Reported August 18th, 2020
The International Fitness Observatory has estimated, via a survey, that in the US due to the Coronavirus wellbeing crisis, the capital loss of the fitness sector will add up to more than $10bn. With more than 700,000 thousand employees in danger, this information suggests a crisis level.
Over 40% of clubs accept they will no longer have the assets to endure the global emergency for more than 3 months.
IFO – International Fitness Observatory, paired with Egeria, deployed the data collocation survey, composed by Dr. Paolo Menconi, President of the Observatory. 7,400 clubs were targeted.
The USA was at the top of their game, continuously developing with over 64 million club members prior to the pandemic. The industry during 2019, saw a total income of almost $35bn. The drop between those previous figures and now, highlights the severity of the situation.
Numerous clubs (49%) have lost yearly enrollments undoubtedly through a lack of confidence, also indicating a huge dip in the industry’s profits.
“The results of this research indicate that the fitness industry is in a very difficult and unprecedented time. We should not forget this is a sector that has a fundamental social role for the psycho-physical well-being of people and it is able to offer good deals for any budget. It should be protected with serious and concrete structural actions, both for employees and for customers, making it able to get back on its feet and continue to look ahead to the future.“
– Paolo Menconi, President of IFO
Over 70% of clubs have expressed that the safety measures taken so far by the institutions are not adequate enough to help the division financially. They propose the accompanying outgoings as the problem;
- suspensions to business whilst continuing to use power, gas and water is costing 59.59%
- non-refundable/non-repayable financial credits for the industry at the cost of 66.15%
Numbers taken from the data indicate that;
- 20% of clubs state they have financial assets to assist for 5 months
- 35% of clubs fear for their survival
- 40% of clubs may not make it in the upcoming 3 months
- 45% of clubs won’t survive
(1 June 2020 – 20 July 2020 – survey collection period. 7,479 clubs in the USA received the survey. 1,327 opened the email and began responding to the inquiries however they didn’t fill in certain answers. 208 remained anonymous.)
Dr. Paolo Menconi
info@ifo.academy
www.ifo.academy
