less frequent matches. This includes small grants to clubs. The value of the market clubs across the country to increased by a third over Drivers of supply multi-million pound support 1997 to 2002 due to rising Opportunities to participate in for infrastructure projects. membership of private clubs. sports and fitness are supplied by: • amateur sports clubs: usually Professional football dominates The national market for spectator not-for-profit and often the market for spectator sports. sports is £750 million, which voluntary Many football clubs have invested includes admission fees and • local authorities: typically by heavily in modernising stadiums, season tickets but not spectator providing parks, playing fields and sports venues can also be spending on catering or and open spaces, and used for entertainment. merchandise. The market value building and running leisure increased by almost two-thirds centres and swimming pools from 1997 to 2002, largely through major football clubs.

Chart 6.1: Value of sporting in London

£ billions

0.35

0.30

0.25

0.20

0.15

0.10

0.05

0.00

Fitness centres Sports clubs Stadiums and health clubs and arenas Source: GLA Economics Spending Time: London’s Leisure Economy

57

Total consumer spending on GLA Economics estimates local, regional and national clubs sports is £3.75 billion. Public spectator sports, excluding media, supported by the fees and work subsidies for sports through are worth £150 million to London. of their members. Britain’s local authority spending and London has 9 per cent of Britain’s amateur sports infrastructure lottery grants also contribute, arenas but many host international is less developed than many amounting to at least and national events – tennis at European countries. £1.4 billion a year. Business Wimbledon, rugby at Twickenham sponsorship of sports has grown and cricket at Lords and the There are 3,000 private health over the past decade and Oval. London is also home to clubs in Britain. Major chains contributes over £400 million a many national sports teams – are emerging, and Whitbread year, according to the five football premiership clubs, (David Lloyd), Fitness First, Department of Culture Media nine league clubs and six rugby Cannons, Holmes Place, LA and Sport. union clubs. Fitness and Hilton (Living Well) are expanding rapidly. The nine Market size Business biggest operators have 580 sites, up 50 per cent since 1999, and GLA Economics estimates Structure 1.5 million members nationwide. that the combined market The business of spectator Private clubs have intensified for participation sports and sports is different from any other competition and drawn people spectator sports is worth nearly business. Football clubs acquire away from clubs and local £700 million to London’s economy. a loyalty through their fans that authority leisure centres. is unprecedented in other London has 200 leisure centres markets – the same customers People and swimming pools and 400 attend games regardless of how private health clubs. It has dissatisfied they are with their Sport is source of employment 10 per cent of the country’s team’s performance. growth. London generated 6,000 leisure centres but an advanced new sports jobs over 1995 to market for health clubs. Consolidation and small 2001, a 23 per cent increase, The market for fitness centres enterprise while sport employment across is estimated at £335 million. People who are serious about Britain increased even faster by London has sports clubs for sport join amateur clubs. Sports 32 per cent. There are 29,200 the entire range of sport, clubs are usually independent, employees working in sport in from athletics and basketball not-for-profit and often voluntary London, 0.7 per cent of London’s to wrestling and yoga, with a organisations that encourage jobs and 11 per cent of national market value over £200 million. sports participation and sporting jobs. competitions. All sports have

Table 6.1: Employment in sporting

Employees in London 29,200 Share of London jobs % 0.7 Share of Britain’s sporting jobs % 11.2 London change 1995-2001 6,000 London change 1995-2001 % 26.0

Source: ABI 2001 Sporting in London

58

Map 6.1: Where London’s sporting jobs are located

high employment/high growth high employment/low growth low employment/high growth low employment/low growth

Source: GLA Economics ©Crown copyright. All rights reserved. Greater London Authority LA100032379 (2003) Spending Time: London’s Leisure Economy

59

In London, there are 540 sports Pay and conditions suit flexible working arrangements arena and stadium workplaces There is no accurate data on pay as they are generally open and 1,500 workplaces for sport for sport employees in London as longer hours and on evenings and physical wellbeing. This is the sample size in the National and weekends. a 13 per cent decrease in sport Earnings Survey is too small. workplaces since 1995. This The national average wage for Places decrease, alongside increases athletes and sports officials is up in employment, suggests to 75 per cent above the average London-wide consolidation in numbers of sites wage. The high pay of a few Each ward has an average and the growth of large venues. professionals skews this figure. of 37 sports jobs, and gained Sport employees in London are eight sports jobs over 1995 Occupations paid up to 30 per cent more than to 2001. Map 6.1illustrates GLA Economics estimates almost their counterparts across Britain. the performance of wards in 8,500 jobs in London are in Greater London. sporting and fitness occupations, Fifty-six per cent of sport up to 30 per cent of jobs in employment in London is full High employment/high sports. Managers in hospitality time. Women hold 48 per cent growth wards account for almost services hold up to 20 per cent of sporting jobs in London, 71 per cent of London’s sport of jobs, with a further and half work full time. There jobs, illustrating the massive and 20 per cent in customer and are more women working full increasing concentration of jobs personal service occupations. time in sports in London than within the activity. nationally. Jobs in health clubs

Table 6.2: Sporting workplaces

Workplaces in London 2,000 Share of Britain’s sporting workplaces % 8.8 Average employees per workplace, London 14.4 Average employees per workplace, Britain 11.4

Table 6.3: Pay and conditions

Conditions London % Britain % Male full time 32 30 Male part time 20 19 Female full time 24 19 Female part time 24 32

Source: New Earnings Survey 2002, ABI 2001 Sporting in London

60

Important centres • Parts of the City of London, Areas of decline Unlike other leisure activities, Westminster and Canary Much of London is characterised sport is not concentrated in the Wharf have experienced by low and declining sports West End which has just 4 per cent growth in sports jobs, largely employment. Some areas with of London’s sport employment. because of growing numbers a large concentration of sports The largest concentrations of of health clubs close to are losing jobs, such as Enfield, sports employment are found in employment centres. Brent and Bromley. Haringey, Croydon, Hammersmith • Growth is strong in areas with and Fulham, Greenwich and north London’s major sports arenas Westminster. – Merton as home to tennis at Wimbledon, Richmond Areas of growth with rugby at Twickenham, Sports employment in London and major football stadiums has been very mobile over the in Islington, Haringey, past few years, with some wards Greenwich, and Kensington showing marked declines and and Chelsea. other areas capturing the growth.

Table 6.4: Location analysis of sporting employment

Totalnumber % of Change in Number Number of of London’s London’s job numbers of jobs new jobs sporting sporting (1995-2001) per ward per ward jobs (2001) jobs High employment/high growth 20,600 71 +13,200 140 +90 High employment/low growth 4,200 15 -3,800 90 -80 Low employment/high growth 1,300 4 +900 20 +20 Low employment/low growth 4,200 10 -4,300 5 -10 Total 29,200 100 +6,000

Source: ABI 2001, GLA Economics Spending Time: London’s Leisure Economy

61

The future The sedentary lifestyle of many of London’s workers will drive demand for places to exercise and keep fit. They will need to be open at accessible times and located close to workplaces, homes and transport. London’s population will continue grow in the 15-24 and 25-34 age groups, which will increase demand for sport and fitness. Rising incomes and falling costs due to competition between health clubs will add to growing demand. Demand for spectator sports will continue to be influenced by media coverage. High prices charged for top games and events may deter people from attending, which may provide an opportunity for smaller clubs and sports to engage new audiences. The proliferation of private health clubs and sports facilities will see intensive competition on the price and quality of facilities and services. This will mean local authorities providing leisure facilities will need to consider their patterns of provision. London’s professional sports teams and established arenas will need to keep investing in their infrastructure. However, many smaller clubs and teams will struggle to invest, and there are constraints for development in London in terms of space and costs. The proposed move of football clubs, such as Wimbledon to Milton Keynes, away from London and the delay of Arsenal’s plans for stadium development, have caused concern about the future of football in London. The supply of sports arenas in London depends on major policy decisions. A new stadium at Wembley would return the England football team and cup finals to their historic home. A successful bid for the Olympic games of 2012 would also revolutionise London’s sports infrastructure. Gambling in London

62 Spending Time: London’s Leisure Economy

63 Chapter 7: Gambling in London Gambling refers to activities that require a betting and gaming licence, and for which levies are payable to Customs and Excise, including casinos and bingo halls, lotteries, game machines, bookmakers and football pools.

The London market: There is an age dimension to Bookmakers, casinos, demand for gambling. People and bingo halls aged 50-64, followed by 65-74, are more likely to gamble than This report focuses on activities other age groups. However, the where a customer visits specific amount gambled by people premises to gamble. The market under 30 has increased sharply. has three segments: Men are more likely to participate Bookmakers in all forms of gambling than Public places where players can women, with the exception of place a bet and collect winnings. bingo. People within the lowest Casinos incomes groups spend the least Public buildings for gambling on gambling, but a higher share including roulette wheels and of their incomes than other groups. card games. Bingo Drivers of supply Public buildings that host a Gambling in Britain has been game in which players mark highly regulated and monitored. random numbers. As a result, gambling businesses in Britain have gained a reputation Drivers of demand for honesty but their growth has The share of people who been restricted. The introduction participate in gambling activities of the National Lottery in 1994 is relatively low. Gambling as a changed public perceptions of whole has declined in popularity, gambling and introduced a major particularly sales of football new competitor. The market has pools and the national lottery. been transformed in recent years Average weekly household by internet technology, and spending on gambling is falling internet bookmakers and casino as a proportion of leisure spending. games have added a new dimension to the economics of gambling. Gambling in London

64

The value of London’s Bookmakers take almost over £200 million. There are 690 gambling market £8.4 billion in bets each year. licensed bingo halls in Britain. Gambling is an exceptional Turnover is likely to increase The number has declined in market where nothing is actually when changes to tax laws will recent years, but the market purchased other than risk and mean bookmakers’ profits has remained steady as bingo the possibility winning or losing are taxed rather than bets. halls have become larger. Bingo money. The actual economic value If 80 per cent of the amount admissions are estimated at from gambling is the amount gambled with bookmakers is 89 million a year, with 3 million retained by the bookmaker, casino returned in prize money, the people playing regularly. or bingo hall. economic value of bookmaking is estimated at £1.4 billion. Market size The total amount gambled in Britain in 2002 was £28.7 billion. The British casino market takes GLA Economics estimates £10.5 billion was put into games estimated bets of £3.6 billion, that the economic value from machines in pubs and arcades. reflecting 30 per cent growth bookmakers, casinos and bingo Lotteries, including the national over 1997 to 2001. Casinos was more than £2.2 billion lottery, took £4.9 billion. keep 16-18 per cent of the in 2002. Amounts gambled Smaller amounts are bet on other amount bet, which was through lotteries and other gambling such as football pools. £620 million in 2002. forms of gambling would £13.1 billion is bet through considerably add to this. bookmakers, casinos and bingo – Bingo has a market value of The estimate is based on the 46 per cent of the total gambled. £1.2 billion. If 80 per cent is numbers of gambling operations returned in prize money, the economic value is estimated at

Chart 7.1: Value of gambling in London

£ billions

0.50

0.40

0.30

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0.00 Bookmakers Casinos Bingo

Source: GLA Economics Spending Time: London’s Leisure Economy

65

in London, the longer hours and £23 million, just 11 per cent has six and Gala Casinos has four. higher wages of employees in of the national total. Two companies dominate bingo. London, and established data Mecca has 20 clubs in London from the Gaming Board for Business and 100 more across Britain. Great Britain. Gala Bingo has ten clubs in Structure London and over 160 nationally. London has 740 bookmakers, The market for providing Many smaller bookmakers are a quarter of the national total. betting and gaming services still operating and around 110 Bookmaking in London has an is led almost entirely by private companies are members of the estimated value of £0.47 billion enterprise. The number of Bingo Association, but the two from bets of £2.8 billion. businesses involved with gambling largest firms still dominate bingo London has a quarter of Britain’s in decreasing, but the growing in London. casinos, but more than 60 per cent turnover of gambling-related of the amount bet nationally is businesses suggests increasing People bet in London. £2.2 billion is bet market consolidation. in London casinos, a 22 per cent Jobs and workplaces increase over 1997 to 2001. The Consolidation and In London, 19,900 employees casino market is larger in London small enterprise work in gambling, around than the rest of Britain, but it A few major players dominate 0.5 per cent of London’s jobs. is growing at a slower rate. The bookmaking. William Hill is In Britain, 88,000 people are average amount spent by people the market leader, followed by employed in gambling, which visiting the capital’s casinos is Ladbrokes, Coral and the Tote. means 23 per cent of gambling- much higher than average. In These businesses have up to related jobs are in London. Over 2002, 2.8 million people visited three-quarters of the market. 1995 to 2001, London generated London’s casinos and gambled 4,600 new gambling jobs, an £770 each on average, more Larger chains have bought increase of 31 per cent while than double the national smaller independents in gambling employment in Britain average of £304. recent years, but hundreds increased by less at 18 per cent. of independent bookmakers Bingo is less popular in London are still operating. London has 2,000 recorded than other parts of Britain. workplaces for gambling, a small London has fewer than 50 bingo Several casino companies operate decrease of around 2 per cent centres, less than 10 per cent in London. Grosvenor Casinos, since 1995. This decrease and of national total. The estimated owned by Rank, has six London increases in employment suggest value of bingo in London is casinos. London Clubs International consolidation in the number

Table 7.1: Employment in gambling

Employees in London 19,900 Share of London jobs % 0.5 Share of Britain’s gambling jobs % 22.6 London change 1995-2001 +4,700 London change 1995-2001 % 30.6

Source: ABI 2001 Gambling in London

66

Map 7.1: Where London’s gambling jobs are located

high employment/high growth high employment/low growth low employment/high growth low employment/low growth

Source: GLA Economics ©Crown copyright. All rights reserved. Greater London Authority LA100032379 (2003) Spending Time: London’s Leisure Economy

67

of sites and the emergence London is full time, higher wards have 68 per cent of of larger venues. than the national share of London’s jobs in gambling and 58 per cent full-time jobs. accounted for double London’s Occupations Women hold just under net growth in gambling Official occupational classifications 60 per cent of gambling jobs employment over 1995 to 2001. do not list croupiers, dealers in London, identical to the or slot machine attendants. national average. Most of The West End Much of gambling falls under these women work full time The West End is a major gambling administrative and clerical which is much more than centre and home to a number of occupations in finance, which the national average. casinos. The area has 3,300, or make up almost a third of 17 per cent, of London’s gambling gambling jobs. Other occupations Places jobs. Gambling employment include managers in hospitality in the West End increased by and leisure services. London-wide 40percentover1995to2001,much Each London ward has 25 faster than the London average. Pay and conditions gambling jobs on average, and The average hourly wage for gained six new gambling jobs bookmakers in London is about over 1995-2001. Map 7.1 10 per cent higher than national illustrates the performance bookmaker wages, but this figure of wards across London. is from a small sample size. Gambling employment is Sixty-seven per cent of concentrated in certain parts of gambling employment in London. The best performing

Table 7.2: Gambling workplaces

Workplaces in London 2,000 Share of Britain’s gambling workplaces % 20.1 Average employees per workplace, London 9.9 Average employees per workplace, Britain 8.8

Source: ABI 2001

Table 7.3: Pay and conditions

Conditions London % Britain % Male full time 33 29 Male part time 911 Female full time 34 29 Female part time 24 31

Source: New Earnings Survey 2002, ABI 2001 Gambling in London

68

Areas of growth activities. For example, some Most growth has been in areas are home to headquarters central London, especially the of betting organisations such City of Westminster which as Tote in Putney. gained 1,500 new gambling jobs, and Kensington and Chelsea Areas of decline which gained 500 jobs. Outside Many parts of London have central London, there is little low employment in gambling pattern in the distribution and little growth. Some areas gambling jobs. High growth have experienced a marked wards are scattered disparately decline in gambling jobs, up to across Greater London. Not all 40 per cent over 1995 to 2001. employment in gambling and betting is associated with leisure

Table 7.4: Location analysis of gambling employment

Totalnumber % of Change in Number Number of of London’s London’s job numbers of jobs new jobs gambling gambling (1995-2001) per ward per ward jobs (2001) jobs High employment/high growth 13,400 68 +8,500 150 +100 High employment/low growth 2,000 10 -1,700 70 -60 Low employment/high growth 800 4 +400 20 +10 Low employment/low growth 3,600 18 -2,600 5 -5 Total 19,900 100 +4,700

Source: ABI 2001, GLA Economics Spending Time: London’s Leisure Economy

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The future The white paper, A Safe Bet for Success: Modernising Britain’s Gambling Laws, proposed easing the rules on casino locations, allowing 24-hour opening, abolishing the ‘cooling-off’ period required before membership is granted, allowing bets to be placed by credit card and permitting bigger jackpots and prizes. Liberalisation would be balanced in part by introduction of a regulatory Gambling Commission. A full draft of the Gambling Bill, which would enact these changes, will be published later this year. On past form, gambling is recession proof and short-term economic slowdown is unlikely to have much effect on demand. Gambling continues to grow, but its long-term prospects depend on the impact of deregulation. It is uncertain if giving people greater freedom to gamble will result in a large increase in gambling. The new gambling laws will hold a clause that venues must be a minimum size. This will prevent a proliferation of smaller casinos. Growth will probably be in large multi-entertainment venues including casinos, bingo and slot machines. London’s gambling businesses will be positioned to take advantage of the new laws, but the new rules will erode London’s dominance in gambling by encouraging casino developments in other towns, especially seaside resorts. The continuing growth of internet technology will see a move towards online betting. Visiting in London

70 Spending Time: London’s Leisure Economy

71 Chapter 8: Visiting in London Visiting includes people touring or viewing a visitor attraction. This includes London’s wealth of historic attractions, museums, galleries, theme parks and gardens.

The London market: as London Zoo, gardens such Historical sites, museums as Kew Gardens, leisure parks and other attractions such as Chessington World of Adventures, and other The market for visiting London attractions such Madame is split into three main Tussaud’s and the London segments: Eye. Most of these attractions Historical sites charge admission fees. Historic properties such as the Tower of London, Buckingham Over a third of Britain’s Palace and Hampton Court attractions have free access. Palace; heritage centres such The mix of admission charging as Somerset House and and free access makes the Shakespeare’s Globe Exhibition; market for visiting attractions and places of worship such particularly difficult to measure. as St Paul’s Cathedral and Westminster Abbey. Many Drivers of demand charge an admission fee, The demand for visitor while some are free or ask attractions is from all age for a donation. groups, but particularly Museums and art galleries families. Up to a third of Includes the British Museum, visitors are children. Over the Science Museum, Natural 400 million people visited History Museum and London London’s attractions in 2000, Museum, and art galleries such including Londoners and as the National Gallery and people from the rest of Royal Academy of Arts. Many Britain and overseas. national museums provide free access, while most others People on holiday are most charge an admission fee. likely to visit attractions. In Other attractions 2000, 14 per cent of visitors to A mixture of attractions Britain’s attractions were from including wildlife parks such overseas and London attracts a Visiting in London

72

large number of overseas visitors. Drivers of supply The value of London’s There were 18 million trips to The growth in tourism has visiting market attractions by domestic visitors seen a massive increase in the There were 400 million staying overnight in London, number of attractions. Almost visits to Britain’s attractions 13 million by overseas residents half of Britain’s visitor attractions in 2000, with an estimated and 169 million day trips. have opened since 1980, and market value of £1.5 billion. Overseas visitors spend the a fifth have opened since 1990. Revenue is from admissions most, almost £7 billion per year. However, the number of attractions and donations (50 per cent), Domestic visitors staying overnight has grown at a faster rate than retailing (40 per cent) and spend £3 billion, and daytrippers the number of visitors, and catering (10 per cent). spend over £4.6 billion. visitors per attraction have been declining. The market is more complex Finally, demand is influenced than accounted for by this by prices. Many of London’s Lottery grants and European aid figure, which does not consider museums, historical sites and have subsidised new attractions the contribution of public gardens are in public ownership across Britain. The Millennium subsidies. Admissions are only and subsidised, and do not celebrations were marked with around 12 per cent of total charge admission fees. new, publicly backed attractions income. Many of the largest Government policy actively including the Millennium Dome, museums have free entry and seeks to stimulate demand London Eye and Tate Modern in many other museums and for visiting heritage attractions London. The result was a large historic sites are subsidised. by subsidising admissions. increase in the number of A real market value of visitor attractions. Some have been attractions would need to hugely successful and others investigate people’s willingness less so. to pay to visit the attractions.

Chart 8.1: Value of visiting in London

£ billions

0.25

0.20

0.15

0.10

0.05

0.00 Historical sites Museums Other

Source: GLA Economics Spending Time: London’s Leisure Economy

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Market size the Natural History Museum, up to a fifth of England’s Science Museum and Victoria visitor attractions. A quarter London has the greatest and Albert Museum each with of attractions are run by concentration of major attractions up to 1.5 million visitors a year. other trusts and charities. in Britain. In 2000, seven of the • Private ownership: less than top ten paid attractions and five Other London attractions, largely 30 per cent of visitor of the top ten free attractions fee charging, privately owned attractions are privately were in London (2000 was an attractions, had a market value owned. exceptional year as it included of £110 million in 2000. This the Millennium Dome which had includes the Dome (now closed), Consolidation and 6.5 million visitors). GLA Economics the London Eye with 3.3 million small enterprise estimates the market value for visitors and Madame Tussaud’s The diversity of visitor attractions, visiting London’s historical sites, with 2.4 million visitors. London’s the relative dominance of the museums and visitor attractions biggest visitor attraction outside public sector, and the role of is £380 million. central London is Chessington trusts and charities make it World of Adventures in Kingston difficult to apply traditional Historical sites are the largest upon Thames, with up to measures of industry concentration part of London‘s visiting 1.5 million visitors. to visiting in London. The economy at over £190 million. government directly supports The most visited historical Business national museums and devolves attraction in the country is the responsibility for other attractions Tower of London, which drew Structure to agencies and trustees. Many 2.3 million visitors in 2000. England has around 4,700 of these compete with one another. visitor attractions. The structure Museums contribute £70 million, of visiting is unusual, and three The main private sector player although this is difficult to types of ownership shape in London is the Tussauds Group, measure due to the effect the market structure: which operates Madame Tussaud’s of public subsidies. The British • Public ownership: national and Chessington World of Museum was the top free government owns Adventures and has a holding attraction with over 5 million approximately 5 per cent of in the London Eye. There visitors in 2000. London’s visitor attractions including is a continuing role for small National Gallery also attracted some of the largest. Local enterprises in small museums almost 5 million and the Tate authorities own around and galleries as over a third Modern attracted 4 million. 22 per cent. of Britain’s museums, historical All the national museums now • Trusts or charities: English attractions, fairgrounds and no longer charge. The top Heritage which is partly amusements have turnovers admission charging museums supported by government, of less than £100,000. of 2000 were all in London with and the National Trust which is totally independent, have

Table 8.1: Employment in visiting

Employees in London 14,800 Share of London jobs % 0.4 Share of Britain’s visiting jobs % 17.2 London change 1995-2001 +2,100 London change 1995-2001 % 16.3

Source: ABI 2001 Visiting in London

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Map 8.1: Where London’s visiting jobs are located

high employment/high growth high employment/low growth low employment/high growth low employment/low growth

Source: GLA Economics ©Crown copyright. All rights reserved. Greater London Authority LA100032379 (2003) Spending Time: London’s Leisure Economy

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People Occupations Almost 69 per cent of jobs GLA Economics estimates in London’s visitor attractions Jobs and workplaces over 20 per cent of jobs in are full time, higher than the There are 14,800 employees visiting fall under the ABI national share of 58 per cent. working in London’s visitor category of library and Both nationally and in London, attractions, 0.4 per cent related professionals, namely women hold just over of London jobs. In Britain as archivists and curators. 50 per cent of jobs in 86,000 people are employed in A further 20 per cent of visitor attractions. visiting, meaning 17 per cent occupations are in leisure of national visitor-related jobs and travel services as travel Places are in London. This includes and tour guides. 7,300 jobs in museums and London-wide historical sites and 1,200 jobs Pay and conditions On average, London wards in gardens and zoos. London Average wages for occupations have 19 visiting jobs and gained generated 2,100 new jobs, an such as curators cannot be three over 1995 to 2001. Map increase of over 16 per cent released, as the sample size is 8.1 illustrates the performance over 1995 to 2001. Visiting too small. However, wages for of wards across London. employment in Britain curators in London are about increased by only 5 per cent. 18 per cent higher that the rest Employment is concentrated of Britain, suggesting employees heavily in certain areas. Eighty- Workplaces in London in London’s visitor attractions seven wards (out of 783) are much larger than the are paid more than their account for 90 per cent of jobs national average. There are counterparts elsewhere. in London’s visitor attractions. 700 workplaces for visiting in London, down since 1995.

Table 8.2: Visiting workplaces

Workplaces in London 700 Share of Britain’s visiting workplaces % 10.2 Average employees per workplace, London 21.3 Average employees per workplace, Britain 12.8

Source: ABI 2001

Table 8.3: Pay and conditions

Conditions London % Britain % Male full time 38 33 Male part time 10 13 Female full time 30 25 Female part time 21 29

Source: New Earnings Survey 2002, ABI 2001 Visiting in London

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This shows a large concentration 2001, showing growth in visitor Areas of decline of visiting jobs. While some attractions is beyond the traditional Some traditional tourist areas in wards have rapidly increasing tourist centre of London. Westminster have lost jobs in employment, others are losing visitor attractions, as has Kingston substantial numbers of jobs. Areas of growth upon Thames. There has been The most notable areas of negligible growth in parts of The West End growth include Kensington and London where visitor attractions Thirteen per cent, or 2,000, Chelsea, with an extra 1,200 are not a significant employer. of London’s visitor jobs are in visiting jobs, and Richmond the West End. Two Westminster upon Thames which also wards – West End and St James experienced rapid growth with – have 1,800 of these jobs. The 1,200 new jobs. Pockets of West End lost up to 400 jobs in growth were found in the City visitor attractions between 1995- of London and Southwark.

Table 8.4: Location analysis of visiting employment

Totalnumber % of Change in Number Number of of London’s London’s job numbers of jobs new jobs visiting jobs visiting jobs (1995-2001) per ward per ward (2001) High employment/high growth 10,200 69 +6,700 160 +100 High employment/low growth 3,300 22 -1,800 150 -80 Low employment/high growth 600 4 +500 10 +5 Low employment/low growth 700 5 -3,300 0 -5 Total 14,800 100 +2,100

Source: ABI 2001, GLA Economics Spending Time: London’s Leisure Economy

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The future Demand for visitor attractions is likely to grow steadily as incomes, leisure time and the market for tourism increase. In the short term, demand is vulnerable to economic slowdown and currency instability, particularly with a fall in numbers of visitors from North America and East Asia. However, economic slowdown and currency instability also affect British holidaymakers. If holidaying abroad becomes less affordable, people will refocus their travel plans to domestic tourism. This gives London an opportunity to attract visitors from within Britain. The dramatic increase in the number of visitor attractions has slowed. There will be fewer new attractions and with the Millennium celebrations now fading into history, lottery funding has shifted away from high-profile visitor projects. Many major museums and galleries remain largely dependent on public funding and have their priorities led by government policy. The market for visitors is competitive and London faces increasing competition to attract domestic and overseas visitors. There is growing rivalry from other British regions and cities, which have developed strategies for tourism, culture and leisure. Moreover, the revolution in air travel with low-cost carriers and cheap flights means that London now competes more directly with other European cities. Conclusion

78 Spending Time: London’s Leisure Economy

79 Conclusion

The leisure sector is one of the fastest growing parts of London’s economy. With nearly 290,000 jobs and a consumer market of £9.5 billion, it directly represents around six to eight per cent of the whole London economy.

The sector is growing rapidly As discussed in Spreading and is likely to make up Success: How London is Changing, a substantial part of the local job creation is important 178,000 new jobs in ‘other and leisure jobs will help to boost services’ projected by 2016 local economies across London. in the Mayor’s London Plan. Disposable incomes are rising, In this way, the leisure sector and it is projected that an can form an important part of additional 515,000 people strategies to ensure and improve of working age will be living the vitality of town centres – in London by 2016. Clearly, a key policy objective of the there will be increased demand Mayor’s London Plan. for more leisure services in the future. As well as providing jobs across London, leisure provides job The leisure sector has an opportunities for the whole important role to play in range of skills from entry-level meeting the challenges of a opportunities to professional larger and more diverse and managerial work. It provides workforce. Leisure’s job a mix of full-time and part-time opportunities are not just in the work for both men and women. West End but dispersed across many parts of London. In fact, Leisure activities also help the longer-term trend is for to create the excitement and stronger growth outside the West buzz that characterise London. End, particularly in theatres and This is vital in sustaining cinemas, dining and pubs and London as a world city and clubs. Sport is growing too, and is a leading visitor destination. concentrated almost entirely The importance of this is outside the West End. demonstrated by the Mayor’s Conclusion

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support of the Totally London The growth of leisure brings example, managing the layout campaign and the London increases in employment and and density of licensed Tourism Action Plan produced incomes and has many wider premises and ensuring that by the London Development social benefits. However, issues surrounding inappropriate Agency. Leisure is also important there are also downsides. use of alcohol are taken into in attracting the key global Some activities such as drinking account in regeneration. This finance and business services, and dining out can give rise is the approach outlined in and the skilled staff on which to problems of noise and London Agenda for Action they rely, to London. pollution that have an impact on Alcohol, the Mayor’s policy on neighbouring residents. to reduce the harm resulting Many leisure markets are being from alcohol misuse and drug shaped by the expansion and There is a need for a strategic use in the capital. consolidation of companies approach to find ways of and brands. For example, a minimising harm to the Demand is growing for public few large chains dominate the community. The London transport at peak leisure times – growth market of high street Plan supports the development mainly late evening and at bars. Larger enterprises with of Entertainment Management weekends. Transport for London greater resources to invest in Zones to integrate action by has sought to expand late-night their products, premises and boroughs and other agencies. public transport in recent years above all their employees can Other initiatives might be with more night bus services. help to generate improvements considered such as the Late-night leisure is likely to in the quality and professionalism opportunities arising from keep growing, highlighting the of London’s leisure economy. new legislation on Business need for extended services on Consolidation may affect Improvement Districts. the London Underground and smaller enterprises, but overall rail services through the night. market growth will still provide Leisure can have other social Demand for safe and affordable opportunities for innovative and costs. For example, excessive late-night taxi services will well-run enterprises and those alcohol intake can damage also increase. The Safer Travel offering competitive products. personal health and increase At Night initiative includes Public sector enterprise also levels of crime. Again, there cooperation between Transport plays an important role in is a need for a coordinated for London and the Metropolitan providing sports and visitor approach to policy to address Police to tackle crime on buses attractions, increasing access these issues. This might include and taxi touting. and encouraging everyone initiatives surrounding the to participate. physical environment, for Spending Time: London’s Leisure Economy

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The GLA provides a coordinating could encourage business growth brings benefits and role to promote a strategic support services relevant to costs. There are two possible approach to policy in London, the needs of small and policy approaches could be and effective policy making growing enterprises in the taken to manage that. for the leisure sector involves leisure sector. This will help a wide range of organisations. promote diversity and choice First, attempts could be made There are a number of actions in leisure. to stifle growth. Given the the GLA group can take to support • A city for people: The work strength of the forces driving the Mayor’s strategic priorities: of the Skills Commission and demand, it is questionable how the Framework for Regional effective this approach would • A fair city: The GLA has Employment and Skills can be. It would also endanger played an essential role in help the sector to develop other policy objectives, such establishing the Greater the potential of its employees as sustaining London’s world London Alcohol and Drug for more skilled and city status and ensuring enough Alliance to develop, rewarding jobs. jobs for the city’s growing implement and evaluate • An accessible city: Transport working population. programmes of action. This for London could provide an will help protect people who appropriate level and quality The second approach is to are most vulnerable to the of transport services, develop a coordinated set of social costs of growth particularly at night and over policies and work with all the in leisure. weekends. Effective policies agencies that have a part to • A green city: The Mayor’s for the leisure sector must be play in ensuring growth in planning powers could be based on comprehensive and leisure maximises the benefits. used to create a policy robust information about the framework that encourages sector and its contribution to This report provides evidence to a strategic approach to this London’s economy. This is an suggest the second approach is sector. The framework needs important role for GLA likely to be more effective, and to maximise the contribution Economics, and this report starts to identify some of the the sector can make to provides a start. issues that should be addressed. tackling localised problems of deprivation, strengthening As Spending Time: London’s town centres and improving Leisure Economy has shown, the urban environment. demand for leisure activities • A prosperous city: The is set to grow in London. London Development Agency It is acknowledged that this Appendix A: Supporting calculations

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Appendix A: Supporting calculations

There are no satisfactory existing 3 The ABI reports that there are 12 per cent longer than the measures of market size at a more employees per typical restaurant employee in regional level for each of the workplace in London’s leisure Britain. The market value for leisure activities. Therefore, workplaces than there are for London is inflated estimates of the market size in Britain as a whole. This accordingly. London are produced by taking ranges from ‘motion picture 5 Inevitably, London has higher national figures from the most projection’ where there is an costs than most other recent market research and average of 1 per cent more locations in Britain. This is disaggregating to a regional level. employees per cinema in indicated by the New London, to visitor attractions Earnings Survey where The calculations are developed which in London employ occupational results are in the following stages: around 67 per cent more available by region. Earnings people per attraction than in London’s occupations are 1 Take national market size nationally. The basic market higher than the national as reported by ICC/Keynote figure for London is inflated average. For example, people reports. accordingly. working in London’s bars are 2 Use Yell Data to find number 4 The ABI also provides data paid up to 16 per cent more of units in Greater London that shows full-time per hour than the national and number of units in Britain employment is much more average. The London market as a whole. The percentage of prevalent than part-time share is adjusted accordingly units in London provides the employment in London’s for these costs. base market share of London. leisure sector compared to Standard statistical sources nationally. For simplicity, it is This method provides do not break down into the assumed that a full-time straightforward but useful necessary level of detail, for employee job equals 40 hours estimates of the contribution example bookmakers, bingo work per week and a part- of the leisure sector to the and casinos. time employee job equals London economy. 20 hours per week. From this, average weekly hours per employee are estimated for each activity. For example, the average employee in a London restaurant works Appendix A: Supporting calculations

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Table A1: Calculations of London market size

National with London’s share market size National Multiplied by £ billions turnover London share (£ billions) of units (Yell Data)

Drinking Pubs 9.98 0.09 0.90 High street bars 2.75 0.20 0.55 Nightclubs 1.13 0.15 0.17 Total 13.86 1.62 Dining Restaurants 5.01 0.18 0.89 Ethnic restaurants 3.05 0.26 0.81 Fast food restaurants 3.06 0.21 0.63 Coffee shops and cafes 2.67 0.21 0.55 Fast food takeaway 1.74 0.21 0.36 Total 15.53 3.24 Entertaining West End theatre* 0.18 1.00 0.18 Theatre 0.22 0.16 0.03 Cinemas 0.63 0.22 0.14 Total 1.02 0.35 Sporting Fitness centres and health clubs 1.50 0.14 0.21 Sports clubs 1.50 0.08 0.13 Stadiums and arenas 0.75 0.12 0.09 Total 3.75 0.42 Gambling Bookmakers 1.41 0.26 0.36 Casinos* 0.61 0.60 0.37 Bingo 0.20 0.09 0.02 Total 2.23 0.75 Visiting Historical sites 0.54 0.17 0.09 Museums 0.21 0.17 0.04 Other 0.76 0.07 0.05 Parks and zoos 0.41 0.08 0.03 Funfairs and amusements 0.35 0.06 0.02 Totals 1.50 0.18 37.89

*There are some deviations from this method: West End theatre: Estimates of the market size for West End theatres are taken from the Society of London Theatres (figure reported by Keynote). Casinos: Estimate for London’s casinos are provided by the Gaming Board for Great Britain (figure reported by Keynote). Spending Time: London’s Leisure Economy

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but bigger establishments and employees for higher wages working longer hours Multiplied by £ billions Multiplied by £ billions Multiplied by £ billions London:GB London:GB London:GB London ratio of ratio of ratio of higher Turnover employees- average work earnings (NES) workplace hours per (ABI) week (ABI) 1.14 1.03 1.09 1.12 1.16 1.30 1.14 0.63 1.09 0.69 1.16 0.80 1.14 0.19 1.09 0.21 1.16 0.25 1.85 2.03 2.35 1.12 1.00 1.12 1.12 1.15 1.28 1.12 0.91 1.12 1.01 1.15 1.16 1.12 0.71 1.12 0.80 1.15 0.91 1.12 0.62 1.12 0.69 1.15 0.80 1.12 0.40 1.12 0.45 1.15 0.52 3.65 4.07 4.67 1.25 0.22 1.00 0.22 1.00 0.22 1.25 0.04 1.07 0.05 1.19 0.06 1.01 0.14 1.07 0.15 1.10 0.16 0.40 0.42 0.44

1.27 0.26 1.05 0.27 1.23 0.33 1.27 0.16 1.05 0.17 1.23 0.21 1.27 0.12 1.05 0.12 1.23 0.15 1.27 0.54 0.56 0.69 1.13 0.41 1.06 0.43 1.10 0.47 1.00 0.37 1.00 0.37 1.00 0.37 1.13 0.02 1.06 0.02 1.10 0.02 0.80 0.82 0.86 1.67 0.15 1.07 0.16 1.18 0.19 1.67 0.06 1.07 0.06 1.18 0.07 1.67 0.09 1.07 0.09 1.18 0.11 1.67 0.06 1.07 0.06 1.18 0.07 1.67 0.03 1.07 0.03 1.18 0.04 0.30 0.32 0.38 9.38 Appendix B: References

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Appendix B: References

• BBC, Museums turn • NERA, Alcohol in London: • Mintel, Leisure Intelligence on government, A cost-benefit analysis – Reports news.bbc.co.uk, 2001 A report for the Greater Late licensing, July 2001 • BBC, Blackpool gambles London Authority, NERA, Pub visiting, August 2002 on the future, London, 2003 Nightclubs, December news.bbc.co.uk, 2002 • Greater London Authority, 2002 • BBC, British museum – London agenda for action Restaurants, April 2002 squaring the circle, on alcohol: proposals for High street pubs and bars, news.bbc.co.uk, 2002 consultation with February 2002 • BBC, Wetherspoons stakeholders, Greater London Live entertainment, April slumps on profits warning, Authority, London, 2003 2001 news.bbc.co.uk, 2002 • Greater London Authority, • Office of National Statistics • BBC, West End to London Cultural Capital – Annual Business Inquiry have £35m revamp, Realising the potential of a 1995-2001, NOMIS news.bbc.co.uk, 2003 world class city, Greater Social Trends 33, 2003 • Department of Culture, London Authority, London, New Earnings Survey, 2002 Media and Sport, National 2003 Labour Force Survey, 2002 lottery awards search, • ICC, www.icc-plum.co.uk, • Travers T, The Wyndham www.culture.gov.uk, 2003 2003 Report: The Economic • Greater London Authority, • Key Note, Market Reports: Impact of London’s SDS Technical Report 6, Public houses, March 2003 West End Theatre, The Late-night London: Planning Restaurants, July 2002 Society of London Theatres, and managing the late-night Fast food and home London, 1998 economy, Greater London delivery outlets, April 2003 • Visit London, Authority, London, 2002 Cinemas and theatres, www.visitlondon.com, 2003 • London Assembly, Whatever December 2001 • Yell.com Business, Yell Data, gets you through the night: Betting and gaming, www.data.yell.com/yelldata, 24-hour licensing in London, October 2002 2003 Greater London Authority, The Sport Industry, July • Yellow Pages, London, 2002 2002 www.yell.co.uk, 2003 • London Assembly, Health clubs and leisure Away from home: scrutiny of centres, March 2002 London’s football stadiums, Visitor attractions, Greater London Authority, February 2001 London, 2003 • Kreitzman L, The 24-Hour Society, Profile Books, London, 1999 Spending Time: London’s Leisure Economy

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