INTRODUCTION

When first identified as a niche market some 30 years ago, outdoor activities vacations were the domain of diehard outdoor types and people who enjoyed pushing their physical capabilities to the limit. That has changed since the late 1980s as the travel industry has come to realize that the majority of consumers, while they might enjoy physically active vacations in the great outdoors, also want some degree of comfort and safety. As a result, Soft outdoor activities such as camping and horseback riding now dominate the outdoor activities vacations market. This report examines the travel spend on outdoor recreation activities. In 2000, consumers spent $82 billion on outdoor activities (up from $64 billion in 1996). The increase in tourism spend on this segment of the travel industry has been triggered by changing demographics-i.e. a greater number of people who are concerned with keeping fit and healthy-and the growing popularity of "activity" holidays.

The travel industry is notoriously sensitive to economic and political instability-as has been witnessed by the six months following the terrorist attacks of September 11. Outdoor activity travel, like all segments of the tourism industry, was affected by the downturn in travel. Recovery is, however, well underway and the long-term outlook for outdoor activities vacations is optimistic. Health conscious Baby Boomers and Echo Boomers, single women and GenXers with young families, are fuelling the demand for active holidays that are challenging, active and fun and within a decade or two, Soft outdoor activities vacations are likely to become mainstream rather than just a niche within the tourism industry as a whole.

OTHER RELEVANT REPORTS

A number of U.S. consumer intelligence reports covering other related sectors have been published, are planned or are in preparation, including:

· Sports Equipment-U.S. Report, October 2002

· Bicycles-U.S. Report, July 2002

· Camping Equipment-U.S. Report, June 2002

· Post-family Leisure Activities-U.S. Report, July 2002

· Student Leisure-U.S. Report, July 2002

· Family Leisure Activities-U.S. Report, May 2002

· Teen Lifestyles-U.S. Report, May 2002

· Pre-family Leisure Activities-U.S. Report, March 2002

· Short Vacations-U.S. Report, March 2002

· Car Rental-U.S. Report, February 2002

· Snow Sports Vacations-U.S. Report, February 2002

· Health and Fitness Clubs-U.S. Report, December 2001

· Summer Camps-U.S. Report, December 2001

· Airlines and Flying Services-U.S. Report, August 2001

· Theme Parks-U.S. Report, July 2001

· Athletic Shoes-U.S. Report, April 2001

· Fitness Clothing- U.S. Report, March 2001

· Cruises- U.S. Report, February 2001

Mintel has also published a number of reports on the UK market that may be of interest to American companies:

· Sports Goods Retailing, Retail Intelligence-European Report, January 2002

· Activities in the Great Outdoors, Leisure Intelligence -UK Report, January 2002

· British Lifestyles 2002, Special-UK Report, January 2002

· Overland Expeditions, Leisure Intelligence-UK Report, November 2001

· Extreme Sports, Leisure Intelligence -UK Report, November 2001

· All-inclusive Holidays, Leisure Intelligence-UK Report, August 2001

· Independent Tour Operators, Leisure Intelligence-UK Report, July 2001

· Holidays-Planning, Buying and Financing Holidays from the UK, Special-UK Report, January 2001

· Special Interest Holidays, Leisure Intelligence-UK Report, December 2000

· Premium Holidays, Leisure Intelligence-UK Report, October 2000

· Snowsports, Leisure Intelligence-UK Report, August 2000

· Inclusive Tours, Leisure Intelligence-UK Report, May 2000

DEFINITION

Outdoor activities travel is a term that is not universally understood. It means different things to different people, companies and organizations. The interpretation of outdoor activities travel can range from anything between taking a walk in the countryside to climbing Mount Everest. It is therefore impossible to compare the number of outdoor activity tourists generated by one country with another, or to compile reasonably accurate worldwide outdoor activity travel statistics unless a uniform definition is applied to all sources of data.

Outdoor activity travel is therefore defined as a leisure activity that takes place in an unusual remote or wilderness destination. It tends to be associated with high levels of activity by the participants, most of it outdoors. Outdoor activities vacationers expect to experience varying degrees of risk, excitement and tranquillity and to be personally tested. In particular they are explorers of unspoiled parts of the planet and also seek personal challenges.

Outdoor activities can be sub-divided into two distinct types: Hard activities andSoft activities.

Hard activity vacations require an element of experience in the activity being undertaken, and because it encompasses an element of risk, participants must be physically and mentally fit. It includes an intimate experience with the environment and culture of the destination. Participants should be prepared for all weather conditions, sleeping arrangements and dietary restrictions. Examples include: climbing expeditions, rock climbing, white water rafting/kayaking and wilderness survival.

Soft activity requires less physical risk, little or no experience, and offers more convenience in terms of sleeping arrangements and cuisine. Many activities are similar to those in the Hard activity category, yet they occur at a less physically demanding level. Soft activity offers a wider range of activities and experiences for the traveler. Examples include: horseback riding, snorkeling, bicycle touring, camping, canoeing, cross-country skiing, dog sledding, surfing, walking tours and wildlife viewing.

It is worth noting that it is not always the activity itself that defines whether or not it is a Hard or Soft outdoor activity, but rather the way in which it is marketed by tour operators and other travel retailers. Thus, a hiking trip through Tuscany, which includes van-to-van transportation for luggage coupled with accommodation at a country inn, would be classified as a Soft outdoor activity. Whereas a hiking trip (sometimes referred to as a trek) in the Chilean Andes, during which participants sleep under canvas or at a rustic lodge, would be a Hard outdoor activity.

In addition, the following activities are included in this report:

Mountain biking includes the use of rugged bicycles that are designed to be ridden on trails, (riders also use them on the street) and through rugged terrain.

Camping includes staying outdoors overnight, typically in a tent. Camping is typically done at National or State parks, in pre-defined areas. RV camping is not included in this definition.

Snowboarding is an activity similar to downhill snow skiing, whereby a board is used rather than two skis. Snowboarding is typically done at a snow mountain resort.

Cross-country skiing includes snow skiing over trails that tend to be situated in state parks, golf courses, around major hotels or in national forests rather than at mountain resorts.

Downhill skiing includes snow skiing at mountain resorts, on hills of varying degrees of difficulty.

Motorcycling includes riding a motorcycle either on dirt or pavement, for pleasure purposes. Riding a motorcycle for transportation purposes is not included in this report.

Rock climbing involves systematically ascending sections of rock. It requires specialist equipment for protection, and knowledge of climbing techniques. The aim is rarely to get to the top of a mountain, but to simply complete the climb, which can be of any distance or duration.

Horseback riding includes riding horses on or off trails for pleasure.

Backpacking involves hiking while carrying all supplies needed along the way. This may include tents for sleeping, or food and safety equipment. Hiking is quite simply a more vigorous form of walking and generally refers to longer walks across-country.

Value figures throughout this report are at retail selling prices (rsp) excluding sales tax unless otherwise stated.

ABBREVIATIONS

ICR International Communications Research

NCS National Consumer Survey (Simmons)

O.A.R.S. Outdoor Adventure River Specialists

SPSS Statistical Package for the Social Sciences

TIA Travel Industry Association of America

TIES The International Ecotourism Society

06/2002