Market Overview

•  Sports tourism is defined as leisure-based traveling of individuals and groups to participate in sporting activities, attend live sports events, or visit attractions associated with sports.
• Sports travel is often considered as a social, economic, and cultural phenomenon created from the interaction of people, sports activity, and place.

Growth and Future Perspectives

• The sports tourism industry was growing positively till the beginning of 2020, but the ongoing global pandemic severely impacted the sports travel industry. In March 2020, about 10 million fewer tourists participated or watched a sporting event, resulting in a decline of $2.5 billion in direct revenue. Further, it is reported that about 75 million people did not participate in sporting events from March to December 2020, resulting in a direct loss of $20 billion.
• Many national and international sporting tournaments are planned for the coming years, and the development of new sporting venues is underway to cater to the growing popularity of sporting events. For instance, the recent PTT Thailand Grand Prix generated an income of more than $96 million and attracted over 222,000 visitors in 2018. An increasing number of such mega sporting events is attracting numerous visitors and driving the growth of the sports travel industry.
• A rapid growth in the number of inter-country and intra-country sporting events is seen over the past few decades. These events serve as a source of attraction for international and domestic travelers alike. Further, experts believe this trend will grow drastically from 2021 to 2024.

Growth Drivers and Challenges

• The main constraints in the sports travel industry include money and time for travelers. Another important factor challenging the growth of the industry is the increasing fragmentation of the sports travel industry. Nevertheless, an uptick is seen due to the growth of health-savvy participatory tourism.
• A few years ago, many people planned on watching sporting events from home. Today, sports tourism is one of the fastest-growing segments in the global tourism industry. The rapid growth can be attributed to ease of travel, affordability, and hassle-free booking.
• Since 2016, the Asia-Pacific region has led the growth of international tourist arrivals. Large-scale events like the Beijing Olympics, Pyeongchang Winter Olympics, and Rugby World Cup have majorly contributed to the growth of international tourists.

Traveling for Sports Events and Leisure

• The individual and group travel segment is expected to grow at the fastest rate and will account for the highest market share in the coming years. Further, groups of individuals aged 20-30 years accounted for about 41% of the market share. This can be attributed to a significant growth seen in the number of solo travelers visiting international destinations to explore culture and nature.
•  Participatory sports tourism is projected to grow significantly in the near future. However, the growth is expected to be cut-down owing to affordability.
• Alternatively, it is noted that created events built and operated locally would become an essential business development tactic for destinations to attract sports tourists for events.
•  Fan safety is another issue that hosting organizations need to consider for hosting events. Even as the pandemic is receding, the organizers need to put additional safety measures to ensure the safety of athletes and fans, alike. Thus, enhanced safety measures will likely become industry benchmarks for the future.

Outdoor vs. Indoor Sports

•  Hard sports tourism segment held the largest market share in 2018 and is expected to grow at the fastest rate between 2021-2024. Alternatively, the football and adventure segment accounted for the highest share in sports tourism in 2018.
• Individual sports have witnessed the fastest recovery in the sports market. This can be largely attributed to better safety measures being implemented over team sporting events. Thus, increased participation is seen in sports like golf, racing, tennis, BMX, and pickleball. This trend will further grow as the pandemic fades out in 2021.
• According to the United Nations World Tourism Organization (UNWTO), tourists interested in adventure sports have increased by 5.0% in 2019. Alternatively, the land-based sub-segment is predicted to grow significantly due to the increasing demand for land-based activities such as trekking, wildlife safaris, cycling, among others.

Enhanced Sporting Facilities

• According to a recent report by Technavio, there is an increasing focus on facility expansion and redevelopment of sporting venues. For instance, FC Cincinnati announced an investment of $200 million for constructing a new stadium.
• To lower the operational costs, a large national trend is underway to repurpose publicly managed venues such as golf courses, tennis courts, and pools. Additionally, many sports venues have started to host non-sporting events, such as drive-up concerts.

COVID-19 Impact

• The cancellation of sports events has created huge financial constraints on organizers, it is likely to pose a significant challenge for all stakeholders, including the market vendors, destinations, organizers, hotels, and suppliers.
• It is anticipated that event managers and venue holders would require spending additional time and resources to host sporting events safely. This may lead to the development of newer models to host sporting events in the future.

New Strategies

• Over the years, the sports tourism market has been constantly reshaped due to digital technology advancements. To counter the deleterious impact of the COVID-19, companies are adopting new strategies to reduce fan friction.  
• New technologies like mobile ticketing, easy transfers, online concessions, free WiFi, Venue-specific apps are poised to create smoother experiences for fans at sports venues. For instance, StubHub is working to make the fan experience more seamless for live events in 2021.

Sports tourism

• Data from various sources indicate the industry (before COVID-19) was growing at a CAGR of between 6% and 7.6%. A more optimistic outlook by Technavio, a leading global technology research and advisory organization, projected a 36% CAGR by 2023. However, factoring in the effects of the Coronavirus, it is more realistic to anticipate a market growth increase of $1381.02 billion during 2019-2024 at a CAGR of 12%

 

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• The positive outlook is pegged on an increasing number of sporting events worldwide, new venues being built, advances in technology allowing for online travel booking, and increasing disposable incomes. Further, the improved sports production equipment is also seen as a contributing factor to sports development.

 

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• Sports travel represents over 10% of the global travel industry, generating between 12 and 15 million international arrivals every year. According to the UN World Tourism Organization, 2016 was the 7th consecutive year of sustained growth after the 2009 global recession. It is estimated that some 300 million more sports tourists traveled in 2016 than the 2008 pre-crisis record.

• Many reports estimate the value of global sports travel at between $800 billion to $1.7 trillion. Barring the Coronavirus pandemic, the segment was projected to be worth $5.72 trillion by 2021.
•  Global sports sponsorship has also grown considerably, with ESP Properties estimating a 4.6% growth in 2016, amounting to some $60.1 billion.

• Europe remains the main source of sports tourists, with the United Kingdom, Germany, Spain, Sweden, Denmark, Italy, and Spain as lead nations.

 

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Regional Trends

APAC

• According to ESP Properties, the increasing influence of globalization in emerging markets saw the Asia-Pacific region emerge as the region with the fastest-growing sponsorship spending in 2016 at 5.7%.
• The region also led growth (8%) in international sports tourist arrivals in the same year. This was attributed to the knock-on effect of the 2008 Beijing Olympics and the events leading up to the 2018 Pyeongchang Winter Olympic Games, 2019 Rugby World Cup, and 2020 Olympic Games in Japan.

EMEA

• In 2018, EMEA emerged as the region with the largest sports tourism market share at 43%, followed by the Americas and APAC. During the forecast period, EMEA is projected to continue dominating the market due to increasing numbers of spectators and sporting events.

America

• The National Association of Sports Commission reported increased numbers of sports visitors in the country in recent years, with some 25.65 million international arrivals being registered in 2015, generating over $8.96 billion.
• According to the Travel Industry Association, nearly 40% of Americans attend a sporting event every year, traveling over 50 miles. The numbers are even higher in Australia, with roughly 55% of Australians traveling to sporting events each year. Australia's Bureau of Tourism Research reports that some 779,000 Australian sports tourists travel to attend Champions League games and EU Football Associations, spending over $283 million.

Interesting anecdotes

• The Camp Nou attracts millions of tourists every year. In 2017, some 32 million sports tourists visited the iconic venue that is FC Barcelona's home. The club's management estimates that, on average, out of the 78,000 attendees to its games each weekend, 10,000 are one-off visitors from outside Spain.

• In the U.S., the Basketball Hall of Fame attracts a quarter of a million sports visitors annually. Twenty percent are from outside the country. Similarly, some 300,000 sports tourists visit the Hillerich & Bradsby Company to witness how the iconic Louisville Slugger baseball bat is made.

Sports Tourism Industry Current Trends

1) The Rise of Esports and Other Technology Advancements

• The sports tourism market is being constantly reshaped and is ever-evolving due to regular technological advancements. This includes the rapid introduction of digitization technology which has the potential to reshape the entire industry.
• The increasing use of technology in the sport tourism industry in the form of smart court surfaces, live-streaming, game apps, and management tools is assisting facilities, event owners, and coaches create a better experience for visitors and the community.
• Additionally, the growth in venue-specific apps, online concessions ordering, and free Wi-Fi facility at venues are some other technological advancements that are helping make sports tourism more convenient and popular among travelers.
• Various sports event organizers have also started to deploy artificial intelligence to provide an enriching and captivating experience to sports tourists. For example, IBM has created an artificial intelligence software system that can do play-by-play and color commentary of soccer videos. The software has been trained on videos of about 50 soccer games and their play-by-by commentary.
•  Concierge robots are also being deployed to enrich the experience of sports travelers. These robots are capable of understanding natural speech (in a multitude of languages) and hence can provide guests with valuable information about a majority of things, including restaurant recommendations, sight-seeing options, and directions, among others. The use of concierge bots provides an invaluable experience to tourists who come from far and wide to attend major events, such as the World Cup, the Super Bowl, the Tour de France, etc., and stay in hotels, hostels, and shared-homes. The Hilton hotel in McLean, Virginia, is an example of a company that is already using an IBM concierge robot to assist its guests.
• Further, robot chefs can be leveraged to provide athletes and sports fans with indigenous taste food during their travels. Moley Robotics has created the world’s first intelligent robotic kitchen, which has a fully programmable library of recipes that can be uploaded from around the world. Using this technology, athletes and sports travelers can enjoy their local food flavors and feel at home while being miles away.
• The growth of the Esports industry is another major trend that has made sports tourism increasingly popular and rewarding for the local economies. E-sporting events leverage the immense popularity of online gaming and bring together acclaimed online gamers in an offline setting, thereby boosting sports tourism. As per Statista, in 2020, the global Esports market was valued at just over $950 million and is expected to reach $1.6 billion in 2023, growing at a healthy CAGR of ~19% [(1600/950)^(1/3)-1*100].
• As per an article from VentureBeat, inaugural esports events by local communities are already exceeding expectations and surpassing traditional sporting events, concerts, and other entertainment categories. Esports fans tend to travel long distances to attend popular tournaments and events and hence allow local economies to attract players and travelers from around the world. The total number of esports enthusiasts in the world was estimated at 191 million people in 2019. The total eSports audience was estimated at 495 million people in 2020, depicting an 11.7% YoY growth. As per data from FTN, in 2019, there were 885 major esports events, which generated $56.3 million in ticket revenues, up from $54.7 million in 2018.

2) Changing Sports Facility Models To Attract More Travelers

• There has been a shift in the way the next generation of sports facilities are being currently planned and designed to boost sports tourism and reduce operating costs. There is a large national trend in repurposing publicly funded and managed venues, specifically converting golf courses, pools, and tennis courts into higher-volume and lower operating cost uses.
• To boost sports tourism, multi-functional event centers are being planned. Such centers enable sports venues to serve their surrounding communities in a more comprehensive way as facility assets are being developed for a variety of uses. Rocky Mount Event Center in North Carolina is an example of a versatile facility that can be converted for a variety of uses. While it primarily serves as a basketball and volleyball tournament venue, the event space can also be converted to host concerts, events, and trade shows. It can also serve a variety of disaster relief purposes, including as a shelter or food bank during hurricane season.
• Similarly, in the City of Wheeling, WV, construction of the Highlands Sports Complex is currently underway, which will help capitalize on the commercial development opportunities associated with sports tourism. It features 6 indoor hardwood basketball courts and a full-sized indoor turf field to attract event owners and sports enthusiasts globally to the facility, while amenities such as a fitness center and splash pad are designed to delight local residents.
• Additionally, facilities with multi-sport adaptability are also in trend currently. More and more facilities are being developed to accommodate both sports tourism and community use. For example, the Champion Center in the Fox Cities region of Wisconsin has been designed with three pods. One of these pods can convert from court space to an ice rink during hockey and figure skating season. This design minimizes the yearly cost to maintain the ice and provides enough court and ice space to host regional tournaments during the respective seasons.
•  Tourism Improvement Districts (TIDs) are becoming increasingly popular and common in sports tourism. The purpose of these TIDs is to increase the number of visitors using business and services in a particular area. Oklahoma and Texas have both recently introduced TIDs. Cities in those two states are likely to be big movers when it comes to building tournament-ready sports facilities and boosting sports tourism.
• Additionally, owing to the COVID-19 pandemic, hosting organizations and their event partners are designing and equipping sports facilities with the best safety checks and standards to ensure athlete and fan safety in the years to come. Even as COVID-19 starts to dissipate, the checks and balances that have been put in place to combat the pandemic will likely become industry standards for facility creation in the future.
• Further, sports facilities that feature more diverse events such as LGBTQ sporting events are becoming increasingly popular as they provide a huge boost to sports tourism. Salt Lake City has incorporated this trend and is currently very active in promoting and bidding on events like the National Gay Basketball Association, North American Gay Volleyball Association, and National Gay Rodeo Association.

Helpful Findings

• Most of the key players in the global sports travel market appear to be large, well-established companies that offer a variety of products and services, including sports tours and travel services, event strategy, and event ticketing. Additionally, many of the businesses provide hospitality, entertainment, event management services, and promise unique experiences in the sports travel field. They participate in the development, management, production, and sales of commercial hospitality programs for different major sporting events.
• Some, such as the STH Group, provide sponsor hospitality design, such as guest invitation management and event logistics.
• Furthermore, types of sports that these companies target their services towards is rather diverse. These include horse racing, hockey, basketball, tennis, rugby, football, soccer, etc.
• Regarding their target markets, many of the key players in the global sports travel market, such as travelOsports, concentrate of individual consumers, colleges, schools, professional teams, corporate businesses, academies, and clubs.
• Many of them are also not centered solely on the sports segment as they provide services to music and arts, award ceremonies, galas, red carpet events, etc. Several of the companies also offer consumers access to travel agencies and online portals, along with aircraft and airline services, cruise liners, excursions, and hotel and hospitality services related to holiday travel.
• Other key players, such as Victory Sports Tours and Fanatics, provide a limited range of product and services. Fanatics primarily supplies licensed sports merchandise. Victory Sports Tours mostly offers high-quality sport tours to consumers.

Research Strategy:

BAC Sport

• BAC Sport is a UK-based sports travel and hospitality company established 25 years ago. Their products and services include providing tailor-made packages to several sporting events such as football, motorsport, cricket, rugby, tennis, golf, and US sports.
• Their unique value proposition/positioning includes organizing travel and logistics for the England Football Media, providing clients with the opportunity to not only attend sporting events but also spend a day with sports heroes, icons, or legends, and a partnership with the Aston Martin Red Bull Racing team which enables clients to tour the factory, use their boardroom facilities, and even dine amongst the cars.
• Their geographic footprint is worldwide as they provide travel services to clients globally to sporting events in all parts of the world.
• Pricing information can be obtained by contacting the company.
• Their target market/customer includes individuals, corporates, and concierge and incentive agencies.

Great Atlantic Sports Travel

• Great Atlantic Sports Travel is a US-based company established in 1981. They cover all aspects of travel services to domestic and international sporting events.
• Their products and services include providing sports travel packages and tickets to all domestic sporting events including all Professional Golf Association (PGA) events such as Masters Badges and Masters Packages. Ryder Cup Packages in Louisville, NASCAR Ticket and Tour packages to most races, as well as Kentucky Derby Packages. They also offer fan travel programs to all the games of the Carolina Panthers, Washington Redskins, Baltimore Ravens, Philadelphia Eagles, and Atlanta Falcons. Their annual travel packages include Super Bowl Packages, College Bowl Game Packages, Final Four Packages, US Open Tennis, French Open, and the NFL Playoffs. Their international travel packages include the Summer Games, the Winter Games, FIFA World Cup, Women's World Cup, UEFA EURO Cup, and Rugby World Cup.
• Their unique value proposition/positioning includes corporate accounts through which companies can integrate incentive travel into their company's marketing plan and travel insurance for all kinds of trips.
• Their geographic footprint is worldwide as they provide travel services to clients globally to sporting events in all parts of the world.
• Their pricing depends on the specific sporting event. For example pricing for the Masters Monday Practice Rounds for November 9, 2020, at the Augusta National Golf Course started from $1,275.00 while Masters Tuesday Practice Rounds for November 10, 2020, at the same venue started from $1,290.00. Custom pricing for events like the soccer World Cup in Qatar in 2022 can be obtained by contacting the company.
• Their target market/customer includes all members of the public.

MATCH Hospitality AG

• MATCH Hospitality AG is a sports hospitality company established in Switzerland in 2007. They offer premium hospitality products through a global network of Sales Agents. Their products and services include development, sales, production, and management of commercial hospitality programs for sporting events. Their events include football, tennis, and motorsport. The FIFA World Cup™ is their largest operation.
• Their unique value proposition/positioning includes responsibility for the entire FIFA Hospitality Programme, exclusive ticket-inclusive hospitality packages for all matches of the FIFA World Cup Qatar in 2022 and the FIFA Women's World Cup in 2023, exclusive Authorized Ticket Reseller for the Tokyo 2020 Olympic Games to all clients in Brazil and the Russian Federation, and the Official Hospitality Partner for Silverstone Circuit, managing Silverstone Circuit’s official hospitality portfolio across several events such as Formula 1®, MotoGP™, and the British Superbike Championship from 2020.
• Their geographic footprint is worldwide as they provide travel services to clients globally to sporting events in all parts of the world.
• Pricing information can be obtained by contacting the company.
• Their target market/customer includes customers who want exclusive hospitality products.

Sports Event Tourism

• Sports event tourism pivots around a sporting event, which can be of any size, from hallmark events like the Olympics and football World Cup to smaller events like a national tennis competition as well as amateur sporting events such as youth sports leagues.

Active Sports Tourism

• Active sports tourism involves traveling specifically to actively participate in a chosen sport or as a significant part of one's tourism experience. This type of sports tourists can be further classified as amateur, hobbyist, and professional sports tourists.

Nostalgia Sports Tourism

• This type of sports tourism involves journeys to famous sports-associated tourist attractions. Tourists of this type could visit museums, exhibitions, sporting halls of fame, or sporting venues to celebrate past or present sports. They travel to learn or have a social experience and not necessarily to participate actively or spectate.

Passive Sports Tourism

• This type comprises the spectators or fans. It involves traveling to watch sports being played. While sports are inherently active, not all participants are themselves active. In some cases, as in a major sporting event, passive tourists contribute to the sport more than active participants. In other situations, passive tourists may be traveling to support a friend or family member.

Golf Sports Tourism Market

• Research indicates that the Golf Sports Tourism market is expected to grow exponentially by type (domestic and international), application (direct and indirect), and region by 2026. The projected growth is anticipated to rise considerably during the forecast period that is 2020 and 2026. Some of the golf sports tourism market's key players include Tokyo Golf, Blue Canyon Country, Golfasian, Hirono Golf, Sentosa Golf, PerryGolf, Your Golf Travel, and SGH Golf.
• Between 2015 and 2019, the golf tourism market size has grown exponentially, but the COVID-19 breakout paused the growth. Due to the steady decrease of the global economy, the global golf sports tourism market was affected heavily. However, the market size is expected to improve drastically in 2021. The North American market is expected to grow steadily within the forecast period. Some of the key drivers for this market include adopting advanced technology and large players in North America. Despite the intense competition, investors continue to be optimistic and more investors are expected to enter this field in the future.
• Golf attracts thousands of tourists every year, which has prompted many global organizations and tour operators to integrate golf tours into their schedules. Golf has proven to be a sport for entertainment and a sport that creates tourism opportunities, especially in the travel and hospitality industries. Studies also reveal that golf tourists spend more than other tourists, prompting governments and stakeholders to invest more in this sport. Golf sports tourism is increasing per capita income globally and has encouraged technology improvement, especially in western societies. The only hampering factor to golf tourism's market growth is that it is expensive and is assumed to be for the affluent. This tourism is not affordable to most people, which has been a major constraint in its market growth.
• As golf sports tourism continues to grow, countries such as the US have continued to invest heavily in the sport. In 2020, the golf course market size and country club in the US reached over $24 billion. The graph below indicates the market size between 2011 and 2021, in billion USD.

 

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Cycling Tourism

• Europe is a key market in cycling tourism. Countries such as Denmark, Germany, and the Netherlands have popularized cycling and created cycling holidays that are either center-based or exclusively for touring. Some of the biggest market drivers for this tourism include safe cycling routes, quality material, ideal cycling infrastructure, cycling-friendly accommodation, knowledgeable guides, E-bikes, and customized itineraries. Netherlands, Denmark, and Hungary are also the leading countries in bicycle transport, as indicated in the graph below, which has popularized cycling tourism in Europe.

 

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• Industry reports indicate that before the coronavirus outbreak, the cycle tourism sector in Europe stood at €44 billion. Even though tourism has been affected globally, cycle tourism is categorized as part of the health and wellness sector, aligning it perfectly for the domestic tourism market. Cycling tourism is a niche, and its biggest driver is that it promotes health and wellness among all age groups. As more people look to maintain a wellness lifestyle even while on vacation, the market is projected to grow steadily in the coming years.
• More regions and cities that host elite races appreciate the marketing and tourism potential to be seized in cycling. Most hot spot countries for cycling tourism televise, share on social media and engage the world's press to showcase these races, where both elite and amateur cyclists participate. More so, regions that are known for cycling tourism develop guided routes. For instance, in Flanders and Belgium, some routes are put on offer occasionally to attract cycling tourists. In Scotland, the entire cycle tourism market is valued at £239.3 million annually. Studies indicate that cycle tourists are spendthrifts who promote local businesses such as accommodation providers, restaurants and cafes, bike shops, and rental companies.

The Ski Tourism

• The snow sports such as ski tourism have continued to grow steadily, especially in Winter. Studies indicate that there are approximately 120 million, skiers worldwide, 2,000 ski resorts in 80 countries, serving an already growing market. Asia and Eastern Europe have always competed for snow sports tourists through their already established destinations. Growth in technology has led to market growth on the skiing product and its distribution, especially among tourists. However, demographic shifts affect the landscape of the sport, and with climate change impacting hills all over the world, the industry is expected to experience some dynamics.
• Even as the ski tourism sector continues to experience varying dynamics, it has continued to grow steadily in parts such as Europe. In this region, the ski gear and equipment market is projected to reach $1,567.05 million by 2024, with a 2.78 CAGR, during the forecast period. This projection has encouraged the European government to devise initiatives that can increase the number of ski resorts to host more tourists in the region in destinations such as Chamonix, St. Moritz, and Val Thorens.
• Some various trends and drivers are responsible for the growth of ski sports tourism around the world. Technology, for instance, has played a vital role by developing platforms and apps that help ski tourists to book and schedule winter sports such as skiing. Through technology, clothing manufacturers have elaborated their craft to design ski gear with special material like graphene intelligent fibers or integrate sensors into smart wear for skiers to regulate clothing temperature. Through technology, industry players have also developed innovative skiing equipment that encourages more tourists, whether amateur or advanced.