FBC UPFRONT
Industry Well Positioned for Steady Growth According to 2012 IHRSA Global Report
In May, the International Health,
Racquet & Sportsclub Association (IHRSA) released The 2012 IHRSA Global Report: The State of the Health Club Industry. According to the report, the global
health club industry generated an es- timated $72.7 billion in revenue from more than 133,000 clubs serving 129 million members in 2011. "Led by strong performance in the
I According to the report, the global
Americas, the industry is well posi- tioned for steady growth as consum- ers continue to place a high value on the role health clubs play in improving their health," says Jay Ablondi, IHRSA's executive vice president of global products.
health club industry generated an es- timated $72.7 billion in revenue from more than 133,000 clubs serving 129 million members in 2011. “Led by strong performance in the
The Americas Overall, the markets in North
Americas, the industry is well posi- tioned for steady growth as consum- ers continue to place a high value on the role health clubs play in improving their health,” says Jay Ablondi, IHRSA's executive vice president of global products.
America and South America are faring well in comparison to select European counterparts. Health club membership in the U.S. totaled 51.4 million mem- bers, compared to the 2010 figure of 50.8 million. Usage reached an all-time high of 102.5 visits per member in 2011 as revenue increased by 5% to $21.4 billion. The number of health clubs re- mained relatively unchanged at 29,960 units. With the challenges of a shrinking
The Americas Overall, the markets in North
labour pool in Canada, competition for top-notch employees is very intense, according to David Patchell-Evans, founder and CEO of GoodLife Fitness Clubs, which has nearly 300 clubs making it the largest club chain in the country. “There is high unemployment, but a scarcity of the right people,” he explains. In light of this his company is re-
viewing all of its processes around compensation and bonus structures and is looking at wages internally and in relation to comparable jobs in the marketplace. “Some burgeoning legislation com-
10 Fitness Business Canada July/August 2012
labour pool in Canada, competition for top-notch employees is very intense, ac- cording to David Patchell-Evans, found- er and CEO of GoodLife Fitness Clubs, which has nearly 300 clubs making it the largest club chain in the country. “There is high unemployment, but a scarcity of the right people,” he explains. In light of this his company is re-
ing down the pipe will have far-reach- ing implications operationally,” says
viewing all of its processes around compensation and bonus structures and is looking at wages internally and in relation to comparable jobs in the marketplace. “Some burgeoning legislation com- ing down the pipe will have far-reaching
America and South America are faring well in comparison to select European counterparts. Health club member- ship in the U.S. totaled 51.4 million members, compared to the 2010 fi gure of 50.8 million. Usage reached an all- time high of 102.5 visits per member in 2011 as revenue increased by 5% to $21.4 billion. The number of health clubs remained relatively unchanged at 29,960 units. With the challenges of a shrinking
n May, the International Health, Racquet & Sportsclub Association (IHRSA) released The 2012 IHRSA Global Report: The State of the Health Club Industry.
Industry Well Positioned for Steady Growth According to 2012 IHRSA Global Report
IMAGE: some type of glob-
al growth/earth imagery com- bined with a club or fitness graphic maybe
Patchell-Evans. “These include hu- man rights legislation, Ontarians with Disabilities regulations which took ef- fect in January 2012, and many labour laws. The result will be a very compli- cated landscape for fitness owners to navigate and one with considerable risk.” Skye Kaiss, the director of opera-
tions for two Gold’s Gym in Regina, Saskatchewan, says 2011 was a good year for business, noting that his com- pany’s personal training revenues grew by 25%. “Our goal, for a while, has been to
implications operationally,” says Patchell-Evans. “These include hu- man rights legislation, Ontarians with Disabilities regulations which took effect in January 2012, and many labour laws. The result will be a very complicated landscape for fi tness owners to navigate and one with considerable risk.” Skye Kaiss, the director of opera-
open a third Gold’s Gym in Regina,” he says. “However, the Canadian economy, especially in Saskatchewan, is grow- ing, and so land and construction costs have gone through the roof. Also, our franchise royalties have increased sig- nificantly since we opened our first club in 2006.” “Overall, compared with other sec-
tions for two Gold’s Gym in Regina, Saskatchewan, says 2011 was a good year for business, noting that his com- pany’s personal training revenues grew by 25%. “Our goal, for a while, has been to
tors, the fitness industry has fared well in Canada with most operators experi- encing growth,” says Kaiss. “However, I’d like to see more innovation. It seems that we’ve taken a step back with so many high-volume, low-priced clubs popping up. This model depends on
open a third Gold’s Gym in Regina,” he says. “However, the Canadian economy, especially in Saskatchewan, is grow- ing and so land and construction costs have gone through the roof. Also, our franchise royalties have increased sig- nifi cantly since we opened our fi rst club in 2006.” “Overall, compared with other sec-
tors, the fi tness industry has fared well in Canada with most operators experi- encing growth,” says Kaiss. “However, I’d like to see more innovation. It seems
members not using clubs. That hurts all operators as well as people’s health.” The markets in South America con-
tinue to show positive growth indica- tors. Brazil still ranks high in number of health club locations, second world- wide only to the U.S. Brazil, Argentina, Chile and Uruguay combined, serve 7.2 million members at an estimated 24,000 clubs.
Europe Due largely in part to the economic
that we’ve taken a step back with so many high-volume, low-priced clubs popping up. This model depends on members not using clubs. That hurts all operators as well as people’s health.” The markets in South America con-
environment, select European health club markets have encountered chal- lenges. High VAT rates in Portugal have taken their toll on the nation’s health club industry. Early estimates show a decline of 10 percent in mar- ket size, club count and memberships. Other markets showing a slight decline in performance include Spain, Italy, Ireland and Greece. The U.K. recorded marginal de-
Europe Due largely in part to the economic
clines in total number of health clubs and members. The number of health club decreased slightly from 5,885 to 5,852 units and number of members dropped from 7.4 million to 7.3 million. Although membership in Germany
environment, select European health club markets have encountered chal- lenges. High VAT rates in Portugal have taken their toll on the nation’s health club industry. Early estimates show a decline of 10 percent in mar- ket size, club count and memberships. Other markets showing a slight decline in performance include Spain, Italy, Ireland and Greece. The U.K. recorded marginal declines in total number of health clubs and
tinue to show positive growth indica- tors. Brazil still ranks high in number of health club locations, second world- wide only to the U.S. Brazil, Argentina, Chile and Uruguay combined, serve 7.2 million members at an estimated 24,000 clubs.
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