07-24-86 Packet (no Agenda) - Laserfiche WebLink

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isuiDest Route to 0it 0 An executive summary of current news on the leisure and drsc rehunaru spending markets. El Box 27488 Washington, D.C. 20038-7488 Return to: (202) 232-7107 Vol. VI, No. 13 # July 15, 1986 TR EN DS & OUTLOOK Tax reform will cut some of the deducti- bility of entertainment expenses, but Consumer spending was supposed to have the trend of expenditures is up. The 4th given the economy a big boost in the of July extravaganza in New York was more second half of '86, but doubts are ris- than a tourism boom for the city: milli- ing that this will happen. The economy ons of visitors left an estimated $500 overall moves along at a slow pace, but million in the local economy, a lot of an uneven one. Wall Street's spectacu- that by business interests. ABC-TV made lar climb over the past year has added money on its coverage, while companies about $1 trillion to the economy. Most like Chrysler and Coca-Cola used the of the market is controlled by pension event to host dealers and bottlers (Chry- funds and other institutions, and a big sler used the QEII liner to treat 700 i hunk of individual ownership is concen- dealers and guests) . trated among the nation's wealthiest consumers, who spend a lower percentage Last year, U.S. companies spent $30 bil- of their income. Many other consumers lion or more on meals with clients and have run up a large amount of credit customers, and another $6-$7 billion on card debt and have turned cautious. hospitality rooms and bar tabs. Spon- 3 sorship of sports events, plus TV adver- Consumer confidence and buying plans are tising of such events, runs into hundreds relatively unchanged in recent months, of millions of dollars each month. More than half of allpro sports tickets are and continue at a high level, notes a Po 1110 Conference Board report to be released purchased by business interests for en- today (July 15) . Business leaders, tertainment purposes (deductible only at too, continue to express fairly high 80% level soon) . levels of confidence. Groupsthatgained the most during the ATTRACTIONS & first quarter on Wall Street include entertainment stocks (up 48%) , leisure PRODUCTIONS stocks in general (up 38%) , publishing (up 37%) , soft drinks (up 44%) , toys (up 39%) , and hotels and gaming (up 35-36%) , The industry had been expecting a 9% restaurants (up 28%) , broadcasting (up increase in visits to amusement/theme 27%) , while airlines gained 11%, accor- parks this year, but a new study for the ding to Standard & Poor's. Intl Assn of Amusement Parks & Attrac- tions shows that visits may be 15% more The market's 80 point drop last week was than last year. Vacationers selecting quite a correction, but represented a where they will travel consider theme change of about 4%, which is not unusual parks and attractions (concerts, plays, for the market in profit-taking and the museums and events) "very" or "fairly correction periods, analysts were quick important," says the U.S. Travel Data to note. It was healthier than a pro- Center report for IAAPA. About 53% of longed, sluggish downtrend, all Americans plan to visit a theme park * * * * * * * * or attraction in the 6-month period from March 1 to September 1. Mergers of many kinds, from corporations to ad agencies, are sending shock waves * * * * * * * * through PR/advertising ranks. Shifts of Canada is a big draw with attraction pro- half a billion dollars and up occurred fessional managers: IAAPA's annual meet in recent weeks in client/agency switches. will beat EXPO in Vancouver, B.C. , Sept. IN THIS ISSUE: • LEISDRE TRAVEL 4 TRENDS & OUTLOOK 1 TV - MOVIES - VCR 5 ATTRACTIONS & PRODUCTIONS 1 PROMOTIONS & ADVERTISING 6 SPORTS & RECREATION 2 OUTDOOR RECREATION 6 MUSIC, RECORDS & TAPES 3 THEATERS, AUDS & ARENAS 7