Four Types of Commercial Recreation

The classification system depicted on page 13 (The Commercial Recreation and Tourism Industry) demonstrates the overlapping nature of many of the suggested categories. This concept is essential for a person to gain a realistic grasp of a complex, diverse, and interrelated industry.

	Travel Industry: primary function is the movement of people and the provision of travel-related services.
	Hospitality Industry: primary function the provision of accommodations, food and beverage and related amenities.
	Local Commercial Recreation Industry: primary function is the provision of retail products, entertainment, and recreation programs for people in their home communities.
	Facilitators: these businesses support the three main industries.

Expenditures in Recreation, Leisure, and Tourism - See the table in the text on page 15 - 16.

	Increase in employment opportunities
	Local economy is stimulated through  increased commerce
	Outside capital is attracted
	Property values often increase
	Tax revenues (property, sales, and hotel room) increase
	Recreation opportunity for local residents increase
	Economic multiplier improves when locals stay in their community for their recreation experiences

	High business failure rates and short life cycles resulting in unemployment and decreased economic contribution to the local economy
	Overburdened local infrastructure (roads, sewers, utilities, etc) which will require capital improvements
	Increased crime rates
	Increased land values  and higher property taxes
	Over impacted natural resources that may reduce tourism
	Undesirable types of commercial recreation
	Local culture in rural or remote areas can be harmed
	Residents may become disenchanted with their own community

Government is not structured to meet all the recreational needs of all people. therefore government has acted to complement the efforts of private enterprise to provide the maximum recreation opportunity for its residents. Specific complementary actions by government include the following:

• Provide, maintain or regulate infrastructure (roads, utilities etc.) that supports commercial recreation and tourism.
• Promote tourism and commercial development.
• Provide public facilities where residents can use recreation equipment purchased from retail outlets.
• Provide low-cost introductory programs.
• Refer people to commercial recreation opportunities.

• Public agency programs conducted at commercial facilities
• Private enterprise contracted to operate certain programs at public agency facilities
• Co-sponsor of promotional and special events
• Loaning or sharing of equipment, supplies or staff expertise
• Leasing concessions for food, beverage, or other amenities
• Cooperative facility development
• Financial assistance provided such as low cost loans or property tax abatements
• Leasing of public land for commercial recreation and tourism development (USFS and ski areas - Snowbowl or Coconino County Parks and Recreation Department and Flagstaff Extreme Adventure Course).

Long-range planning for recreation and tourism is best served when government and private enterprise work together. the following are areas in which mutual planning efforts may be beneficial:

• Commercial recreation and tourism representatives should be involved in public hearings related to recreation and natural resources
• Commercial recreation and tourism representatives should be active in the community, serving on advisory boards and planning commissions
• Comprehensive plans at the local and state levels should include input from commercial recreation and tourism owners and managers
• Commercial recreation and tourism representatives should be active in providing input for national policy level decisions that affect the industry.
• Commercial recreation and tourism representatives should be active in providing input about local and state regulatory decisions.

The Rise of "Disruptive Technologies"

Disruptive technologies are "products and services that significantly change the marketplace." These innovations often displace existing industry leaders and challenge the status quo.

Disruptors are often fairly simple and tend to work their way up from the bottom. They tend to change the way business is done.

Examples of current disruptors affecting the hospitality and tourism businesses include Airbnb and Uber.

It is difficult to project what direction industry disruptors will take. Managers need to be aware of on-going changes in their industry because opportunities for disruptive changes in commercial recreation are numerous.

Key Trends in the Recreation and Tourism Industry

Government, private enterprise, society, and environmental factors interact constantly to create an ever-changing environment for the commercial recreation and tourism enterprise.

Events of the past set the stage for the future. There are several key trends and themes that appear constantly:

• International, national, regional, and local economic conditions affect the ability of people to spend for recreation and tourism.
• Demographic changes underlie significant changes in the market for recreation and tourism.
• Resource availability affects almost all forms of commercial recreation and tourism.
• Sustainability of natural resources and cultural needs to gain equal importance to on-term financial sustainability as a goal of recreation and tourism development
• Foreign policy, war, crime, terrorist activity, and natural resource disasters alter tourist's' choices of destinations.
• New technology will continually revolutionize travel and recreation, and entirely new concepts and products will emerge.
• Emphasis on multicultural and diverse opportunity will increase as people become more globally aware.
• Entrepreneurial mangers who are proactive in the way they address problems and take advantage of opportunities will have greater prospects for success than their lesser competitors.

	Anticipation, preparation and planning;
	Travel to;
	On-site participation and/or purchase;
	Travel from; and
	Recollection