Recreation Essay


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Commercial recreation business is a kind of business that entails provision of recreation and leisure while making a profit. The commercial recreation business includes amusement parks, health and fitness clubs, entertainment complexes, parks and resort places. This type of business is flourishing so much in the current world. However there are certain factors that are problematic in the successful running of commercial recreation business. This paper explores five major economic concepts that interfere with the smooth operation of the commercial recreation business.


The first economic concept that affects commercial recreation businesses is the issue about funds. Commercial recreation business is a type of business that requires a lot of funds. It is a business that needs a lot of investment in it in terms of money. To run this kind of business, one must have enough money for development, purchase of facilities and equipment. Payment of workers and general maintenance including security are also considered.

 Lack of enough funds has been the main problem for most people running this kind of business. If one has no enough funds to run the commercial and recreation business, it is more likely that maintenance of the business in terms of replacing worn out facilities and equipment will become a problem. If workers are not paid properly they may decide to steal equipments from the firm. This will eventually lead to closure of the firm because customers will move to better firms. Funds are also needed to keep the firm up to date with more modernized facilities. If the firm is unable to do this, then it means that customers will opt for other firms that have up to date facilities. Lack of funds may also compromise advertisement strategies affecting the business negatively.

Lack of international engagement is an issue that affects the commercial recreation business. Lack of development of international partnerships that provide opportunities for expanding recreation business affects the business in a negative way. As economies continue growing, an interest in leisure based investments in the global market increase. This can only happen if partner in the commercial recreation engages in international engagements. Lack of this would mean that enterprises in this business will lag behind others resulting in losses.

Technology is another economic aspect that can either influence the commercial recreation business positively or negatively. Technology is the foundation that any current business should use for its success. This is however not the case where firms in commercial business fail to use technology to their advantage. Rigidity in decision making that entails embracing new technologies may cause loses to a commercial recreation firm. On the other hand quick decisions that make firms embrace modern technology especially new ones may cost them dearly. This is mostly the case where new technologies have no evidence of successful usage in other areas. Thus technology should be embraced with a lot of caution and relative speed.

Another important economic concept is research. Carrying out research before venturing into something new is vital. Some firms in the commercial recreation business do not carry out research before applying certain components in their firms. As a result of this, they come to discover later that they made the wrong decision and ventures. The problem with this is that when customers realize this they shift to other firms resulting into loses. Bringing back customers is not usually easy because they develop mistrust. This may result in the firm closing down.

The last economic concept is the availability of natural resources for use in the recreation business. Before investors venture in to the commercial business, they should first know whether the attraction sites and facilities are present. They should carry out customer needs analysis and know what customers want. If they don’t invest in areas with equipment and resources that customers will like, then the probability of the business failing is very high.


All these factors influence commercial recreation business in a big way thus each firm trading in such a business should put it as a main priority in its practice to ensure that they remain in market as active competitors.

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