A snapshot of the fitness industry in Australia

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2 A snapshot of the fitness industry in Australia

3 7 Areas of Focus State of the Nation Economic Contribution of the Fitness Industry Fitness Business Statistics Who are our staff? Who are our members? Typical Expenditure Future of our Industry

4 State of the Nation Adult obesity has doubled over the past two decades. The amount by which child morbid obesity increased between 1997 and 2008 is 68% Halting and reversing this trend is a priority for our government. (4)

5 State of the Nation Almost 60% of Australians aged 15 and above do NOT do enough physical activity (1) Participation in sport and fitness has declined in those aged years from 74% in 2006 to 69% in 2010(5)

6 Economic Contribution Worldwide, the health club industry exceeded 129 million memberships and generated nearly $73 billion (5) In Australia the 2012 annual turnover of the fitness industry is reported to be between $1.2 billion and $1.7 billion ( 6) & (7) Overall it contributes $1.4 billion to Australia s GDP (8) The Australian Fitness Industry is forecast to grow by 5% over the next 5 years

7 Fitness Business Statistics In 2012, estimated 2,557 fitness business sites (10) In 2006, top 5 chains by number were dominated by full-service gyms. In 2012, top 5 included: Curves, Anytime Fitness, Jetts Fitness, Snap Fitness and Step Into Life (12) Price of membership has changed minimally over the last decade (13)

8 Who Are Our Staff? 29,875 registered fitness professionals 68% casually employed (14) Over half are women Almost 2/3 aged 22-39yrs 4% ,747 people employed in yoga and pilates (15)

9 Staffing Concerns Main issue for facility operators is high turnover of staff. Reasons include: Low levels of pay Undesirable hours Lack of a career path Estimated that 10.4% of all fitness professionals will exit the industry in any given year (18)

10 Who Are Our Members? Group Ex, fitness or gym workouts are the 2 nd most popular physical recreation activity behind walking

11 Who Are Our Members? Over 4 million Australians participate in fitness Users are typically female, aged 25-34yrs 45yrs+ age group contributes 27% of revenue (predicted to grow to 30% within 4-5 years) (9)

12 Member Statistics Estimated that member retention and attrition even themselves out. Top 3 factors contributing to member commitment: Access to professional staff (74%) Overall atmosphere of the facility (68%) Availability of machines in working order (67%) 8% of clients were referred out to allied health but 11% were referred in from allied health (16)

13 Typical Expenditure Staff wages: 43% gross expenses Rent: 27% gross expenses Marketing: 5% gross expenses (17)

14 The Future there will be An increase in niche/specialist fitness e.g. Cycle studios, Cross Fit centres, Functional Training studios, Boxing/MMA, Pilates/Yoga etc The offering of blood typing, bodymetric and body feedback technologies An increase in the offering of online programming and coaching An increase in the offering of fitness apps for smart phones The continued demise of the one size fits all approachbusinesses who don t diversify and innovate will struggle to keep up

15 As a United Industry we need to: Lobby government: 1. To recognise the contribution the Industry makes towards GDP 2. To recognise that the Industry plays a significant role in improving the health of the nation 3. Include Cert IV Instructors into the Medicare list of Allied Health Providers 4. Remove GST from Gym Memberships 5. Remove FBT from Gym Memberships

16 References (1) Australia s Health 2012, The Australian Institute of Health and Welfare (2) Australia s Health 2012, The Australian Institute of Health and Welfare (3) Australia s Health 2012, The Australian Institute of Health and Welfare (4) Australia s Health 2012, The Australian Institute of Health and Welfare (5) 2012 Annual Industry Data Survey of the Health and Fitness Club Industry, IHRSA (6) The Australian Fitness Industry Report 2012, Fitness Australia (7) (8) (9) The Australian Fitness Industry Report 2012, Fitness Australia (10) The Australian Fitness Industry Report 2012, Fitness Australia (11) The Australian Fitness Industry Report 2012, Fitness Australia (12) apixdyqzi

17 References (13) Justin Tamsett, Active Management (14) Fitness Industry Workforce Report: Deloitte Access Economics for Fitness Australia (15) SMH, March 4 th Online Yoga may stretch safety (16) The Australian Fitness Industry Report 2012, Fitness Australia (17) The Australian Fitness Industry Report 2012, Fitness Australia (18) Fitness Industry Workforce Report: Deloitte Access Economics for Fitness Australia

18 Download the detailed PDF handout here:

19

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