Japan's leisure market shrank 2.3 percent in 2001 to 83.07 trillion yen, the third consecutive year of contraction, a semipublic institute said Wednesday in an annual report.

The Institute for Free Time Design noted that the deterioration came despite the launch of two popular theme parks.

The institute called for measures to encourage company employees to take all of their annual leave, arguing this would promote increased consumption and a recovery in the market.

The survey was conducted by a government commission and released in June.

The 2001 result was worse than expected, given the launch of Universal Studios Japan in March and Tokyo DisneySea in September.

In addition, the Sept. 11 terror attacks in the United States left tourists more inclined to travel domestically.

By type of activity, spending on tourism was down 1.6 percent, that on hobbies and recreation fell 1 percent, and sports outlays slipped 3.6 percent.

On the supply side, the business confidence of major leisure service providers in 2001 improved overall to an index reading above minus 30. However, only six of the 17 industries surveyed forecast optimistic prospects for 2002.

If company employees took all of their paid holidays, according to the survey, the economic benefits to be gained would amount to 11.8 trillion yen, or 2.3 percent of gross domestic product.

Regular employees in Japan are allowed to take on average 18 paid holidays a year, but in general take less than half this amount, the institute said.

It also looked into the leisure activities of the estimated 2 million young part-timers who frequently change jobs and are becoming a social phenomenon in Japan.

Compared with students and regular employees in the same age group, part-timers under the age of 30 were found to be spending more of their spare time watching TV programs, socializing with friends and shopping, it said.

This trend might be the result of part-timers' hours, it said, pointing out they often work late at night or irregularly and prefer less expensive activities that they can enjoy at any time.