Economic role of leisure sport in the Central and Eastern European region

Abstract

The aim of our study is to present the economic development of leisure sports in Central and Eastern Europe (CEE), specifically in Hungary. Economic development has brought both a great opportunity and a challenge for service providers in the field of leisure sports. In the theoretical section, a brief overview of 1) the historical and social background of leisure sports in Hungary and CEE, 2) the concepts, markets and value creation of leisure sports, 3) the current situation of leisure sports in Hungary and CEE, and 4) the research on regional leisure sports was provided. Eurobarometer and Eurostat data was collected on physical activity, fitness-club membership, sporting goods and services by COICOP consumption purpose, recreational and sport services, and manufacturing of sports goods between 2010 and 2019 for eight former socialist countries. According to our results, the significant economic growth that these countries experienced during the first decades following the change of political system had a particularly strong impact on the service sector, including leisure sport services. All the factors examined in the region showed an increase. In recreational and sport services, the annual average rate of change between 2015 and 2019 was higher in four countries (Czech Republic, Croatia, Hungary and Slovakia) than the EU28 average. The number of sports-goods manufacturers and their revenues also increased. The Czech Republic and Poland have particularly high numbers of manufacturers, while companies in the Czech Republic and Hungary are achieving record revenues. This significant increase is partly due to the relatively low starting base, but our aim was to present the expected trends in emerging-market countries, which appear to be very positive. Leisure-sports companies need to be prepared for an increase in demand, while public decision-makers need to be prepared to prevent increasing social segregation. In spite of the improved economic circumstances, our results show that people are not becoming more physically active – in fact, the number of people who never participate in sports has increased across the region, which trend can cause significant social problems. Net spending on sports equipment and services has increased, but fewer individuals are spending more. State and nongovernmental sectors also need to step up their activity, as the market alone cannot solve everything.