Ludsby Leisure Project
Ludsby Leisure Project
Introduction
I have been asked to write a report in order to advice The Leisure and Recreation Committee of the advantages and disadvantages of all of the possible projects that have been drawn up. Also, I have been asked to recommend which two projects would be most suitable for Ludsby New Town to be provided out of their budget.
The information in this report was taken from course notes and statistics from their Planning Officer. This report has to be completed by 18 September 2013.
Findings 1. Background
A new town, Ludsby, is to be built to absorb the overspill population from existing major cities. The new town development corporaton has been set up a Leisure and Recreation Committee, which has been given a budget, and is prepared to pay for only two new leisure facilities in the new town. Therefore, a short-list of five possible choices has been drawn up. They include a swimming pool, a disco, a bingo hall, a cinema and a bowling alley.
2. Population 3.1. Present Population
Information forLudsby Development Corporation shows that the new town will consist of maily young couples, some of them with small children. In addition to this, there will also be a significant number of middle-aged people with teenage children. The only elderly residents will be those who are living with their grown-up children.
3. Slugsby Statistics 4.2. Pool
Statistics supplied by Slugsby New Town show that the building of a swimming town in their area cost £1 million. However, there is an annual loss of £20,000. On average, they have a weekly attendance of: 15-25 year olds – 400 25-50 year olds – 200 Over 50 year olds – 50
4.3. Disco
Statistics supplied by Slugsby New Town show that the building of a disco in their area cost £400,000. They make an annual profit of £70,000. On average, they have a weekly attendance of: 15-25 year olds – 2,000 25-50 year olds – 50 Over 50 year olds – 0 4.4. Bingo Hall
Statistics supplied by Slugsby New Town show that the building of a bingo hall in their area cost £500,000. They make an annual profit of £200,000. On average, they have a weekly attendance of: 15-25 year olds – 500 25-50 year olds – 1,000 Over 50 year olds – 3,000
4.5. Cinema
Statistics supplied by Slugsby New Town show that the building of a Cinema in their area cost £1.5 million. They make an annual profit of £35,000. On average, they have a weekly attendance of: 15-25 year olds – 500 25-50 year olds – 350 Over 50 year olds – 100
4.6. Bowling Alley
Statistics supplied by Slugsby New Town show that the building of a Bowling alley in their area cost £1.6 million. They make an annual profit of £20,000. On average, they have a weekly attendance of:
15-25 year olds – 350 25-50 year olds – 200 Over 50 year olds – 0
4. Advantages 5.7. Swimming Pool
A swimming Pool in the New Town of Ludsby, would benefit the young market of people as many young couples have small children. Also from an education point of view, it would be good to have swimming facilities for all sections of education so that swimming could be available.
5.8. Disco
A disco in this new town would provide many young people with something to do and would be used by mostly teenagers. Therefore, the large numbers of young children in the area would mean that the disco would have a guaranteed source of income as most children would use it as they were to grow up. From a financial point of view, it is the cheapest to build in Ludsby, with an annual profit of £70,000, showing its popularity and therefore over the course of 5 years it will have made its money back.
5.9. Bingo Hall
A bingo hall in this area, would be a risky build because of the few numbers of elder people. Therefore it may be a waste of resources to build this in Ludsby as young children are not likely to use the hall and it would have to rely on the amount of old people living with their grown-up children which in this area could be low. However statistics from Slugsby New Town show a very high annual profit and therefore could still be an option for development.
5.10. Cinema
A cinema in this area would benefit small as well as large families. It could be used to provide a service for all different kinds of age groups and could be used to view many different kinds of products. Also, it could be used as as educational tool for local primary schools and high schools. From Slugby Statistics, it shows that there is a range of people who would use this service if it was to be the same markets using it.
5.11. Bowling Alley
A bowling alley would provide local leisure activities for both children, teeanages and adults to do either as an after school activity or a weekend day out.
5. Disadvantages 6.12. Swimming Pool
A swimming pool in this new town of Ludsby, would cost a lot of money to build and is the third most expensive to build. It also makes an annual loss of £20,000 and therefore may be a very financial risky decision.
6.13. Disco
A disadvantage of building a disco in Ludsby would be that as the children in the town would grow up they may move away to larger cities therefore the weekly attendances would drop and may cause this business to not be succesful. Also it would not be seen as an educational activity and therefore could fail.
6.14. Bingo Hall
A bingo Hall in this area may provide good income whilst the elder generation are in this area however it may run into some difficult financial situations if they were to move away and will therefore be a risky investment.
6.15. Cinema
The building of a cinema in this area would be very costly and it may be difficult for the business to make enough money to pay for itself and could be short on numbers.
6.16. Bowling Alley
A bowling Alley in this area would cost the most to build at £1.6 million, and would only be expected to make an average annual profit of £20.000 which could prove a risky decision.
Conclusion
In conclusion, each potential business investment has advantages and disadvantages and they each have some risk factors. 