Fitness industry on the brink of extinction, say gym owners
Gym owners claim that during the previous lockdowns, as many as 25 per cent of gymnasiums failed to reopen, and the current restrictions may lead to dire consequences on the entire industry.
- Dec 31, 2021,
- Updated Dec 31, 2021 1:45 PM IST
As new COVID restrictions are imposed, over 1 lakh fitness industry employees stare at an uncertain future. Gym owners claim that during the previous lockdowns, as many as 25 per cent of gymnasiums failed to reopen, and the current restrictions may lead to dire consequences on the entire industry.
"During last lockdown, we had to pay the fixed charges for electricity. Many employees went jobless. We had to spend huge amount of money on maintenance and we kept paying the taxes. The government refuses to give any rebate on the taxes or the electricity fixed charges during this period of time. Also, over 90 per cent of the gyms are operating in rented accommodations, but there are no guidelines for rebate in rent," said Mahender Agarwal, Managing Director, Energie Fitness to India Today.
There is a worldwide shift in the sector. A November study by ClubIntel of 2,000 US gym members revealed that 54 per cent of those surveyed either froze or cancelled their memberships. By September, when more than 87 per cent of fitness clubs across the US had reopened, 60 per cent of members still didn’t return to gyms while 20 per cent had stopped exercising altogether, as reported by Reuters.
The effect of this was felt last year as the traditional January spike in physical gym memberships pivoted to a rise in online classes considering the importance of maintaining mental and physical health during COVID-19. According to experts, the online shift can permanently change the $32 billion industry.
The fitness lobby group International Health, Racquet, and Sportsclub Association (IHRSA) estimated that as of September 30, 15 per cent of gyms had permanently closed in the US. It also reported losing more than $15 billion in revenue and cut 4,80,000 jobs according to Reuters.
"The government should understand that the gym goers are those who are cautious about their health; hence they will never take a chance to be exposed to COViD. If restaurants can run on 50 per cent occupancy, why can't gymnasiums," said Mahender Agarwal, Managing Director, Energie Fitness.
Industry leaders say the government must call a meeting of the fitness sector to discuss the situation before imposing the lockdown.
"Like any other business enterprise, we can also run on odd-even basis or 50 per cent occupancy. What will we do now. How will we pay our staffers. Where shall we go to earn our livelihoods. The government must act sensibly and consult us before taking such actions," said Dinesh Sharma, CEO, Iron Pumpers Gym chain.
(With inputs from Abhishek Anand)
As new COVID restrictions are imposed, over 1 lakh fitness industry employees stare at an uncertain future. Gym owners claim that during the previous lockdowns, as many as 25 per cent of gymnasiums failed to reopen, and the current restrictions may lead to dire consequences on the entire industry.
"During last lockdown, we had to pay the fixed charges for electricity. Many employees went jobless. We had to spend huge amount of money on maintenance and we kept paying the taxes. The government refuses to give any rebate on the taxes or the electricity fixed charges during this period of time. Also, over 90 per cent of the gyms are operating in rented accommodations, but there are no guidelines for rebate in rent," said Mahender Agarwal, Managing Director, Energie Fitness to India Today.
There is a worldwide shift in the sector. A November study by ClubIntel of 2,000 US gym members revealed that 54 per cent of those surveyed either froze or cancelled their memberships. By September, when more than 87 per cent of fitness clubs across the US had reopened, 60 per cent of members still didn’t return to gyms while 20 per cent had stopped exercising altogether, as reported by Reuters.
The effect of this was felt last year as the traditional January spike in physical gym memberships pivoted to a rise in online classes considering the importance of maintaining mental and physical health during COVID-19. According to experts, the online shift can permanently change the $32 billion industry.
The fitness lobby group International Health, Racquet, and Sportsclub Association (IHRSA) estimated that as of September 30, 15 per cent of gyms had permanently closed in the US. It also reported losing more than $15 billion in revenue and cut 4,80,000 jobs according to Reuters.
"The government should understand that the gym goers are those who are cautious about their health; hence they will never take a chance to be exposed to COViD. If restaurants can run on 50 per cent occupancy, why can't gymnasiums," said Mahender Agarwal, Managing Director, Energie Fitness.
Industry leaders say the government must call a meeting of the fitness sector to discuss the situation before imposing the lockdown.
"Like any other business enterprise, we can also run on odd-even basis or 50 per cent occupancy. What will we do now. How will we pay our staffers. Where shall we go to earn our livelihoods. The government must act sensibly and consult us before taking such actions," said Dinesh Sharma, CEO, Iron Pumpers Gym chain.
(With inputs from Abhishek Anand)