Benefits of Location-Based Entertainment: Economic, Social, Technological

Location-based entertainment (LBE) converges digital interactivity with physical environments, delivering immersive experiences that are both engaging and memorable. It leverages cutting-edge technology, such as virtual reality (VR) and augmented reality (AR), to transform ordinary spaces into exciting realms of exploration and play.

Traditional forms of entertainment are elevated by the LBE model as it offers unique activities that can only be experienced at specific locations.

The rise of LBE has been advantageous for both consumers and businesses. Consumers enjoy enhanced entertainment experiences through an interactive approach that combines leisure with storytelling, gamification, and socialisation.

Businesses, on the other hand, tap into these attractions to drive traffic, encourage longer stays and increase spending. With LBE, brands have the opportunity to build deeper emotional connections with their audience by offering one-of-a-kind experiences that go beyond the screen.

Pioneering a new era of experiential leisure, LBE brings to life the allure of popular media franchises and original concepts through custom-built environments. It also forms a creative solution addressing the over-saturation of digital content, providing a tangible escape for consumers who crave physical involvement and real-world socialising.

The benefits of location-based entertainment for businesses and consumers are reshaping the future of interactive engagement and entertainment.

Economic Impact

The economic impact of location-based entertainment (LBE) extends beyond its immediate appeal, significantly influencing local economies, generating employment opportunities, and contributing to an appreciation in property values.

Boost to Local Economy

Location-based entertainment venues act as pivotal economic drivers for their locales. They attract tourists and encourage local spending, injecting vitality into surrounding businesses. The Grand View Research suggests that the LBE market, valued at USD 3.29 billion in 2022, is expected to surge, signifying robust prospects for local economies.

Job Creation and Employment

LBE establishments are labour-intensive, leading to substantial job creation across various roles, from operational staff to management. The inducement effect magnifies this, as employment opportunities with suppliers and in the community expand due to demand from these enterprises and their employees.

Increased Property Values

The presence of LBE ventures often translates into increased property values. As areas become more desirable due to the entertainment options available, this desirability is reflected in the property market, with sites near these attractions typically commanding a premium.

Social Benefits

Location-based entertainment (LBE) offers unique advantages that foster social cohesion and cultural growth within communities. It is not merely a source of individual amusement but rather a conduit for bringing people together.

Community Engagement

LBE acts as a hub for community interaction, where individuals from diverse backgrounds congregate. Events held in these spaces are often family-friendly, inviting participation from all age groups. They serve as a catalyst for socialising, as people gather for a common purpose, be it entertainment, education, or leisure.

Cultural Enrichment

By incorporating local themes and traditions into experiences, LBE promotes cultural enrichment. These venues become gateways for individuals to immerse themselves in different cultures, whether through thematic rides, cultural festivals, or historically inspired games. This exposure not only entertains but educates attendees about the rich tapestry of the world’s heritage.

Family and Social Bonding

The shared experiences at LBE venues lay the groundwork for strengthening family bonds and social ties. Engaging in group activities and overcoming challenges together contributes to lasting memories and builds stronger relationships. Whether it’s playing AR games or VR experiences, these interactions encourage cooperation and communication among participants.

Technological Advancements

Location-based entertainment (LBE) leverages cutting-edge technology to transform how people interact with entertainment by offering immersive and tailored experiences.

Innovation in Entertainment

As technology evolves, LBE venues integrate novel features like “pick-your-own-outcome” experiences. These technological leaps enable a form of interactivity previously unseen, where guests directly influence the narrative or outcome of their entertainment in real-time.

Enhancements in Experience Realism

With the adoption of technologies such as Virtual Reality (VR) and Augmented Reality (AR), location-based entertainment has significantly enhanced the realism of participant experiences. VR gaming arenas, for instance, utilise advanced display and motion-sensing technologies to create highly immersive environments.

Personalisation of Entertainment

Personalisation has become a cornerstone of LBE, with venues utilising data analytics and machine learning to tailor experiences to individual preferences. This can include adaptive storylines or interactive elements that respond to a participant’s choices, enhancing their engagement and satisfaction.

Business Opportunities

The landscape of location-based entertainment (LBE) offers unique avenues for growth and revenue. Businesses can capitalise on these opportunities through strategic market segmentation, partnership formation, and collaborative promotions.

Niche Market Exploitation

In the realm of LBE, identifying and targeting niche markets opens up significant opportunities for businesses. For instance, Brand Licensing Europe highlights the potential for LBE to tap into specific, passionate consumer segments, delivering bespoke experiences catered to their interests. With the industry expected to grow, these tailored experiences stand to be quite lucrative.

Brand Partnerships and Sponsorships

LBE ventures thrive through strategic brand partnerships and sponsorships. By forging alliances, LBE operators can leverage well-known brands to enhance consumer appeal and drive footfall. Industry reports, like those from Forbes, suggest that businesses incorporating virtual reality (VR) can significantly benefit from such partnerships by providing innovative training solutions.

Cross-Promotional Ventures

Cross-promotional strategies present another pathway for business opportunities within LBE. They integrate various entertainment offerings, such as by featuring a movie-themed experience alongside corresponding merchandising. Evidence points to such strategies increasing overall spend per customer and promoting longer engagement times, as noted by leaders in the LBE design space like.

This synergy between different forms of entertainment amplifies the consumer experience, resulting in a win-win situation for all businesses involved.

Tourism and Attractiveness

In the domain of tourism, location-based entertainment (LBE) significantly bolsters destination appeal, encourages tourists to extend their stays, and attracts a wide-ranging audience.

Destination Appeal

Tourism destinations are escalated in attractiveness by their ability to offer unique and immersive experiences. Destinations that integrate LBE tap into a powerful driver of tourist interest, as such entertainment options often become defining features of a location.

Extended Visitor Stay

The presence of LBE acts as an influential factor prompting visitors to prolong their vacations. A destination rich in entertainment options can lead to higher hotel occupancy rates and longer average stays, as tourists are more likely to remain in the area to experience all that is offered.

Diverse Audience Attraction

An array of location-based entertainment offerings can effectively cater to a diverse demographic. Children, families, couples, and solo travellers each may find unique entertainment experiences tailored to their interests, thus broadening the location’s overall draw.

Health and Wellbeing

Location-based entertainment (LBE) venues offer significant benefits for health and wellbeing. They provide environments where individuals can engage in activities that are not only enjoyable but also contribute positively to their physical and mental health.

Stress Reduction

Location-based entertainment has been shown to play a crucial role in stress reduction. The immersive nature of many LBE activities serves as a form of escapism, allowing individuals to detach from daily stressors. For instance, a visit to a theme park can elicit excitement and joy, stimulating the release of endorphins, which are natural stress-fighters.

Encouragement of Physical Activity

LBEs often require physical involvement, encouraging visitors to be more active. Whether navigating through a laser tag arena or participating in interactive exhibits that require movement, such venues promote a lifestyle of physicality in an enjoyable manner. For children and adults alike, it serves as an engaging alternative to traditional forms of exercise.

Mental Health Benefits

Engagement in activities at LBE venues can have numerous mental health benefits. Recreational arts, for example, are linked to improved mental well-being. This is reflected in the quantified relationship between recreational arts engagement and mental health, as highlighted in a study on BMC Public Health.

Moreover, the social nature of these places allows for increased social interaction and community building, which are key components of good mental health.

Picture of Phil


I’m the resident head of comms and partnerships here at Draw & Code. I work on strategy, sales, marketing and other vital areas at a studio that was founded on a dream and has spent the intervening decade trying to make that dream come true. I believe that immersive and interactive technologies are impacting on our lives and being in the epicentre of this industry makes every day a thrill.

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