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IHRSA EUROPE UPDATE INDUSTRY RESEARCH


clubs. Additional data and analysis is expected in the forthcoming IHRSA Latin American Market Report.


Europe Collectively, the European health club industry continues to be the largest among all regions, with a market size of US$31.2bn. Europe also has more than 43 million paying members attending nearly 48,000 clubs. However, due largely to the economic


environment, select European health club markets have encountered challenges. High VAT rates in Portugal, for example, have taken their toll on the nation’s health club industry. Early estimates show a decline of 10 per cent in market size, club count and memberships. Other markets showing a slight decline in performance include Spain, Italy, Ireland and Greece. The UK recorded marginal declines


in total number of health clubs and members in the 12 months to 31 March 2011. The number of health clubs decreased slightly from 5,885 to 5,852 units, and the number of members dropped from 7.4 million to 7.3 million. (Note: The Leisure Database Company in the UK released data last month for the 12 months to 31 March 2012, which reveals a more positive picture). Although membership in Germany


decreased from 7.9 million to 7.6 million, the total number of clubs grew by 600 units and 7,304 facilities. But the recession hasn’t hit the


Nordic market as hard as it has other countries, reports Olav Thorstad, CEO of SATS. “Norway is taking the lead in terms of growth and will do better than feared,” he says. “Sweden and Denmark are heading for brighter times and Finland has slow but continued growth. The latter part of 2012 will potentially mean an improved economic environment for the Nordics, supporting increased growth for the industry.” “In spite of challenges, the European


market is home to some of the top- performing club companies,” says Ablondi. “Health City International and Virgin Active, in particular, have achieved signifi cant growth over the past few years.” Health City International increased total number of units from 97 in 2007 to 270 clubs by the end of 2011, while Virgin Active increased revenues from US$484m in 2007 to US$829m in 2011. Meanwhile, competition is increasing in Europe, starting at the lowest price


22 United States


United Kingdom


Germany Japan Spain Italy France South Korea


Brazil Canada


$5,894 $5,282 $5,133 $4,885


$3,349 $3,179 $2,880 $2,568 $2,197


$21,400


NEWS


TOP 10 GLOBAL MARKETS INDUSTRY REVENUE (USD IN MILLIONS) The top 10 countries account for 78% of total industry revenue.


Sources: U.S. - IHR SA analysis; Canada - Industry experts; Asia- Pacific: The 2011 IHR SA International Report: Size & Scope of Key Health Club Markets (Deloitte analysis); Europe -


The 2010 European Health Club Report: The Size and Scope of Leading Markets, The Leisure Database, DSSV


The IHRSA Global Report lists top 10 markets across a number of categories


“EUROPE CONTINUES TO BE THE LARGEST REGION, WITH A MARKET SIZE OF US$31.2BN AND 43 MILLION MEMBERS OF 48,000 CLUBS”


range, says Rasmus Ingerslev, CEO of Fresh Fitness in Denmark. “This will challenge operators in all segments and force them look at what is actually perceived as valuable by their members, how they can reduce costs, and how they can incorporate services that do not add signifi cant cost, such as virtual group exercise,” he explains.


30 IHRSA GLOBAL REPORT | © COPYRIGHT 2012 IHR SA


Asia-Pacific Asia-Pacifi c is home to several global market leaders. Asia generates roughly US$11.2bn in annual revenue from more than 18,000 clubs and 13.5 million members. Meanwhile, with over 3,000 clubs, Australia and New Zealand collectively generate US$2.3bn in revenue from 3.1 million members. While Australia’s health club


industry has remained steady over the past few years, the landscape of the market has been dynamic. Alongside full-service chains, the personal training studios, outdoor fi tness, franchises and 24-hour facilities claim signifi cant market share. The use of technology in the Australian market plays a key role in enhancing member experience and member retention. Although China is a leading global


market, the potential for growth in the fi tness sector remains. With approximately 3.4 million members,


Read Health Club Management online at healthclubmanagement.co.uk/digital


China’s market penetration rate is currently low. Nonetheless, the fi tness market is competitive, with some expecting the smaller commercial club companies to be replaced by small community gyms and large commercial fi tness centres. The full effects of the 2011


IHR SA .ORG


earthquake, tsunami and nuclear disaster in Japan have yet to be seen.


Summary Only time will tell what lasting impact the slowly dwindling fi nancial crisis will have on European markets. However, strong key performance indicators in the Americas and opportunities in the Asia- Pacifi c leave room for future growth.


OBTAIN YOUR COPY


The 2012 IHRSA Global Report: The State of the Health Club Industry is available in both print and PDF format to IHRSA members (US$49.95) and non-members (US$99.95). Please visit: www.ihrsa. org/2012-ihrsa-global-report Questions? Please contact:


Email: store@ihrsa.org Tel: +1 (617) 316-6811


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