Amusement and Recreation Services (not classified elsewhere)

SIC 7999
AMUSEMENT AND RECREATION SERVICES, NOT ELSEWHERE CLASSIFIED

This industry covers establishments primarily engaged in the operation of sports, amusement, and recreation services, not elsewhere classified, such as bathing beaches, swimming pools, lottery operations, riding academies and schools, gaming establishments, carnival operations, exposition operations, horse shows, picnic grounds operation, ski resorts, and shooting galleries. Establishments primarily engaged in showing or handling animals at shows or exhibitions are classified in SIC 0752: Animal Specialty Services, Except Veterinary.

NAICS Code(s)

561599 (All Other Travel Arrangement and Reservation Services)

487990 (Scenic and Sightseeing Transportation, Other)

711190 (Other Performing Arts Companies)

711219 (Other Spectator Sports)

713920 (Skiing Facilities)

713940 (Fitness and Recreational Sports Centers)

713210 (Casinos (except Casino Hotels))

713290 (Other Gambling Industries)

712190 (Nature Parks and Other Similar Institutions)

611620 (Sports and Recreation Instruction)

532292 (Recreational Goods Rental)

487110 (Scenic and Sightseeing Transportation, Land)

487210 (Scenic and Sightseeing Transportation, Water)

713990 (All Other Amusement and Recreation Industries)

Americans entertain themselves with a broad spectrum of amusements and recreations that include participatory and spectator sports, tourism, and other activities. Members of this broad industry range from athletes to bowling instructors and from fortune tellers to fireworks operators. The U.S. population's traditional interest in a rich and varied range of recreational activities has supported the growth of an enormous, sprawling industry to capitalize on the continued popularity of such activities.

Spending on recreational activities has grown dramatically since 1990, even in the absence of more free time. It was projected that spending by Americans on recreational activities would increase more than 30 percent between 2000 and 2005. Entertainment spending was dramatically higher in affluent and well-educated households.

While this industry classification covers many establishments, several areas of the industry have particular economic significance in the United States.

Ski Resorts. Skiing is one of America's favorite recreational sports, but with the number of skiers leveling off and operational costs such as snowmaking and workers' compensation rising, resorts were forced to hike prices and even explore consolidation opportunities. Many younger outdoor enthusiasts were taking up snowboarding, further contributing to the downhill skiing slump. In 1996, flashy new ski designs were introduced to appeal to skiers over 35, who make up an increasing share of the market. The new skis claim to allow ordinary skiers to cut smooth turns at slow speeds and with little effort.

Vail Resorts Inc., the nation's largest ski resort operator, currently owns the nation's three most popular resorts: Vail Mountain, Breckenridge Mountain Resort, and Keystone Mountain. Vail Resorts Inc. has been an active participant in the consolidation trend.

Tourism. The tourism industry includes such items as air, bus, cruise ship, and rail travel; hotel and motel accommodations; camping; food and drink; retail purchases; and amusement and recreation service. Across the United States, cities and counties have found success by using tourism to attract industry. The tourism industry ranks among the top 3 employers in a majority of the 50 states. Travel spending in the United States is responsible for millions of jobs generating hundreds of billions of dollars in wages and salaries.

As concern for the environment has grown, the so-called "eco-trip" or adventure travel, has become a popular vacation alternative. These eco-tours, which include such excursions as white water rafting, watching sea lions, or visiting a rain forest, are not new, but they have become a growth area of the travel industry.

Gaming Establishments. Until the late 1980s, only Nevada and New Jersey permitted casinos. But with states and localities hard-pressed to generate jobs, tourism, and tax dollars, the gaming industry has increasingly been viewed as a vehicle for economic growth. Today, some form of legal gambling is available in 47 states and the District of Columbia. In 1996, 56 percent of Americans gambled at least once, generating more than $50 billion in gross revenues.

Based on revenue, Las Vegas and Atlantic City remain the two largest centers of the U.S. gaming market. In 1995, Nevada's total wagerings grew almost 6 percent to $112 billion, the smallest gain in 6 years. While Las Vegas has been enormously successful at attracting new visitors, they are gawking more and gambling less. The amount of money and time spent gambling has decreased in recent years, while spending on shows, sightseeing, and other activities outside the casinos has more than tripled.

In contrast to Las Vegas, which is more of a resort and business convention destination, about 30 percent of the visitors to Atlantic City arrive by charter bus and stay for less than a full day. Ten of Atlantic City's gaming facilities are located on or near the Boardwalk.

During the early 1990s, casino-type activity become increasingly accessible to U.S. consumers. The geographic expansion of legalized gaming broadened the industry's customer base. People who had never traveled to Las Vegas or Atlantic City were being lured to local riverboats or Native American casinos. As of 1996, there were approximately 65 riverboat casinos open in Iowa, Illinois, Mississippi, Louisiana, Missouri, and Indiana. In addition, a number of states had authorized video gaming terminals (VGTs), which resembled slot machines.

The 1990s also witnessed the expansion of Native American gaming facilities. Under the Indian Gaming Regulatory Act of 1988 (IGRA), Native Americans can operate whatever form of gambling legally exists in a given state. Typically, a tribe seeks an agreement, or compact, with the state, detailing the gambling activity for which it seeks approval. Currently 24 states have permitted Native American gaming sites, with the most active being Connecticut, Minnesota, and Michigan.

More recently, however, there has been a slowdown in the number of new jurisdictions adopting legalized gambling. Concerns about social and moral issues may continue to restrict the spread of legalized gambling, and Congress established the Gaming Impact and Policy Commission in 1996 to study the effects of the industry on the public. The Commission found that while the gambling industry has entertained and provided decent jobs for some, it does have significant problems. The main problems cited were the effect on those with a pathological gambling problem and their families, and the fact that in many cases, the revenues from gambling that were supposed to go into causes like education or the environment, have simply not gone there. The Commission recommended that a "pause" was necessary before further legalization of gambling was allowed.

Industry Leaders

Mirage Resorts is one of the largest casino operators in Las Vegas. Its major U.S. properties include the Mirage, a tropically-themed 95,000 square-foot casino and 3,000 room hotel; Treasure Island, a pirate-themed 75,000 square-foot casino and 2,900 room resort; and the Golden Nugget, a 38,000 square-foot casino with 300 hotel rooms located in downtown Las Vegas. In 1998, Mirage opened the $1.6 billion Bellagio casino/hotel in Las Vegas. Future plans included resorts in Atlantic City.

Hilton Hotels owns, manages, and/or franchises more than 260 hotels around the globe. With its $2 billion purchase of Bally Entertainment in 1996, Hilton became the nation's largest gambling business. Its U.S. gaming assets include casino hotels in Las Vegas and Atlantic City, a riverboat casino in New Orleans, and an interest in a Canadian casino. Among the most well known Hilton properties are The Waldorf-Astoria, Hilton Hawaiian Village, and Palmer House Hilton.