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Ágnes Szabó an Examination of the Operation of Hungarian Leisure

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Ágnes Szabó an Examination of the Operation of Hungarian Leisure Ágnes Szabó An Examination of the Operation of Hungarian Leisure Sports System Markets, Value Creation, and Challenges in Leisure Sports Institute of Business Economics Department of Business Studies Supervisor: Dr. Krisztina András © Ágnes Szabó, 2012 2 Corvinus University Budapest Ph.D. Program in Business Administration An Examination of the Operation of Hungarian Leisure Sports System Markets, Value Creation, and Challenges in Leisure Sports Ph.D. dissertation Ágnes Szabó Budapest, 2012 3 TABLE OF CONTENTS Acknowledgments .........................................................................................................8 1. INTRODUCTION.....................................................................................................9 1.1. THE MAIN TOPICS AND THE SET-UP ......................................................... 11 1.2. A SHORT REVIEW OF RESEARCH IN SPORT ECONOMICS ..................... 13 2. TERM, CONCEPTS ...............................................................................................17 2.1. INTERPRETATION OF LEISURE TIME ........................................................ 18 2.2. DEFINITION OF SPORTS ............................................................................... 18 2.2.1. Sport from the viewpoint of an economist.....................................................20 2.3. APPROACHES OF LEISURE SPORTS ........................................................... 21 2.4. CONSUMPTION OF SPORTS ......................................................................... 26 2.5. LEISURE SPORTS INDUSTRY, MARKETS OF LEISURE SPORTS............. 27 2.5.1. The market of sports equipment and sportswear ..........................................30 2.5.2. Market of sports professionals.....................................................................30 2.5.3. Market of sponsors ......................................................................................31 2.5.4. Merchandising market.................................................................................32 3. CONSUMER MARKET.........................................................................................33 3.1. WHICH VALUES DO LEISURE SPORTS CREATE FOR THE INDIVIDULAS? ............................................................................................... 33 3.2. CONSUMER BEHAVIOUR AND SPENDING................................................ 37 3.3. FACTORS INFLUENCING LEISURE SPORTS CONSUMPTION ................. 41 4. THE STATE AND THE LEISURE SPORTS........................................................44 4.1. WHICH VALUES DO LEISURE SPORTS CREATE FOR THE SOCIETY AND THE ECONOMY? ............................................................................................ 45 Sidebar: The corporations and the leisure sports...................................................48 4.2. ROLES OF THE STATE................................................................................... 51 Sidebar I.: European Union ..................................................................................55 Sidebar II.: Financing ...........................................................................................57 5. THE ROLE OF CIVIL AND BUSINESS SPHERES IN LEISURE SPORTS.....60 5.1. THE NONPROFIT SPHERE IN LEISURE SPORTS........................................ 61 5.2. SERVICE PROVIDERS IN LEISURE SPORTS – SPORTS ASSOCIATIONS VERSUS SPORTS ENTERPRISES .................................................................. 64 5.3. BUSINESS-BASED LEISURE SPORT SERVICES ......................................... 67 6. THE STARTING POINTS OF MY EMPIRICAL RESEARCH, RESEARCH QUESTIONS, PROPOSITIONS, HYPOTHESES....................................................77 7. METHODOLOGY..................................................................................................83 7.1. SECONDARY RESEARCH – HUNGARIAN CENTRAL STATISTICAL OFFICE (KSH)-DATABASES.......................................................................... 84 7.2. IN-DEPTH INTERVIEWS................................................................................ 85 7.3. QUESTIONNAIRE RESEARCH...................................................................... 90 7.4. FOCUS GROUP................................................................................................ 91 8. THE RESULTS OF THE RESEARCH .................................................................92 8.1. ANALYSIS OF DATA FROM CENTRAL STATISTICAL OFFICE – BASIC SUPPLY-SIDE DATA ...................................................................................... 92 8.2. RESULTS OF IN-DEPTH INTERVIEWS AND FOCUS GROUPS, AND TWO CASE STUDIES ............................................................................................... 95 8.2.1. Leisure sports markets.................................................................................96 8.2.2. Value creation ...........................................................................................110 8.2.4. The role of local government .....................................................................131 4 8.2.6. The business sphere...................................................................................140 8.2.7. First case study: “The fitness sector”........................................................142 8.2.8. Lack of cooperation...................................................................................151 8.2.9. Best practices and the case study of the Budapest Sports Office.................153 8.2.10. Deficiencies and areas that need development and change ......................158 8.3. QUANTITATIVE RESULTS.......................................................................... 161 9. CLOSURE.............................................................................................................172 9.1. SUMMARY.................................................................................................... 172 9.2. EVALUATION OF THE RESEARCH ........................................................... 180 9.3. TOPICS FOR FURTHER RESEARCH........................................................... 183 REFERENCES .........................................................................................................186 APPENDIXES...........................................................................................................203 5 List of Figures Figure 1: The topics of the theoretical part of the dissertation........................................11 Figure 2: Classical elements in sport definitions............................................................19 Figure 3: Sport industry-model of Gratton – Taylor.......................................................29 Figure 4: The state, the civil society and the business sphere.........................................78 Figure 5: The areas of my empirical research ................................................................80 Figure 6: The process of the research ............................................................................81 Figure 7: Leisure sports’ markets ................................................................................109 Figure 8: Value-creation spiral in leisure sports...........................................................117 Figure 9: The most important tasks and shortcomings of the state ...............................131 Figure 10: The most important tasks and shortcomings of the civil society..................139 Figure 11: The most important tasks and shortcomings of the fitness centers...............150 Figure 12: The most important tasks for the associations.............................................164 Figure 13: The biggest differences between theoretical and practical importance of different tasks for associations.............................................................................165 List of Tables Table 1: The first studies in sports economics ...............................................................14 Table 2: Main fields of research in sports economics.....................................................17 Table 3: Differences between leisure sports and professional sports ..............................21 Table 4: Different concepts in connection with leisure sports........................................23 Table 5: Different models related to leisure sports.........................................................37 Table 6.: Sport expenditures in 2008 .............................................................................41 Table 7: Factors that influence leisure sports consumption............................................43 Table 8: The potential of leisure sports to create values on the micro- and macro levels and their contribution to national economic competitiveness .................................50 Table 9: Leisure sports services.....................................................................................53 Table 10: The structure of sports financing in Hungary in the mid-2000s......................58 Table 11: A comparison of nonprofit and for-profit providers .......................................66 Table 12: Main characteristics of nonprofit, state-controlled and for-profit (commercial) operations..............................................................................................................67 Table 13: Grouping of services and classification of leisure sports providers.................68 Table 14: Sports with and without the involvement of providers ...................................69
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