An Australian fitness body says half the industry has suffered a “total loss” of revenue and Omicron is further derailing the financial growths normally seen in the New Year.
Key points:
- The Weighed Down report found that moving classes online had limited financial benefit for coaches
- Research shows roughly half of industry workers have quit over the course of the pandemic
- Instructors say depiction of facilities as ‘Petri dishes’ for virus is unfair
January is supposed to be a boom period for the fitness industry: this is when many people decide to improve their physical and mental well-being.
IBISWorld, an industry and market research agency, projected in September that industry revenue would fall “significantly” over the next three years, including an estimated 16.2 percent decline this fiscal year.
The “Weighed Down” report revealed that gyms in the $2 billion industry found it difficult to recover between outbreaks as social distancing limited revenue and reduced customer base.
Fitness Australia, a leading body representing more than 25,000 members in the fitness and gym sector, said 50 per cent of its “industry operators reported a total loss of revenue” during forced closures in 2020.
These included personal trainers, exercise professionals, yoga and Pilates teachers, martial arts instructors, and administrators.
Many tried to adjust to virtual classes and equipment rentals, but the report noted that trainers found “limited success with these strategies, generating only about 10 percent of typical revenue through online training.”
The financial forecast from IBISWorld and Fitness Australia would be a post-Delta outbreak challenge: slowing growth would persist for at least three years, but people coming out of lockdown would have an immediate positive impact.
However, like almost every other sector in NSW, the latest outbreak has exceeded expectations.
“The Omicron variant is likely to have a substantial negative effect on the industry,” said Arthur Kyriakopoulos, senior analyst at IBISWorld.
He said the number of cases had “greatly reduced the demand” for exercising in the facility” and reignited anxiety about contracting the virus indoors.
“The timing of the variant has been quite unfortunate as it’s the New Year period and a lot of people’s resolutions tend to be to buy a gym membership.
“However, as we are not currently in lockdown, the demand for gyms is still there and people can still go. The impact of Omicron is unlikely to be as substantial as previous outbreaks.”
But the sector faces another immediate problem currently plaguing the health, hospitality and logistics sectors.
The chief executive of Fitness Australia, now renamed AUSactive, told ABC that at least half of the workers in the industry had quit.
“Research indicates that we have lost more than half of the people who used to work in the industry,” said Barrie Elvish.
“It’s completely understandable. If you’re constantly unable to go to work because your facility is closed or unable to go to a public park or run a training camp due to restrictions… it’s no wonder people have left for a time plus normal workplace”.
Carla Torres, who has been a personal trainer and health coach for 12 years, considered a career change herself.
The Parramatta and Meadowbank-based trainer expected to see a rush of new members in January.
But that has not happened.
He said that many of his clients were canceling sessions due to isolation requirements and that Omicron was making people reluctant to return.
“People feel a bit uncomfortable sharing space with others and even though I wear a mask all the time, clean and spray every surface… some are still concerned about it,” he said.
Elvish attributed some of the industry’s decline to an “unfair and inaccurate” demonization of health facilities as “petri dishes” for the virus.
“Generally speaking, people who go to a gym are much more health-conscious than people who go to a grog shop,” he said.
“And because we’ve experienced so many closures in the last two years, people are doing absolutely everything they can to stay open.”
AUSactive said it was reiterating to its members to enforce their COVID safety policies.
However, not everything is pessimism.
Although incumbent operators are going through a tumultuous period, IBISWorld’s September report found a steady expansion of boutique, functional fitness and “premium” services beyond providing a facility to train.
Becc Cox is overcoming the Omicron outbreak to grow her business as a posing instructor who works with women who participate in bodybuilding competitions.
The bodybuilding and bikini champion was forced to move her entire business online during the Delta outbreak and opened her studio in Mascot yesterday.
Despite preferring in-person training, he said more than 230 people signed up for his online classes last year. Most were in New South Wales, but he also had clients in India and the United States.
She said that people, who may have been putting physical activity on the sidelines during the lockdown, were already signing up to train for competitions later this year.
“I’m almost at capacity already and I haven’t even opened my doors,” said Ms. Cox.
“But I’m a little nervous about COVID 3.0…because if everything shuts down and there are no shows, then I don’t have clients.
“But I’m so excited to be able to have clients in a space.”
However, other trainers like Ms. Torres have no choice but to take advantage of the next wave.
“It’s almost like we’re all putting off our New Year’s resolutions right now,” he said.
“I’m trying to be positive, because otherwise I’m going to sit down and cry.”
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