According to a survey carried out by the International Fitness Observatory, during the Covid-19 pandemic, over $10bn has been lost and over 700,000 jobs are estimated to be lost.
More than 40 percent of fitness and leisure facilities have expressed that they will not have the financial resources to survive the crisis for another 3 months. This recent data has emerged from the IFO (International Fitness Observatory) explaining how hundreds of thousands of jobs within the fitness industry could be lost by the end of summer. The total economic loss to the United States is Ten Billion Dollars.
Coordinated by Dr. Paolo Menconi, the IFO, in collaboration with Egeria, collected this data from over 7,400 clubs in the United States of America.
Multiple establishments within the industry have seen an increase in primarily short-term membership. Fitness club members within the US reached a staggering 64 million with revenues of up to 35 billion before Covid-19. Currently, only 49% of clubs joined have held onto over half of their annual membership guests.
Research shows that:
35% are unsure of how long they are able to endure
21% claim to have freedom for up to 2 months
20% of clubs say they have the financial resources to last 5 months
40% of clubs will not make it in 4 months
Paolo Menconi, President of IFO, says: “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.”
The collected data suggests that there are insufficient funds remaining to support the industry after virus safety measures have been put into place.
The current loss of finances for 70% of the businesses asked fall into the following categories;
Non-refundable business loans (66.15%)
Bills accumulated without income (59.59%)
Dr. Paolo Menconi
* Methodological note
Each 7-8 minute survey collected between 01.06.20 and 20.07.20 was completed by 7,479 clubs. 208 answered anonymously.