Despite challenges, such as increased food and personnel costs, the leisure sector has had a good year. In the second year after corona, consumers are also fully opting for relaxation and recreation outdoors. For example, many Dutch people have (re)discovered their own country as a popular holiday destination. This is ABN AMRO’s conclusion in its Leisure Sector Forecast 2023-2024, which was published today. The return of foreign tourists is also having a positive effect on the sector. Up to and including October, the number of overnight stays in hotels, holiday parks, campsites and group accommodations was 16 percent higher than in the same period in 2019. Despite the growth in various subsectors, ABN AMRO emphasizes that the leisure sector is facing challenges. For example, many holiday parks, restaurants, hotels and airline tickets have become considerably more expensive, which can slow down growth in various segments. For the entire sector, volume growth of 3 percent is expected in 2024. One in ten Dutch people will spend less money on outings in 2024 Partly due to the expected improvement in purchasing power, the need for hospitality and travel will continue in 2024. Travel companies in particular are expected to generate more turnover (+8 percent). Volume growth is also on the horizon for many other subsectors – such as restaurants (+2 percent), fast food (+2 percent), hotels (+3 percent) and campsites (+3 percent), although it is levelling off. Visitor numbers have risen again this year at many forms of day recreation, such as amusement parks and zoos. This segment is expected to grow by 2 percent in 2024. This is especially true for a visit to a restaurant or café. Museums (+15 percent) are benefiting from the increase in the number of domestic and foreign tourists. The number of cinema visits (+24 percent) is growing, but much less strongly than in 2022 (+76 percent) and in 2024 this will even come to a standstill. Cinemas have to contend with competition from streaming services and with postponed productions due to strikes in the United States. Next year, one in ten Dutch people expect to spend less money on outings. This is evident from a survey of more than 1,000 respondents conducted by PanelWizard on behalf of ABN AMRO. Creating special experiences can stimulate growth in the leisure sector According to ABN AMRO, ‘experience’ is much more important to consumers than ‘stuff’. At the same time, the bank emphasizes that going through a special experience has become much more expensive. “When the Dutch have to choose what they prefer to spend their money on, ‘experience’ scores by far the highest for more than half. Examples of such experiences include traveling and visiting a restaurant, amusement park, or concert. This is especially true for younger generations. Nearly seven in ten millennials prefer to spend their money on experiences. This is also evident from the fact that one in three Dutch people expect to spend more on the summer holidays. After all, this is the time to share unforgettable experiences with each other,” says Gerarda Westerhuis, Leisure Sector Economist at ABN AMRO. “Although growth is likely to be moderate in 2024, the leisure sector is still facing many bumps in the road, partly due to high personnel and procurement costs. In order to be able to grow, it is more necessary than ever to focus on professionalization and revenue models in which creating a beautiful experience is paramount.”
