The current status and future development strategies of sport facility business in Korea

Abstract

With the increase of economic values of sport, the sport industry has taken the important position in terms of gross domestic product (GDP). Sport facility business as a branch of sport industry has rapidly grown as people`s leisure time increases and their physical activities become a popular cultural form. The primary involvement in sport, that is, the participation oriented pattern of sport consumption has increased: the non-participation rates in sport have distinctively decreased and the number of sport clubs has steadily increased. The sport facility business is reflecting the change of sport consumption patterns: the number of the golf country clubs and indoor golf range/practice rooms, indoor skating link, and fitness centers has increased. As the well-being culture and its consumption are widespread, the government launched the major policy for promotion of sport industry including sport facility business. The 3rd 5-year master plan of national sport promotion included the financial support for building and improving sport facilities and the abolition of regulation against the competitiveness of sport facilities (Ministry of Culture & Tourism, 2003). And the government started the education programs for sport facility (future) managers and thus about 140 sport facility professionals are taking the courses. Considering the change of sport consumption and government policy, this study attempted to investigate the current status of sport facility business and to discuss the future directions for developing the sport facility business. The questionnaire method was employed to figure out the business, organization, and personnel situation of sport facility business and to collect the suggestions from the top management of sport facilities. The managers and CEO from 105 sport facilities out of 417 answered for this study. The results showed that the current business of sport facilities doesn`t seem to be competitive and profitable: many sport centers lose the money, on-line business is rudimentary, there are few professional staffs, and the organizational structures of some facility business are less efficient. The future prospects are quite different between golf country clubs and general sport centers. Golf facility business` future looks bright but sport center doesn`t. The study proposed the future action plans for developing and prospering sport facility business: the reinforcement of marketing strategies, the establishment of sport information networks, the production of sport business professionals, the expansion of on-line business, the increase of organizational management efficiency, the improvement of facility, the rational decision making from local governments, and the loosening of public regulations and rules against sport facilities. Finally the study argued that the government support such as financial assistance, regulation abolition, education of sport facility profession, and establishment of sport facility information would work as the infra-structure for promotion of sport facility industry. On the basis of government support, the sport facility business should reinforce sport marketing, expand on-line business, reform its outdated management, and improve its physical environment to meet the users` needs.